Free Trial

DexCom Stock: Earnings Beat and New Market Access Drive Bull Case

dexcom-stelo-photography-pred-makinglunch-sensor-closeup   ckkw6pqc9btjp7bhr5rnxqt Source: DexCom Media Kit

Key Points

  • DexCom reported healthy revenue growth and a record of new customer acquisitions, demonstrating strong market demand and successful strategic execution.
  • Ongoing product innovation is set to broaden patient access and drive further adoption.
  • Management's confident full-year guidance and strategic investments underscore a strong belief in the company's sustained growth trajectory and market leadership.
  • Five stocks we like better than DexCom.

DexCom, Inc. NASDAQ: DXCM has once again demonstrated its formidable position in the continuous glucose monitoring (CGM) market, delivering outstanding first-quarter 2025 financial results that underscore its sustained momentum. The company's performance, driven by strong product demand, successful innovation, and strategic market access expansion, strongly supports an ambitious trajectory for the remainder of 2025, indicating a clear path towards further solidifying its leadership in diabetes technology.

DexCom's Strong Start to an Ambitious Year

DexCom Today

DexCom, Inc. stock logo
DXCMDXCM 90-day performance
DexCom
$83.35 +1.82 (+2.24%)
As of 05/7/2025 03:59 PM Eastern
This is a fair market value price provided by Polygon.io. Learn more.
52-Week Range
$57.52
$132.26
P/E Ratio
58.29
Price Target
$98.11

DexCom’s earnings report for the first quarter of 2025 revealed substantial revenue growth reaching $1.036 billion, a 12% increase reported and a 14% organic rise year-over-year. This marks the second consecutive quarter of accelerating revenue growth. Organic revenue, excluding foreign exchange and non-CGM impacts, was $1.046 billion.

The U.S. market was a key driver, with revenue increasing by 15% to $750.5 million, indicating strong domestic demand. International markets also contributed significantly, with a 7% reported and a 12% organic revenue growth to $285.5 million.

A notable achievement was the record number of new customer starts, particularly within the Type 2 non-insulin using population. This highlights the expanding adoption of CGM technology across a broader patient base. CEO Kevin Sayer stated in the earnings call that DexCom achieved strong revenue results and secured significant new Type 2 coverage in the first quarter.

This strong performance occurred despite short-term supply challenges from a prior sensor shipment issue. DexCom prioritized customer care through proactive communication, which helped normalize channel inventory levels by the end of Q1 2025.

In terms of profitability, Q1 2025 GAAP operating income was $133.7 million (12.9% of revenue), and Non-GAAP operating income was $143.1 million (13.8% of revenue). The company also reported an adjusted EBITDA of $230.4 million, representing 22.2% of revenue.

DexCom's Innovation Engine Powers Market Expansion

DexCom’s market leadership is supported by key innovations and expanded access. The Dexcom G7 15-Day system, cleared by the FDA after Q1 2025, is set to launch in H2 2025 with extended wear time and improved accuracy. The Stelo OTC biosensor, launched in Q1 2025 and available on Amazon NASDAQ: AMZN, has attracted over 200,000 app downloads with growing use among people with Type 2 diabetes, prediabetes, and wellness-focused users.

Crucially, DexCom has expanded coverage: as of January 2025, two major PBMs now cover Dexcom CGM for all diabetes patients, with a third adding G7 coverage in Summer 2025. This could extend CGM access to nearly six million Type 2 non-insulin users by year-end, supported by an ongoing clinical trial. International growth is also accelerating, especially in Japan and France, via the Dexcom One platform.

DexCom's 2025 Guidance Reflects Strategic Confidence

DexCom maintains a strong outlook, reiterating its full-year 2025 revenue guidance of $4.60 billion, representing an approximate 14% increase over 2024. The launch of the Stelo OTC device is projected to contribute 2-3% to this growth.

DexCom MarketRank™ Stock Analysis

Overall MarketRank™
94th Percentile
Analyst Rating
Moderate Buy
Upside/Downside
17.7% Upside
Short Interest Level
Healthy
Dividend Strength
N/A
Environmental Score
-0.76
News Sentiment
0.74mentions of DexCom in the last 14 days
Insider Trading
Selling Shares
Proj. Earnings Growth
21.18%
See Full Analysis

While the revenue target is unchanged, DexCom has revised its Non-GAAP gross profit margin guidance to approximately 62%, a decrease from the previous 64-65% range. This adjustment is attributed to near-term investments aimed at supporting long-term expansion. These investments include the effects of Q1 results focused on customer supply, ongoing expedited freight costs to quickly replenish internal inventory to a 60-90 day supply to meet rising demand, and proactive planning for potential indirect tariff impacts on supply expenses and foreign exchange rate volatility.

Notably, the company reaffirmed its Non-GAAP operating margin guidance at approximately 21% and its adjusted EBITDA margin guidance at approximately 30%. This highlights DexCom's ability to effectively control overall expenses and leverage operational efficiencies, including the incorporation of artificial intelligence (AI) and robotics, to mitigate the anticipated pressure on gross margins. Management indicated plans for significant operating expense investments exceeding $100 million for the year, while still achieving these margin targets.

Demonstrating confidence in its intrinsic value and strong cash generation, DexCom announced a new $750 million share repurchase program on May 1, 2025. The company concluded the first quarter with a substantial $2.7 billion in cash, cash equivalents, and marketable securities, providing considerable financial resources for strategic endeavors.

Why DexCom's Growth Narrative Is Just Beginning

DexCom's first-quarter performance and strategic initiatives provide a compelling picture of a company firmly in control of its market and its future. The combination of financial execution, a pipeline brimming with impactful innovations, the strategic expansion of the Stelo platform, and transformative market access wins positions DexCom for sustained, healthy growth.

The company's ambitious yet well-supported 2025 guidance, even as it makes strategic investments impacting near-term gross margins, reflects a confident leadership team. DexCom appears poised not only to maintain but also expand its dominance in the rapidly evolving and increasingly vital diabetes technology landscape, offering a strong outlook for investors monitoring this dynamic sector.

Should You Invest $1,000 in DexCom Right Now?

Before you consider DexCom, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and DexCom wasn't on the list.

While DexCom currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

10 "Recession Proof" Stocks That Will Thrive in Any Market Cover

Which stocks are likely to thrive in today's challenging market? Enter your email address and we'll send you MarketBeat's list of ten stocks that will drive in any economic environment.

Get This Free Report
Jeffrey Neal Johnson
About The Author

Jeffrey Neal Johnson

Contributing Author

Retail and Technology Stocks

Like this article? Share it with a colleague.

Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
DexCom (DXCM)
4.6998 of 5 stars
$83.35+2.2%N/A58.29Moderate Buy$98.11
Amazon.com (AMZN)
4.8232 of 5 stars
$188.71+2.0%0.11%34.12Moderate Buy$244.09
Compare These Stocks  Add These Stocks to My Watchlist 

Featured Articles and Offers

Recent Videos

3 Sectors With Massive Momentum You Can’t Afford to Miss
Palantir’s Big Moves: Profit-Taking, Price Targets & AI Potential
Buy Early: 3 Tech Trends With Millionaire-Making Potential

Stock Lists

All Stock Lists

Investing Tools

Calendars and Tools

Search Headlines