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NTRA Q3 Loss Wider Than Expected, Revenues Beat, '26 Sales View Up
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Key Takeaways
NTRA's Q3 loss of 39 cents per share missed estimates, while sales rose 34.1% to $794 million, beating view.
Oncology test volumes surged 60.9%, while Signatera pricing gains and higher MRD testing supported growth.
NTRA raised its 2026 sales outlook to $3.005-$3.035 billion and maintained positive cash flow expectations.
Natera (NTRA - Free Report) reported third-quarter 2026 adjusted loss of 39 cents per share, wider than the Zacks Consensus Estimate of a loss of 17 cents.
GAAP loss per share was 42 cents compared with a loss of 64 cents in the year-ago quarter.
Total revenues reached $794 million, up 34.1% year over year, surpassing the Zacks Consensus Estimate by 13%.
Natera's Oncology and Signatera Momentum
Oncology remained a major growth driver. Total oncology tests processed increased 60.9% year over year to approximately 339,500. Clinical molecular residual disease (MRD) volumes, including Signatera and Latitude, reached approximately 316,000, up more than 56% year over year.
Clinical MRD volumes increased approximately 33,000 sequentially, marking the second consecutive quarter of more than 30,000 additional units. Signatera ASP improved to approximately $1,290 from $1,271 in the preceding quarter. Growth reflected stronger new patient starts, additional customer accounts and repeat monitoring across cancer types.
NTRA Women's Health and Organ Health Updates
Women's health maintained mid- to high-single-digit volume growth, supported by continued adoption of Fetal Focus and enhanced Panorama testing capabilities. Management highlighted improvements in testing performance at low fetal fractions, supporting broader utilization of its prenatal screening portfolio.
Organ health testing volumes increased nearly 40% year over year. Prospera benefited from expanded Medicare coverage for transplant surveillance, which became effective Aug. 30, 2026. Management indicated that the reimbursement expansion had a positive impact on both testing volumes and ASPs.
Natera's Expense Trends and Profitability
Gross profit increased to $513.5 million from $384.4 million a year earlier. Gross margin was 64.7% compared with 64.9% in the prior-year quarter. Excluding revenue true-ups, gross margin reached 63.2%, improving approximately 140 basis points sequentially, reflecting operating efficiencies and improved pricing.
Research and development expenses increased to $242.4 million from $173.4 million, led by clinical trials and product development investments. Selling, general and administrative expenses rose to $333.7 million from $308.5 million. Despite higher spending, operating loss narrowed to $68.3 million from $97.6 million.
Natera Generates Positive Cash Flow
As of Sept. 30, 2026, Natera's cash, cash equivalents and restricted cash totaled $1.10 billion compared with $1.08 billion as of Dec. 31, 2025. The company had $80.3 million in outstanding debt under its UBS line of credit.
Natera's cash balance increased approximately $5.7 million sequentially during the third quarter. Management highlighted continued positive cash generation despite increased investments in clinical trials, product development and commercial expansion.
Natera raised its 2026 revenue guidance to $3.005-$3.035 billion from $2.850-$2.910 billion, representing a $140-million increase at the midpoint. The Zacks Consensus Estimate for the metric is pegged at $2.93 billion, implying 27.2% year-over-year growth.
The company maintained its gross margin outlook of 64-66% and reiterated expectations for positive cash flow.
NTRA raised its 2026 SG&A expense guidance to $1.225-$1.300 billion and R&D guidance to $825-$925 million, reflecting additional clinical trial, commercial and pharmaceutical partnership investments.
Our Take
Natera posted mixed third-quarter results, wherein loss per share missed estimates and revenues beat. Revenue growth outpaced test volume growth, reflecting improved pricing and continued adoption across oncology, women's health and organ health. Growth was driven by higher testing volumes and improved average selling prices (ASPs). Total tests processed increased to approximately 1.09 million. This performance prompted the company to raise its 2026 revenue guidance.
On the flip side, the company’s incurring loss looks discouraging.
Zacks Rank & Stocks to Consider
NTRA currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Medpace (MEDP - Free Report) and GE HealthCare Technologies (GEHC - Free Report) .
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted third-quarter 2026 adjusted EPS of $3.00, exceeding the Zacks Consensus Estimate by 14.94%. Revenues of $3.05 billion topped the Zacks Consensus Estimate by 5.84%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an earnings yield of 2.5% against the industry’s negative 2.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.12%.
Medpace, currently carrying a Zacks Rank #2, reported third-quarter 2026 adjusted EPS of $4.84, which surpassed the Zacks Consensus Estimate by 8.76%. Revenues of $716 million beat the Zacks Consensus Estimate by 1.02%.
MEDP has an estimated long-term earnings growth rate of 14.3% compared with the industry’s 13.2%. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 9.77%.
GE HealthCare, currently carrying a Zacks Rank #2, reported third-quarter 2026 adjusted EPS of $1.34, which topped the Zacks Consensus Estimate by 10.74%. Revenues of $5.51 billion beat the Zacks Consensus Estimate by 2.87%.
