DexCom, Inc. (DXCM)

DexCom's stock price has been impacted by several notable events over the past six months. A significant sell-off occurred in July 2024 after DexCom missed top and bottom-line estimates in its Q2 2024 earnings report, and its guidance for fiscal year 2024 was reduced. On March 25, 2025, the FDA published a warning letter, revealing that DexCom had "adulterated" its G6 and G7 products by modifying sensors without prior regulatory approval, leading to "larger inaccuracies" and higher risks for users. On September 8, 2025, Oppenheimer downgraded DexCom's rating from "outperform" to "market perform," citing patient concerns regarding the G7's accuracy, failed sensor insertions, and abrupt stoppages. A report published by Hunterbrook on September 18, 2025, alleged more severe and widespread issues and health risks with adulterated G7 devices, including hospitalizations and deaths due to inaccurate glucose readings. In the past six months, several brokerages have adjusted their ratings and price targets for DXCM. As of October 25, 2025, DexCom's stock was noted to be trading in a support zone ($66.81 – $73.85).

While DexCom has reported strong demand for its continuous glucose monitoring systems, particularly for its G7 and Stelo products, the company has experienced "seasonal factors" impacting its gross profit margin. In Q1 2025, the gross profit margin decreased due to short-term supply dynamics, incremental costs incurred to manage supply, and efforts to rebuild inventory levels. Logistical disruptions, increased freight costs, and inflationary pressures from tariffs and currency fluctuations also contributed to margin pressures.

DexCom, Inc. is a medical technology company specializing in continuous glucose monitoring (CGM) systems for individuals with diabetes and healthcare providers. Its major products include Dexcom G6 and G7 integrated CGM systems, Dexcom Share remote monitoring system, Dexcom Real-Time API for third-party integration, Dexcom ONE CGM system, and Stelo Glucose Biosensor for adults with prediabetes and Type 2 diabetes not on insulin. The company also offers Dexcom Care training and support services.

DexCom, Inc. has a significant international presence with its headquarters and R&D center in San Diego, California. Manufacturing facilities are located in Mesa, Arizona; Batu Kawan, Malaysia; and Athenry, County Galway, Ireland. The company directly distributes its products in the U.S., Austria, Canada, Germany, Switzerland, and the U.K. and uses a network of distributors to reach other countries in Australia, New Zealand, Asia, Europe, Africa, Latin America, and the Middle East.

DexCom's brand reputation in the past year has been a mix of positive recognition and significant challenges. Forbes listed DexCom among the "Best Customer Service (2026)" and the "World's Best Employers (2025)." However, the FDA's public warning letter regarding "adulterated" G6 and G7 products, Oppenheimer's downgrade citing G7 accuracy concerns, the Hunterbrook report detailing severe issues and health risks, and the announcement of a class action lawsuit have negatively impacted the company's reputation.

DexCom, Inc. is primarily owned by institutional investors, who hold 93.65% of the company's stock, while insiders own 4.58%, and retail investors account for 1.77%. Major institutional owners include Vanguard Group Inc., BlackRock, Inc., State Street Corp, Baillie Gifford & Co, VTSMX - Vanguard Total Stock Market Index Fund Investor Shares, Jennison Associates Llc, VFINX - Vanguard 500 Index Fund Investor Shares, Geode Capital Management, Llc, Sands Capital Management, Llc, and UBS Asset Management Americas Inc.