Track market-moving stories before they get noisy

Key Takeaways DexCom stock has gained 34.9% in 2026 as its growth profile and CGM opportunity improve.G7 15 Day, broader reimbursement and international expansion are widening DexCom's growth opportunities.DexCom faces intensifying competition from Abbott, MiniMed and Senseonics in the CGM market. DexCom (DXCM - Free Report) stock has rebounded sharply in 2026, gaining 34.8% after falling 14.7% in 2025, as investors increasingly recognize the company’s improving growth profile and expanding continuous glucose monitoring (CGM) opportunity. The company’s share price performance so far this year has outperformed the industry’s 6.9% decline and S&P 500 Index’s 13.1% gain.

The second-quarter performance reflected recovery, with revenues rising 13% year over year and organic growth reaching 12%. U.S. revenues increased 11%, while international revenues jumped 19%, reflecting broader reimbursement, market-share gains and stronger patient starts. DexCom is expanding beyond its traditional insulin-dependent customer base. New evidence supporting CGM use in non-insulin Type 2 diabetes, broader international access and new products such as G7 15 Day and Smart Basal could materially expand the addressable market through 2026 and beyond.

YTD Performance of DXCM vs Industry

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What Is Fueling DXCM’s Growth?Non-Insulin Type 2 Diabetes Could Expand the Addressable Market: DexCom’s CONNECT trial could become an important growth catalyst by strengthening the case for CGM among non-insulin Type 2 patients. The study produced a 1.6% A1c improvement over six months, while commercial coverage has expanded across the four largest U.S. PBMs, reaching more than 7 million eligible patients. Broader reimbursement could significantly accelerate adoption beyond DexCom’s traditional customer base.

G7 15 Day Is Strengthening Product Adoption: The G7 15 Day rollout is creating a meaningful product-cycle opportunity. DexCom expects nearly 50% of its U.S. customer base to transition to the system by year-end, supported by an improved algorithm, longer wear time and stronger customer satisfaction. G7 15 Day also received Health Canada clearance, opening another avenue for international expansion. The product transition contributed to a roughly 400-basis-point improvement in second-quarter gross margin.

International Expansion Provides Another Growth Lever: International markets are growing increasingly important to DexCom’s growth trajectory. International revenues increased 19% in the second quarter, with organic growth of 16%. France and Canada benefited from expanding reimbursement access. DexCom is also rolling out Flex, its 15-day sensor for select Type 2 basal and non-insulin markets. Continued reimbursement wins could help the company replicate the share gains achieved in recently opened markets.

DexCom Is Building a Broader Digital Diabetes Platform: DexCom is expanding beyond sensor hardware through software and digital-health capabilities. The redesigned Stelo app adds AI-driven insights and enhanced food logging, while Smart Basal has reduced the time needed to reach an optimal basal insulin dose to about three weeks in pilot practices. The company also acquired Nutrisense, a CGM-data nutrition platform, creating additional potential for personalized metabolic-health services.

A Glance at DXCM’s EstimatesThe Zacks Consensus Estimate for DXCM’s 2026 and 2027 earnings per share (EPS) implies year-over-year growth of 26.8% and 16.6%, respectively, to $2.64 and $3.08. In the past 60 days, the consensus mark for the company's 2026 EPS has improved 2.7%.

Revenues for 2026 are projected to grow 12.1% to $5.23 billion and another 11.6% to $5.83 billion in 2027.

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Competition Remains a Major VariableThe CGM market remains highly competitive, with Abbott (ABT - Free Report) , MiniMed (MMED - Free Report) and Senseonics (SENS - Free Report) pursuing distinct strategies. Abbott remains DexCom’s most formidable direct rival, with Diabetes Care CGM sales exceeding $2 billion in the second quarter, reflecting growth of 9.5%.

Abbott also received CE Mark clearance for Libre Duo, its glucose-ketone monitoring sensor. MiniMed is strengthening its ecosystem, with CGM revenues growing at a low-double-digit rate in fiscal 2026 and its attachment rate reaching 68% in the fiscal fourth quarter. Senseonics is also growing much faster from a smaller base, with second-quarter revenues increasing about 120% and U.S. revenue growing more than 150%, supported by Eversense 365 and its Eon Care network.

