Guardant Health (NASDAQ:GH): Strongest Q3 Results from the Testing & Diagnostics Services Group

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Earnings results often indicate what direction a company will take in the months ahead. With Q3 behind us, let’s have a look at Guardant Health and its peers.

The testing and diagnostics services industry plays a crucial role in disease detection, monitoring, and prevention, serving hospitals, clinics, and individual consumers. This sector benefits from stable demand, driven by an aging population, increased prevalence of chronic diseases, and growing awareness of preventive healthcare. Recurring revenue streams come from routine screenings, lab tests, and diagnostic imaging, with reimbursement from Medicare, Medicaid, private insurance, and out-of-pocket payments. However, the industry faces challenges such as pricing pressures, regulatory compliance, and the need for continuous investment in new testing technologies.Looking ahead, industry tailwinds include the expansion of personalized medicine, increased adoption of at-home and rapid diagnostic tests, and advancements in AI-driven diagnostics that enhance accuracy and efficiency. However, headwinds such as reimbursement uncertainties, competition from decentralized testing solutions, and regulatory scrutiny over test validity and cost-effectiveness may impact profitability. Adapting to evolving healthcare models and integrating automation will be key for sustaining growth and maintaining operational efficiency.

The 5 testing & diagnostics services stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.9%.

Luckily, testing & diagnostics services stocks have performed well with share prices up 12.5% on average since the latest earnings results.

Best Q3: Guardant Health

Pioneering the field of "liquid biopsy" with technology that can identify cancer-specific genetic mutations from a simple blood draw, Guardant Health develops blood tests that detect and monitor cancer by analyzing tumor DNA in the bloodstream, helping doctors make treatment decisions without invasive biopsies.

Guardant Health reported revenues of $265.2 million, up 38.5% year on year. This print exceeded analysts’ expectations by 12.6%. Overall, it was an incredible quarter for the company with an impressive beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

“This was an exceptional quarter for Guardant with broad-based growth across our business,” said Helmy Eltoukhy, co-founder and co-CEO.

Guardant Health pulled off the biggest analyst estimates beat and fastest revenue growth of the whole group. Unsurprisingly, the stock is up 50.2% since reporting and currently trades at $108.55.

We think Guardant Health is a good business, but is it a buy today? Read our full report here, it’s free.

RadNet

With over 350 imaging facilities across seven states and a growing artificial intelligence division, RadNet operates a network of outpatient diagnostic imaging centers across the United States, offering services like MRI, CT scans, PET scans, mammography, and X-rays.

RadNet reported revenues of $522.9 million, up 13.4% year on year, outperforming analysts’ expectations by 6.3%. The business had a strong quarter with a solid beat of analysts’ same-store sales estimates and an impressive beat of analysts’ revenue estimates.

Although it had a fine quarter compared its peers, the market seems unhappy with the results as the stock is down 6.5% since reporting. It currently trades at $73.20.

Weakest Q3: Labcorp

With over 600 million tests performed annually and involvement in 90% of FDA-approved drugs in 2023, Labcorp provides laboratory testing services and drug development solutions to doctors, hospitals, pharmaceutical companies, and patients worldwide.

Labcorp reported revenues of $3.56 billion, up 8.6% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a narrow beat of analysts’ organic revenue estimates.

Labcorp delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 4.9% since the results and currently trades at $262.02.

Read our full analysis of Labcorp’s results here.

Quest

Processing approximately one-third of the adult U.S. population's lab tests annually, Quest Diagnostics provides laboratory testing and diagnostic information services to patients, physicians, hospitals, and other healthcare providers across the United States.

Quest reported revenues of $2.82 billion, up 13.2% year on year. This result topped analysts’ expectations by 3.3%. It was a strong quarter as it also logged an impressive beat of analysts’ revenue estimates and full-year revenue guidance slightly topping analysts’ expectations.

Quest pulled off the highest full-year guidance raise among its peers. The stock is down 1.9% since reporting and currently trades at $186.81.

Read our full, actionable report on Quest here, it’s free.

