Natera CEO Says Company Is 'Clearly on a Roll' After Record Test Volumes, Raises Outlook

Natera Inc. (NASDAQ: NTRA ) stock surged Friday after the genetic testing company reported second-quarter results that topped Wall Street estimates and raised its full-year revenue outlook, supported by strong oncology demand and continued momentum across its Women’s Health and Organ Health businesses.

The company reported a second-quarter loss of 47 cents per share, beating the consensus estimate for a loss of 51 cents per share.

Revenue increased 37.7% year over year to $752.8 million, exceeding the analyst consensus estimate of $660.7 million.

The growth was driven by higher test volumes and improved average selling prices.

Oncology Growth Drives Record Quarter CEO Steve Chapman said the company processed more than 1 million tests for the second consecutive quarter and delivered record oncology volume growth.

Natera processed approximately 1.04 million tests during the quarter, up from about 853,100 a year earlier.

Gross profit rose to $485.2 million, while gross margin expanded to 64.5% as higher revenue and lower testing costs improved profitability.

Read Also: Natera Secures Landmark Japan Nod For Signatera In Colorectal Cancer Women’s Health Remains Strong Despite Seasonal Slowdown During the earnings call, management said Women’s Health and Organ Health continued to perform well, with Women’s Health posting high-single-digit growth on a seasonally adjusted basis.

The company noted that the second quarter is typically its weakest seasonal period for Women’s Health but said strong new customer wins, increased fetal-focused adoption and the rollout of its enhanced Panorama test more than offset the usual slowdown.

Management said those trends position the business for continued execution through the remainder of the year.

Outlook Raised Natera raised its fiscal 2026 revenue guidance to a range of $2.85 billion to $2.91 billion from its prior outlook of $2.74 billion to $2.82 billion.

The updated forecast is above the analyst consensus estimate of $2.80 billion.

Chapman said Natera is “clearly on a roll” after the company processed a record 1.04 million tests during the quarter, marking its second consecutive quarter above the one million-test milestone.

The company also posted 56% year-over-year growth in oncology test volumes, generated approximately $753 million in quarterly revenue and raised its full-year revenue guidance by $100 million, reflecting expected annual growth of 31% excluding revenue true-ups.

Analysts Lift Price Forecasts Following the results, William Blair reiterated its Outperform rating, calling Natera a core long-term holding with leading positions across several large diagnostics markets.

Evercore ISI reaffirmed its Outperform rating and raised its price forecast to $360 from $300.

JPMorgan also maintained its Overweight rating and increased its price forecast to $360 from $315.

Wells Fargo maintained its Equal-Weight rating and lifted its price forecast to $284 from $220.

NTRA Price Action: Natera shares were up 21.21% at $321.68 at the time of publication on Friday.

The stock is trading at a new 52-week high, according to Pro data.

Photo by Michael Vi via Shutterstock Read Also: Trump Says AI Could Be Bigger Than Oil.

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