Exact Sciences (EXAS) AI Stock Analysis

• Market Cap: $19.75B
• Dividend Yield: N/A
• Average Volume (3M): 2.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.10
• Revenue Growth: 14.47%
• EPS Growth: -353.69%
• Country: US
• Employees: 6,900
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.45
• Shares Outstanding: 190,888,210
• 10 Day Avg. Volume: 1,781,701
• 30 Day Avg. Volume: 2,166,945
• PEG Ratio: 1.15
• Price to Book (P/B): 7.98
• Price to Sales (P/S): 5.90
• P/FCF Ratio: 53.71
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 6.55
• Enterprise Value/Gross Profit: 9.40
• Enterprise Value/Ebitda: 499.38
• 1Y Price Target: $105.00
• Price Target Upside: 1.68% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 7
• EPS Forecast (FY): 0.27
• Revenue Forecast (FY): $3.68B

• Rating: 64 Neutral
• Price Target: $111.00 ▲(7.49% Upside)
• Action: Reiterated Date: 02/22/26
• Date: Action: Reiterated 02/22/26

The score is driven primarily by improving fundamentals (stronger cash generation and narrowing losses) and a constructive earnings outlook with raised guidance. Technicals support the trend but appear overbought, while valuation remains pressured due to persistent net losses. The Abbott merger approval is a positive catalyst, tempered by litigation-related uncertainty.

Positive Factors

Improving Cash Generation

Exact Sciences' operating cash flow shifted to strongly positive and free cash flow rose materially, improving during 2024–2025. Durable positive cash generation reduces reliance on external financing, supports reinvestment in R&D and commercialization, and strengthens execution runway despite prior volatility.

High, Stable Gross Margins & Revenue Growth

Consistently high gross margins reflect structural unit economics in molecular screening, while recent double-digit revenue growth shows expanding test volumes and market penetration. Together these factors support durable margin sustainability and scalability as fixed lab costs spread with higher throughput over the medium term.

Product & Market Expansion

Launch of Cancerguard (multi-cancer early detection) and rollout of Cologuard Plus with early top-payer coverage materially expand the addressable market and product mix. Structural product diversification and improving payer access increase long-term revenue optionality and reduce single-product concentration risk.

Negative Factors

Persistent Net Losses and Leverage

Despite cash-flow improvements, the company remains loss-making on a GAAP basis and carries meaningful leverage with debt near equity. This constrains financial flexibility, raises interest and refinancing risk, and limits ability to pursue sizable M&A or sustained heavy R&D without external funding or improved profitability.

Payer Contracting Uncertainty

Incomplete contracting with major payers for Cologuard Plus creates durable revenue uncertainty: limited reimbursement slows adoption, complicates forecastability and can pressure realized margins. Resolution timelines are unclear, so payer rollout remains a gating factor to sustained revenue scale.

Merger & Litigation Execution Risk

Pending acquisition by Abbott faces shareholder litigation and customary closing conditions; legal disputes can delay closing, increase costs, or force disclosures. Execution risk and management distraction could delay strategic initiatives and integration planning, affecting medium-term operational continuity and stakeholder certainty.

Exact Sciences Business Overview & Revenue Model

Company Description

Exact Sciences Corporation provides cancer screening and diagnostic test products in the United States and internationally. The company offers Cologuard, a non-invasive stool-based DNA screening test to detect DNA and hemoglobin biomarkers associated with colorectal cancer and pre-cancer. It also provides Oncotype DX, a gene expression tests for breast, prostate, and colon cancers; Oncotype Test, a tissue test delivering tumor profiling to aid therapy selection for patients with advanced, metastatic, refractory, or recurrent cancer; Oncotype DX AR-V7 Nucleus Detect Test, a liquid-based test for advanced stage prostate cancer; Oncomap ExTra, that provides a complete biological picture of certain refractory, rare, or aggressive cancers; and Covid-19 testing services. The company's pipeline products focus on enhancing the Cologuard test's performance characteristics and developing blood and other fluid-based tests. It has license agreements with MAYO Foundation for Medical Education and Research; and Hologic, Inc. Exact Sciences Corporation was incorporated in 1995 and is headquartered in Madison, Wisconsin.

