CareDx, Inc. (CDNA Quick QuoteCDNA - Free Report) raised its 2026 revenue and profitability outlook following strong transplant testing demand, improved reimbursement collections and contributions from its newly acquired specialty oncology business.

During the third-quarter 2026 earnings call, management emphasized expanding clinical adoption, improving testing economics and preparing new molecular diagnostics for commercialization in 2027. Executives also addressed reimbursement opportunities and longer-term growth expectations during the analyst discussion.

CDNA Raises 2026 Revenue and Profitability Targets

Chief financial officer and chief operating officer Keith Kennedy raised full-year revenue guidance to $520 million-$530 million from $490 million-$500 million. Adjusted EBITDA guidance increased to $90 million-$100 million from $66 million-$78 million.

For the fourth quarter, management projected revenues of $131 million-$141 million and adjusted EBITDA of $16 million-$26 million.

Kennedy expects fourth-quarter testing volumes of 76,000-80,000, including 61,000-63,000 transplant tests and 15,000-17,000 specialty oncology tests.

CareDx Sees Broader Transplant Testing Adoption

President and CEO John Hanna attributed transplant growth to increasing protocol adoption, clinical evidence and improved physician workflows.

Transplant testing volumes increased 21% year over year to 50,750. During questioning from BTIG, Hanna said kidney testing maintained growth above 20%, heart testing expanded in the mid-teens and lung testing remained particularly strong.

Hanna highlighted lung transplantation as an important expansion opportunity because patients require frequent monitoring. CareDx also operates 21 transplant centers on Epic Aura and expects half of transplant orders to flow through electronic medical record integrations by year-end.

CDNA Expands NavDx Commercial Capabilities

Hanna outlined progress integrating NavDx following the July 1 acquisition of Naveris. Specialty oncology generated $12.5 million in quarterly revenues, representing 37% comparable year-over-year growth.

CareDx expanded its commercial presence, introduced electronic ordering through its care portal and moved NavDx onto its billing platform on Oct. 1. Epic-based ordering is expected to begin by Jan. 1, 2027.

Clinical evidence remains central to expansion. Hanna discussed Phase II studies evaluating NavDx-guided radiation reduction in HPV-driven cancers, alongside research examining molecular testing earlier in patients' treatment journeys.

CareDx Targets Higher Reimbursement per Test

During questioning from Canaccord Genuity, Kennedy identified additional reimbursement opportunities for NavDx, whose quarterly revenue per test reached $823 against the previous $775 forecast.

Kennedy said specialty oncology reimbursement could eventually reach $1,000 or more per test as clinical evidence and adoption strengthen.

Separately, responding to an analyst question about transplant reimbursement, Kennedy reaffirmed the company's longer-term $2,000-per-test objective. Management's fourth-quarter model assumes $1,550 in accrued transplant revenue per test, excluding prior-period collections.

CDNA Advances Two Molecular Testing Launches

Hanna reaffirmed plans to launch AlloHeme commercially in the first quarter of 2027, targeting recurrence monitoring in patients with AML and MDS.

During questioning from Craig-Hallum, Hanna said coverage could materialize in 2028, with significant revenue contributions anticipated in 2029. The clinical validation manuscript has been submitted for peer review.

HistoMap Kidney is also progressing toward broader commercial availability in 2027. Hanna told William Blair that the existing kidney transplant sales organization would support commercialization without requiring additional dedicated resources.

CareDx Maintains Expense Discipline Amid Expansion

Kennedy highlighted adjusted EBITDA of $30.5 million, approximately double the prior-year level, alongside a 74% non-GAAP gross margin.

In the third quarter of 2026, CDNA’s revenues reached $139.36 million, beating the Zacks Consensus Estimate of $122.40 million. Non-GAAP earnings of 70 cents per share surpassed the consensus estimate of 24 cents.

CareDx, Inc. Price, Consensus and EPS Surprise

CareDx, Inc. price-consensus-eps-surprise-chart | CareDx, Inc. Quote

However, quarterly revenues included $15 million in out-of-period collections. Excluding such revenue in comparable periods, overall revenues increased 32% year over year. Kennedy emphasized continued expense control and disciplined revenue cycle management.

CDNA Keeps Focus on Clinical and Commercial Execution

Management's outlook centers on transplant testing penetration, specialty oncology integration and commercialization of additional molecular diagnostics.

Hanna reiterated the company's longer-range expectation of 15% annual transplant business growth and 30%-40% NavDx growth through 2027, while Kennedy emphasized improving collections and maintaining operational efficiency.

CareDx’s Zacks Rank & Style Scores Signal a Mixed Picture

CDNA currently carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings revision outlook. Its Growth Score of B reflects relatively favorable growth characteristics, while Value and Momentum Scores of D indicate weaker positioning in those categories. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock's VGM Score of D signals less favorable combined value, growth and momentum characteristics. The combination falls short of the strongest Zacks Rank and Style Score pairings. However, the Zacks Rank can change as analysts revise earnings estimates following the recently reported results.