Compared with Abbott, MiniMed, and Senseonics, DexCom currently benefits from greater scale, 13% reported revenue growth, and strong international momentum. However, Abbott’s scale, MiniMed’s integrated pump-CGM ecosystem, and Senseonics’ differentiated long-duration sensor could heighten competitive pressures.

Risks and ChallengesThe second half of 2026 will not be without challenges. DexCom remains dependent on reimbursement expansion, particularly for non-insulin Type 2 diabetes, and regulatory or payer delays could slow the addressable-market opportunity. Competition from Abbott could intensify as Libre Duo expands, while MiniMed’s new products could strengthen its integrated pump-CGM proposition. Senseonics also presents a differentiated alternative in long-duration CGM. Execution around the G7 15 Day conversion, international launches and new digital-health initiatives will be critical.

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ConclusionDexCom’s 2026 rally appears to be supported by improving fundamentals rather than short-term momentum alone. Expanding reimbursement, G7 15 Day adoption, international growth and digital-health initiatives provide multiple avenues for sustained expansion. However, competitive intensity and reimbursement execution remain important variables. With a Zacks Rank #3 (Hold), the stock appears better suited to investors willing to balance its strong growth potential against valuation and execution risks. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways DexCom's U.S. CGM opportunity is expanding, with 7M newly covered lives and 9M covered nonusers.DXCM expects nearly half its U.S. customer base to convert to G7 15 Day by year-end 2026.DexCom's premium valuation, competition and litigation leave less room for execution misses. DexCom, Inc. (DXCM - Free Report) is entering the second half of 2026 with healthier margins, broader reimbursement and a larger continuous glucose monitoring opportunity. The investment question is whether that improving setup is enough to justify a premium valuation.

Growth catalysts remain visible across U.S. coverage, product upgrades and international expansion. Yet competition, litigation and a forward earnings multiple above key benchmarks leave less room for execution misses.

DXCM’s Growth Case Is Still BroadeningDexCom’s addressable market is widening beyond intensive insulin users. All four of the largest U.S. commercial pharmacy benefit managers now cover people with type 2 diabetes who are not using insulin, representing more than 7 million covered lives.

Penetration still has room to improve even before additional reimbursement wins. Roughly 9 million people in the United States already have continuous glucose monitoring coverage but are not using the technology, giving DXCM a sizable pool of potential new users.

DexCom’s Valuation Leaves Less Room for ErrorThat runway is not cheap. DXCM trades at a forward 12-month price-to-earnings ratio of 30.68, above 27.25 for the Zacks sub-industry, 21.15 for the Medical sector and 20.66 for the S&P 500.

The premium raises the hurdle for future results. Revenue growth, estimate revisions and margin expansion can support a higher multiple, but investors are already paying for a meaningful portion of that progress. Any slowdown in patient additions, reimbursement or operating leverage could pressure the valuation.

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DXCM’s Coverage and Product Catalysts MatterProduct execution strengthens the growth argument. DexCom is rolling out G7 15 Day and expects to convert nearly half of its U.S. customer base to the system by year-end 2026. Health Canada has cleared G7 15 Day, while Dexcom Flex has launched in Germany for selected type 2 populations.

Clinical evidence could broaden the runway further. In the CONNECT trial, DexCom CGM users with type 2 diabetes not using insulin posted a 1.6% A1c improvement, spent more than five additional hours per day in range and recorded 97% median CGM use. DexCom has submitted the data to CMS in support of expanded non-insulin coverage.

DexCom’s Competition and Litigation Temper UpsideThe category remains crowded. Abbott Laboratories (ABT - Free Report) competes through its FreeStyle Libre continuous glucose monitoring franchise. MiniMed Group (MMED - Free Report) , the recently divested business of Medtronic, also offers continuous glucose monitoring and integrated diabetes technologies, while Senseonics Holdings, Inc. (SENS - Free Report) markets the implantable Eversense 365 system.

More viable alternatives can give payers leverage in negotiations over pricing, rebates and formulary placement. DexCom also faces ongoing patent disputes plus securities, derivative and product-related class actions. These issues may add legal expense and execution uncertainty even if underlying demand remains healthy.

