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Guardant Health (GH)
NASDAQ:GH
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Guardant Health (GH) AI Stock Analysis

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Guardant Health

(NASDAQ:GH)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
$94.00
▼(-2.34% Downside)
Guardant Health's overall score is driven by strong earnings call performance and technical momentum, but is significantly hampered by poor financial health and challenging valuation metrics. The company's ability to sustain growth while addressing financial instability will be crucial for future performance.
Positive Factors
Revenue Growth
Guardant Health's robust revenue growth and oncology volume increase indicate strong market demand and effective product adoption, supporting long-term business expansion.
Strategic Partnerships
The partnership with Zephyr AI enhances Guardant Health's capabilities in biopharmaceutical innovation, potentially leading to new product developments and competitive advantages.
Product Innovation
FDA approval for Shield as a primary CRC screening option strengthens Guardant Health's market position and could drive significant adoption and revenue growth.
Negative Factors
Financial Instability
Guardant Health's financial instability, highlighted by negative equity and high leverage, poses risks to its long-term solvency and financial flexibility.
Profitability Challenges
Persistent profitability issues, with significant net and EBIT margin losses, indicate challenges in achieving sustainable financial performance and scaling operations.
Cash Flow Management
Negative cash flow trends suggest ongoing cash burn, necessitating improved cash management to ensure long-term operational viability and investment capacity.

Guardant Health (GH) vs. SPDR S&P 500 ETF (SPY)

Guardant Health Business Overview & Revenue Model

Company DescriptionGuardant 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 MoneyGuardant Health generates revenue primarily through the sale of its genomic testing services, which are offered to oncologists and healthcare institutions. The company charges for each test performed, with pricing models that may vary based on the specific test and the complexity of the analysis. Additionally, Guardant Health has established partnerships with various pharmaceutical companies for clinical trials, which can provide additional revenue streams through collaborations and service agreements. The growth of precision medicine and the increasing demand for non-invasive cancer testing further bolster the company’s earnings potential, as more healthcare providers adopt these advanced diagnostics in their treatment protocols.

Guardant Health Key Performance Indicators (KPIs)

Any
Any
Revenue by Geography
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Chart InsightsGuardant Health's revenue growth in the United States has been robust, with a consistent upward trajectory, reflecting strong demand for their oncology and Shield tests. The recent earnings call highlights a 31% year-over-year revenue increase, driven by a 30% rise in oncology test volumes. International revenue, while more volatile, shows a significant uptick in the latest quarter, suggesting expanding global reach. The company’s increased revenue guidance and improved gross margins underscore a positive outlook, though potential ASP adjustments and regulatory uncertainties could pose challenges.
Data provided by:Main Street Data

Guardant Health Earnings Call Summary

Earnings Call Date:Oct 29, 2025
(Q3-2025)
|
% Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
Guardant Health demonstrated strong revenue growth and operational achievements in its oncology and Shield testing businesses. Strategic partnerships and improved gross margins further strengthen the company's position. However, increased operating expenses and uncertainties in future reimbursement and guideline inclusion present challenges.
Q3-2025 Updates
Positive Updates
Record Revenue Growth
Guardant Health reported a 39% year-over-year revenue growth, reaching $265 million in Q3 2025 and crossing over $1 billion in annualized revenue for the first time.
Oncology Volume Acceleration
Oncology volumes increased 40% year over year to approximately 74,000 tests, with Guardant360 Liquid delivering its fifth consecutive quarter of accelerating growth.
Biopharma and Data Business Growth
Biopharma and data business revenue increased 18% year over year, with two additional companion diagnostic approvals achieved during the quarter.
Shield Testing Revenue Surge
Shield testing revenue reached $24 million in Q3, driven by 24,000 tests and ASPs close to $900, with strong adherence rates.
Gross Margin Improvement
Non-GAAP gross margin increased to 66% in Q3 2025 from 63% in the prior year period, driven by reductions in Reveal COGS and Shield gross margin improvements.
Positive Free Cash Flow
Excluding the screening business, Guardant Health became cash flow positive one quarter ahead of expectations.
Strategic Partnerships
Announced collaborations with Quest Diagnostics and PathGroup to expand Shield access and accelerate commercial infrastructure build-out.
Negative Updates
Non-GAAP Operating Expenses Increase
Non-GAAP operating expenses increased by 22% year over year to $228.8 million, driven by investments to expand screening commercial infrastructure and sales/marketing for Shield.
Uncertainty in Commercial Reimbursement
There is uncertainty in commercial reimbursement for Shield, particularly with the potential walk-down of ASPs from $900 to $700 by 2028.
Potential Delays in Guideline Inclusion
The inclusion of Shield in the American Cancer Society guidelines is not guaranteed this year, which could delay broader patient access and commercial reimbursement.
Company Guidance
In the recent earnings call for Guardant Health's Q3 2025, the company reported robust performance, with total revenue growing 39% year-over-year to $265.2 million. This growth was driven by a 40% increase in oncology volumes, reaching approximately 74,000 tests, and a 31% rise in oncology revenue to $184.4 million. The biopharma and data segment also performed well, increasing revenue by 18% to $54.7 million, bolstered by two companion diagnostic approvals. Shield, Guardant's screening product, generated $24.1 million in revenue from 24,000 tests, with a strong annual run rate of $100 million in its first year post-FDA approval. The company's non-GAAP gross margin improved to 66%, reflecting cost reductions and enhanced operational efficiencies. Guardant Health also raised its full-year 2025 revenue guidance to a range of $965 million to $970 million, citing strong ongoing demand and strategic initiatives, including new partnerships.

