DexCom (NASDAQ:DXCM) Announces Earnings Results, Beats Estimates By $0.03 EPS

DexCom (NASDAQ:DXCM) announced its quarterly earnings data on Thursday. The medical device company reported $0.68 EPS for the quarter, beating the consensus estimate of $0.65 by $0.03, FiscalAI reports. The company had revenue of $1.26 billion for 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%.

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 Stock Performance

DXCM traded down $3.07 during mid-day trading on Thursday, reaching $65.08. 7,683,761 shares of the company traded hands, compared to its average volume of 5,885,386. The company’s fifty day moving average price is $68.94 and its 200-day moving average price is $69.91. The stock has a market capitalization of $25.38 billion, a P/E ratio of 36.16, a P/E/G ratio of 1.22 and a beta of 1.49. The company has a quick ratio of 1.38, a current ratio of 1.56 and a debt-to-equity ratio of 0.45. DexCom has a 52-week low of $54.11 and a 52-week high of $93.25.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the stock. BTIG Research cut their price target on shares of DexCom from $109.00 to $85.00 and set a “buy” rating on the stock in a report on Friday, October 31st. Canaccord Genuity Group set a $99.00 price objective on DexCom and gave the company a “buy” rating in a research report on Friday, October 31st. Barclays downgraded DexCom from an “equal weight” rating to an “underweight” rating and cut their target price for the company from $80.00 to $71.00 in a research note on Monday, January 12th. Truist Financial restated a “buy” rating and issued a $82.00 price target (down previously from $94.00) on shares of DexCom in a research note on Monday, November 3rd. Finally, TD Cowen lowered their price target on DexCom from $100.00 to $84.00 and set a “buy” rating on the stock in a report on Friday, October 31st. Two investment 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 stock. Based on data from MarketBeat.com, DexCom currently has an average rating of “Moderate Buy” and a consensus target price of $85.00.

More DexCom News

Here are the key news stories impacting DexCom this week:

• Positive Sentiment: Q4 results beat revenue and EPS estimates, driven by strong demand for its continuous glucose monitoring systems — supports revenue momentum and margin strength. Dexcom beats quarterly estimates on strong demand for glucose monitors
• Positive Sentiment: Company-reported Q4 results: $0.68 EPS vs. $0.65 consensus and $1.26B revenue vs. $1.25B est.; healthy net margin and ROE — an earnings beat that validates guidance execution. DexCom (DXCM) — MarketBeat summary of earnings
• Positive Sentiment: Official press release with full Q4 and FY2025 financials — useful for investors reviewing guidance, cash flow and segment detail. Dexcom Reports Fourth Quarter and Fiscal Year 2025 Financial Results
• Positive Sentiment: Stelo AI upgrade announcement aims to deepen consumer metabolic-health engagement — strategic product/engagement initiative that could increase stickiness and recurring revenue. DexCom Stelo AI Upgrade Aims To Deepen Consumer Metabolic Health Engagement
• Neutral Sentiment: Analyst coverage roundup: many Wall Street analysts remain constructive with price targets above current levels, indicating continued analyst support even after recent weakness. What Are Wall Street Analysts’ Target Price for DexCom Stock?
• Neutral Sentiment: Pre-earnings coverage and previews from financial outlets (Benzinga, Yahoo, Sharewise) anticipated the report — no new negative signals from previews themselves. Earnings Preview: DexCom — Benzinga
• Neutral Sentiment: Short-interest notices in recent summaries show anomalous/zero values (reporting oddities); current public filings should be checked for accurate short-interest trends before drawing conclusions. (No direct article link provided.)

Insider Activity at DexCom

In related news, Director Richard Alexander Collins sold 2,906 shares of DexCom stock in a transaction on Friday, November 14th. The stock was sold at an average price of $59.05, for a total value of $171,599.30. Following the completion of the sale, the director owned 35,088 shares of the company’s stock, valued at $2,071,946.40. The trade was a 7.65% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. 0.32% of the stock is owned by insiders.

Institutional Investors Weigh In On DexCom

A number of large investors have recently made changes to their positions in DXCM. Brighton Jones LLC increased its position in shares of DexCom by 257.7% during the 4th quarter. Brighton Jones LLC now owns 16,582 shares of the medical device company’s stock valued at $1,290,000 after purchasing an additional 11,946 shares during the last quarter. Integrated Wealth Concepts LLC grew its position in DexCom by 6.3% during the first quarter. Integrated Wealth Concepts LLC now owns 3,329 shares of the medical device company’s stock valued at $227,000 after buying an additional 196 shares during the period. Empowered Funds LLC grew its position in DexCom by 5.4% during the first quarter. Empowered Funds LLC now owns 8,446 shares of the medical device company’s stock valued at $577,000 after buying an additional 436 shares during the period. Focus Partners Wealth increased its holdings in DexCom by 13.2% during the first quarter. Focus Partners Wealth now owns 7,218 shares of the medical device company’s stock valued at $493,000 after buying an additional 841 shares during the last quarter. Finally, NewEdge Advisors LLC raised its position in DexCom by 1.4% in the second quarter. NewEdge Advisors LLC now owns 19,253 shares of the medical device company’s stock worth $1,681,000 after acquiring an additional 258 shares during the period. 97.75% of the stock is currently owned by institutional investors.

About DexCom

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.