DXCM’s Signal Mix Supports PatienceThe balance of evidence favors patience over an aggressive entry. Earnings estimates for 2026 and 2027 have moved up 2.7% and 1.2% over the past 60 days to $2.65 and $3.08, respectively. Second-quarter adjusted gross margin reached 64.1% and adjusted operating margin improved to 25.1%.

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DXCM currently carries a Zacks Rank #3 (Hold). Likewise, Abbott and Senseonics carry a Zacks Rank of 3, while MiniMed has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

 With estimates rising and margins improving, the fundamental direction is constructive. The premium valuation, competitive pressure and litigation risk still argue for waiting for either a better price or further proof that growth can sustain the current multiple.

The offices of Dexcom in San Diego, California, U.S., June 30, 2026. REUTERS/Mike Blake Purchase Licensing Rights, opens new tab

CompaniesJuly 30 (Reuters) - Medical device maker Dexcom (DXCM.O), opens new tab raised its full-year revenue forecast and beat quarterly estimates ​on Thursday, banking on sustained demand for its ‌continuous glucose monitors that track blood sugar levels, sending shares of the company up ​over 4% in extended trading.

Here are ​the details:

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Rising awareness of diabetes care, ⁠improved insurance coverage and a wider ​consumer shift towards finger-prick-free technology have boosted ​demand for continuous glucose monitors, intensifying competition among market leaders Dexcom, Medtronic (MDT.N), opens new tab and Abbott Laboratories (ABT.N), opens new tab.

Dexcom reported ​second-quarter revenue of $1.31 billion, up 13% ​over a year earlier. Analysts on average had estimated $1.29 ‌billion, ⁠according to data compiled by LSEG.

It posted quarterly adjusted profit of 70 cents per share, compared with the estimate of ​61 cents.

The ​company ⁠expects annual revenue to be between $5.18 billion and $5.25 billion, compared with $5.16 ​billion to $5.25 billion forecast earlier, and ​analysts' ⁠estimate of $5.22 billion.

Dexcom said in May it would appoint two independent directors and ⁠revamp ​a key board committee ​in collaboration with activist investor Elliott Investment Management.

Reporting by Padmanabhan ​Ananthan in Bengaluru; Editing by Shilpi Majumdar

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways DexCom sees CGM expansion, G7 15 Day adoption and global growth supporting future performance.DXCM expanded non-insulin coverage, while low CGM penetration leaves room for multiyear growth.DexCom faces risks from CMS timing, input cost inflation and a maturing U.S. CGM market. DexCom, Inc. (DXCM - 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 robust international foothold are expected to contribute further. Risks related to stiff competition persist.

This Zacks Rank #3 (Hold) company’s shares have gained 7.3% so far this year against the industry’s 12.4% decline. The S&P 500 Index has gained 9.4% in the same time frame.

DXCM, a renowned medical device company and provider of CGM systems, has a market capitalization of $27.49 billion. It projects a 23.6% growth rate over the next five years and anticipates maintaining a strong performance going forward.

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

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Let’s delve deeper.

Positive DriversType 2 Non-Insulin Expansion Represents Untapped Growth Opportunity: DexCom's biggest long-term catalyst remains the rapid expansion of CGM into the type 2 diabetes population not using insulin. During the quarter, the company expanded commercial coverage to more than 7 million non-insulin lives through the addition of Prime Therapeutics and reiterated that CMS reimbursement may start soon.

Management also expects the upcoming randomized controlled trial to reinforce the strong real-world evidence showing meaningful A1c reductions, potentially accelerating payer adoption globally. Since only about 30% of currently covered patients are using CGM, penetration remains low despite expanding reimbursement. If Medicare coverage eventually follows commercial payers, DexCom would gain access to millions of additional patients, creating a durable multiyear volume growth engine rather than a short-term sales catalyst.

G7 15-Day Launch Strengthens Competitive Position: The successful rollout of the Dexcom G7 15 Day system represents more than a routine product refresh. Longer wear time, improved sensor algorithms and better reliability are already driving higher customer satisfaction, stronger new patient starts and conversion of existing users.

