Guardant Health (GH) AI Stock Analysis

• Market Cap: $14.20B
• Dividend Yield: N/A
• Average Volume (3M): 1.70M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.42
• Revenue Growth: 30.38%
• EPS Growth: 24.17%
• Country: US
• Employees: 1,999
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): -0.74
• Shares Outstanding: 129,374,420
• 10 Day Avg. Volume: 1,612,997
• 30 Day Avg. Volume: 1,704,315
• PEG Ratio: 0.51
• Price to Book (P/B): -26.85
• Price to Sales (P/S): 5.07
• P/FCF Ratio: -13.64
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 16.66
• Enterprise Value/Gross Profit: 26.13
• Enterprise Value/Ebitda: -42.47
• 1Y Price Target: $125.00
• Price Target Upside: 13.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $113.00 ▲(2.98% Upside)

The score is held back primarily by weak financial stability (negative equity, heavy losses, and ongoing cash burn). Offsetting this, price action and momentum are strong, and the latest earnings call/guidance pointed to accelerating revenue growth and improving gross margins. Valuation remains difficult to support due to negative earnings and no dividend yield.

Positive Factors

Accelerating revenue and test volumes

Sustained high revenue growth and volume acceleration (oncology volumes +40% to ~74k tests) indicate durable market adoption of Guardant’s liquid biopsy offerings. That expanding test base supports recurring commercial revenue and enhances bargaining power with payers and biopharma partners.

Improving gross margins

A rising non‑GAAP gross margin driven by lower Reveal COGS and stronger Shield margins suggests operational leverage in core testing. Higher gross margins provide a durable buffer to absorb SG&A and R&D investments while improving the pathway to sustained profitability as volumes scale.

Shield screening ramp and product expansion

Rapid Shield uptake and expansion into multi-cancer findings diversify revenue beyond oncology diagnostics. Combined with partnerships to broaden access, the screening franchise can create a long-term, high-volume preventive market that complements Guardant360, enhancing revenue stability and commercial scale.

Negative Factors

Weak balance sheet and high leverage

Negative equity and extreme leverage signal structural financial fragility, limiting flexibility to fund operations or strategic investments without dilution or expensive debt. This weak capital structure raises solvency risks and constrains long-term strategic optionality if growth slows.

Ongoing negative free cash flow

Persistent negative FCF, despite revenue gains, indicates core operations have not yet converted growth into self-sustaining cash generation. Continued cash burn necessitates external financing or slows reinvestment, creating execution risk and potential dilution if sustained over multiple years.

Reimbursement and guideline uncertainty

Shield’s commercial economics hinge on payer coverage and guideline adoption. Uncertain reimbursement and possible ASP declines threaten long-term revenue per test and adoption rates. Delays in guideline inclusion could materially slow patient access and the screening franchise’s structural revenue runway.

Guardant Health Business Overview & Revenue Model

Company Description

Guardant Health, Inc., a precision oncology company, provides blood tests, data sets, and analytics in the United States and internationally. The company offers Guardant360, Guardant360 LDT, Guardant360 CDx, and GuardantOMNI liquid biopsy-based tests for advanced stage cancer; and GuardantINFORM, an in-silico research platform that comprise a clinical-genomic liquid biopsy dataset of advanced cancer patients. It is also developing LUNAR-2 test for the early detection of colorectal cancer in asymptomatic individuals eligible; and GuardantConnect, an integrated software-based solution for clinical and biopharmaceutical customers seeking to connect patients tested with the Guardant360 assay with actionable alterations with potentially relevant clinical trials. In addition, the company offers Guardant Reveal Test for neoadjuvant and adjuvant treatment selection in early-stage cancer patients; Guardant360 tissue genotyping product; and Guardant-19 for use in the detection of the novel coronavirus. Further, it offers development services, including companion diagnostic development and regulatory approval, clinical study setup, monitoring and maintenance, testing development and support, and kits fulfillment related services to biopharmaceutical companies and medical institutions. The company was incorporated in 2011 and is headquartered in Redwood City, California.

How the Company Makes Money

Guardant Health generates revenue primarily through the sale of its genomic testing services. The main revenue stream comes from fees charged for the Guardant360 and GuardantOMNI tests, which are utilized by healthcare providers to guide treatment for cancer patients. Additionally, the company collaborates with pharmaceutical companies in clinical trials to provide genomic insights, which can lead to further revenue through partnerships and agreements. Guardant Health also engages in research and development activities, which may lead to new product offerings and additional revenue opportunities. The company's reimbursement framework, where tests are covered by insurance providers, further supports its financial model by ensuring a broader market access for its services.

Guardant Health Financial Statement Overview

Summary

Revenue is growing, but financial health is weak: large ongoing losses (negative net and EBIT margins), negative operating cash flow with continued cash burn, and a balance sheet flagged by negative equity and high leverage.

Income Statement

Guardant Health's income statement reveals a mixed performance. The company has shown revenue growth, with a TTM increase of 8.89%. However, profitability remains a significant concern, as evidenced by negative net profit margins (-49.93%) and EBIT margins (-49.43%). The gross profit margin is relatively strong at 62.84%, indicating efficient cost management at the gross level, but the high operating losses suggest challenges in scaling operations profitably.