Guardant Health Financial Statement Overview

Summary
Guardant Health faces significant financial challenges, with negative net profit and EBIT margins, high leverage, and negative equity. Despite revenue growth and a strong gross profit margin, the company's financial instability and cash flow issues weigh heavily on its financial health.
Income Statement
45
Neutral
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
30
Negative
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
40
Negative
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue902.57M739.02M563.95M449.54M373.65M286.73M
Gross Profit575.46M449.22M336.90M293.21M250.74M194.19M
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 Assets1.28B1.49B1.79B1.61B2.20B2.27B
Cash, Cash Equivalents and Short-Term Investments580.01M839.98M1.17B1.01B932.75M1.79B
Total Debt1.33B1.34B1.35B1.37B1.37B854.49M
Total Liabilities1.63B1.63B1.63B1.55B1.56B916.19M
Stockholders Equity-354.47M-139.65M158.68M60.18M645.00M1.30B
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 Flow288.39M-261.31M840.25M149.82M-63.16M-617.09M
Financing Cash Flow-63.83M-996.00K477.38M-189.09M-66.82M1.41B

Guardant Health Technical Analysis

Technical Analysis Sentiment
Positive
Last Price96.25
Price Trends
50DMA
66.87
Positive
100DMA
58.96
Positive
200DMA
51.56
Positive
Market Momentum
MACD
8.99
Negative
RSI
77.33
Negative
STOCH
88.48
Negative
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 96.25 is above the 20-day moving average (MA) of 75.97, above the 50-day MA of 66.87, and above the 200-day MA of 51.56, indicating a bullish trend. The MACD of 8.99 indicates Negative momentum. The RSI at 77.33 is Negative, neither overbought nor oversold. The STOCH value of 88.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GH.

Guardant Health Risk Analysis

Guardant Health disclosed 68 risk factors in its most recent earnings report. Guardant Health reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Guardant Health Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
69
Neutral
$26.96B-24.32%44.38%22.87%
66
Neutral
$10.40B45.853.04%0.29%3.37%-18.80%
66
Neutral
$9.55B25.7810.81%2.91%5.15%412.41%
66
Neutral
$6.05B-382.69-1.65%11.33%-232.27%
62
Neutral
$13.19B-34.54%14.47%-353.69%
54
Neutral
$12.37B30.38%24.17%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GH
Guardant Health
96.25
67.64
236.42%
EXAS
Exact Sciences
67.22
15.74
30.57%
RVTY
Revvity
89.52
-32.61
-26.70%
QGEN
Qiagen
43.06
-0.47
-1.08%
RDNT
Radnet
78.91
6.38
8.80%
NTRA
Natera
198.48
64.37
48.00%

Guardant Health Corporate Events

Guardant Health’s Q3 2025 Earnings: Strong Growth Amid Challenges
Oct 31, 2025

Guardant Health’s recent earnings call revealed a positive sentiment, highlighting strong revenue growth and operational achievements. The company’s success in its oncology and Shield testing businesses, alongside strategic partnerships and improved gross margins, underscores its robust market position. However, challenges such as increased operating expenses and uncertainties in future reimbursement and guideline inclusion were also acknowledged.

