DEXCOM INC (DXCM)

Price—Loading quote

AI: Fair-priced

Price checkThe shares look fairly priced because strong growth offsets demanding profit and cash multiples.

At the latest completed session before the research time, Dexcom closed at $89.75 on August 14, valuing its shares at about $33.87 billion. Trailing four-quarter net income was about $1.00 billion; Google Finance reported $2.52 per share, making the price 35.6 times earnings. Free cash flow—cash left after operations and equipment spending—was about $1.41 billion, a 4.1% yield. A simple cash-flow model gives roughly $85-$92 per share, so the price is reasonable but leaves little safety margin.

Big pictureRecurring sensor demand is durable, but the price still assumes years of steady expansion.

Revenue rose from $1.93 billion in 2020 to $4.66 billion in 2025, with no annual decline; the latest four quarters reached $4.97 billion. Diabetes monitoring is recurring because users replace sensors, so demand should be less tied to recessions than elective devices. Operating cash rose from $989.5 million in 2024 to $1.44 billion in 2025; after equipment spending, free cash flow rose from $630.7 million to $1.08 billion, then reached $1.41 billion over the latest four quarters. Annual sales growth slowed to 11.3% in 2024 before recovering to 15.6% in 2025.

Business strengthMargins, cash generation, and the balance sheet have strengthened while the share count has fallen.

Second-quarter operating profit reached 24.3% of revenue, up from 18.4% a year earlier, while net income rose 39%. At June 30, current assets of $4.09 billion covered current liabilities of $2.36 billion. Company-reported cash and marketable securities totaled $1.95 billion; against $1.25 billion of 2028 notes, this suggests modest net cash. Buybacks totaled $1.94 billion during 2023-2025, and shares fell from 390.7 million at 2024 year-end to 377.4 million. That more than offset dilution, although 2025 stock pay of $159.6 million remains a real shareholder cost.

What could change the storyNew users and wider access could justify the price, while slowing adoption would expose it.

The bull case strengthens if Stelo adoption, international expansion, and insurance access sustain at least 10% annual sales growth through 2030 while operating profit excluding selected costs reaches management’s 29-30% target. The bear case appears if 2026 revenue misses $5.18-$5.25 billion or growth slips below double digits before margins mature. The $85-$92 cash-flow range assumes 10-12% annual cash growth for five years, 4% thereafter, a 10% required return, and about $0.7 billion net cash. Small changes to those assumptions move value sharply.

$89.75 price considered

AI: News

Second-quarter beatRevenue and profit beat expectations, while higher guidance showed better growth and manufacturing efficiency.

On July 30, Dexcom reported second-quarter revenue of $1.308 billion, up 13%, and adjusted earnings of $0.70 a share versus the $0.61 analyst estimate. It raised 2026 revenue guidance to $5.18-$5.25 billion and projected a 23.5-24% adjusted operating margin. Shares rose more than 12% on July 31, according to MT Newswires. The reported reaction plausibly reflected the earnings beat and higher outlook, especially because wider margins increase the cash produced by each sales dollar.

Stelo pediatric clearanceStelo’s new clearance expands its market to children who do not use insulin.

On June 12, the Food and Drug Administration cleared Stelo for people aged two and older who do not use insulin, expanding its earlier adult-only, prescription-free label. This widens Dexcom’s potential users to children with prediabetes or type 2 diabetes and could support earlier, consumer-led monitoring. No revenue estimate or reliable stand-alone stock reaction was identified. The value effect therefore remains uncertain and depends on adoption, pricing, and whether families or insurers pay.

Targets and larger buybackNew long-term targets and a larger buyback raised the rewards and execution stakes.

On May 14, Dexcom set targets of more than 10% yearly sales growth through 2030 and a 29-30% adjusted operating margin, while authorizing up to $1 billion of share repurchases through June 2027. Benzinga reported the shares up 7.23% at $62 during May 15 trading. That rise is consistent with a favorable reception but does not prove these announcements were the sole cause. The targets create clear tests for whether today’s valuation can be supported.