NeoGenomics

Operating a network of CAP-accredited and CLIA-certified laboratories across the United States and United Kingdom, NeoGenomics provides specialized cancer diagnostic testing services, including genetic analysis, molecular testing, and pathology consultation for oncologists and healthcare providers.

NeoGenomics reported revenues of $187.8 million, up 11.9% year on year. This number beat analysts’ expectations by 2.1%. Overall, it was a strong quarter as it also recorded EPS in line with analysts’ estimates and a solid beat of analysts’ revenue estimates.

NeoGenomics had the weakest full-year guidance update among its peers. The stock is up 25.6% since reporting and currently trades at $13.19.

Read our full, actionable report on NeoGenomics here, it’s free.

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Clinical Labs Hope to Head Off Looming Medicare Cuts — Barrons.com

Dow Jones Newswires

By Bill Alpert

U.S. House representatives heard the clinical lab industry plead yesterday for a reprieve from looming cuts as large as 15% in what Medicare pays Labcorp Holdings, Quest Diagnostics and cancer-testing specialists like Guardant Health, Exact Sciences, and Natera.

Starting February, a current law will require labs to tell Medicare the rates that private insurers paid for tests back in 2019. Medicare will then cut its own test payments to those levels in 2027.

That will hurt the development of technologies like the genomic tests now used for diagnosing cancer patients and sick infants, said American Clinical Laboratory Association President Susan Van Meter, at a Thursday hearing on Medicare reimbursement rates.

"Sustained cuts of such a large magnitude threaten patient access to lifesaving diagnostics and reduce investment in the next generation of clinical diagnostics," Van Meter told the Health Subcommittee of the House Energy & Commerce Committee.

The February deadline exists because of a law passed 10 years ago that made clinical labs the only healthcare industry whose Medicare rates would match those paid by private insurers. Commercial rates were first surveyed in 2016 and Medicare cut its test payments by up to 10% in each year from 2018 to 2020. The resulting $4 billion in cuts was four times what Congress had projected.

After labs and hospitals complained that Medicare's rates were based on a tiny, unrepresentative sample of the private market, Congress froze Medicare lab rates in 2020. Every year since, the freeze has been extended. The latest extension ends Jan. 31.

A bipartisan group of representatives and senators is pushing a new bill called the Results Act that would extend Medicare's rate freeze until 2028. Beginning in 2029, Medicare test rates would be based on a widely used independent database of commercial payments.

"While today's hearing is an early step towards passing the Results Act, we were encouraged by the bipartisan support during the hearing," wrote Guggenheim analyst Subbu Nambi in a Thursday note.

The most likely way the Results Act will get passed, said Nambi, will be as an attachment to a larger piece of healthcare legislation or a reconciliation bill at the end of the month.

Write to Bill Alpert at william.alpert@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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Q3 Earnings Roundup: Cardinal Health (NYSE:CAH) And The Rest Of The Healthcare Providers & Services Segment

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Guardant Health

-4.85%

Brookdale Senior Living

Looking back on healthcare providers & services stocks’ Q3 earnings, we examine this quarter’s best and worst performers, including Cardinal Health and its peers.

The healthcare providers and services sector, from insurers to hospitals, benefits from consistent demand, generating stable revenue through premiums and patient services. However, it faces challenges from high operational and labor costs, reimbursement pressures that squeeze margins, and regulatory uncertainty. Looking ahead, an aging population with more chronic diseases and a shift toward value-based care create tailwinds. Digitization via telehealth, data analytics, and personalized medicine offers new revenue streams. Nonetheless, headwinds persist, including clinical labor shortages, ongoing reimbursement cuts, and regulatory scrutiny over pricing and quality.

The 40 healthcare providers & services stocks we track reported a strong Q3. As a group, revenues beat analysts’ consensus estimates by 2.3% while next quarter’s revenue guidance was 0.6% below.

In light of this news, share prices of the companies have held steady as they are up 1.8% on average since the latest earnings results.

Cardinal Health

Operating as a critical link in the healthcare supply chain since 1979, Cardinal Health distributes pharmaceuticals and manufactures medical products for hospitals, pharmacies, and healthcare providers across the global healthcare supply chain.