How the Company Makes Money

Exact Sciences generates revenue primarily through the sale of its diagnostic tests, with Cologuard being the most significant contributor to its earnings. The company operates on a direct-to-consumer model as well as through partnerships with healthcare providers and laboratories. It bills insurance companies and Medicare for the tests performed, which is a key revenue stream. Additionally, Exact Sciences has established strategic partnerships with other healthcare organizations and life sciences companies to expand its reach and enhance its testing portfolio, further driving its revenue growth. The company also invests in research and development to innovate and introduce new products, which can lead to additional revenue opportunities.

Exact Sciences Financial Statement Overview

Summary

High and stable gross margins and a clear improvement in profitability trends, plus strongly positive operating and free cash flow in 2024–2025. Offsetting this, the company remains net loss-making and carries meaningful leverage (debt roughly in line with equity), keeping overall financial risk elevated.

Income Statement

Revenue has expanded steadily across the period, with 2025 showing strong acceleration (about +5.4% vs. 2024). Gross margins are consistently high and stable (~68–76%), supporting a good underlying business model. The key weakness remains profitability: the company is still loss-making in every year shown, although 2025 marks a major improvement versus 2024 (net loss narrowed sharply and margins improved meaningfully). Overall, the trajectory is improving, but sustained net profitability has not yet been demonstrated.

Balance Sheet

Leverage is meaningful, with debt roughly in line with equity in the latest year (debt-to-equity ~1.05 in 2025), and it has not consistently trended down over time. Equity has also declined from earlier years (notably from 2021–2023 levels), which reduces balance-sheet flexibility. Total assets are sizeable and relatively stable, but negative returns on equity in recent years highlight that capital is not yet generating positive earnings. Overall: adequate scale, but leverage and ongoing losses keep balance-sheet risk elevated.

Cash Flow

Cash generation has improved materially: operating cash flow turned strongly positive in 2024–2025, and free cash flow is positive with a large step-up in 2025 (free cash flow growth ~44%). Importantly, cash flow quality looks better than reported earnings, with free cash flow remaining positive despite net losses in 2024–2025. The main weakness is historical volatility (negative operating and free cash flow in 2021–2022), suggesting execution and working-capital swings have mattered. Still, the most recent two years show a favorable and strengthening cash-flow profile.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	3.25B	2.76B	2.50B	2.08B	1.77B
Gross Profit	2.26B	1.92B	1.76B	1.42B	1.31B
EBITDA	122.50M	-789.33M	29.28M	-421.11M	-649.28M
Net Income	-207.95M	-1.03B	-204.15M	-623.51M	-595.63M
Balance Sheet
Total Assets	5.86B	5.93B	6.47B	6.23B	6.68B
Cash, Cash Equivalents and Short-Term Investments	964.71M	1.04B	777.64M	632.06M	1.03B
Total Debt	2.52B	2.75B	2.55B	2.45B	2.38B
Total Liabilities	3.46B	3.53B	3.33B	3.18B	3.30B
Stockholders Equity	2.40B	2.40B	3.15B	3.04B	3.39B
Cash Flow
Free Cash Flow	356.78M	74.55M	31.93M	-438.02M	-238.00M
Operating Cash Flow	491.44M	210.54M	156.12M	-223.56M	-102.24M
Investing Cash Flow	195.12M	-442.15M	49.68M	74.07M	-1.08B
Financing Cash Flow	-338.09M	231.87M	159.77M	76.48M	8.47M

Exact Sciences Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 103.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For EXAS, the sentiment is Positive. The current price of 103.27 is above the 20-day moving average (MA) of 103.00, above the 50-day MA of 102.36, and above the 200-day MA of 70.24, indicating a bullish trend. The MACD of 0.55 indicates Positive momentum. The RSI at 67.15 is Neutral, neither overbought nor oversold. The STOCH value of 44.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for EXAS.

