DexCom, Inc. DXCM recently announced positive results from its CONNECT randomized controlled trial, demonstrating that use of the Dexcom G7 continuous glucose monitoring (CGM) system significantly improved glycemic control among adults with Type 2 diabetes not using insulin. The findings were presented at the 2026 Scientific Sessions of the American Diabetes Association.
The study showed that participants using Dexcom G7 achieved clinically and statistically significant reductions in HbA1c levels and improvements in timing range compared with those using routine blood glucose monitoring. Management believes the results could help expand CGM adoption and support a new standard of care for the large Type 2 non-insulin diabetes population.
Likely Trend of DXCM Stock Following the News
Shares of DXCM have traded flat since the announcement of the news. In the year-to-date period, shares of the company have gained 9.8% against the industry’s 15.8% decline. However, the S&P 500 has risen 8.1% during the same timeframe.
The CONNECT study strengthens DexCom’s long-term growth prospects by providing high-quality clinical evidence supporting the use of CGM in people with Type 2 diabetes who do not use insulin — one of the largest and least penetrated segments of the diabetes market.
The positive results could support future updates to treatment guidelines, improve payer reimbursement decisions and encourage broader physician adoption of Dexcom G7. Expanded access and utilization within this sizable patient population could significantly increase DexCom’s addressable market and drive sustained revenue growth over the long term.
DXCM currently has a market capitalization of $28.11 billion.
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More on the News
The CONNECT study is the first randomized controlled trial to provide Level A evidence — the highest evidence classification recognized by the American Diabetes Association — supporting continuous glucose monitoring (CGM) use in adults with Type 2 diabetes who do not use insulin. The trial enrolled 283 eligible participants across 22 U.S. primary care practices, with 265 completing the 26-week study. Participants were randomized to either Dexcom G7 or routine self-monitoring of blood glucose, while continuing their existing diabetes medications and receiving standardized diet and exercise education.
Results showed that participants using Dexcom G7 achieved an average HbA1c reduction of 1.6% from a baseline level of 8.8%, representing a 0.9% greater reduction than the control group. The benefit was even more pronounced among participants with baseline HbA1c levels above 10%, who experienced an average 3.1% reduction.
Notably, 82% of Dexcom G7 users achieved at least a 0.5% reduction in HbA1c, while 68% reached HbA1c levels below 7.5% and 46% achieved levels below 7.0% by week 26. The study also demonstrated that Dexcom G7 delivered meaningful glycemic improvements both as a standalone intervention and when used alongside commonly prescribed diabetes therapies.
Beyond HbA1c improvements, Dexcom G7 users experienced substantial gains in overall glucose management. Time in the target glucose range of 70-180 mg/dL was approximately five hours per day higher than that of the control group, with benefits emerging within the first four weeks and persisting throughout the study period. Participants using Dexcom G7 also reported greater treatment satisfaction, lower diabetes-related distress and reduced disease burden.
Device engagement also remained exceptionally high, with median daily usage of 97% during the study. Dexcom is currently conducting a six-month extension phase to evaluate the durability of these benefits over a full 12-month period.
Industry Prospects Favoring the Market
Going by the data provided by Grand View Research, the CGM devices market was valued at $15.47 billion in 2026 and is expected to witness a CAGR of 15.1% through 2033.
Factors like the growing cases of diabetes, the increasing adoption of CGM devices, growing clinical needs, technological innovation and shifting care models are boosting the market’s growth.
Other News
At the recent Investor Day event, DexCom unveiled its next-generation CGM, the Dexcom G8 system, which is expected to launch in late 2027 or early 2028. Features include step change improvement in glucose performance, a 50% smaller form factor than Dexcom G7 and advanced sensing capabilities.
DXCM’s Zacks Rank & Key Picks
Currently, DXCM carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Globus Medical GMED, West Pharmaceutical WST and Intuitive Surgical ISRG.
Globus Medical, currently flaunting a Zacks Rank #1 (Strong Buy), reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.
West Pharmaceutical, currently sporting a Zacks Rank #1, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%.
WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.
ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
