DexCom (DXCM) shares surged 5.32% in pre-market trading on Friday, following the company's impressive first-quarter results and a series of analyst upgrades. The medical device maker, known for its continuous glucose monitoring systems, reported better-than-expected sales and reaffirmed its full-year guidance, boosting investor confidence.

DexCom posted Q1 sales of $1.04 billion, surpassing analysts' estimates of $1.02 billion. The company reported a 14% organic revenue growth compared to Q1 2024, marking the second consecutive quarter of reaccelerating revenue growth. Despite supply chain challenges, DexCom successfully navigated short-term supply dynamics while maintaining strong demand in the US market.

Following the earnings release, several analysts raised their price targets for DexCom. Canaccord Genuity increased its target to $106 from $103, while Leerink Partners and Mizuho also raised their targets to $101 and $95, respectively. These upgrades reflect growing optimism about DexCom's market position and growth prospects.

The company's strong performance was attributed to its expanded commercial reach, leading to record levels of new customer starts, particularly from the type 2 non-insulin population. The introduction of Stelo, the first over-the-counter CGM, and broader coverage within the type 2 market have been well-received, enhancing customer experience. Additionally, DexCom announced a $750 million share repurchase program, signaling confidence in its strong revenue and cash flow growth outlook.