Cardinal Health reported revenues of $64.01 billion, up 22.4% year on year. This print exceeded analysts’ expectations by 7.8%. Overall, it was an exceptional quarter for the company with a solid beat of analysts’ revenue estimates and a beat of analysts’ EPS estimates.

"We are pleased with our strong broad-based operational and financial performance to begin fiscal 2026," said Jason Hollar, CEO of Cardinal Health.

Interestingly, the stock is up 20.7% since reporting and currently trades at $198.49.

We think Cardinal Health is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q3: Guardant Health

Guardant Health reported revenues of $265.2 million, up 38.5% year on year, outperforming analysts’ expectations by 12.6%. The business had an incredible quarter with an impressive beat of analysts’ revenue estimates and full-year revenue guidance exceeding analysts’ expectations.

Guardant Health scored the biggest analyst estimates beat among its peers. The market seems happy with the results as the stock is up 33.8% since reporting. It currently trades at $96.69.

Slowest Q3: Brookdale

With a network of over 650 communities serving approximately 59,000 residents across 41 states, Brookdale Senior Living operates senior living communities across the United States, offering independent living, assisted living, memory care, and continuing care retirement communities.

Brookdale reported revenues of $813.2 million, up 3.7% year on year, falling short of analysts’ expectations by 1.7%. It was a softer quarter as it posted a significant miss of analysts’ EPS estimates and a miss of analysts’ revenue estimates.

Interestingly, the stock is up 15.9% since the results and currently trades at $10.56.

Read our full analysis of Brookdale’s results here.

Pediatrix Medical Group

With a network of approximately 2,620 affiliated physicians caring for some of the most vulnerable patients, Pediatrix Medical Group provides specialized physician services focused on neonatal, maternal-fetal, pediatric cardiology and other pediatric subspecialty care across 37 states.

Pediatrix Medical Group reported revenues of $492.9 million, down 3.6% year on year. This result surpassed analysts’ expectations by 3.2%. Overall, it was a stunning quarter as it also produced an impressive beat of analysts’ same-store sales estimates and a beat of analysts’ EPS estimates.

The stock is up 32.9% since reporting and currently trades at $22.56.

Read our full, actionable report on Pediatrix Medical Group here, it’s free for active Edge members.

UnitedHealth

With over 100 million people served across its various businesses and a workforce of more than 400,000, UnitedHealth Group operates a health insurance business and Optum, a healthcare services division that provides everything from pharmacy benefits to primary care.

UnitedHealth reported revenues of $113.2 billion, up 12.2% year on year. This print met analysts’ expectations. Taking a step back, it was a mixed quarter as it also logged a narrow beat of analysts’ customer base estimates but revenue in line with analysts’ estimates.

The company kept the number of customers flat at a total of 54.08 million. The stock is down 9.6% since reporting and currently trades at $330.25.

Read our full, actionable report on UnitedHealth here, it’s free for active Edge members.

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FTSE 100 today: Pound lower; Magnum debuts, Smith & Nephew sets new goals

Investing.com

Investing.com -- British stocks fell on Monday, while the pound drifted lower and wider European markets delivered a mixed performance across the region.

The blue-chip index FTSE 100 declined 0.2% and the British GBP/USD fell 0.1% against the dollar to above 1.33.

The DAX index in Germany gained 0.1%, and the CAC 40 in France fell 0.1%.

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UK round up

TotalEnergies SE (EPA:TTEF) has agreed to merge its UK operations with Repsol (BME:REP) and Hitec to form the largest independent oil and gas producer in the United Kingdom.

The deal will give TotalEnergies a 47.5% stake in the combined entity, named NEO NEXT+, making it the largest shareholder. HitecVision will control 28.875% while Repsol will hold 23.625%.

In other market news, UBS downgraded Trainline PLC (LON:TRNT) to Neutral from Buy, reducing its price target to 235p from 465p. The bank cited a lack of catalysts to improve market sentiment ahead of the UK government’s planned ticketing platform launch, noting that despite Trainline’s strong execution, the market continues to price in a high probability of negative disruption.

Barclays Capital upgraded Vodafone Group PLC (LON:VOD) to "overweight" from "equal weight" and raised its price target to 120 pence from 100 pence, pointing to expectations of a strategic turnaround after years of declining earnings.