Balance Sheet

The balance sheet highlights financial instability, with a negative stockholders' equity and a high debt-to-equity ratio of -4.37 in the TTM period, indicating high leverage and potential solvency issues. The return on equity is positive at 2.19%, but this is due to negative equity, which is not a sustainable position. The equity ratio is negative, further underscoring the financial risk.

Cash Flow

Cash flow analysis shows some resilience, with a free cash flow to net income ratio of 1.14, indicating that the company is generating cash relative to its net losses. However, the operating cash flow is negative, and free cash flow growth is slightly negative at -3.49%, reflecting ongoing cash burn and the need for improved cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	902.57M	739.02M	563.95M	449.54M	373.65M	286.73M
Gross Profit	575.46M	449.22M	336.90M	293.21M	250.74M	194.19M
EBITDA	-354.11M	-390.12M	-433.31M	-614.91M	-359.62M	-225.07M
Net Income	-398.79M	-436.37M	-479.45M	-654.59M	-405.67M	-253.78M
Balance Sheet
Total Assets	1.28B	1.49B	1.79B	1.61B	2.20B	2.27B
Cash, Cash Equivalents and Short-Term Investments	580.01M	839.98M	1.17B	1.01B	932.75M	1.79B
Total Debt	1.33B	1.34B	1.35B	1.37B	1.37B	854.49M
Total Liabilities	1.63B	1.63B	1.63B	1.55B	1.56B	916.19M
Stockholders Equity	-354.47M	-139.65M	158.68M	60.18M	645.00M	1.30B
Cash Flow
Free Cash Flow	-262.23M	-274.94M	-345.46M	-386.92M	-284.05M	-157.99M
Operating Cash Flow	-222.90M	-239.86M	-324.98M	-309.46M	-209.02M	-103.93M
Investing Cash Flow	288.39M	-261.31M	840.25M	149.82M	-63.16M	-617.09M
Financing Cash Flow	-63.83M	-996.00K	477.38M	-189.09M	-66.82M	1.41B

Guardant Health Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 109.73
• 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 GH, the sentiment is Positive. The current price of 109.73 is below the 20-day moving average (MA) of 110.31, above the 50-day MA of 105.74, and above the 200-day MA of 68.51, indicating a bullish trend. The MACD of 2.80 indicates Positive momentum. The RSI at 53.38 is Neutral, neither overbought nor oversold. The STOCH value of 34.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GH.

Guardant Health Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
QGEN	73 Outperform	$11.21B	27.79	11.29%	3.31%	5.32%	336.29%
NTRA	73 Outperform	$32.63B	-101.34	-29.02%	―	38.17%	-28.77%
EXAS	70 Outperform	$19.51B	-19.24	-34.54%	―	14.47%	-353.69%
RVTY	69 Neutral	$12.60B	55.57	3.04%	0.29%	3.37%	-18.80%
RDNT	62 Neutral	$5.54B	-397.69	-1.30%	―	11.09%	-165.89%
GH	58 Neutral	$14.20B	-34.39	―	―	30.38%	24.17%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Guardant Health Corporate Events

Guardant Health Announces Strong 2025 Preliminary Revenue Growth

On January 11, 2026, Guardant Health reported preliminary, unaudited results indicating that 2025 was a breakout year, with total revenue for the year ended December 31, 2025 rising 33% to approximately $981 million and fourth-quarter revenue up 39% to about $280 million versus 2024, driven by strong growth in both oncology and screening volumes. The company reported around 276,000 oncology tests for 2025, up 34%, and a rapid ramp in its Shield colorectal cancer screening franchise to approximately 87,000 tests for the year—including about 38,000 in the fourth quarter compared with 6,400 a year earlier—while expanding Shield to include multi-cancer detection findings; despite this top-line momentum, Guardant remained cash-flow negative, with preliminary free cash flow of roughly negative $54 million in the fourth quarter and negative $233 million for the full year, though it ended 2025 with approximately $1.3 billion in cash and marketable securities and plans to release audited 2025 results in February 2026.

The most recent analyst rating on (GH) stock is a Buy with a $120.00 price target. To see the full list of analyst forecasts on Guardant Health stock, see the GH Stock Forecast page.

Guardant Health Completes $402.5M Convertible Notes Offering

On November 4, 2025, Guardant Health entered into an underwriting agreement for a public offering of 3,833,332 shares of common stock at $90 per share, raising approximately $327.2 million. The proceeds will be used for general corporate purposes, potentially including repurchasing a portion of the company’s convertible senior notes due 2027. Additionally, on November 7, 2025, Guardant Health completed a private offering of $402.5 million in convertible senior notes due 2033, with proceeds also intended for general corporate purposes. These financial moves are expected to strengthen Guardant Health’s operational capabilities and market positioning.

The most recent analyst rating on (GH) stock is a Buy with a $100.00 price target. To see the full list of analyst forecasts on Guardant Health stock, see the GH Stock Forecast page.