Exact Sciences Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QGEN	72 Outperform	$10.03B	23.74	11.57%	3.31%	5.32%	336.29%
EXAS	64 Neutral	$19.75B	-93.49	-8.66%	―	14.47%	-353.69%
CDNA	56 Neutral	$990.08M	-46.82	24.11%	―	14.46%	―
GH	54 Neutral	$12.51B	-28.74	―	―	30.38%	24.17%
FLGT	53 Neutral	$713.77M	-16.81	-3.80%	―	13.60%	74.64%
NEO	52 Neutral	$1.25B	-11.64	-12.42%	―	10.10%	-44.29%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Exact Sciences Corporate Events

Exact Sciences Shareholders Approve Merger with Abbott Laboratories

On February 20, 2026, Exact Sciences stockholders held a special meeting to vote on proposals tied to the previously announced Agreement and Plan of Merger with Abbott Laboratories, under which Badger Merger Sub I, Inc. would merge with and into Exact, leaving Exact as a wholly owned subsidiary of Abbott. Shareholders representing 67.56% of outstanding shares as of the January 9, 2026 record date were present, and they overwhelmingly approved the merger agreement and the possible adjournment of the meeting to solicit additional proxies, while voting against, on an advisory basis, the proposed merger-related executive compensation, leaving completion of the transaction subject to remaining regulatory and customary closing conditions.

The most recent analyst rating on (EXAS) stock is a Hold with a $105.00 price target. To see the full list of analyst forecasts on Exact Sciences stock, see the EXAS Stock Forecast page.

Exact Sciences Faces Shareholder Lawsuits Over Abbott Merger

On November 19, 2025, Exact Sciences agreed to be acquired by Abbott Laboratories, with Exact to become a wholly owned Abbott subsidiary following a planned merger. In January 2026, Exact mailed a definitive proxy statement to shareholders outlining the transaction, including a proposed $105 per share all-cash consideration supported by Centerview Partners’ valuation analyses.

By February 10, 2026, three shareholder lawsuits had been filed in New York alleging that the proxy statement contained false or misleading disclosures or omitted material information, and one action also alleged violations of Wisconsin securities law. While Exact denies the claims and maintains that no additional disclosure is legally required, it has issued supplemental financial and valuation details to reduce litigation risk, avoid delays to the Abbott merger and minimize associated costs and uncertainties for stakeholders.

The most recent analyst rating on (EXAS) stock is a Hold with a $105.00 price target. To see the full list of analyst forecasts on Exact Sciences stock, see the EXAS Stock Forecast page.

Exact Sciences Approves Executive Bonus Acceleration Amid Abbott Merger

On November 19, 2025, Exact Sciences Corporation agreed to be acquired by Abbott Laboratories through a merger in which Exact will become an indirect, wholly owned subsidiary of Abbott. To address potential tax implications under Sections 280G and 4999 of the U.S. Internal Revenue Code tied to this transaction, Exact’s Human Capital Committee, advised by a Section 280G consultant, approved Acceleration and Clawback Agreements for its active named executive officers on December 23, 2025, accelerating payment of their fiscal 2025 bonuses at 115% of target and the vesting of certain restricted stock units and performance share units at above-target performance levels. The arrangements specify precise bonus amounts and share accelerations for each executive and include clawback provisions requiring repayment if employment terminates under conditions that would have led to forfeiture, as well as potential true-up payments if actual 2025 performance ultimately exceeds the assumed performance levels, aligning executive compensation mechanics with the pending merger structure while managing excise tax exposure for the company and its leadership.

The most recent analyst rating on (EXAS) stock is a Buy with a $111.00 price target. To see the full list of analyst forecasts on Exact Sciences stock, see the EXAS Stock Forecast page.