Company Reports

Guardant Health is a leader in liquid biopsy. It has market-leading platforms in tumor genomic profiling, molecular residual disease, or MRD, testing, and colorectal cancer screening. Although these are promising markets with multibillion-dollar revenue potential, it is still the early days, with considerable uncertainty about payer coverage and guideline inclusion. We do not expect the company to generate positive cash flows until 2028.

Guardant reported 44% revenue growth and 66,000 Shield colorectal cancer screening tests during the second quarter, representing a 50% sequential increase. Management raised full-year revenue guidance to $1.35 billion at the midpoint, 3% higher than the guidance provided in May.

Guardant Health is a leader in liquid biopsy. It has market-leading platforms in tumor genomic profiling, molecular residual disease, or MRD, testing, and colorectal cancer screening. Although these are promising markets with multibillion-dollar revenue potential, it is still the early days, with considerable uncertainty about payer coverage and guideline inclusion. We do not expect the company to generate positive cash flows until 2028.

Guardant reported 48% revenue growth, including 44,000 Shield screening tests, and raised full-year guidance for revenue to $1.31 billion at the midpoint, or 3.6% higher than the guidance given in February.

Guardant reported 33% full-year revenue growth. 2026 guidance includes revenue growth of 27%-30%, Shield volume growth of about 150%, a decline in non-GAAP gross profit margin of about 120 basis points at the midpoint, and significantly improved operating expenses and free cash flow.

Guardant Health is a leader in liquid biopsy. It has market-leading platforms in tumor genomic profiling, molecular residual disease, or MRD, testing, and colorectal cancer screening. Although these are promising markets with multibillion-dollar revenue potential, it is still the early days with considerable uncertainty surrounding the details of payer coverage and guideline inclusion. We do not expect the company to generate positive cash flows until 2028.

Guardant Health reported total revenue of $265.2 million for the third quarter, up 39% year over year and 14% sequentially. Screening reported $24.1 million of revenue and about 24,000 tests. The company raised guidance for 2025 revenue growth to 31% from 24% at the midpoint of its ranges.

Guardant Health is a leader in liquid biopsy. It has market-leading platforms in genomics profiling, molecular residual disease, or MRD, testing, and single cancer screening for colorectal cancer. Although these are promising markets with multibillion-dollar revenue potential, it is still the early days with considerable uncertainty surrounding the details of payer coverage and guideline inclusion. We do not expect the company to generate positive cash flows until 2028.

Guardant reported total revenue of $232.1 million, a year-on-year increase of 31% and a sequential increase of 14%. Screening reported $14.8 million of revenue and about 16,000 tests. The company raised guidance for revenue growth to 24% from 19.5% using the midpoint of its ranges.

Guardant reported total revenue of $203.5 million, a year-over-year increase of 21% and a sequential increase of 1%. The screening segment posted $5.7 million of revenue on about 9,000 tests. The company raised full-year guidance for revenue growth to 19.5% from 15.5% at the midpoint of its ranges.

Guardant Health's fourth-quarter results and guidance were both in line with our expectations. We maintain our $47 fair value estimate, and we currently view shares as fairly valued. We think the company has healthy tailwinds going into 2025, including robust double-digit revenue growth, improving gross profit margins, and an eventful calendar that will help shape expectations of the sales trajectories for Shield (colorectal cancer screening) and Reveal (surveillance of cancer survivors).

Guardant Health is a leader in liquid biopsy. It has market leading platforms in genomics profiling, molecular residual disease, or MRD, testing, and single cancer screening for colorectal cancer, or CRC. Although these are promising markets with multi-billion-dollar revenue potential, it is still the early days with considerable uncertainty surrounds the details of payer coverage and guideline inclusion. We do not expect the company to generate positive cash flows until 2028.

