Abbott vs. DexCom: Which CGM Stock Is the Better Buy Now?

Abbott Laboratories ABT and DexCom DXCM are two of the most prominent players in the continuous glucose monitoring (CGM) space. Abbott has continued to enhance its continuous monitoring portfolio through product upgrades, expanded indications and new tools aimed at improving diabetes management while extending glucose monitoring into broader health and wellness applications. Its offerings include FreeStyle Libre CGM and blood glucose monitoring products, related software and accessories, and the Lingo CGM system for health and wellness.

DexCom has developed CGM products, digital tools and connected technologies to support diabetes management and expand glucose monitoring into broader metabolic health applications. Its portfolio includes the Dexcom G7 and G7 15 Day CGM systems, Dexcom ONE+ and Stelo, along with data management, remote monitoring and connectivity solutions that integrate with compatible mobile devices and insulin-delivery systems.

Per a Grand View Research report, the global CGM devices market size was valued at $13.4 billion in 2025 and is projected to grow from $15.5 billion in 2026 to $41.4 billion by 2033, at a CAGR of 15.1% during the period. 

In the past year, shares of DXCM have risen 19.9% while those of ABT have lost 11.5%. 

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Abbott’s CGM Growth and Innovation

In the second quarter of 2026, CGM sales exceeded $2 billion, increasing 9.5%, while Abbott continued to expand the franchise through reimbursement initiatives and product innovation. Abbott is also extending its biosensing capabilities beyond glucose monitoring. 

In May 2026, the company secured CE Mark for Libre Duo, its dual glucose-ketone biowearable sensor. The technology enables monitoring of both glucose and ketones through a single wearable sensor, broadening the utility of Abbott’s Libre platform and strengthening its innovation pipeline in diabetes management. 

Abbott remains bullish on the long-term CGM opportunity, citing a potential addressable population of 75 million to 80 million people globally, compared with roughly 15 million current CGM users. It views broader reimbursement, particularly for non-insulin Type 2 diabetes, as a major catalyst for accelerating adoption and growth.

DexCom’s CGM Expansion and Next-Gen Platforms

DexCom delivered a solid second-quarter 2026 performance, with worldwide revenues increasing 13% year over year to $1.31 billion. The company continued the rollout of its G7 15 Day system, which is now available to all adult G7 users in the United States following Tandem and Mobi integration. 

The company cited favorable feedback on the new algorithm, updated patch, extended wear time and customer experience. It is also advancing its next-generation G8 platform, which is expected to significantly improve accuracy and reliability while being roughly half the size of G7.

Dexcom's software ecosystem remains a driver of adoption by making CGM more intuitive, personalized and insightful. In parallel, the company is developing digital dosing tools, including Smart Basal and Smart Bolus, to simplify insulin titration and trend-based bolus decisions.

Short Term Price Target Favors ABT Over DXCM

Based on short-term price targets offered by 26 analysts, the average price target for Abbott comes to $121.50. The average price target represents an increase of 4.17% from the last closing price. 

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Based on short-term price targets offered by 26 analysts, the average price target for DexCom is $93.04. The average price target represents an increase of 0.76% from the last closing price. 

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ABT and DXCM Maintain Solid Liquidity and Cash Flow Profiles

From a solvency perspective, Abbott ended the second quarter of 2026 with $5.10 billion in cash and cash equivalents and $499 million in short-term investments. Abbott generated $3.8 billion of operating cash flow during the first half of 2026, up $339 million year over year, supporting its ability to service debt and fund ongoing investments. Abbott also repurchased approximately 11.6 million shares for $1.0 billion during the first half, with $5.6 billion remaining under its repurchase authorization.

DexCom ended second-quarter 2026 with $1.11 billion of cash and cash equivalents and $842 million of short-term marketable securities, providing flexibility to fund capacity, R&D and go-to-market investments. The company generated $794.8 million of operating cash flow in the first half of 2026, up from $486.8 million in the prior-year period, while maintaining $1.24 billion of long-term senior convertible notes due 2028. 

Valuation: ABT vs. DXCM

Abbott currently trades at a forward one-year price-to-sales (P/S) of 3.81X, lower than its median. DexCom’s 6.11X P/S also sits above its median. Additionally, ABT trades at a discounted valuation than DXCM.

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End Note

Abbott and DexCom remain well-positioned to benefit from the expanding CGM market, supported by strong product portfolios, ongoing innovation and broader adoption of glucose-monitoring technologies. Both companies also maintain healthy liquidity and cash generation to support continued investment in R&D, manufacturing and commercialization.

Both ABT and DXCM presently carry a Zacks Rank #3 (Hold). Based on the price-target and valuation metrics, Abbott appears more favorable than DexCom at current levels. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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