GeneDx (NASDAQ:WGS) Issues Quarterly Earnings Results

GeneDx (NASDAQ:WGS) announced its earnings results on Monday. The company reported $0.14 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.03, Zacks reports. GeneDx had a negative net margin of 4.92% and a positive return on equity of 15.17%. The business had revenue of $120.99 million for the quarter, compared to analyst estimates of $120.80 million.

Here are the key takeaways from GeneDx’s conference call:

• Strong financials and guidance: GeneDx reported Q4 revenue of $121M and FY revenue of $428M (54% exome/genome growth) and reaffirmed 2026 guidance of $540–$555M with 33–35% exome/genome volume growth.
• Durable competitive moat: The company touts its proprietary Infinity dataset (>2.5M rare tests, >1M exomes/genomes, >50% non‑European) and an FDA Breakthrough Device Designation as long‑term differentiators for accuracy and scale.
• Accelerating commercial expansion: GeneDx is nearly tripling its salesforce, adding a 50‑rep pediatrics team and NICU/prenatal reps, and plans a one‑minute pediatric ordering workflow (mid‑2026) to penetrate large new markets late 2026/2027.
• Margin and profitability progress: Adjusted gross margin improved to ~71% in 2025 (exome/genome margins in the 80s) and management expects positive adjusted net income for full‑year 2026 despite a deliberate investment cycle.
• Near‑term execution and reimbursement risks: Q1 seasonality, weather/disruption impacts, and payer uncertainty (no Medi‑Cal pricing included and historically high denial rates when entering new outpatient markets) could pressure near‑term volumes, ASPs and collections.

GeneDx Stock Performance

NASDAQ WGS opened at $80.70 on Wednesday. The stock has a fifty day simple moving average of $109.90 and a 200-day simple moving average of $124.48. GeneDx has a twelve month low of $55.17 and a twelve month high of $170.87. The company has a current ratio of 2.71, a quick ratio of 2.59 and a debt-to-equity ratio of 0.18. The stock has a market cap of $2.33 billion, a PE ratio of -107.60 and a beta of 2.00.

Key Headlines Impacting GeneDx

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: Q4 revenue and EPS slightly beat expectations — reported $120.99M revenue and $0.14 EPS vs. consensus ~$120.8M and $0.11, a concrete data beat that supports growth traction. Zacks: Q4 Earnings and Revenues Beat
• Positive Sentiment: Company reaffirmed full‑year 2026 guidance and provided an investor presentation/earnings call with details — this reduces uncertainty about management’s outlook. BusinessWire: Q4 & Full‑Year Results
• Positive Sentiment: Street upgrades and constructive notes: Seeking Alpha upgraded WGS to Buy, arguing operational improvements and a clearer growth plan (management plans to markedly expand commercial footprint in 2026) make the story investable again. Seeking Alpha: Rating Upgrade
• Neutral Sentiment: BTIG lowered its price target from $200 to $170 but kept a Buy rating — shows continued analyst conviction but with a more conservative valuation view. The Fly / Benzinga: BTIG Lowers PT
• Negative Sentiment: Some coverage framed the quarter as “mixed” (revenue OK but earnings/near‑term profitability weaker), which can dampen enthusiasm — EPS is well below last year’s level, and net margins remain thin. Investing.com: Mixed Q4 Results
• Negative Sentiment: Management’s stated strategy to prioritize aggressive commercial expansion in 2026 (to capture growth) implies near‑term margin pressure and higher operating investment — a tradeoff that can make investors sell now and wait for 2027 proof of scale. Seeking Alpha: Growth vs Margins

Analyst Upgrades and Downgrades

WGS has been the topic of several research reports. BTIG Research decreased their target price on GeneDx from $200.00 to $170.00 and set a “buy” rating on the stock in a research report on Tuesday. Piper Sandler reissued an “overweight” rating and issued a $130.00 price objective (down from $160.00) on shares of GeneDx in a research note on Tuesday. Weiss Ratings restated a “sell (d)” rating on shares of GeneDx in a report on Wednesday, January 21st. Wells Fargo & Company raised shares of GeneDx from an “equal weight” rating to an “overweight” rating and set a $155.00 target price for the company in a report on Monday, February 9th. Finally, Canaccord Genuity Group raised their price target on shares of GeneDx from $160.00 to $170.00 and gave the stock a “buy” rating in a research note on Monday, December 22nd. Seven research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus target price of $150.71.

Insider Transactions at GeneDx

In related news, CFO Kevin Feeley sold 3,855 shares of the stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $143.87, for a total transaction of $554,618.85. Following the completion of the transaction, the chief financial officer owned 8,731 shares of the company’s stock, valued at approximately $1,256,128.97. This trade represents a 30.63% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, COO Bryan Dechairo sold 5,961 shares of GeneDx stock in a transaction on Wednesday, February 4th. The shares were sold at an average price of $85.70, for a total value of $510,857.70. The SEC filing for this sale provides additional information. In the last three months, insiders have sold 30,961 shares of company stock worth $3,933,831. 29.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On GeneDx

Large investors have recently bought and sold shares of the stock. Franklin Resources Inc. grew its position in shares of GeneDx by 101.9% during the third quarter. Franklin Resources Inc. now owns 681,381 shares of the company’s stock worth $73,412,000 after buying an additional 343,954 shares in the last quarter. Invesco Ltd. raised its holdings in GeneDx by 59.2% in the fourth quarter. Invesco Ltd. now owns 786,466 shares of the company’s stock valued at $102,288,000 after acquiring an additional 292,394 shares in the last quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC lifted its stake in GeneDx by 717.3% in the fourth quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 258,745 shares of the company’s stock worth $33,652,000 after acquiring an additional 227,088 shares during the last quarter. ARK Investment Management LLC grew its holdings in GeneDx by 35.3% during the 4th quarter. ARK Investment Management LLC now owns 604,561 shares of the company’s stock worth $78,629,000 after acquiring an additional 157,582 shares in the last quarter. Finally, Ameriprise Financial Inc. increased its position in shares of GeneDx by 76.2% in the 2nd quarter. Ameriprise Financial Inc. now owns 255,931 shares of the company’s stock valued at $23,625,000 after purchasing an additional 110,684 shares during the last quarter. Hedge funds and other institutional investors own 61.72% of the company’s stock.

GeneDx Company Profile

GeneDx is a clinical diagnostics company specializing in comprehensive genetic and genomic testing for rare and inherited disorders. The company offers a broad portfolio of assays, including targeted gene panels, whole exome sequencing, whole genome sequencing and chromosomal microarray analysis. GeneDx’s laboratory services support the diagnosis of a wide range of conditions—from rare pediatric diseases and hereditary cancer syndromes to neuromuscular and metabolic disorders—by providing clinicians with detailed variant interpretation and reporting.

Founded in 2000 and based in Gaithersburg, Maryland, GeneDx was established with the aim of accelerating the translation of genomic discoveries into clinical care.