DXCM Gross Margin Analysis
Updated 1131h ago·SEC filings & market data
Key Takeaway
Gross margin is the percentage of revenue left after paying the direct costs to produce the product, so DXCM keeps 63.4 cents of every dollar as gross profit.
Sector Performance
74th percentileDXCM
63.4%
Sector Median
47.4%
Sector Avg
48.1%
Prior Period
62.9%(Jul 2026)
Deep Analysis
Gross margin is the percentage of revenue left after paying the direct costs to produce the product, so DXCM keeps 63.4 cents of every dollar as gross profit.
That figure sits well above the sector median of 46.4% and places DXCM in the 76th percentile of its peers, indicating above-average profitability per unit sold. The year-over-year change is N/A, while the quarter-over-quarter change is +0.8%, moving from 62.9% to 63.4% over the latest two reported quarters. The high level combined with a positive quarterly move suggests DXCM has cost control or pricing leverage that could support margins, but the missing year-over-year data means the durability of this edge is unproven. This metric leans positive, but it does not override the broader NEUTRAL verdict, as a single strong quarter does not establish a clear trend. Thus, the gross margin supports the neutral stance rather than contradicting it—positive on level and short-term trend, yet insufficient to justify a more bullish call.
Frequently Asked Questions
What does the Gross Margin tell investors about DXCM?
Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.
How is the Gross Margin calculated?
Gross Margin is calculated as: Gross Profit / Revenue.
Learn More About Gross Margin
The Formula
Gross Profit / Revenue
Why It Matters
Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.
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63.4%
Sector Median
47.4%
Sector Avg
48.1%
How DXCM's Gross Margin compares to sector peers.
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