Guardant Health — Third Quarter 2026 Earnings Summary

Financial Performance:

• Total revenue for the quarter ended September 30, 2026, was $361.0 million, a 36% increase from $265.2 million in the same period of 2025.
• Oncology revenue reached $231.3 million, up 25% year-over-year, driven by a 58% increase in test volume to 117,000 tests.
• Screening revenue grew 180% to $67.6 million, driven by a 246% increase in Shield test volume to 83,000 tests.
• Biopharma & Data revenue increased 8% to $59.0 million.
• GAAP gross margin was 65% for the quarter, compared to 65% in the prior year period; Non-GAAP gross margin was 67%, up from 66%.
• Net loss was $124.4 million ($0.93 per share), compared to a net loss of $92.7 million ($0.74 per share) in the prior year period.
• Non-GAAP net loss was $38.8 million ($0.29 per share), compared to $48.3 million ($0.39 per share) in the prior year period.
• Adjusted EBITDA loss was $37.3 million, an improvement from a $45.5 million loss in the prior year period.
• Free cash flow burn was $(37.2) million, compared to $(45.8) million in the prior year period.
• Cash, cash equivalents, and restricted cash totaled $1.1 billion as of September 30, 2026.

Guidance and Future Outlook:

• Full-year 2026 revenue guidance raised to $1.36 billion to $1.37 billion, representing 38% to 40% growth compared to 2025.
• Full-year 2026 non-GAAP gross margin guidance raised to 65%, up from the prior guidance of 64% to 65%.
• Full-year 2026 non-GAAP operating expenses guidance raised to $1.105 billion to $1.125 billion.
• Full-year 2026 free cash flow burn guidance increased to $205 million to $220 million.
• Screening revenue is now expected to be between $233 million and $238 million, driven by Shield volume of 285,000 to 290,000 tests.
• Oncology revenue is expected to grow approximately 30%, with volume expected to grow over 50%.
• Biopharma & Data revenue growth is expected to be in the low double-digit range.

Business Segments and Product Lines:

• Received FDA approval and CE-marking for Guardant360 CDx as a companion diagnostic for AstraZeneca's ETCAMAH (camizestrant), the first FDA approval of a liquid biopsy companion diagnostic for longitudinal testing in breast cancer.
• Received FDA approval for Guardant360 CDx as a companion diagnostic for INLURIYO (imlunestrant) in combination with VERZENIO (abemaciclib) for ESR1-mutated advanced or metastatic breast cancer.
• Submitted a premarket approval (PMA) application to the FDA for Guardant360 Tissue.
• Launched Guardant Reveal Ultra with biopharma partners, with a clinical launch on track for 2026.
• Expanded commercial coverage for Shield to more than 80% of eligible lives, adding UnitedHealth Group, Carelon Healthcare Services, and EviCore.
• Successfully deployed a new FDA-approved lower cost of goods sold (COGS) and higher-throughput Shield workflow.

Management Commentary and Tone:

• Co-CEO Helmy Eltoukhy stated revenue grew 36% year-over-year with broad contributions across the portfolio and highlighted the FDA approval for longitudinal ESR1 testing as a major advance ushering in a new paradigm for breast cancer treatment.
• Co-CEO AmirAli Talasaz noted Shield volume more than tripled year-over-year to 83,000 tests and that commercial coverage now extends to approximately 100 million lives.
• Management expressed confidence in the operational foundation to meet future Shield demand following the implementation of the lower COGS workflow.

Other Key Points:

• The company reported a significant increase in operating expenses, primarily due to commercial infrastructure expansion, marketing activities to support Screening and Oncology growth, and increased stock-based compensation.
• Deferred revenue decreased to $38.1 million from $50.8 million at the end of 2025.
• Accounts payable increased to $102.5 million from $54.4 million at the end of 2025.
• Total liabilities increased to $2.16 billion from $2.11 billion at the end of 2025, driven largely by convertible senior notes.
• Stockholders' deficit widened to $(275.9) million from $(99.3) million at the end of 2025.