Revenue

2018

2019

2020

2021

2022

2023

2024

2025

Net income

2018

2019

2020

2021

2022

2023

2024

2025

Free cash flow

2018

2019

2020

2021

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2018

2019

2020

2021

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009
Revenue	$4.66B	$4.03B	$3.62B	$2.91B	$2.45B	$1.93B	$1.48B	$1.03B	$718.5M	$573.3M	$402.0M	$259.2M	$160.0M	$99.9M	$76.3M	$48.6M	$29.7M
Gross profit	$2.80B	$2.44B	$2.29B	$1.88B	$1.68B	$1.28B	$931.5M	$663.9M	$492.1M	$378.4M	$278.4M	$176.3M	$100.1M	$46.6M	$35.9M	$18.4M	$3.7M
Research & development	$599.1M	$552.4M	$505.8M	$484.2M	$517.1M	$359.9M	$273.5M	$199.7M	$185.4M	$156.1M	$137.5M	$69.4M	$44.8M	$38.3M	$29.6M	$23.2M	$14.3M
Operating expenses	$1.89B	$1.84B	$1.69B	$1.49B	$1.41B	$980.6M	$789.2M	$850.2M	$534.6M	$442.3M	$335.5M	$197.8M	$129.0M	$102.3M	$80.7M	$63.7M	$49.5M
Operating income	$911.8M	$600.0M	$597.7M	$391.2M	$265.8M	$299.5M	$142.3M	−$186.3M	−$42.5M	−$63.9M	−$57.1M	−$21.5M	−$28.9M	−$55.7M	−$44.8M	−$45.3M	−$45.8M
EBITDAderived	$1.16B	$817.7M	$783.7M	$547.1M	$367.8M	$366.6M	$191.0M	−$157.2M	−$26.4M	−$48.9M	−$46.3M	−$13.1M	−$21.9M	−$49.1M	−$41.0M	−$42.9M	−$43.5M
Net income	$836.3M	$576.2M	$541.5M	$341.2M	$216.9M	$549.7M	$101.1M	−$127.1M	−$50.2M	−$65.6M	−$57.6M	−$22.4M	−$29.8M	−$54.5M	−$44.7M	−$55.2M	−$53.5M
Basic EPSper diluted share	$2.14	$1.46	$1.40	$0.88	$0.56	$1.46	$1.11	-$1.44	-$0.58	-$0.78	-$0.72	-$0.30	-$0.42	-$0.79	-$0.68	-$0.97	-$1.21
Diluted EPSper diluted share	$2.09	$1.42	$1.30	$0.82	$0.53	$1.33	$1.10	-$1.44	-$0.58	-$0.78	-$0.72	-$0.30	-$0.42	-$0.79	-$0.68	-$0.97	-$1.21

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$1.00M disclosed value

Sells (SEC code S)57$18.52M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 15, 2026Form 4 · 10b5-1	Brown Michael JonEVP Chief Legal Compliance Off	SellCommon Stock	1.7K	$75.55	$128.4K	106.4K
Jun 15, 2026Form 4 · 10b5-1	FOLETTA MARK GDirector	SellCommon Stock · indirect	199	$74.82	$14.9K	52.9K
Jun 15, 2026Form 4 · 10b5-1	FOLETTA MARK GDirector	SellCommon Stock · indirect	3.8K	$74.10	$281.7K	53.1K
Jun 4, 2026Form 4 · 10b5-1	Coleman JonEVP, Chief Commercial Officer	SellCommon Stock	4.9K	$74.13	$364.1K	95.5K
Jun 3, 2026Form 4 · 10b5-1	Coleman JonEVP, Chief Commercial Officer	SellCommon Stock	4.9K	$73.00	$358.6K	100.4K

Review ownership filings at SEC.gov ↗

DEXCOM INC (DXCM)

Financial charts

Financial statements

Insider buys & sells