DexCom, Inc. (DXCM Quick QuoteDXCM - Free Report) is well-positioned for growth in the coming quarters, supported by the significant potential of the continuous glucose monitoring (CGM) market. A strong first-quarter 2026 performance and a strong international foothold are expected to contribute further. Risks related to stiff competition persist.

This Zacks Rank #3 (Hold) company’s shares have gained 8.2% so far this year against the industry’s 16.7% decline. The S&P 500 Index has gained 10.2% in the same time frame.

DXCM, a renowned medical device company and provider of CGM systems, has a market capitalization of $28.34 billion. It projects a 23.5% growth rate over the next five years and anticipates maintaining a strong performance going forward.

DexCom’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 9.37%.

Let’s delve deeper.

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Positive Drivers

Expanding Addressable Market: DexCom’s long-term growth trajectory is anchored in a significant expansion of its addressable market, particularly among type 2 non-insulin patients. Management highlighted that Medicare coverage for this population could unlock access for nearly 12 million additional patients, with private payer coverage already progressing.

Clinical evidence, registry data and upcoming randomized trial readouts further support adoption in this segment. Given strong utilization trends among early adopters, this expansion represents a structural demand driver that could sustain double-digit growth for multiple years.

Solid International Foothold: DexCom continues to focus on international markets, with an emphasis on Europe and other large diabetes geographies where CGM penetration remains low. In first-quarter 2026, international revenue increased 26% year over year on a reported basis and 17% on an organic basis, showing that demand and access expansion remain active outside the United States.

Management outlined a focused international strategy that targets additional market share gains through reimbursement progress and a portfolio that can be matched to local channels, including Dexcom One+ in Europe. The company expects the international launch of the G7 15 Day platform to begin in the second half of 2026, which should support retention and mix as longer wear time becomes the baseline across the product portfolio.

Strong Q1 Results: DexCom exited the first quarter of 2026 on a strong note, supported by solid revenue growth, margin expansion and continued momentum across its CGM portfolio. The company expanded the launch of its G7 15 Day system across all channels in the United States, receiving encouraging feedback from both patients and physicians due to improved accuracy, reliability and extended wear duration. Alongside hardware innovation, DexCom continues to enhance its digital ecosystem, introducing upgraded Smart Meal Logging features within its Stelo platform to drive deeper user engagement and personalization.

Risks

Cutthroat Competition: The market for blood glucose monitoring devices is highly competitive, subject to rapid change and significantly affected by new product introductions. Apart from DexCom, Medtronic and Abbott have received FDA clearance for CGM devices and continue to broaden their commercial reach. Abbott’s FreeStyle Libre franchise competes directly in type 1 and type 2 diabetes, while Medtronic and other third parties have developed, or are developing, insulin pumps integrated with CGM systems that can influence sensor choice in automated insulin delivery.

Some competitors are also developing invasive and non-invasive glucose testing technologies that have the potential to compete with DexCom’s products over time. Senseonics has received FDA clearance for its implantable CGM system, Eversense, with a usable life of up to 365 days, and is pursuing broader integration.

Estimate Trend

DexCom has witnessed a positive estimate revision trend for 2026. In the past 30 days, the Zacks Consensus Estimate for 2026 earnings per share has moved 3 cents north to $2.57.

The consensus mark for the company’s second-quarter revenues is pegged at $1.29 billion, indicating an 11.7% improvement from the year-ago quarter’s reported number. The consensus estimate for second-quarter earnings is pinned at 60 cents per share, implying an improvement of 25% year over year.  

Stocks to Consider

Some better-ranked stocks from the broader medical space are Globus Medical (GMED Quick QuoteGMED - Free Report) , West Pharmaceutical (WST Quick QuoteWST - Free Report) and Intuitive Surgical (ISRG Quick QuoteISRG - Free Report) .

Globus Medical, currently flaunting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

West Pharmaceutical, currently sporting a Zacks Rank #1, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.

WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.

Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.

ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.