Management expects nearly 50% of the installed base to migrate to the 15-day platform by year-end, improving customer retention while supporting manufacturing efficiencies. The launch also reinforces DexCom's ability to compete on product innovation rather than pricing, an increasingly important differentiator as the CGM market becomes more competitive.

Combined with upgraded adhesive technology, AI-powered software enhancements and Smart Basal functionality, DexCom is building a comprehensive ecosystem that could improve customer value while strengthening physician preference over competing platforms.

Robust Growth in International Markets: International operations continue to diversify DexCom's growth profile, reducing dependence on the mature U.S. diabetes market. International revenues grew 26% reportedly and 17% on an organic basis, driven by reimbursement expansion in markets such as France and Canada, while management highlighted additional payer wins expected throughout 2026.

Rather than relying on a single flagship product, DexCom is tailoring multiple products (including Stelo and a new CGM platform) to different reimbursement systems and customer segments across Europe and Asia-Pacific. This portfolio strategy is helping the company win tenders, convert previously exclusive contracts into dual-source agreements and steadily gain market share. As reimbursement expands globally, international markets could remain one of DexCom's fastest-growing businesses over the next several years.

RisksUncertain CMS Reimbursement Decisions: Although management repeatedly expressed confidence that Medicare reimbursement for non-insulin type 2 patients is inevitable, the timing remains entirely outside the company's control. Management acknowledged that CMS could impose eligibility requirements before approving coverage, while investors continue to view the decision as a major binary catalyst.

Because the opportunity represents one of DexCom's largest future growth drivers, any prolonged regulatory delay would postpone patient adoption, physician prescribing and revenue acceleration. Even if coverage is eventually approved, implementation timing and reimbursement criteria could influence the pace of uptake. Consequently, a meaningful portion of DexCom's long-term growth narrative still depends on external reimbursement decisions that management cannot directly influence.

Rising Input Cost Inflation Threatens Further Margin Expansion: Despite reporting excellent first-quarter profitability, DexCom deliberately maintained its gross margin guidance because of growing geopolitical uncertainty. Management estimates that rising oil prices, resin costs and freight expenses could create a 50-100 basis point gross margin headwind during the remainder of 2026.

Since CGM sensors rely heavily on petroleum-derived materials and global logistics, sustained commodity inflation could offset manufacturing productivity gains. While operational execution currently remains strong, prolonged geopolitical disruptions affecting shipping routes or raw material availability may pressure production costs and delay further margin expansion. As DexCom continues ramping up manufacturing capacity globally, maintaining cost discipline will become increasingly important for preserving profitability.

U.S. CGM Market Growth May Moderate as Penetration Matures: Although DexCom reported a global record for new patient additions, management acknowledged that U.S. patient starts were only close to a record, highlighting the increasingly mature nature of the domestic CGM market. Several analysts questioned whether overall U.S. market growth is slowing as major reimbursement expansions become less frequent.

Management's guidance also assumes continued coverage gains and sustained patient acquisition momentum throughout the year. If physician adoption slows or newly covered populations convert more gradually than anticipated, domestic revenue growth could remain below historical double-digit levels. This makes continued innovation, broader reimbursement and higher patient retention increasingly critical for sustaining DexCom's long-term growth trajectory.

Estimate TrendDexCom has witnessed a positive estimate revision trend for 2026. In the past 60 days, the Zacks Consensus Estimate for 2026 earnings per share has moved north 1 cent to $2.57.

The consensus mark for the company’s second-quarter revenues is pegged at $1.3 billion, indicating an 11.9% improvement from the year-ago quarter’s reported number. The consensus estimate for second-quarter earnings is pinned at 61 cents per share, implying an improvement of 25% year over year.  

Stocks to ConsiderSome better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and Intuitive Surgical (ISRG - Free Report) .

Globus Medical, currently carrying a Zacks Rank #2 (Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12, 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 (Strong Buy) stocks here.

GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.5% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.26%.

West Pharmaceutical, currently carrying a Zacks Rank #2, 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 9.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.37%.

Intuitive Surgical, carrying a Zacks Rank of 2 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 14.3% compared with the industry’s 12.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.