Natera (NASDAQ:NTRA) Posts Earnings Results, Beats Estimates By $0.02 EPS

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

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%

NTRA traded up $56.72 on Friday, reaching $322.10. The company’s stock had a trading volume of 3,385,814 shares, compared to its average volume of 1,072,972. The company has a market capitalization of $46.13 billion, a price-to-earnings ratio of -236.84 and a beta of 1.51. Natera has a fifty-two week low of $149.38 and a fifty-two week high of $323.01. The stock has a 50 day moving average of $254.03 and a two-hundred day moving average of $223.79.

Wall Street Analyst Weigh In

NTRA has been the subject of several analyst reports. Wall Street Zen cut shares of Natera from a “buy” rating to a “hold” rating in a report on Saturday, May 9th. Wolfe Research began coverage on shares of Natera in a report on Tuesday, June 2nd. They issued an “outperform” rating and a $260.00 price objective on the stock. Canaccord Genuity Group set a $375.00 price objective on shares of Natera in a research report on Friday. UBS Group set a $260.00 target price on shares of Natera in a research note on Wednesday, June 24th. Finally, Royal Bank Of Canada increased their target price on Natera from $275.00 to $350.00 and gave the company an “outperform” rating in a report on Friday. Two research analysts have rated the stock with a Strong Buy rating, fifteen have assigned a Buy rating, three have issued a Hold rating and two have given a Sell rating to the stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $299.65.

Insider Activity at Natera

In other news, CEO Steven Leonard Chapman sold 3,076 shares of the business’s stock in a transaction that occurred on Monday, August 3rd. The shares were sold at an average price of $266.39, for a total transaction of $819,415.64. Following the completion of the sale, the chief executive officer owned 99,897 shares in the company, valued at approximately $26,611,561.83. The trade was a 2.99% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed 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, CFO Michael Burkes Brophy sold 478 shares of Natera stock in a transaction on Tuesday, August 4th. The stock was sold at an average price of $274.22, for a total transaction of $131,077.16. Following the sale, the chief financial officer owned 51,637 shares in the company, valued at $14,159,898.14. This represents a 0.92% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 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 sold a total of 181,045 shares of company stock worth $41,330,968 in the last ninety days. Company insiders own 5.05% of the company’s stock.

Institutional Trading of Natera

Hedge funds and other institutional investors have recently made changes to their positions in the company. Coatue Management LLC grew its position in shares of Natera by 1,446.1% during the fourth quarter. Coatue Management LLC now owns 2,633,334 shares of the medical research company’s stock worth $603,270,000 after buying an additional 2,463,008 shares in the last quarter. Wellington Management Group LLP raised its holdings in shares of Natera by 94.7% during the fourth quarter. Wellington Management Group LLP now owns 4,976,325 shares of the medical research company’s stock worth $1,140,026,000 after purchasing an additional 2,420,263 shares during the period. AQR Capital Management LLC lifted its holdings in shares of Natera by 39.0% in the 3rd quarter. AQR Capital Management LLC now owns 2,400,065 shares of the medical research company’s stock worth $386,338,000 after purchasing an additional 673,315 shares during the last quarter. T. Rowe Price Investment Management Inc. raised its stake in shares of Natera by 2,768,561.1% during the fourth quarter. T. Rowe Price Investment Management Inc. now owns 498,359 shares of the medical research company’s stock valued at $114,170,000 after purchasing an additional 498,341 shares in the last quarter. Finally, Millennium Management LLC increased its stake in Natera by 215.7% during the 3rd quarter. Millennium Management LLC now owns 527,942 shares of the medical research company’s stock valued at $84,983,000 after buying an additional 360,733 shares during the period. Institutional investors and hedge funds own 99.90% of the company’s stock.

Natera News Summary

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

Natera Company Profile

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.