Epidemiologic studies suggest that type 2 diabetes mellitus (T2DM) is associated with an increased risk of colorectal cancer (CRC). However, prior meta-analyses have relied heavily on studies published more than a decade ago and have often combined distinct epidemiologic effect measures. We conducted an updated systematic review and meta-analysis of observational studies published from January 2012 through January 2026 evaluating the association between T2DM and incident CRC. PubMed, Embase, Web of Science, CENTRAL, and Scopus were searched, and eligible studies reporting associations between T2DM and CRC were included. Effect estimates were synthesized separately using random-effects models to calculate pooled estimates with 95% confidence intervals (CIs). Sex-specific and leave-one-out sensitivity analyses were also conducted. Fourteen studies were included, comprising nine cohort and five case-control studies; six reported odds ratios (ORs), seven reported hazard ratios (HRs), and one reported a standardized incidence ratio (SIR). T2DM was associated with higher odds of incident CRC (OR, 1.28; 95% CI, 1.13-1.46) and a higher hazard of incident CRC (HR, 1.27; 95% CI, 1.23-1.31). The study reporting an SIR also showed higher CRC incidence among individuals with T2DM (SIR, 1.40; 95% CI, 1.39-1.45). Sex-specific analyses generally showed positive associations in both females and males, and sensitivity analyses supported the robustness of the pooled findings. Overall, T2DM was associated with an increased risk of incident CRC, with a consistent direction of association across distinct epidemiologic effect measures. These findings provide updated evidence supporting consideration of T2DM as a marker of increased CRC risk and may inform CRC prevention strategies among individuals with T2DM.