What Happened?

Shares of medical device company DexCom (NASDAQ: DXCM) jumped 3.7% in the afternoon session after it rebounded from a steep sell-off that was triggered by its long-term revenue growth outlook. The stock had previously plunged more than 14% after the company's interim CEO stated during its third-quarter earnings call that revenue growth for 2026 could fall short of analyst expectations. This cautious forecast overshadowed an otherwise strong report, in which the company beat third-quarter earnings and revenue estimates. DexCom also raised its full-year 2025 revenue outlook. The sharp drop in previous sessions suggested investors focused more on the future growth warning than the positive current results, and the subsequent modest gain indicated some bargain hunting.

After the initial pop the shares cooled down to $59.66, up 2.5% from previous close.

Is now the time to buy DexCom? Access our full analysis report here.

What Is The Market Telling Us

DexCom’s shares are quite volatile and have had 16 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 3 days ago when the stock dropped 14.8% on the news that the company reported underwhelming earnings. The company's revenue grew over 21% year-on-year to $1.21 billion, and its adjusted earnings per share of $0.61 also came in ahead of consensus estimates. DexCom lifted its full-year 2025 revenue forecast to approximately $4.64 billion. Despite these positive metrics, the stock's decline suggests investors were anticipating an even more robust performance and a more substantial guidance increase. The market's negative reaction indicates that the strong quarter was not enough to meet the high expectations priced into the stock, prompting a sell-off.

DexCom is down 24.2% since the beginning of the year, and at $59.66 per share, it is trading 34.3% below its 52-week high of $90.75 from February 2025. Investors who bought $1,000 worth of DexCom’s shares 5 years ago would now be looking at an investment worth $717.61.

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