Natera (NASDAQ:NTRA) Announces Earnings Results, Misses Expectations By $0.14 EPS

Natera (NASDAQ:NTRA) posted its quarterly earnings data on Thursday. The medical research company reported ($0.42) EPS for the quarter, missing the consensus estimate of ($0.28) by ($0.14), FiscalAI reports. The firm had revenue of $793.98 million for the quarter, compared to analysts’ expectations of $707.54 million. Natera had a negative return on equity of 8.73% and a negative net margin of 5.66%. The firm’s quarterly revenue was up 34.1% compared to the same quarter last year. During the same period in the previous year, the firm earned ($0.64) earnings per share.

Here are the key takeaways from Natera’s conference call:

• Natera reported a record quarter, processing about 1.09 million tests, up 22%, and generating $794 million in revenue, up 34% year over year—or more than 40% excluding revenue true-ups. Clinical MRD volumes rose 56% to approximately 316,000 units.
• The company raised its 2026 revenue guidance to $3.005 billion–$3.035 billion, an increase of $140 million at the midpoint. It also reported 65% gross margin and said losses narrowed while it generated cash.
• Management highlighted new Medicare coverage for Signatera surveillance in early-stage liver cancer, nine to ten additional MolDX submissions in progress, and plans to launch colorectal and bladder cancer testing in Japan pending reimbursement and pricing. Executives said the coverage pipeline could support further Signatera ASP growth, though timing and outcomes remain uncertain.
• Natera set a goal of doubling revenue to $6 billion by 2029, primarily through continued growth in oncology testing, higher Signatera ASPs, international expansion, and pharma and data services. Management expects early cancer detection to contribute relatively little to that target in 2028–2029.
• The company plans to increase investment to support clinical trials, pharma and data demand, and early cancer detection; operating expenses are expected to grow 10%–12% in 2027. Management also cautioned that newer products may weigh on near-term costs and gross margins, although it expects cost improvements over time.

Natera Trading Down 14.6%

Shares of NTRA traded down $53.09 during mid-day trading on Friday, hitting $310.67. The company’s stock had a trading volume of 5,775,619 shares, compared to its average volume of 1,711,005. The company’s 50-day moving average is $380.25 and its 200-day moving average is $269.68. Natera has a 52-week low of $181.00 and a 52-week high of $437.41. The firm has a market capitalization of $44.78 billion, a price-to-earnings ratio of -272.52 and a beta of 1.55.

Wall Street Analyst Weigh In

Several equities research analysts have recently issued reports on the stock. Wells Fargo & Company raised their target price on shares of Natera from $220.00 to $284.00 and gave the stock an “equal weight” rating in a report on Friday, August 7th. Leerink Partners set a $330.00 price target on shares of Natera in a report on Friday, August 7th. Piper Sandler reiterated an “overweight” rating and set a $363.50 price target on shares of Natera in a report on Friday. Roth Capital assumed coverage on shares of Natera in a research report on Thursday, October 22nd. They issued a “buy” rating and a $475.00 price objective on the stock. Finally, Rothschild & Co Redburn assumed coverage on shares of Natera in a research note on Tuesday, September 8th. They issued a “buy” rating and a $385.00 price objective for the company. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average target price of $391.69.

Key Headlines Impacting Natera

Here are the key news stories impacting Natera this week:

• Positive Sentiment: Third-quarter revenue rose 34.1% year over year to $794 million, beating analyst expectations. Natera also raised its fiscal 2026 sales outlook, supporting the growth outlook for its testing business. Natera Q3 results and outlook
• Positive Sentiment: Medicare coverage for Signatera in hepatocellular carcinoma (HCC) could broaden access to the cancer-monitoring test and support adoption. Medicare coverage for Signatera in HCC
• Neutral Sentiment: JPMorgan lowered its price target from $460 to $405 but maintained an Overweight rating, indicating continued confidence while marking down its valuation expectations. JPMorgan price-target update
• Negative Sentiment: CEO Steve Chapman is stepping down, creating uncertainty around leadership and the transition. The announcement weighed on sentiment despite the stronger revenue outlook. CEO transition and market reaction
• Negative Sentiment: The quarterly per-share loss was wider than analysts expected (about $0.42 versus a $0.28 consensus loss), despite revenue beating estimates. This earnings miss appears to have contributed to the selloff. Natera third-quarter financial results

Insider Buying and Selling at Natera

In other Natera news, CEO Steven Chapman sold 3,801 shares of the stock in a transaction on Monday, November 2nd. The stock was sold at an average price of $411.80, for a total transaction of $1,565,251.80. Following the sale, the chief executive officer owned 87,431 shares of the company’s stock, valued at approximately $36,004,085.80. This trade represents a 4.17% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider John Fesko sold 6,517 shares of the stock in a transaction on Monday, August 10th. The shares were sold at an average price of $321.53, for a total value of $2,095,411.01. Following the sale, the insider directly owned 197,257 shares in the company, valued at $63,424,043.21. This trade represents a 3.20% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 53,573 shares of company stock valued at $19,856,400 in the last ninety days. Company insiders own 5.05% of the company’s stock.

Natera Company Profile

Natera, Inc is a diagnostics company that develops and provides genetic testing and molecular diagnostics for reproductive health, oncology and organ health. Its tests analyze cell-free DNA and other genetic material to support screening, diagnosis and disease monitoring.

In reproductive health, Natera offers Panorama, a noninvasive prenatal screening test, and Horizon, a carrier screening test. Its oncology portfolio includes Signatera, a personalized circulating tumor DNA test used to monitor for molecular residual disease and assess cancer recurrence.

The company also provides Prospera, a molecular test used to help assess organ transplant rejection.