Natera (NASDAQ:NTRA) Releases Earnings Results, Beats Expectations By $0.02 EPS

Natera (NASDAQ:NTRA) announced its quarterly earnings results on Thursday. The medical research company reported ($0.47) EPS for the quarter, topping the consensus estimate of ($0.49) by $0.02, FiscalAI reports. The business had revenue of $752.75 million for the quarter, compared to analyst estimates of $661.24 million. Natera had a negative return on equity of 11.82% and a negative net margin of 7.11%.The company’s quarterly revenue was up 37.7% on a year-over-year basis. During the same quarter in the previous year, the company earned ($0.74) EPS.

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

• Record quarter and raised outlook: Natera processed approximately 1.04 million tests and generated $753 million in Q2 revenue, up 38% year over year. Management raised its 2026 revenue guidance by $100 million at the midpoint to $2.85 billion–$2.91 billion while maintaining its OpEx outlook and expecting positive cash generation.
• Signatera momentum accelerated: Clinical oncology volumes rose 56% year over year to 283,000 units, including a record 34,000-unit sequential increase. Growth was attributed to commercial-team productivity, new patient starts, FDA and PMDA approvals, and an NCCN Category 1 recommendation for bladder cancer.
• Reimbursement and pricing offer longer-term upside: Signatera ASP increased to approximately $1,275, with management still targeting a mature ASP near $2,000. Seven MolDX submissions could add an estimated $150–$200 to ASP over the next 12–18 months, although those benefits are largely excluded from 2026 guidance.
• Product and international catalysts expanded: The enhanced Panorama prenatal test reduced the no-call rate to 0.5%, helping drive new account wins, while a broader Medicare policy for transplant surveillance should support Prospera volumes and ASPs in the second half. Natera also expects to launch Signatera in Japan later this year, pending pricing and reimbursement decisions.
• Investment and product mix continue to weigh on profitability: Natera is spending roughly $100 million in 2026 on early cancer detection and the FIND study, which currently generates no revenue. Gross-margin expansion was also constrained by higher volumes of recently launched products with unoptimized costs, though management expects related cost reductions over the next 12–18 months.

Natera Stock Up 21.4%

Shares of Natera stock traded up $56.72 during trading on Friday, hitting $322.10. 3,385,814 shares of the company were exchanged, compared to its average volume of 1,072,972. Natera has a fifty-two week low of $149.38 and a fifty-two week high of $323.01. The firm has a 50 day moving average price of $254.03 and a 200 day moving average price of $223.79. The stock has a market capitalization of $46.13 billion, a price-to-earnings ratio of -236.84 and a beta of 1.51.

Insider Buying and Selling

In other Natera news, insider John Fesko sold 295 shares of the firm’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $267.99, for a total transaction of $79,057.05. Following the completion of the transaction, the insider owned 183,774 shares of the company’s stock, valued at approximately $49,249,594.26. This trade represents a 0.16% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Solomon Moshkevich sold 3,410 shares of the business’s stock in a transaction on Monday, August 3rd. The stock was sold at an average price of $265.58, for a total value of $905,627.80. Following the completion of the transaction, the insider directly owned 129,019 shares of the company’s stock, valued at approximately $34,264,866.02. This trade represents a 2.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 181,045 shares of company stock worth $41,330,968 in the last 90 days. Corporate insiders own 5.05% of the company’s stock.

Institutional Inflows and Outflows

Several institutional investors have recently added to or reduced their stakes in the company. Siemens Fonds Invest GmbH lifted its position in shares of Natera by 3.1% during the third quarter. Siemens Fonds Invest GmbH now owns 1,804 shares of the medical research company’s stock worth $290,000 after purchasing an additional 54 shares during the last quarter. BOKF NA increased its holdings in Natera by 1.9% in the third quarter. BOKF NA now owns 3,733 shares of the medical research company’s stock valued at $601,000 after buying an additional 69 shares during the last quarter. MetLife Investment Management LLC increased its holdings in Natera by 0.9% in the fourth quarter. MetLife Investment Management LLC now owns 8,386 shares of the medical research company’s stock valued at $1,921,000 after buying an additional 73 shares during the last quarter. First Citizens Bank & Trust Co. increased its holdings in Natera by 4.1% in the fourth quarter. First Citizens Bank & Trust Co. now owns 2,102 shares of the medical research company’s stock valued at $482,000 after buying an additional 82 shares during the last quarter. Finally, Bank of Jackson Hole Trust raised its stake in Natera by 103.8% during the fourth quarter. Bank of Jackson Hole Trust now owns 163 shares of the medical research company’s stock valued at $37,000 after buying an additional 83 shares in the last quarter. Institutional investors and hedge funds own 99.90% of the company’s stock.

