DexCom (DXCM) Stock Forecast & Price Target

DexCom has demonstrated robust financial growth, with international revenue increasing by 22% year-over-year and domestic revenue growing by 21%, reflecting strong market penetration, particularly in the Type 2 diabetes patient population. The company's raised full-year sales guidance, now projected to be between $4.630 billion and $4.650 billion, indicates confidence in sustained growth due to innovations in remote monitoring and integration with insulin delivery systems. Additionally, management's commitment to improving customer satisfaction and operational efficiencies positions DexCom favorably for long-term profitability and market expansion.

DexCom has experienced a decline in its profitability outlook for the current year, with adjusted EBIT and EBITDA expectations down by 50 basis points, now projected at 20%-21% and 29%-30%, respectively. Additionally, the company failed to achieve a record new patient quarter in Q3 and reported a weaker gross margin of 61%, attributed to quality issues and a higher scrap rate. Forecasted revenue for 2026 has also been lowered to $5.386 billion, reflecting a decrease in growth projections and highlighting the increasing competition and operational challenges faced by DexCom.