DXCM
DexCom, Inc.
Healthcare · Medical Devices · United States · Stock
Score Breakdown
Scored for Aggressive Growth profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- DexCom earned high scores on growth, profitability, financial health, and momentum, reflecting strong revenue and earnings expansion, solid margins, and a durable recent quarterly run rate.
- Diluted EPS expanded 47.2% from $1.42 in FY2024 to $2.09 in FY2025, and the interest coverage ratio of 63.8 reinforced the low-risk financial profile that supports a Core Holding Candidate label.
- The composite score of 64.3 reflects the drag from a zero dividend score and a zero theme score, which offset otherwise strong fundamental factor results.
Why Not Higher
- DexCom is a confirmed non-payer of dividends, which results in a zero score on the dividend factor and meaningfully limits the composite total.
- The macro theme assignment to Diabetes, GLP-1, and Metabolic Health did not generate a positive score under the model's current theme-scoring methodology, adding a second zero-score factor that caps the overall rating.
Data Confidence
8 / 10
High — most data fields present
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $4,033,000,000 to FY2025's $4,662,000,000, a gain of +15.6%. Net income rose +45.1% over the same period, and diluted EPS expanded from $1.42 in FY2024 to $2.09 in FY2025, a +47.2% increase.
The model rewarded the combination of double-digit top-line expansion and significantly faster bottom-line growth, which signals improving operating leverage and margin expansion alongside revenue scale.
In FY2025, DexCom posted a net margin of 17.9%, an operating margin of 19.6%, and a return on assets of 13.2%.
The model rewarded these metrics as evidence that the company converts a meaningful share of revenue into operating and net income while generating solid returns on its asset base, reflecting efficient capital deployment.
In FY2025, DexCom's interest coverage ratio (operating income divided by interest expense) stood at 63.8, and total assets were $6,339,900,000.
An interest coverage ratio of 63.8 in FY2025 indicates that operating income far exceeds interest obligations, signaling very low near-term debt-service risk; the model rewarded this strength, though some sub-components of financial health lacked available filing data.
Quarterly revenue progressed from $1,157,100,000 in 2025Q2 to $1,209,300,000 in 2025Q3 and $1,259,600,000 in 2025Q4 before easing to $1,191,900,000 in 2026Q1. Operating income followed a similar arc, rising from $212,600,000 in 2025Q2 to a peak of $323,000,000 in 2025Q4 and then moderating to $255,300,000 in 2026Q1. Net income showed a comparable pattern, peaking at $283,800,000 in 2025Q3 before settling at $199,500,000 in 2026Q1.
The model recognized a sustained high-revenue run rate across the four most recent quarters, with operating income remaining well above its 2025Q2 starting point even after the 2026Q1 moderation, reflecting durable near-term business momentum.
DexCom does not currently pay a dividend; this is a genuine characteristic of the company, not a data limitation.
Because the model rewards dividend income and payout history, a confirmed non-payer receives a score of zero on this factor, reflecting the absence of any dividend component in shareholder returns.
DexCom is assigned to the macro themes of Diabetes, GLP-1, and Metabolic Health.
While the company carries a relevant and actively tracked macro theme assignment, this assignment did not translate into a positive score under the model's current theme-scoring methodology.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
DexCom delivered strong FY2025 results, with revenue rising 15.6% to $4,662,000,000 and net income surging 45.1% to $836,300,000, demonstrating meaningful operating leverage as bottom-line growth far outpaced top-line expansion. Profitability metrics were solid, with a 19.6% operating margin and 17.9% net margin, while an interest coverage ratio of 63.8 signals very low financial risk. Quarterly momentum remained durable across the four most recent periods, with revenue holding above $1.15 billion each quarter and operating income well above its 2025Q2 starting point even after a modest 2026Q1 pullback. The company does not pay a dividend, and its macro theme assignment to Diabetes, GLP-1, and Metabolic Health did not contribute to its model score under the current methodology.
Plain English
DexCom is a profitable, fast-growing medical device company whose sales and earnings both jumped significantly in 2025, it carries very little debt risk, and its recent quarterly results show the business is running at a consistently high level, though it pays no dividend.
Bull Case vs. Bear Case
Bull Case
- Revenue grew 15.6% year-over-year to $4,662,000,000 in FY2025, while net income grew even faster at 45.1%, showing that the company is becoming more efficient as it scales.
- With an operating margin of 19.6% and a return on assets of 13.2% in FY2025, DexCom demonstrates that it converts a meaningful share of revenue into profit and deploys its assets efficiently.
- An interest coverage ratio of 63.8 in FY2025 means operating income dwarfs interest obligations, indicating very low near-term financial risk.
Bear Case
- DexCom pays no dividend, meaning shareholders receive no income component from holding the stock, which reduces its appeal for income-oriented investors.
- Quarterly revenue eased from a peak of $1,259,600,000 in 2025Q4 to $1,191,900,000 in 2026Q1, and operating income similarly moderated from $323,000,000 to $255,300,000, suggesting some near-term deceleration.
- The company's macro theme assignment to Diabetes, GLP-1, and Metabolic Health did not translate into a positive score under the model's current theme-scoring methodology, limiting its composite score.
What Could Change the Picture
Bullish Triggers
- A re-acceleration of quarterly revenue growth beyond the 2025Q4 peak of $1,259,600,000 would signal that the 2026Q1 moderation was temporary and that operating leverage continues to build.
- Sustained or expanding operating margins above the current 19.6% level would further validate the company's ability to grow profits faster than revenue.
Bearish Triggers
- If quarterly operating income were to fall materially below the $212,600,000 level seen in 2025Q2, it would suggest the operating leverage trend is reversing.
- A significant deterioration in the interest coverage ratio from its current level of 63.8 would raise concerns about the company's financial health trajectory.
Risk Profile
Low RiskDexCom's interest coverage ratio of 63.8 in FY2025 indicates that operating income far exceeds interest obligations, pointing to very low near-term debt-service risk. While quarterly results moderated in 2026Q1 from the 2025Q4 peak, operating income remained well above its 2025Q2 starting point, suggesting the business retains a solid financial footing.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.