Meanwhile, Jefferies downgraded NextEnergy Solar Fund Ltd (LON:NESF) to "underperform" from "hold" on Monday. Analysts warned that the closed-end solar investment company has breached its preference share gearing covenant with a debt to enterprise value ratio of 59%, exceeding the 50% limit. This could force significant deleveraging and create risks for its dividend, according to Jefferies.

Magnum Ice Cream shares started trading for the first time Monday on Amsterdam and London markets, opening at €12.20 on the Amsterdam exchange.

The opening price came in below the technical reference price of €12.80 that was announced Friday. Despite the lower-than-expected debut price, Magnum shares moved upward during early trading sessions.

In other market news, Smith & Nephew PLC (LON:SN) announced new mid-term targets, aiming for 6-7% revenue compound annual growth rate through 2028, above current analyst consensus of 5.2%.

The medical technology company outlined its "RISE" strategy at its Capital Markets Day in London, targeting 9-10% trading profit CAGR, over $1 billion in free cash flow, and 12-13% return on invested capital by 2028.

For 2025, Smith+Nephew reaffirmed its revenue growth guidance of around 5% while raising its trading margin guidance to at least 19.5%, up from the previous 19-20% range. The company also increased its free cash flow target to around $800 million from $750 million, driven by working capital improvements and operational efficiency.

Anglo American PLC (LON:AAL) said Monday it has withdrawn a resolution from its upcoming General Meeting that would have amended the terms of executive incentive plans amid shareholder concerns.

The company announced that Resolution 2, which proposed changes to the 2024 and 2025 Long-Term Incentive Plan Awards for Executive Directors, will no longer be considered at the meeting scheduled for Tuesday.

In executive moves, Oxford Nanopore Technologies Ltd (LON:ONT) announced the appointment of Francis Van Parys as its new Chief Executive Officer, effective March 2, 2026. Van Parys will succeed Gordon Sanghera, who has led the molecular sensing technology company since its founding in 2005.

Van Parys brings over 20 years of experience leading life science businesses, currently serving as President and CEO of Radiometer, a global acute care diagnostics company within Danaher Corporation. His previous leadership roles at Cytiva and GE Healthcare included positions across Europe, Asia, and North America.

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FTSE 100 today: Pound dips; Magnum debuts, Smith & Nephew sets new goals

Investing.com

Investing.com -- British stocks were flat on Monday afternoon, while the pound drifted lower and wider European markets delivered a mixed performance across the region.

As of 1233 GMT, the blue-chip index FTSE 100 rose 0.02% and the British GBP/USD fell 0.1% against the dollar to above 1.33.

DAX index in Germany gained 0.1%, the CAC 40 in France fell 0.2%.

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UK round up

TotalEnergies SE (EPA:TTEF) has agreed to merge its UK operations with Repsol (BME:REP) and Hitec to form the largest independent oil and gas producer in the United Kingdom.

The deal will give TotalEnergies a 47.5% stake in the combined entity, named NEO NEXT+, making it the largest shareholder. HitecVision will control 28.875% while Repsol will hold 23.625%.

Magnum Ice Cream shares started trading for the first time Monday on Amsterdam and London markets, opening at €12.20 on the Amsterdam exchange.

In other market news, Smith & Nephew PLC (LON:SN) announced new mid-term targets, aiming for 6-7% revenue compound annual growth rate through 2028, above current analyst consensus of 5.2%.

Anglo American PLC (LON:AAL) said Monday it has withdrawn a resolution from its upcoming General Meeting that would have amended the terms of executive incentive plans amid shareholder concerns.

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TotalEnergies to become largest shareholder in U.K. oil and gas venture

Investing.com

Investing.com -- TotalEnergies SE (EPA:TTEF) has signed an agreement to merge its U.K. operations with Repsol (BME:REP) and Hitec, creating the largest independent oil and gas producer in the United Kingdom.

Under the deal, TotalEnergies will acquire a 47.5% stake in NEO NEXT+, making it the largest shareholder. HitecVision will own 28.875% and Repsol will hold 23.625% of the combined entity.

