Shares of genetic testing company Natera (NASDAQ:NTRA) jumped sharply in morning trading, rising as much as 17% after the company reported better-than-expected second-quarter 2025 financial results and raised its full-year revenue forecast.
The stock later closed at 7.7% in the green.
Wall Street welcomed the revenue beat and the upgraded guidance, despite a wider-than-expected loss per share.
Revenue beats estimates, sales jump 32%
Natera reported Q2 revenue of $546.6 million, a 32.2% increase from the same period last year, beating Wall Street expectations.
This strong performance was driven by a 12.7% increase in the number of tests processed, reflecting sustained demand for the company’s genetic testing offerings.
Founded in 2003 and headquartered in Austin, Texas, Natera specializes in prenatal screening, cancer detection, and organ transplant monitoring using proprietary DNA analysis technology.
CEO Steve Chapman attributed the quarter’s performance to “record Signatera growth” and ongoing strength in the women’s health and organ health product lines.
Despite the strong revenue numbers, Natera reported a GAAP loss per share of $0.74, which was worse than the expected loss of $0.62.
The company remains unprofitable but has been demonstrating consistent top-line growth.
Guidance raised as company signals confidence
Alongside its quarterly results, Natera raised its full-year 2025 revenue guidance to a midpoint of $2.06 billion, up $80 million from its previous projection and 4% above Wall Street’s expectations.
The new outlook suggests management is confident in maintaining the company’s growth trajectory for the rest of the year.
Prior to the Q2 announcement, Natera shares had been under pressure and were up only 2% year-to-date.
The results have now helped boost investor sentiment, pushing the stock higher and potentially shifting analyst expectations for the remainder of the year.
Analyst upgrades and market outlook
Natera’s stock holds a consensus Strong Buy rating from 11 Wall Street analysts, all of whom have issued Buy recommendations in the past three months.
The average price target before the Q2 report was $201.56, implying a 43.85% upside from recent levels.
Following the earnings release, RBC Capital raised its price target on Natera to $255 from $251 while maintaining its Outperform rating.
The firm described Q2 as “another noteworthy quarter” for the company, with particular strength in Signatera testing volumes and average selling prices contributing to the revenue beat.
RBC also pointed to Natera’s strong balance sheet, including a current ratio of 3.87 and a gross profit margin of 61.79%.
RBC noted that Natera remains its “favorite liquid biopsy idea,” citing the scarcity of high-growth opportunities in the healthcare sector.
The firm added that the company has multiple “shots on goal” across short, medium, and long-term horizons.
While Natera’s shares may be trading above certain fair value estimates, the company’s robust growth, upgraded guidance, and analyst support suggest it will remain a closely watched healthcare stock in the coming quarters.
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