DexCom, Inc. (DXCM), a San Diego-based medical device company with a $32.5 billion market cap, specializes in continuous glucose monitoring (CGM) systems. Its technology includes a small, implantable sensor that tracks glucose levels beneath the skin and transmits data to an external receiver in real-time. DexCom is slated to report its fiscal 2025 second-quarter earnings after the market closes on Wednesday, July 30.

Ahead of the event, analysts expect DXCM to report a profit of $0.45 per share on a diluted basis, up 4.7% from $0.43 per share in the year-ago quarter. The company beat the consensus estimates in two of the last four quarters while missing the forecast on two other occasions. 

For the full year, analysts expect DXCM to report EPS of $2.03, up 23.8% from $1.64 in fiscal 2024. Its EPS is expected to rise 24.6% year over year to $2.53 in fiscal 2026. 

Over the past 52 weeks, DXCM’s shares have dipped 25.2%, underperforming the S&P 500’s ($SPX) 13.4% gains and the Health Care Select Sector SPDR Fund’s (XLV) 5.4% dip over the same time frame.

On July 1, DexCom shares fell over 4% after the U.S. government proposed changes to payment schedules and introduced a competitive bidding program for diabetes devices, impacting the broader glucose monitoring and insulin pump sector.

Nevertheless, analysts’ consensus opinion on DXCM stock is very positive, with an overall “Strong Buy” rating. Out of 25 analysts covering the stock, 20 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” and four give a “Hold.” DXCM’s average analyst price target is $99.68, indicating a potential upside of 20.2% from the current levels.