GEHC has an earnings yield of 6.5% compared with the industry’s 2.8%. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.15%.
View the Zacks #1 Rank List
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NTRA Q3 Loss Wider Than Expected, Revenues Beat, '26 Sales View Up
Key Takeaways
Natera (NTRA - Free Report) reported third-quarter 2026 adjusted loss of 39 cents per share, wider than the Zacks Consensus Estimate of a loss of 17 cents.
GAAP loss per share was 42 cents compared with a loss of 64 cents in the year-ago quarter.
Total revenues reached $794 million, up 34.1% year over year, surpassing the Zacks Consensus Estimate by 13%.
Natera's Oncology and Signatera Momentum
Oncology remained a major growth driver. Total oncology tests processed increased 60.9% year over year to approximately 339,500. Clinical molecular residual disease (MRD) volumes, including Signatera and Latitude, reached approximately 316,000, up more than 56% year over year.
Clinical MRD volumes increased approximately 33,000 sequentially, marking the second consecutive quarter of more than 30,000 additional units. Signatera ASP improved to approximately $1,290 from $1,271 in the preceding quarter. Growth reflected stronger new patient starts, additional customer accounts and repeat monitoring across cancer types.
NTRA Women's Health and Organ Health Updates
Women's health maintained mid- to high-single-digit volume growth, supported by continued adoption of Fetal Focus and enhanced Panorama testing capabilities. Management highlighted improvements in testing performance at low fetal fractions, supporting broader utilization of its prenatal screening portfolio.
Organ health testing volumes increased nearly 40% year over year. Prospera benefited from expanded Medicare coverage for transplant surveillance, which became effective Aug. 30, 2026. Management indicated that the reimbursement expansion had a positive impact on both testing volumes and ASPs.
Natera's Expense Trends and Profitability
Gross profit increased to $513.5 million from $384.4 million a year earlier. Gross margin was 64.7% compared with 64.9% in the prior-year quarter. Excluding revenue true-ups, gross margin reached 63.2%, improving approximately 140 basis points sequentially, reflecting operating efficiencies and improved pricing.
Research and development expenses increased to $242.4 million from $173.4 million, led by clinical trials and product development investments. Selling, general and administrative expenses rose to $333.7 million from $308.5 million. Despite higher spending, operating loss narrowed to $68.3 million from $97.6 million.
Natera Generates Positive Cash Flow
As of Sept. 30, 2026, Natera's cash, cash equivalents and restricted cash totaled $1.10 billion compared with $1.08 billion as of Dec. 31, 2025. The company had $80.3 million in outstanding debt under its UBS line of credit.
Natera's cash balance increased approximately $5.7 million sequentially during the third quarter. Management highlighted continued positive cash generation despite increased investments in clinical trials, product development and commercial expansion.
Natera, Inc. Price, Consensus and EPS Surprise
Natera, Inc. price-consensus-eps-surprise-chart | Natera, Inc. Quote
Natera's Guidance and Financial Position
Natera raised its 2026 revenue guidance to $3.005-$3.035 billion from $2.850-$2.910 billion, representing a $140-million increase at the midpoint. The Zacks Consensus Estimate for the metric is pegged at $2.93 billion, implying 27.2% year-over-year growth.
The company maintained its gross margin outlook of 64-66% and reiterated expectations for positive cash flow.
NTRA raised its 2026 SG&A expense guidance to $1.225-$1.300 billion and R&D guidance to $825-$925 million, reflecting additional clinical trial, commercial and pharmaceutical partnership investments.
Our Take
Natera posted mixed third-quarter results, wherein loss per share missed estimates and revenues beat. Revenue growth outpaced test volume growth, reflecting improved pricing and continued adoption across oncology, women's health and organ health. Growth was driven by higher testing volumes and improved average selling prices (ASPs). Total tests processed increased to approximately 1.09 million. This performance prompted the company to raise its 2026 revenue guidance.
On the flip side, the company’s incurring loss looks discouraging.
Zacks Rank & Stocks to Consider
NTRA currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Medpace (MEDP - Free Report) and GE HealthCare Technologies (GEHC - Free Report) .
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted third-quarter 2026 adjusted EPS of $3.00, exceeding the Zacks Consensus Estimate by 14.94%. Revenues of $3.05 billion topped the Zacks Consensus Estimate by 5.84%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an earnings yield of 2.5% against the industry’s negative 2.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 15.12%.
Medpace, currently carrying a Zacks Rank #2, reported third-quarter 2026 adjusted EPS of $4.84, which surpassed the Zacks Consensus Estimate by 8.76%. Revenues of $716 million beat the Zacks Consensus Estimate by 1.02%.
MEDP has an estimated long-term earnings growth rate of 14.3% compared with the industry’s 13.2%. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 9.77%.
GE HealthCare, currently carrying a Zacks Rank #2, reported third-quarter 2026 adjusted EPS of $1.34, which topped the Zacks Consensus Estimate by 10.74%. Revenues of $5.51 billion beat the Zacks Consensus Estimate by 2.87%.
GEHC has an earnings yield of 6.5% compared with the industry’s 2.8%. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 3.15%.