Guardant Health's third-quarter results once again exceeded our expectations. Revenue for the three months was $191 million, or 34% year-on-year growth, and gross profit margin was 61%, or 1.4 percentage points better than the same period last year. The company increased its full-year guidance to 28%-29% revenue growth from the previous guidance of 22%-24%. We estimate the company is still about four years away from breakeven profitability, which informs our no-moat rating, but we view 2025 as an important year with potentially positive catalysts related to Shield, Reveal, and its multicancer early detection test. We maintain our $47 fair value estimate and think shares are undervalued.

Guardant Health's results were better than our expectations. Revenue for the three months was $177 million, or 40% year-on-year growth, and gross profit margin was 59%, or 2 percentage points better than the same period last year. The no-moat company increased its full-year guidance to 22%-24% revenue growth (excluding revenue from screening sales), which is considerably higher than the previous expectation of about 17.5% growth. We maintain our $47 fair value estimate and think shares are undervalued. However, its key pipeline products are far from derisked, and we estimate Guardant is still four years from profitability, even if its Shield test is ultimately included in the cancer screening guidelines and becomes broadly covered by commercial payers.

Guardant Health reported results that were better than our expectations. Revenue for the three months of 2024 was $169 million, or 31% year-on-year growth, and gross profit margin was 61%, or 2.5 percentage points better than the same period last year. We think this is a very strong start to the year given the company’s full-year guidance of 17.5% revenue growth, which could have upside as the year progresses. We maintain our $47 fair value estimate and think shares are undervalued. We reiterate the company’s Very High Morningstar Uncertainty Rating, as key pipeline products are not yet derisked, and we estimate the company is still about four years away from profitability.

Guardant Health’s results and guidance were in line with our expectations. Full-year revenue was $564 million, or 26% year-on-year growth, and the midpoint of its guidance range for 2024 is $662.5 million, or approximately 17.5% growth. We are maintaining our $47 fair value estimate, and we think shares are undervalued. However, we also reiterate the company’s Very High Morningstar Uncertainty Rating, as key pipeline products, including Shield and Reveal, are not yet derisked, and we think the company is still about 4-5 years away from profitability.

Guardant Health is a leader in liquid biopsy. It has market leading platforms in genomics profiling, molecular residual disease, or MRD, testing, and single cancer screening for colorectal cancer, or CRC. It launched Reveal, its MRD test, for CRC in 2021 and a lab-developed test, or LDT, version of Shield, its CRC screening test, in 2022. Although these are promising markets with multi-billion-dollar revenue potential, it is still the early days, and considerable uncertainty surrounds the details of payer coverage and guideline inclusion. We do not expect the company to generate positive cash flows until 2028, or two years after Shield’s potential inclusion in the U.S. Preventive Services Task Force, or USPSTF, guidelines in 2026.

Guardant Health posted good third-quarter results and revised full-year guidance up by $7 million to $554.5 million using the midpoints of the ranges. Revenue in the quarter was $143 million, or 22% year-on-year growth, and precision oncology was $133 million, or 31% year-over-year growth. We maintain our $47 fair value estimate and think shares are undervalued. However, we reiterate that key products are not yet derisked, and the company is probably at least four or five years away from being profitable.

Guardant Health is a leader in liquid biopsy. It has market leading platforms in genomics profiling, molecular residual disease, or MRD, testing, and single cancer screening for colorectal cancer, or CRC. It launched Reveal, its MRD test, for CRC in 2021 and Shield, its CRC screening test, in 2022. Although these are promising markets with multi-billion-dollar revenue potential, it is still the early days, and considerable uncertainty surrounds the details of payer coverage and guideline inclusion. We do not expect the company to generate positive cash flows until 2027 at the earliest, which is one year after the company’s estimate of Shield’s inclusion in the U.S. Preventative Services Task Force, or USPSTF, guidelines in 2026.

We are transferring coverage of Guardant Health, keeping our moat rating at none, and lowering our fair value estimate to $47 from $63 previously. This is driven by a slower projection of Shield’s revenue trajectory and partially offset by a more optimistic view of its Reveal franchise.