DXCM changes
Pick any two versions below to diff them.
- Price
- $80.35
- Discount category
- Close to intrinsic value
- Next earnings
- Feb 11, 2027
- Next earnings is estimate
- Yes
- Company name
- added: Dexcom
- Sector
- added: Glucose monitoring medical devices
- About
- added: DexCom, Inc. (Dexcom) is a maker of continuous glucose monitoring systems for people with diabetes. It is based in San Diego, California. Its products include the Dexcom G7 system, the Dexcom G7 15 Day system, which began to roll out in late 2025, and Stelo, a biosensor that it launched in August 2024 for adults with prediabetes and type 2 diabetes who do not use insulin. In 2025, revenue was $4,662.0 million. In the first nine months of 2026, revenue was $3,844.8 million and net income was $723.7 million. In Q3 of 2026, revenue in the United States grew 14% and revenue abroad grew 5%. Jake Leach is President and Chief Executive Officer. The company files 10-K and 10-Q reports with the SEC, and its common stock trades on Nasdaq in US dollars.
- Thesis
- added: The price of Dexcom depends on whether revenue keeps growing at a double-digit pace while the operating margin rises toward the targets of the company, and on how its lawsuits end. In Q3 of 2026, revenue rose 11% to $1.344 billion, GAAP operating income was $327.2 million, which is 24.3% of revenue, and the non-GAAP operating margin was 25.3%. The company raised its guidance for 2026 to revenue of $5.20 billion to $5.25 billion and a non-GAAP operating margin of about 24%, and it announced a buyback of up to $1.0 billion. At its Investor Day on May 14, 2026, it set targets of organic revenue growth of 10% or more every year through 2030 and a non-GAAP operating margin of 29% to 30% in 2030. For the price to hold or rise, three things must be true. Growth must stay above 10%, which needs the new G7 15 Day system, the Stelo product and more users of type 2 diabetes who do not use insulin. Growth abroad, which was 5% in Q3, must improve. The legal cases, which include a securities class action, derivative actions and a class action about the G6 and G7 systems, must end without a large cost. The next tests are the Q4 report with the guidance for 2027, expected in early 2027, and each ruling in the legal cases.
- Risks
- added: Lawsuits can lead to large costs. The Form 10-Q lists a securities class action that is on appeal, several derivative actions, and the G6 and G7 Class Action Litigation. The company says that it cannot estimate the outcome of any of them. Growth abroad is slow. International revenue grew 5% in Q3, against 14% in the United States. The targets need growth of 10% or more every year. The margin gain must continue. The non-GAAP operating margin guidance is about 24% for 2026, and the target for 2030 is 29% to 30%. A slower rise in gross margin or higher costs would delay it. The convertible notes will need cash or shares. The notes of $1.25 billion fall due on May 15, 2028, and the conversion price is $162.41 per share. The company can pay in cash, shares or both. Share-based pay is a large cost. It was $119.1 million in the nine months, and the company does not add it back to its non-GAAP operating income.
- Balance sheet
- added: At September 30, 2026, Dexcom held $1.82 billion in cash, cash equivalents and marketable securities. Its revolving credit facility is undrawn. Its only debt is $1.25 billion of 0.375% convertible senior notes due May 15, 2028, with a carrying value of $1,243.7 million. The conversion price is $162.41 per share, and the company may settle in cash, shares or both. The notes add 7.7 million shares to its diluted count. There were 372,950,922 shares of common stock outstanding at October 22, 2026. The company announced a new buyback authorization of up to $1.0 billion on October 29, 2026. As of Sep 30, 2026.
- Checkpoints
- added: Feb 11, 2027 (estimate): Q4 2026 results and guidance for 2027. Pending. Watch: Revenue for 2026 lands in the guided range of $5.20 billion to $5.25 billion and the guidance for 2027 keeps growth near 10% or more with a higher operating margin, and this passes; slower growth or a flat margin fails. Q2 2027 (estimate): Q1 2027 results: growth abroad. Pending. Watch: International revenue growth rises above the 5% of Q3 2026 and total growth stays above 10%, and this passes; slower growth fails.
- Recent events
- added: Oct 29, 2026: Dexcom reported Q3 2026 results. Revenue rose 11% to $1.344 billion, GAAP net income was $275.1 million, or $0.72 per diluted share, and non-GAAP net income was $275.0 million, or $0.73 per diluted share. The company held $1.82 billion in cash, cash equivalents and marketable securities, and its revolving credit facility is undrawn. Oct 29, 2026: Dexcom announced a share repurchase authorization of up to $1.0 billion. It raised the midpoint of its revenue guidance for 2026 to $5.20 billion to $5.25 billion, and it raised its non-GAAP operating margin guidance to about 24%. Oct 29, 2026: After the quarter, a randomized trial named CONNECT, which tested the Dexcom G7 in people with type 2 diabetes who do not use insulin, was published in The New England Journal of Medicine. In Q3, Dexcom launched a redesigned Stelo experience, and it won its first two international clearances of the G7 15 Day system. Sep 10, 2026: Dexcom increased its board to thirteen directors and appointed Glenn S. Boehnlein as a director. He joins the Operations and Innovation Committee and the Audit Committee. May 14, 2026: At its 2026 Investor Day, Dexcom set long-range targets of organic revenue growth of 10% or more every year through 2030, a non-GAAP gross margin of 67% to 69%, a non-GAAP operating margin of 29% to 30% and an adjusted EBITDA margin of 36% to 37% in 2030.