Natera News Roundup

Here are the key news stories impacting Natera this week:

• Positive Sentiment: Revenue significantly exceeded expectations. Natera generated $752.8 million in second-quarter revenue, up 37.7% year over year and well above the $661.2 million analyst consensus. Gross margin also improved to 64.5% from 63.4% a year earlier. Natera Reports Second Quarter 2026 Financial Results
• Positive Sentiment: The quarterly loss narrowed. Natera reported a loss of $0.47 per share, compared with a $0.74-per-share loss in the prior-year quarter, and better than the $0.49 loss expected by analysts. The result suggests continued operating improvement despite the company remaining unprofitable. Natera Reports Q2 Loss and Beats Revenue Estimates
• Positive Sentiment: Management raised its fiscal 2026 revenue outlook to approximately $2.9 billion, above the roughly $2.8 billion consensus estimate. The higher guidance points to sustained momentum across Natera’s reproductive health, oncology, and transplant-testing businesses.
• Positive Sentiment: JPMorgan raised its price target on NTRA from $315 to $360 and maintained an “overweight” rating, signaling that the bank sees additional upside after the earnings beat. Benzinga
• Positive Sentiment: Natera submitted its Signatera bladder-cancer test to Japan’s PMDA for approval as a companion diagnostic. Clearance could expand the company’s international oncology market and create another source of long-term growth. Natera Submits Signatera to Japan’s PMDA
• Neutral Sentiment: Several executives sold shares under pre-arranged Rule 10b5-1 plans to cover tax withholding on vested equity awards. Because the sales were relatively small compared with their remaining holdings and were not discretionary open-market disposals, they provide limited negative information.
• Negative Sentiment: Natera remains unprofitable, and its very high valuation leaves the shares vulnerable to profit-taking if growth slows or future results fail to exceed elevated expectations. Commentary identifying NTRA as entering a potential profit-taking zone highlights this near-term risk. IBD 50 Stock Natera Profit-Taking Zone

Analyst Upgrades and Downgrades

NTRA has been the subject of several research analyst reports. Leerink Partners set a $330.00 price objective on Natera in a research note on Friday. Piper Sandler reiterated an “overweight” rating and set a $249.00 target price on shares of Natera in a research report on Tuesday, May 12th. Morgan Stanley upped their target price on Natera from $250.00 to $310.00 and gave the company an “overweight” rating in a report on Thursday, July 9th. Barclays restated an “overweight” rating and issued a $340.00 price target on shares of Natera in a research report on Friday. Finally, Guggenheim lifted their price target on Natera from $270.00 to $290.00 and gave the stock a “buy” rating in a research note on Monday, June 29th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, three have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, Natera currently has a consensus rating of “Moderate Buy” and a consensus target price of $299.65.

About Natera

Natera is a global diagnostics company that develops and commercializes cell-free DNA and other genetic testing technologies for clinical applications. The company focuses on three principal areas: reproductive health (including non-invasive prenatal testing and carrier screening), oncology (tumor-informed assays for minimal residual disease and recurrence monitoring), and organ transplantation (cell-free DNA tests to detect allograft injury). Natera combines laboratory testing, proprietary bioinformatics, and clinical reporting to deliver personalized genetic information to clinicians and patients.

Key product offerings include Panorama, a non-invasive prenatal test that screens for fetal chromosomal abnormalities and select single-gene conditions; Horizon carrier screening for inherited conditions; Signatera, a personalized, tumor-informed assay used for detecting minimal residual disease and monitoring treatment response in cancer patients; and Prospera, a donor-derived cell-free DNA test used to assess the risk of organ rejection.