NeoGenomics (NASDAQ:NEO) Announces Quarterly Earnings Results, Beats Expectations By $0.02 EPS

NeoGenomics (NASDAQ:NEO) announced its quarterly earnings results on Tuesday. The medical research company reported $0.05 earnings per share for the quarter, beating the consensus estimate of $0.03 by $0.02, FiscalAI reports. NeoGenomics had a negative return on equity of 1.96% and a negative net margin of 6.77%.The company had revenue of $201.66 million during the quarter, compared to analysts’ expectations of $196.93 million. During the same period last year, the business earned $0.03 earnings per share. NeoGenomics’s quarterly revenue was up 11.2% on a year-over-year basis.

Here are the key takeaways from NeoGenomics’ conference call:

• Second-quarter revenue rose 11% to $201.7 million, exceeding guidance, while clinical revenue increased 14% on 2% volume growth and a 12% increase in average revenue per test.
• NGS revenue grew 26% year over year, driven by 14% volume growth and continued migration toward larger, higher-value panels. Management raised its full-year NGS growth outlook to the mid-20% range.
• Adjusted gross margin expanded 260 basis points to 48.1%, and adjusted EBITDA increased 36% to $14.4 million, supported by favorable test mix, pricing initiatives, operating discipline, and the Lab of the Future program.
• Management raised 2026 revenue guidance to $802 million-$806 million and adjusted EBITDA guidance to $56 million-$58 million, citing strong clinical momentum and expected continued margin improvement.
• Non-clinical revenue declined 15%, including a 26% drop in pharma revenue, leading the company to lower its 2026 non-clinical outlook to a high-single-digit decline. Management expects pharma to return to growth in 2027, but this depends on converting bookings into revenue and securing additional projects.

NeoGenomics Price Performance

NEO stock traded up $0.60 during mid-day trading on Thursday, reaching $15.88. 1,341,852 shares of the company’s stock were exchanged, compared to its average volume of 2,317,087. The company has a market cap of $2.07 billion, a price-to-earnings ratio of -39.59 and a beta of 1.74. The stock’s 50 day moving average is $12.52 and its 200 day moving average is $10.67. The company has a debt-to-equity ratio of 0.41, a current ratio of 4.42 and a quick ratio of 4.06. NeoGenomics has a 12-month low of $4.72 and a 12-month high of $16.10.

Analyst Ratings Changes

NEO has been the topic of a number of analyst reports. Benchmark raised their price objective on shares of NeoGenomics from $11.00 to $16.00 and gave the stock a “buy” rating in a research note on Friday, July 24th. Craig Hallum reiterated a “buy” rating and issued a $19.00 target price on shares of NeoGenomics in a research note on Wednesday. Wall Street Zen raised shares of NeoGenomics from a “hold” rating to a “buy” rating in a report on Saturday, June 27th. TD Cowen reissued a “buy” rating on shares of NeoGenomics in a report on Wednesday, July 15th. Finally, Leerink Partners upgraded shares of NeoGenomics from a “market perform” rating to an “outperform” rating and raised their price target for the company from $12.00 to $25.00 in a research report on Wednesday, April 29th. Seven investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, NeoGenomics presently has an average rating of “Moderate Buy” and an average target price of $16.71.

Key NeoGenomics News

Here are the key news stories impacting NeoGenomics this week:

• Positive Sentiment: Q2 results exceeded expectations: NeoGenomics reported adjusted earnings per share of $0.05, above the $0.03 consensus estimate. Revenue rose 11.2% year over year to $201.66 million, topping forecasts of $196.93 million. NeoGenomics Reaches New 12-Month High After Earnings Beat
• Positive Sentiment: Full-year revenue guidance was raised: Management now expects 2026 revenue of $802 million to $806 million, above the approximately $800.3 million analyst consensus. The company is targeting mid-20% growth in next-generation sequencing, supporting expectations for continued expansion. NeoGenomics 2026 Revenue Outlook
• Positive Sentiment: Analyst sentiment improved: Needham raised its price target from $15 to $19 and maintained a “Buy” rating, implying additional upside based on the post-earnings trading level. Needham Raises NeoGenomics Price Target
• Neutral Sentiment: The earnings release reinforces improving operating performance, but NeoGenomics still reported a negative net margin of 6.77% and negative return on equity of 1.96%, factors investors may continue monitoring.
• Negative Sentiment: Management adjusted expectations for its pharmaceutical business while emphasizing stronger sequencing growth, creating a potential execution risk if the higher-growth segment does not offset softer pharma performance. NeoGenomics Guidance and Growth Expectations

Insider Activity at NeoGenomics

In other news, Director Lynn A. Tetrault sold 5,307 shares of the business’s stock in a transaction that occurred on Tuesday, June 9th. The stock was sold at an average price of $11.29, for a total value of $59,916.03. Following the completion of the sale, the director directly owned 91,422 shares in the company, valued at $1,032,154.38. The trade was a 5.49% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 1.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On NeoGenomics

Institutional investors have recently added to or reduced their stakes in the stock. CIBC Bancorp USA Inc. purchased a new position in NeoGenomics during the third quarter valued at $106,000. Moors & Cabot Inc. increased its stake in shares of NeoGenomics by 14.6% during the third quarter. Moors & Cabot Inc. now owns 13,750 shares of the medical research company’s stock worth $106,000 after purchasing an additional 1,750 shares in the last quarter. State of Wyoming raised its position in shares of NeoGenomics by 243.1% during the 2nd quarter. State of Wyoming now owns 13,899 shares of the medical research company’s stock worth $102,000 after purchasing an additional 9,848 shares during the last quarter. Tower Research Capital LLC TRC raised its position in shares of NeoGenomics by 604.5% during the 2nd quarter. Tower Research Capital LLC TRC now owns 13,878 shares of the medical research company’s stock worth $101,000 after purchasing an additional 11,908 shares during the last quarter. Finally, Cresset Asset Management LLC purchased a new position in NeoGenomics in the 3rd quarter valued at about $85,000. Institutional investors and hedge funds own 98.50% of the company’s stock.

About NeoGenomics

NeoGenomics, traded on the Nasdaq under the symbol NEO, is a leading provider of cancer-focused genetic and molecular testing services. Headquartered in Fort Myers, Florida, the company operates an integrated network of CAP-accredited and CLIA-certified laboratories across the United States, Europe and Asia. NeoGenomics delivers diagnostic insights that support oncologists, pathologists and healthcare institutions in the detection, prognosis and treatment of hematologic and solid tumor cancers.

The company’s core service offerings include flow cytometry, immunohistochemistry, fluorescence in situ hybridization (FISH), karyotyping and advanced molecular assays such as next-generation sequencing (NGS) panels and polymerase chain reaction (PCR) tests.