DexCom (NASDAQ:DXCM) Announces Quarterly Earnings Results

DexCom (NASDAQ:DXCM) posted its quarterly earnings data on Thursday. The medical device company reported $0.68 EPS for the quarter, topping analysts’ consensus estimates of $0.65 by $0.03, FiscalAI reports. DexCom had a return on equity of 30.65% and a net margin of 15.96%.The firm had revenue of $1.26 billion during the quarter, compared to analysts’ expectations of $1.25 billion. During the same quarter last year, the business posted $0.45 EPS. The firm’s quarterly revenue was up 13.1% compared to the same quarter last year.

Here are the key takeaways from DexCom’s conference call:

• Broad U.S. rollout of Dexcom G7 15‑day is underway with early market feedback praising longer wear and the company’s best‑to‑date accuracy, and management is actively building awareness to drive adoption.
• Strong Q4 performance—$1.26B revenue (+13% YoY), Q4 gross margin of 63.5%—and a 2025 milestone of >$1 billion free cash flow, ending the quarter with ~ $2B cash after settling convertible notes and a $300M buyback.
• Meaningful upside from expanded access if Medicare covers Type 2 non‑insulin (management cites ~12M lives); Dexcom plans an RCT readout mid‑2026 to support coverage decisions and payer adoption.
• 2026 guidance targets revenue of $5.16–$5.25B (11–13% growth) and 63–64% gross margin, while planned investments—including hiring and the Ireland manufacturing ramp late in 2026—may moderate near‑term OpEx leverage.

DexCom Trading Up 8.4%

DXCM traded up $5.46 during midday trading on Friday, reaching $70.54. 1,816,454 shares of the company’s stock traded hands, compared to its average volume of 5,732,266. The company has a debt-to-equity ratio of 0.45, a current ratio of 1.56 and a quick ratio of 1.38. DexCom has a 52 week low of $54.11 and a 52 week high of $93.25. The stock has a market capitalization of $27.51 billion, a price-to-earnings ratio of 39.19, a P/E/G ratio of 1.22 and a beta of 1.49. The firm has a fifty day moving average of $68.94 and a two-hundred day moving average of $69.88.

Institutional Investors Weigh In On DexCom

Several institutional investors and hedge funds have recently made changes to their positions in the company. Brighton Jones LLC boosted its position in shares of DexCom by 257.7% during the fourth quarter. Brighton Jones LLC now owns 16,582 shares of the medical device company’s stock valued at $1,290,000 after buying an additional 11,946 shares during the last quarter. Freestone Grove Partners LP bought a new position in DexCom during the third quarter valued at approximately $219,000. Integrated Wealth Concepts LLC grew its position in DexCom by 6.3% in the 1st quarter. Integrated Wealth Concepts LLC now owns 3,329 shares of the medical device company’s stock worth $227,000 after purchasing an additional 196 shares during the period. Brown Brothers Harriman & Co. raised its stake in DexCom by 69.4% during the 4th quarter. Brown Brothers Harriman & Co. now owns 3,970 shares of the medical device company’s stock valued at $263,000 after buying an additional 1,626 shares during the last quarter. Finally, Focus Partners Advisor Solutions LLC bought a new position in shares of DexCom during the 4th quarter valued at $868,000. Institutional investors own 97.75% of the company’s stock.

Wall Street Analysts Forecast Growth

Several brokerages have recently commented on DXCM. UBS Group reduced their target price on DexCom from $106.00 to $95.00 and set a “buy” rating for the company in a report on Monday, November 3rd. Canaccord Genuity Group set a $95.00 price target on shares of DexCom in a research note on Friday. Argus cut their price target on DexCom from $100.00 to $90.00 and set a “buy” rating for the company in a research note on Friday, November 7th. Citigroup reaffirmed a “buy” rating and issued a $77.00 price objective (up previously from $75.00) on shares of DexCom in a research note on Thursday, December 11th. Finally, Leerink Partners reaffirmed an “outperform” rating and set a $92.00 price target on shares of DexCom in a research note on Tuesday, December 16th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, DexCom has an average rating of “Moderate Buy” and a consensus price target of $85.05.

More 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)

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.