DexCom (NASDAQ:DXCM) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

DexCom (NASDAQ:DXCM) announced its earnings results on Thursday. The medical device company reported $0.68 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.65 by $0.03, FiscalAI reports. DexCom had a net margin of 15.96% and a return on equity of 30.65%. The business had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.25 billion.

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 Price Performance

Shares of DXCM traded down $3.07 during trading hours on Thursday, hitting $65.08. The stock had a trading volume of 7,683,761 shares, compared to its average volume of 5,885,386. The company’s fifty day moving average is $68.94 and its two-hundred day moving average is $69.91. 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 $25.38 billion, a price-to-earnings ratio of 36.16, a P/E/G ratio of 1.22 and a beta of 1.49.

Analysts Set New Price Targets

A number of research firms recently weighed in on DXCM. Sanford C. Bernstein reissued an “outperform” rating and set a $86.00 target price (up from $84.00) on shares of DexCom in a research report on Friday, January 9th. UBS Group reduced their price objective on DexCom from $106.00 to $95.00 and set a “buy” rating for the company in a research report on Monday, November 3rd. Leerink Partners reissued an “outperform” rating and set a $92.00 price objective on shares of DexCom in a report on Tuesday, December 16th. TD Cowen cut their target price on DexCom from $100.00 to $84.00 and set a “buy” rating for the company in a research note on Friday, October 31st. Finally, Mizuho raised their target price on DexCom from $75.00 to $78.00 and gave the stock an “outperform” rating in a research report on Wednesday, December 17th. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, five have given a Hold rating and one has issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $85.00.

Insider Buying and Selling

In other DexCom news, Director Richard Alexander Collins sold 2,906 shares of the company’s stock in a transaction dated Friday, November 14th. The shares were sold at an average price of $59.05, for a total transaction of $171,599.30. Following the sale, the director directly owned 35,088 shares of the company’s stock, valued at approximately $2,071,946.40. This represents a 7.65% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. 0.32% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On DexCom

A number of large investors have recently bought and sold shares of DXCM. Brighton Jones LLC lifted 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 worth $1,290,000 after purchasing an additional 11,946 shares in the last quarter. Focus Partners Wealth increased its holdings in shares of DexCom by 13.2% in the first quarter. Focus Partners Wealth now owns 7,218 shares of the medical device company’s stock valued at $493,000 after purchasing an additional 841 shares in the last quarter. Empowered Funds LLC raised its position in DexCom by 5.4% in the 1st quarter. Empowered Funds LLC now owns 8,446 shares of the medical device company’s stock worth $577,000 after purchasing an additional 436 shares during the last quarter. Integrated Wealth Concepts LLC lifted its holdings in DexCom by 6.3% during the 1st quarter. Integrated Wealth Concepts LLC now owns 3,329 shares of the medical device company’s stock worth $227,000 after buying an additional 196 shares in the last quarter. Finally, Vise Technologies Inc. bought a new position in DexCom in the 4th quarter valued at $208,000. 97.75% of the stock is currently owned by institutional investors.

Key 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.)

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.