DexCom (NASDAQ:DXCM) Trading 8.4% Higher After Better-Than-Expected Earnings

DexCom, Inc. (NASDAQ:DXCM) shares were up 8.4% during mid-day trading on Friday following a better than expected earnings announcement. The company traded as high as $71.15 and last traded at $70.5360. Approximately 1,816,454 shares were traded during trading, a decline of 68% from the average daily volume of 5,732,266 shares. The stock had previously closed at $65.08.

The medical device company reported $0.68 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.65 by $0.03. The company had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.25 billion. DexCom had a net margin of 15.96% and a return on equity of 30.65%. The company’s revenue for the quarter was up 13.1% on a year-over-year basis. During the same period last year, the firm earned $0.45 EPS.

Key DexCom News

Here are the key news stories impacting DexCom this week:

• Positive Sentiment: Mizuho raised its price target to $90 and upgraded DexCom to “Outperform,” implying ~38% upside from the $65.08 reference price, signaling stronger analyst conviction. Mizuho raises target to $90 (Benzinga)
• Positive Sentiment: BTIG reaffirmed a “Buy” rating with an $85 target (~31% upside), reinforcing the street’s favorable view after the quarter. BTIG reaffirms Buy $85 (Benzinga)
• Positive Sentiment: Q4 results beat expectations: EPS $0.68 vs $0.65 estimate and revenue $1.26B vs $1.25B estimate; revenue rose ~13.1% YoY and management cited strong demand for continuous glucose monitors — the primary near-term catalyst for revenue and growth. Dexcom beats quarterly estimates (Reuters)
• Positive Sentiment: Product/engagement update: a Stelo AI upgrade aims to deepen consumer metabolic-health engagement — a potential long-term revenue and retention positive if adoption accelerates. Stelo AI upgrade (Yahoo Finance)
• Neutral Sentiment: Earnings call materials and transcripts are available (slides, press release, call transcripts), providing detail on guidance and product cadence — useful for confirming whether upside is sustainable. BusinessWire press release
• Neutral Sentiment: Multiple transcripts and write-ups (Seeking Alpha, Yahoo Finance, Zacks) cover the call—investors should review management commentary on 2026 outlook and margin trajectory to assess sustainability of the beats. Earnings call transcript (Seeking Alpha)
• Neutral Sentiment: Short-interest data reported shows zeros/NaN for February — this appears to be erroneous data and shouldn’t be interpreted as meaningful market positioning. (Internal report)
• Negative Sentiment: Despite the recent beat and analyst bullishness, DexCom has underperformed the broader market over the past year and still trades near levels below its 12‑month high; valuation remains elevated (P/E ~36), so upside depends on sustained revenue/margin improvement and guidance. Analyst targets and context (Barchart)

Analyst Ratings Changes

Several research firms recently commented on DXCM. Mizuho boosted their price objective on shares of DexCom from $78.00 to $90.00 and gave the stock an “outperform” rating in a research report on Friday. BTIG Research reaffirmed a “buy” rating and issued a $85.00 price target on shares of DexCom in a report on Friday. Evercore began coverage on shares of DexCom in a research report on Tuesday, November 25th. They issued an “in-line” rating and a $68.00 price target on the stock. Robert W. Baird set a $82.00 price objective on shares of DexCom in a research note on Friday, October 31st. Finally, Argus reduced their target price on DexCom from $100.00 to $90.00 and set a “buy” rating on the stock in a research note on Friday, November 7th. Two research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, five have given a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat.com, DexCom presently has a consensus rating of “Moderate Buy” and a consensus price target of $85.05.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of DXCM. Ieq Capital LLC lifted its stake in shares of DexCom by 2,223.2% during the 4th quarter. Ieq Capital LLC now owns 145,248 shares of the medical device company’s stock worth $9,640,000 after purchasing an additional 138,996 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC increased its stake in DexCom by 6.9% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 7,999,057 shares of the medical device company’s stock valued at $530,897,000 after purchasing an additional 516,526 shares during the last quarter. Clal Insurance Enterprises Holdings Ltd lifted its position in DexCom by 234.2% during the fourth quarter. Clal Insurance Enterprises Holdings Ltd now owns 20,051 shares of the medical device company’s stock worth $1,331,000 after buying an additional 14,051 shares during the period. Quadrant Capital Group LLC lifted its position in DexCom by 270.8% during the fourth quarter. Quadrant Capital Group LLC now owns 11,433 shares of the medical device company’s stock worth $759,000 after buying an additional 8,350 shares during the period. Finally, Soleus Capital Management L.P. acquired a new stake in DexCom in the 4th quarter worth about $86,088,000. 97.75% of the stock is currently owned by institutional investors and hedge funds.

DexCom Stock Up 9.0%

The firm has a fifty day simple moving average of $68.94 and a 200 day simple moving average of $69.88. The company has a debt-to-equity ratio of 0.45, a quick ratio of 1.38 and a current ratio of 1.56. The company has a market cap of $27.68 billion, a PE ratio of 39.42, a PEG ratio of 1.22 and a beta of 1.49.

DexCom Company Profile

DexCom, Inc is a medical device company that develops, manufactures and distributes continuous glucose monitoring (CGM) systems for people with diabetes. Its products are designed to provide near real-time glucose readings, trend information and alerts to help patients and clinicians manage insulin dosing and reduce hypoglycemia and hyperglycemia. The company’s offerings combine wearable glucose sensors, wireless transmitters and software applications that deliver data to smartphones, dedicated receivers and cloud-based platforms for remote monitoring.

Founded in 1999 and headquartered in San Diego, California, DexCom has focused its business on advancing CGM technology and expanding clinical use beyond traditional insulin-dependent populations.