DexCom (NASDAQ:DXCM) Trading Up 8.4% Following Earnings Beat

DexCom, Inc. (NASDAQ:DXCM)’s stock price shot up 8.4% on Friday following a better than expected earnings announcement. The company traded as high as $71.15 and last traded at $70.5360. 1,816,454 shares traded hands during mid-day trading, a decline of 68% from the average session 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, topping analysts’ consensus estimates of $0.65 by $0.03. DexCom had a return on equity of 32.84% and a net margin of 17.94%.The business had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.25 billion. During the same period last year, the business posted $0.45 earnings per share. The business’s revenue for the quarter was up 13.1% on a year-over-year basis.

Key Stories Impacting DexCom

Here are the key news stories impacting DexCom this week:

• Positive Sentiment: Q4 results beat expectations: DexCom reported $0.68 EPS vs. $0.65 consensus and $1.26B in revenue (≈13% YoY); management reiterated 2026 guidance, supporting near-term outlook. Dexcom beats quarterly estimates
• Positive Sentiment: G7 15‑day sensor rollout and margin gains cited as growth drivers — management pointed to product adoption and improving margins as catalysts for revenue and profitability expansion. G7 rollout drives growth
• Positive Sentiment: Mizuho raised its price target to $90 (outperform), signaling confidence in longer‑term upside and helping buy‑side sentiment. Mizuho price target raise
• Positive Sentiment: BTIG reaffirmed a Buy rating with an $85 target, adding to analyst support that underpins the rally. BTIG reaffirmation
• Positive Sentiment: Product/AI initiative — the Stelo AI upgrade aims to deepen consumer metabolic-health engagement, which could expand recurring usage and ARPU over time. Stelo AI upgrade
• Neutral Sentiment: Analyst activity is mixed overall: several firms maintained or raised targets while at least one adjusted its price target (see below). This creates both support and some variability in near-term expectations. Wall Street analyst targets
• Neutral Sentiment: Trading indicators: intraday volume is notably above the stock’s average, which amplifies price moves but can increase short-term volatility. (Background market data)
• Neutral Sentiment: Short‑interest notices in the data feed show anomalous zero/NaN values and a 0.0 days‑to‑cover figure — the data appears unreliable and should be treated cautiously by traders monitoring short activity.
• Negative Sentiment: Wells Fargo trimmed its price target from $93 to $85 despite keeping an Overweight rating, a modest negative signal that reduces the high‑end analyst consensus. Wells Fargo target cut

Analyst Ratings Changes

A number of equities analysts have weighed in on DXCM shares. Robert W. Baird set a $87.00 target price on shares of DexCom in a research report on Friday. Citigroup reiterated a “buy” rating and issued a $77.00 price objective (up from $75.00) on shares of DexCom in a research note on Thursday, December 11th. UBS Group lowered their target price on shares of DexCom from $106.00 to $95.00 and set a “buy” rating on the stock in a report on Monday, November 3rd. Evercore assumed coverage on DexCom in a report on Tuesday, November 25th. They issued an “in-line” rating and a $68.00 price target for the company. Finally, Leerink Partners reiterated an “outperform” rating and set a $92.00 price objective on shares of DexCom in a research note on Tuesday, December 16th. 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 assigned a Sell rating to the company’s stock. According to data from MarketBeat, DexCom presently has a consensus rating of “Moderate Buy” and a consensus target price of $85.27.

Institutional Investors Weigh In On DexCom

Several large investors have recently added to or reduced their stakes in DXCM. Vanguard Group Inc. raised its holdings in shares of DexCom by 2.3% in the 3rd quarter. Vanguard Group Inc. now owns 49,456,043 shares of the medical device company’s stock valued at $3,327,897,000 after acquiring an additional 1,133,638 shares in the last quarter. Jennison Associates LLC increased its position in shares of DexCom by 9.4% in the second quarter. Jennison Associates LLC now owns 11,517,546 shares of the medical device company’s stock worth $1,005,367,000 after purchasing an additional 994,300 shares during the last quarter. Geode Capital Management LLC raised its stake in DexCom by 0.4% in the fourth quarter. Geode Capital Management LLC now owns 11,006,183 shares of the medical device company’s stock valued at $727,842,000 after purchasing an additional 42,411 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its position in DexCom by 6.9% during 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. Finally, Norges Bank purchased a new position in DexCom in the 4th quarter worth approximately $483,356,000. Institutional investors own 97.75% of the company’s stock.

DexCom Stock Up 7.6%

The stock’s fifty day moving average price is $69.03 and its 200 day moving average price is $69.74. The company has a current ratio of 1.56, a quick ratio of 1.38 and a debt-to-equity ratio of 0.45. The stock has a market cap of $27.31 billion, a P/E ratio of 33.34, a price-to-earnings-growth ratio of 1.17 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.