Key Points
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GeneDx lowered its 2026 exome and genome volume growth target to at least 28% after third-quarter testing volume fell short of expectations.
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Sales rose 5% to $123.1 million, in line with estimates, but the 32,134 exome and genome results were up 25% against the 29.2% or more the company had promised.
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With two downward growth revisions already this year, investors appear to be pricing in a third.
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GeneDx Holdings (NASDAQ:WGS) stock fell 16.6% on Tuesday, Nov. 10, after the biotech company lowered its growth targets for the year.
The S&P 500 and the Nasdaq Composite dropped 0.4% and 0.7%, respectively.
Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger. Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout. Continue »
GeneDx earnings: revenue meets expectations, volume falls short
The genetic testing company GeneDx reported Q3 results on Monday after the bell. Sales jumped 5% to $123.1 million — in line with what Wall Street was looking for — and margins improved slightly. Unfortunately, testing volume lagged expectations. The company delivered 32,134 exome and genome results — the DNA tests that are its core business — up 25%. The company had promised 29.2% or more.
Management says that certain upfront paperwork is screening out some lower-value orders in favor of ones that pay better. The company kept its revenue forecast intact but cut its volume growth target to a minimum of 28%.
Image source: Getty Images.
Why GeneDx stock is priced on growth
This is a good example of why expectations are everything in the stock market. The company is still growing, but not as quickly as expected. With two downward growth revisions this year now, I understand why investors are pricing in a third.
Missed AI’s “Act 1”? Act 2 Could Be 14x Bigger
Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005.
But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout, a massive technology build-out that Google’s CEO says could be more profound than fire or electricity.
While everyone watches the chip designers, one “backbone” company provides the critical technology that Nvidia and AMD literally cannot function without. We’ve detailed this under-the-radar player in our new AI Playbook.
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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
