DexCom (NASDAQ:DXCM) Stock Price Up 8.4% on Earnings Beat

DexCom, Inc. (NASDAQ:DXCM)’s stock price traded up 8.4% on Friday following a stronger than expected earnings report. The stock traded as high as $71.15 and last traded at $70.5360. 1,816,454 shares changed 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 the consensus estimate of $0.65 by $0.03. DexCom had a return on equity of 30.65% and a net margin of 15.96%.The company had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.25 billion. During the same quarter last year, the company posted $0.45 earnings per share. The business’s quarterly revenue was up 13.1% compared to the same quarter last year.

Key Headlines Impacting DexCom

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)

Analysts Set New Price Targets

A number of brokerages have recently issued reports on DXCM. Argus lowered their target price on shares of DexCom from $100.00 to $90.00 and set a “buy” rating on the stock in a research report on Friday, November 7th. UBS Group lowered their price objective on shares of DexCom from $106.00 to $95.00 and set a “buy” rating on the stock in a research report on Monday, November 3rd. Stifel Nicolaus started coverage on shares of DexCom in a research note on Tuesday, October 21st. They issued a “buy” rating and a $85.00 price objective on the stock. Wall Street Zen downgraded shares of DexCom from a “strong-buy” rating to a “buy” rating in a research note on Sunday, November 16th. Finally, Weiss Ratings upgraded DexCom from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Wednesday, February 4th. Two equities research 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 stock. Based on data from MarketBeat.com, DexCom currently has an average rating of “Moderate Buy” and a consensus price target of $85.05.

Institutional Investors Weigh In On DexCom

A number of institutional investors have recently added to or reduced their stakes in DXCM. Ieq Capital LLC lifted its holdings in shares of DexCom by 2,223.2% in the 4th quarter. Ieq Capital LLC now owns 145,248 shares of the medical device company’s stock valued at $9,640,000 after buying an additional 138,996 shares during the period. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC raised its position 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 worth $530,897,000 after acquiring an additional 516,526 shares in the last quarter. Clal Insurance Enterprises Holdings Ltd lifted its holdings in DexCom by 234.2% in the fourth quarter. Clal Insurance Enterprises Holdings Ltd now owns 20,051 shares of the medical device company’s stock valued at $1,331,000 after acquiring an additional 14,051 shares during the period. Quadrant Capital Group LLC boosted its position in shares of DexCom by 270.8% during the 4th quarter. Quadrant Capital Group LLC now owns 11,433 shares of the medical device company’s stock worth $759,000 after purchasing an additional 8,350 shares in the last quarter. Finally, Soleus Capital Management L.P. purchased a new stake in shares of DexCom during the 4th quarter worth $86,088,000. Hedge funds and other institutional investors own 97.75% of the company’s stock.

DexCom Price Performance

The stock’s fifty day moving average price is $68.94 and its 200-day moving average price is $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 firm has a market cap of $27.68 billion, a PE ratio of 39.42, a P/E/G ratio of 1.22 and a beta of 1.49.

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.