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DexCom Stock Declines Following Strong Preliminary Q4 Results

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Key Takeaways

  • DXCM reported preliminary Q4 2025 revenues of about $1.26B, up 13% YoY and above consensus estimates.
  • DXCM saw U.S. revenues grow 11% and international sales rise 18%, driving full-year revenue growth of 16%.
  • DXCM expects 2026 revenues of $5.16-$5.25B, with margins improving on higher volumes and G7 expansion.

DexCom, Inc. (DXCM - Free Report) reported strong preliminary results for the fourth quarter and full-year 2025. Despite the robust preliminary results, the company’s shares have lost nearly 2.5% since the announcement on Monday.

The company is scheduled to release its fourth-quarter 2025 results on Feb. 12, 2026.

Per the preliminary report, DexCom achieved fourth-quarter 2025 total revenues of approximately $1.26 billion, a 13% increase from the same period in 2024. However, the Zacks Consensus Estimate of $1.25 billion lies below the preliminary figure.

U.S. revenues reached approximately $892 million, representing 11% growth year over year, while international revenues rose 18% to around $368 million.

DXCM’s Full-Year 2025 Preliminary Results

Per the preliminary report, total revenues for the full year are estimated to be $4.66 billion, up 16% from the comparable 2024. The Zacks Consensus Estimate is pegged at $4.64 billion, which lies below the preliminary figure.

The company estimates adjusted gross profit margin and adjusted operating margin of approximately 61% and 20-21%, respectively, for the full year 2025. Third-quarter gross margin was impacted primarily by elevated manufacturing scrap rates and higher freight costs. In contrast, OpEx leverage has offset much of the gross margin pressure during 2025, allowing DexCom to achieve overall margin expansion for the year.

The company expects scrap rates to continue supporting a return toward more normalized margin levels. The reiterated confidence in long-term gross margin expansion, driven by manufacturing improvements, lower complaint rates and the rollout of higher-margin products such as the G7 15-day system, which is expected to have a meaningful margin benefit in 2026 and beyond.

A Brief 2026 Outlook

DexCom provided a positive outlook for 2026, projecting total revenues of $5.16-$5.25 billion, representing an estimated growth of 11-13% over 2025. The company also anticipates adjusted gross profit margin to improve in the range of 63-64% and adjusted operating margin to approximately 22-23%.

The outlook reflects expected sensor volume growth supported by rising CGM adoption among people with diabetes, the ongoing expansion of Stelo, continued growth in international markets and broader industry trends.

DexCom is closing 2025 with solid performance, delivering revenues above its guidance and successfully initiating the launch of its newest G7 15-day system. Strengthening clinical momentum across the CGM market positions the company to sustain its leadership position and extend growth in 2026 through continued innovation and the generation of clinical evidence.

DexCom’s Price Performance

Shares of the company have gained 3.6% in the past three months compared with the industry’s 6.3% rise and the S&P 500’s 5.2% gain.

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DXCM’s Zacks Rank & Stocks to Consider

Currently, DexCom carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are AtriCure (ATRC - Free Report) , Boston Scientific Corporation (BSX - Free Report) and Cardinal Health, Inc. (CAH - Free Report) .

AtriCure, currently flaunting a Zacks Rank #1 (Strong Buy), has an estimated earnings growth rate of 64.2%. The company beat earnings estimates in the trailing four quarters, the average surprise being 67.1%. You can see the complete list of today’s Zacks #1 Rank stocks here.

AtriCure’s shares have gained 11.6% against the industry’s 6.8% decline in the past three months.

Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, has an estimated long-term growth rate of 16.4%. BSX’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 7.4%.

Boston Scientific’s shares have lost 9.3% compared with the industry’s 6.8% decline in the past three months.

Cardinal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 13.9%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 9.4%.

Cardinal Health has gained 36.5% compared with the industry’s 12.2% rise in the past three months.

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