The transaction is expected to close in the first half of 2026, pending regulatory approvals.

"The announcement reflects a continuation of the trend we’ve seen in recent years from the majors in the UK North Sea, coming on the back of Repsol’s deal in March and Shell and Equinor’s agreement in December 2024 to combine their UK offshore oil and gas assets," according to RBC analysts.

RBC added that while companies may focus on improving efficiencies and cutting costs, one potential downside is that HMRC could see lower tax receipts, as the combined group is expected to pay less than the two firms would have individually.

The merged company is projected to produce approximately 250,000 barrels of oil equivalent per day in 2026. Its portfolio will include assets such as Penguin, Mariner, Shearwater, and interests in the Elgin/Franklin complex and Alwyn North.

As part of the agreement, TotalEnergies will retain up to $2.3 billion of decommissioning liabilities related to its legacy assets. The company expects its involvement to be immediately accretive to the joint venture’s cash flow upon completion.

This deal follows the March announcement of NEO Energy’s merger with Repsol, which had a similar structure where Repsol retained $1.8 billion of funding commitments, representing 40% of decommissioning liabilities related to its legacy assets.

Prior to this new agreement, Hitec and Repsol had projected production for their joint venture would reach around 130,000 barrels of oil equivalent per day in 2025.

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Testing & Diagnostics Services Stocks Q3 Recap: Benchmarking NeoGenomics (NASDAQ:NEO)

Stock Story

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how NeoGenomics and the rest of the testing & diagnostics services stocks fared in Q3.

The 5 testing & diagnostics services stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 4.9%.

Thankfully, share prices of the companies have been resilient as they are up 9.5% on average since the latest earnings results.

NeoGenomics

NeoGenomics reported revenues of $187.8 million, up 11.9% year on year. This print exceeded analysts’ expectations by 2.1%. Overall, it was a strong quarter for the company with EPS in line with analysts’ estimates and a solid beat of analysts’ revenue estimates.

“During the third quarter, we again delivered strong clinical test volumes and revenue while advancing our long-term growth initiatives in therapy selection and MRD – two of the largest and fastest growing areas of cancer testing with significant unmet needs,” stated Tony Zook, CEO of NeoGenomics.

NeoGenomics delivered the weakest full-year guidance update of the whole group. Interestingly, the stock is up 13.7% since reporting and currently trades at $11.94.

Is now the time to buy NeoGenomics? Access our full analysis of the earnings results here, it’s free for active Edge members.

Best Q3: Guardant Health

Guardant Health pulled off the biggest analyst estimates beat and fastest revenue growth among its peers. The market seems happy with the results as the stock is up 42.4% since reporting. It currently trades at $102.89.

Is now the time to buy Guardant Health? Access our full analysis of the earnings results here, it’s free for active Edge members.

Weakest Q3: Labcorp

Labcorp reported revenues of $3.56 billion, up 8.6% year on year, in line with analysts’ expectations. It was a mixed quarter as it posted a narrow beat of analysts’ organic revenue estimates.

Labcorp delivered the weakest performance against analyst estimates and slowest revenue growth in the group. As expected, the stock is down 6% since the results and currently trades at $259.25.

Read our full analysis of Labcorp’s results here.

RadNet

RadNet reported revenues of $522.9 million, up 13.4% year on year. This result surpassed analysts’ expectations by 6.3%. Overall, it was a strong quarter as it also logged a solid beat of analysts’ same-store sales estimates and an impressive beat of analysts’ revenue estimates.

The stock is up 1.3% since reporting and currently trades at $79.34.

Read our full, actionable report on RadNet here, it’s free for active Edge members.

Quest

Quest reported revenues of $2.82 billion, up 13.2% year on year. This print topped analysts’ expectations by 3.3%. It was a strong quarter as it also put up a solid beat of analysts’ revenue estimates and full-year revenue guidance slightly topping analysts’ expectations.

Quest delivered the highest full-year guidance raise among its peers. The stock is down 3.5% since reporting and currently trades at $183.71.

Read our full, actionable report on Quest here, it’s free for active Edge members.

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