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Natera targets $6B in annual revenues by 2029, driven by MRD testing and international expansion.
NTRA raises 2026 revenue guidance to $3.005B-$3.035B as quarterly revenues jump 34.1% to $794M.
Signatera testing volume surges 56% to 316,000 units as Natera expands reimbursement and clinical trials.
Natera, Inc. (NTRA - Free Report) used its third-quarter 2026 earnings call to outline an ambitious revenue target, highlight accelerating oncology testing demand and announce a leadership transition. Management emphasized reimbursement expansion, international growth and biopharma partnerships as key drivers.
The company also raised its 2026 revenue outlook while acknowledging continued spending on clinical trials and newer diagnostic technologies.
NTRA Targets $6B in Revenues by 2029
Incoming CEO Solomon Moshkevich outlined a goal of reaching $6 billion in annual revenues by 2029, supported primarily by molecular residual disease (MRD) testing, international expansion and pharmaceutical partnerships.
During the call, Moshkevich emphasized that the target requires continued commercial execution rather than substantial contributions from emerging cancer screening products.
Responding to TD Cowen, management clarified that the target could be achieved with Signatera average selling prices (ASPs) around $1,450, compared with approximately $1,290 currently. CFO Mike Brophy characterized the objective as aggressive but achievable.
Natera Raises 2026 Outlook Amid Higher Investments
Natera increased its 2026 revenue guidance to $3.005-$3.035 billion from $2.850-$2.910 billion, lifting the midpoint by $140 million.
Brophy explained that the outlook assumes stable ASPs and continued volume growth while excluding potential revenue true-ups. Management maintained its gross margin guidance of 64%-66%.
The company raised the upper limits of its research and development and selling, general and administrative expense forecasts to $925 million and $1.3 billion, respectively. Brophy attributed higher spending to expanding pharmaceutical services, clinical trials and commercial initiatives.
NTRA Sees Accelerating Signatera Adoption
Moshkevich highlighted clinical MRD testing volume of approximately 316,000 units, representing 56% year-over-year growth and an increase of roughly 33,000 units sequentially.
Management attributed the expansion to new customer accounts, patient starts and recurring monitoring. Colorectal and breast cancers remained the largest indications, while adoption broadened across additional tumor types.
NTRA reported a third-quarter 2026 adjusted loss of 39 cents per share, wider than the Zacks Consensus Estimate of a loss of 17 cents. Total quarterly revenues increased 34.1% to $794 million, surpassing the Zacks Consensus Estimate of $702.4 million. Gross margin reached 64.7%, while the margin excluding revenue true-ups improved approximately 140 basis points sequentially to 63.2%.
Natera Expands Reimbursement and International Reach
Moshkevich highlighted new Medicare coverage for serial Signatera testing in early-stage hepatocellular carcinoma surveillance, strengthening reimbursement opportunities.
During an Evercore ISI exchange, Brophy disclosed that nine or 10 additional MolDX submissions remained under review. Management expressed confidence in the underlying clinical evidence but avoided specifying approval timelines.
Japan represents another expansion opportunity. Natera has secured regulatory approval for its bladder cancer indication and is pursuing reimbursement discussions covering colorectal and bladder cancers. Responding to Jefferies, Moshkevich expressed optimism about adoption and pricing while acknowledging that reimbursement terms remain unresolved.
NTRA Advances Clinical Trials and Pharmaceutical Partnerships
Chief medical officer Alexey Aleshin emphasized improvements to Signatera Genome, including enhanced detection sensitivity through phased and structural variants.
He highlighted findings from the SAGITTARIUS and VOLGA studies supporting potential treatment personalization. Natera also expanded breast cancer research through AFT-70 NAVIGATE and SIGNAL-ER 101.
The FIND colorectal cancer screening study completed enrollment of 30,000 patients in its premarket approval cohort, with a readout planned for 2027. Separately, Natera received FDA breakthrough device designation for its multicancer early detection assay.
During JPMorgan's questioning, Moshkevich indicated that pharmaceutical and data services could contribute several hundred million dollars toward the 2029 revenue target.
Natera Maintains Its Growth Strategy Through CEO Transition
Outgoing CEO Steve Chapman announced his departure from the CEO position, with Moshkevich assuming leadership. Chapman will remain involved as a consultant and board adviser.
In response to Leerink Partners, Moshkevich emphasized strategic continuity rather than significant operational changes. Brophy projected 2027 operating expense growth of 10%-12%, reflecting sustained investment in clinical development.
Management's overarching focus remains expanding diagnostic adoption, improving reimbursement and generating cash while funding longer-term growth opportunities.
What NTRA's Zacks Rank & Style Scores Indicate
NTRA currently carries a Zacks Rank #4 (Sell), indicating an unfavorable near-term earnings estimate revision outlook. Its Growth Score of A and Momentum Score of A reflect favorable characteristics in those categories, while its Value Score of F indicates comparatively weak valuation appeal.
The stock's VGM Score of B reflects an attractive combined assessment of value, growth and momentum. However, the unfavorable Zacks Rank tempers those positive style signals, as the strongest combinations generally pair favorable scores with a Zacks Rank #1 (Strong Buy) or 2 (Buy). The company's Zacks Rank can change as analysts revise earnings estimates following the third-quarter results.
