It has been about a month since the last earnings report for DexCom (DXCM). Shares have lost about 7% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is DexCom due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
DexCom Q2 Earnings Beat & 2025 Sales View Raise
DexCom reported second-quarter 2025 adjusted earnings per share of 48 cents, which beat the Zacks Consensus Estimate of 45 cents by 6.7%. The company reported earnings of 43 cents per share in the prior-year quarter.
DXCM registered GAAP net income per share of 45 cents, up from the year-ago quarter’s figure of 35 cents.
Revenue Details of Dexcom
Total revenues grew 15.2% (15% on an organic basis) to $1.16 billion year over year. Sales beat the Zacks Consensus Estimate by 3.1%. The year-over-year revenue growth was driven by continued strong category demand, focused execution and a growing contribution from recent access wins, especially for type 2 diabetes.
Segmental Details of DXCM
Sensor and other revenues (97% of total revenues) increased 18% on a year-over-year basis to $1.12 billion. Hardware revenues (3%) decreased 31% year over year to $39.3 million.
Dexcom Revenues by Geography
U.S. revenues (73% of total revenues) increased 15% on a year-over-year basis to $841 million. International revenues (27%) improved 16% (14% on an organic basis) year over year to $316.1 million.
Margin Analysis of DXCM
Adjusted gross profit totaled $695.9 million, up 9.1% from the prior-year quarter’s level. DexCom reported an adjusted gross margin (as a percentage of revenues) of 60.1%, down 340 basis points year over year.
Research and development expenses totaled $148.2 million, up 9% year over year. Selling, general, and administrative expenses totaled $328 million, down 1.4%.
The company reported total adjusted operating income of $221.8 million, up 13.5% from the prior-year period’s recorded number. Adjusted operating margin (as a percentage of revenues) was 19.2%, down 30 basis points year over year.
Financial Position of Dexcom
DXCM exited the second quarter with cash, cash equivalents, and marketable securities worth $2.93 billion compared with $2.7 billion in the first quarter of 2025.
Total assets amounted to $7.33 billion, up sequentially from $6.75 billion.
DXCM’s 2025 Guidance
DexCom raised its outlook for 2025 revenues. The company now expects revenues to be in the range of $4.6-$4.625 billion (previously $4.6 billion), implying 14-15% year-over-year growth.
DXCM expects adjusted gross margin to be approximately 62%. Adjusted operating margin is projected to be approximately 21%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, DexCom has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, DexCom has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
DexCom belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, IQVIA Holdings (IQV), has gained 1.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2025.
IQVIA reported revenues of $4.02 billion in the last reported quarter, representing a year-over-year change of +5.3%. EPS of $2.81 for the same period compares with $2.64 a year ago.
For the current quarter, IQVIA is expected to post earnings of $2.96 per share, indicating a change of +4.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.
IQVIA has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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DexCom, Inc. (DXCM): Free Stock Analysis Report IQVIA Holdings Inc. (IQV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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