The shares of Natera, a genetic testing company (NASDAQ:NTRA), soared sharply during morning trading. They rose as high as 17% following the announcement that financial results for 2025’s second quarter were better than expected and its revenue projection was raised.
Stock closed the day with a 7.7% gain.
Wall Street was pleased with the higher revenue and upgraded guidance, even though the loss per share exceeded expectations.
Revenue beats estimates, sales jump 32%
Natera announced Q2 revenues of $546.6 millions, an increase of 32.2% from the same time period last year. This exceeded Wall Street’s expectations.
The company has seen a sustained increase of 12.7% in its number of genetic tests, which is reflected by this strong performance.
Natera, a company founded in 2003 with headquarters in Austin, Texas specializes in cancer detection and monitoring organ transplants using DNA analysis.
Steve Chapman, CEO of Signatera Health Products Inc., attributed this quarter’s success to the “record Signatera Growth” as well as the continued strength within the Women’s Health and Organ health product lines.
Natera, despite the impressive revenue figures, reported a GAAP per-share loss of $0.74. This was higher than the $0.62 expected.
Although the company is still unprofitable, it has shown consistent growth in its top line.
As a sign of confidence, the company raises its guidance.
Natera’s full-year revenue guidance for 2025 was raised to the midpoint at $2.06 Billion, an increase of $80 MILLION from its prior projection, and up 4% over Wall Street expectations.
This new outlook indicates that management has confidence in the ability to maintain the growth trajectory of the company for the remainder of this year.
Natera’s shares were under pressure before the announcement of Q2 and had only gained 2% in value year to date.
The stock has risen and analysts’ expectations may have changed for the rest of the year.
Market outlook and analyst upgrades
Natera stock has a Strong Buy consensus rating by 11 Wall Street Analysts, who have all issued Buy recommendations over the last three months.
Before the Q2 results were released, analysts had set an average price of $201.56, which represents a gain of 43.85% from current levels.
RBC Capital, following the release of earnings for Natera, raised their price target to $255 and maintained its Outperform Rating.
Signatera’s testing volume and average sales prices contributed to the firm’s revenue growth.
RBC also highlighted Natera’s solid balance sheet. This included a current rate of 3.87, and a gross margin of 61.79 percent.
RBC stated that Natera is its “favorite idea for liquid biopsies,” due to the lack of opportunities with high growth in the healthcare industry.
It added that it has “multiple shots on target” for short-, medium-, and long term horizons.
Natera shares are trading at a premium to certain estimates of fair value, but the strong growth rate, improved guidance and support from analysts suggest that it will continue to be a highly watched stock for healthcare in the future.
The post Natera share price surges 17% on strong Q2 Results and Upgraded Guidance may change as new information is released.