Guardant Health Reports Strong Q3 2025 Growth
Oct 30, 2025

Guardant Health, a precision oncology company, focuses on enhancing cancer care through advanced blood and tissue tests, real-world data, and AI analytics. In its third-quarter 2025 earnings report, Guardant Health announced a 39% revenue increase, reaching $265.2 million, driven by strong performance in its Oncology, Screening, and Biopharma & Data segments. The company also raised its 2025 revenue guidance to $965 to $970 million, indicating a 31% year-over-year growth.

Guardant Health’s SIBYL Study: A Step Forward in Liquid Biopsy Validation
Oct 27, 2025

Study Overview: The SIBYL study, officially titled ‘obServation of Therapy Response With lIquid BiopsY evaLuation,’ aims to validate the clinical use of Guardant360, a liquid biopsy tool, in monitoring therapy responses in patients with advanced solid tumors. This study is significant as it seeks to establish the correlation between ctDNA dynamics and therapeutic outcomes, providing a non-invasive method to evaluate treatment efficacy.

Guardant Health’s ORACLE Study: A Game-Changer in Cancer Recurrence Detection?
Oct 27, 2025

Study Overview: The ORACLE study, officially titled ‘Observation of ResiduAl Cancer With Liquid Biopsy Evaluation,’ aims to demonstrate the efficacy of Guardant Health’s novel ctDNA assay in detecting cancer recurrence in patients treated for early-stage solid tumors. This study is significant as it seeks to establish the clinical validity of ctDNA tests in recurrence detection, potentially offering a cost-effective solution in healthcare environments.

Guardant Health’s Shield Study: A Closer Look at CRC Screening Innovations
Oct 27, 2025

Study Overview: The Shield Post-Approval Study Protocol by Guardant Health aims to assess the performance of the Shield blood test for colorectal cancer (CRC) screening in individuals aged 45 to 81 at average risk. This prospective, longitudinal study uses real-world evidence to validate the test’s efficacy, with colonoscopy as the reference standard.

Business Operations and StrategyFinancial Disclosures
Guardant Health Hosts Investor Day in NYC
Neutral
Sep 25, 2025

Guardant Health, Inc. announced it will host an Investor Day on September 24, 2025, in New York City, featuring presentations from its co-CEOs and executive team to discuss the company’s operations, strategic priorities, and financial outlook. This event is expected to provide stakeholders with valuable insights into the company’s future direction and market positioning.

The most recent analyst rating on (GH) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Guardant Health stock, see the GH Stock Forecast page.

Business Operations and StrategyExecutive/Board Changes
Guardant Health Expands Board, Appoints Alex Azar
Positive
Sep 15, 2025

On September 12, 2025, Guardant Health expanded its Board of Directors to 11 members, appointing Alex M. Azar II, former U.S. Secretary of Health and Human Services, as a Class III director. Azar’s extensive experience in both government and the private sector is expected to provide valuable insights as Guardant Health continues to innovate in precision oncology and expand access to its cancer detection and management technologies.

The most recent analyst rating on (GH) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Guardant Health stock, see the GH Stock Forecast page.

Guardant Health Reports Strong Q2 Earnings Growth
Aug 1, 2025

Guardant Health’s recent earnings call conveyed a positive sentiment, highlighting robust performance across its major business segments. The company reported significant revenue growth and improved gross margins, despite minor concerns regarding ASP adjustments and regulatory uncertainties. The overall outlook remains optimistic, driven by strong execution and increased guidance.

Guardant Health Reports Strong Q2 2025 Growth
Jul 31, 2025

Guardant Health, a precision oncology company, is at the forefront of transforming patient care through advanced blood and tissue tests, real-world data, and AI analytics to improve cancer treatment outcomes. In its latest earnings report, Guardant Health announced a robust 31% increase in total revenue for the second quarter of 2025, driven by strong performances across its Oncology, Screening, and Biopharma & Data segments. The company has also raised its 2025 revenue guidance to between $915 and $925 million, reflecting a growth of 24% to 25% over the previous year. Key financial highlights include a significant increase in Oncology revenue by 22% to $158.7 million, and Biopharma & Data revenue by 28% to $56.0 million. The company also reported a non-GAAP gross margin improvement to 66% from 60% in the previous year. Operating expenses rose due to the expansion of the commercial team and marketing activities, but the net loss narrowed slightly to $99.9 million from $102.6 million the previous year. Looking ahead, Guardant Health is optimistic about its growth trajectory, with expectations of continued revenue growth and strategic advancements in its product offerings, including the Shield multi-cancer detection test, which has received Breakthrough Device Designation from the FDA. The company remains committed to expanding its technical leadership in the genomic profiling market and enhancing its commercial infrastructure.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Oct 31, 2025