DexCom (DXCM) Fell Due to Modest Guidance

Brown Advisory, an investment management company, released its “Brown Advisory Mid-Cap Growth Strategy” third-quarter 2025 investor letter. A copy of the letter can be downloaded here. The strategy underperformed its benchmark, the Russell Midcap® Growth Index, in the third quarter of 2025, which increased approximately 3%.  In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its third-quarter 2025 investor letter, Brown Advisory Mid-Cap Growth Strategy highlighted stocks such as DexCom, Inc. (NASDAQ:DXCM). DexCom, Inc. (NASDAQ:DXCM) is a medical device company that develops and commercializes continuous glucose monitoring (CGM) systems. The one-month return of DexCom, Inc. (NASDAQ:DXCM) was 13.90%, and its shares lost 12.24% of their value over the last 52 weeks. On December 17, 2025, DexCom, Inc. (NASDAQ:DXCM) stock closed at $65.75 per share, with a market capitalization of $26.086billion.

Brown Advisory Mid-Cap Growth Strategy stated the following regarding DexCom, Inc. (NASDAQ:DXCM) in its third quarter 2025 investor letter:

“DexCom, Inc. (NASDAQ:DXCM) exceeded second quarter consensus expectations, but its modest guidance increase failed to reflect year-to-date strength, pressuring sentiment. A subsequent short report raised concerns about yield, accuracy, and injury rates related to the G7 launch, adding to volatility. However, most production issues were already known and addressed through changes in third-party sourcing. Moreover, while early G7 injury rates were higher than the G6, they have since improved and remain below those of key competitors.”

Why DexCom Inc. (DXCM) Soared Last Week

DexCom, Inc. (NASDAQ:DXCM) is not on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 71 hedge fund portfolios held DexCom, Inc. (NASDAQ:DXCM) at the end of the third quarter, compared to 60 in the previous quarter. For the third quarter of 2025, DexCom, Inc. (NASDAQ:DXCM) reported global revenue of $1.21 billion, compared to $994 million in the third quarter of 2024. While we acknowledge the risk and potential of DexCom, Inc. (NASDAQ:DXCM) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DEXCOM, INC. (NASDAQ:DXCM) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered DexCom, Inc. (NASDAQ:DXCM) and shared Sands Capital Select Growth Strategy’s views on the company. In addition, please check out our hedge fund investor letters Q3 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.