View the Zacks #1 Rank List
Image: Bigstock
Natera Q3 Earnings Call Highlights $6B Target & Raised 2026 Outlook
Key Takeaways
Natera, Inc. (NTRA - Free Report) used its third-quarter 2026 earnings call to outline an ambitious revenue target, highlight accelerating oncology testing demand and announce a leadership transition. Management emphasized reimbursement expansion, international growth and biopharma partnerships as key drivers.
The company also raised its 2026 revenue outlook while acknowledging continued spending on clinical trials and newer diagnostic technologies.
NTRA Targets $6B in Revenues by 2029
Incoming CEO Solomon Moshkevich outlined a goal of reaching $6 billion in annual revenues by 2029, supported primarily by molecular residual disease (MRD) testing, international expansion and pharmaceutical partnerships.
During the call, Moshkevich emphasized that the target requires continued commercial execution rather than substantial contributions from emerging cancer screening products.
Responding to TD Cowen, management clarified that the target could be achieved with Signatera average selling prices (ASPs) around $1,450, compared with approximately $1,290 currently. CFO Mike Brophy characterized the objective as aggressive but achievable.
Natera Raises 2026 Outlook Amid Higher Investments
Natera increased its 2026 revenue guidance to $3.005-$3.035 billion from $2.850-$2.910 billion, lifting the midpoint by $140 million.
Brophy explained that the outlook assumes stable ASPs and continued volume growth while excluding potential revenue true-ups. Management maintained its gross margin guidance of 64%-66%.
The company raised the upper limits of its research and development and selling, general and administrative expense forecasts to $925 million and $1.3 billion, respectively. Brophy attributed higher spending to expanding pharmaceutical services, clinical trials and commercial initiatives.
NTRA Sees Accelerating Signatera Adoption
Moshkevich highlighted clinical MRD testing volume of approximately 316,000 units, representing 56% year-over-year growth and an increase of roughly 33,000 units sequentially.
Management attributed the expansion to new customer accounts, patient starts and recurring monitoring. Colorectal and breast cancers remained the largest indications, while adoption broadened across additional tumor types.
NTRA reported a third-quarter 2026 adjusted loss of 39 cents per share, wider than the Zacks Consensus Estimate of a loss of 17 cents. Total quarterly revenues increased 34.1% to $794 million, surpassing the Zacks Consensus Estimate of $702.4 million. Gross margin reached 64.7%, while the margin excluding revenue true-ups improved approximately 140 basis points sequentially to 63.2%.
Natera, Inc. Price, Consensus and EPS Surprise
Natera, Inc. price-consensus-eps-surprise-chart | Natera, Inc. Quote
Natera Expands Reimbursement and International Reach
Moshkevich highlighted new Medicare coverage for serial Signatera testing in early-stage hepatocellular carcinoma surveillance, strengthening reimbursement opportunities.
During an Evercore ISI exchange, Brophy disclosed that nine or 10 additional MolDX submissions remained under review. Management expressed confidence in the underlying clinical evidence but avoided specifying approval timelines.
Japan represents another expansion opportunity. Natera has secured regulatory approval for its bladder cancer indication and is pursuing reimbursement discussions covering colorectal and bladder cancers. Responding to Jefferies, Moshkevich expressed optimism about adoption and pricing while acknowledging that reimbursement terms remain unresolved.
NTRA Advances Clinical Trials and Pharmaceutical Partnerships
Chief medical officer Alexey Aleshin emphasized improvements to Signatera Genome, including enhanced detection sensitivity through phased and structural variants.
He highlighted findings from the SAGITTARIUS and VOLGA studies supporting potential treatment personalization. Natera also expanded breast cancer research through AFT-70 NAVIGATE and SIGNAL-ER 101.
The FIND colorectal cancer screening study completed enrollment of 30,000 patients in its premarket approval cohort, with a readout planned for 2027. Separately, Natera received FDA breakthrough device designation for its multicancer early detection assay.
During JPMorgan's questioning, Moshkevich indicated that pharmaceutical and data services could contribute several hundred million dollars toward the 2029 revenue target.
Natera Maintains Its Growth Strategy Through CEO Transition
Outgoing CEO Steve Chapman announced his departure from the CEO position, with Moshkevich assuming leadership. Chapman will remain involved as a consultant and board adviser.
In response to Leerink Partners, Moshkevich emphasized strategic continuity rather than significant operational changes. Brophy projected 2027 operating expense growth of 10%-12%, reflecting sustained investment in clinical development.
Management's overarching focus remains expanding diagnostic adoption, improving reimbursement and generating cash while funding longer-term growth opportunities.
What NTRA's Zacks Rank & Style Scores Indicate
NTRA currently carries a Zacks Rank #4 (Sell), indicating an unfavorable near-term earnings estimate revision outlook. Its Growth Score of A and Momentum Score of A reflect favorable characteristics in those categories, while its Value Score of F indicates comparatively weak valuation appeal.
The stock's VGM Score of B reflects an attractive combined assessment of value, growth and momentum. However, the unfavorable Zacks Rank tempers those positive style signals, as the strongest combinations generally pair favorable scores with a Zacks Rank #1 (Strong Buy) or 2 (Buy). The company's Zacks Rank can change as analysts revise earnings estimates following the third-quarter results.
You can see the complete list of today’s Zacks #1 Rank stocks here.