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Guardant Health (GH)
NASDAQ:GH
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Guardant Health
(NASDAQ:GH)
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Rating:61Neutral
Price Target:
$110.00
▲(0.06% Upside)
Guardant Health's strong technical momentum and positive earnings call insights are offset by financial instability and valuation concerns. Strategic partnerships and recent corporate events provide a supportive backdrop for future growth, but profitability and financial health remain critical areas for improvement.
Positive Factors
Revenue Growth
Strong revenue growth indicates expanding market reach and successful product adoption, supporting long-term business sustainability.
Strategic Partnerships
Strategic partnerships enhance distribution channels and market penetration, potentially increasing revenue and market share.
Product Innovation
FDA approval of Shield as a primary screening option strengthens product portfolio and competitive edge in the diagnostics market.
Negative Factors
Financial Instability
High leverage and negative equity raise concerns about financial stability, limiting flexibility and increasing solvency risks.
Profitability Challenges
Persistent profitability issues indicate challenges in achieving sustainable operations, impacting long-term financial health.
Reimbursement Uncertainty
Reimbursement uncertainties could affect revenue stability and growth, posing risks to financial projections and market confidence.
Guardant Health (GH) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$14.22B
Dividend YieldN/A
Average Volume (3M)1.71M
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth30.38%
EPS Growth24.17%
CountryUS
Employees1,999
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)-0.74
Shares Outstanding129,374,420
10 Day Avg. Volume1,506,790
30 Day Avg. Volume1,714,703
Financial Highlights & Ratios
PEG Ratio0.51
Price to Book (P/B)-26.85
Price to Sales (P/S)5.07
P/FCF Ratio-13.64
Enterprise Value/Market Cap0.60
Enterprise Value/Revenue9.47
Enterprise Value/Gross Profit14.85
Enterprise Value/Ebitda-24.13
Forecast
1Y Price Target
$124.69Price Target Upside13.42% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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. 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 Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
The Fly
The FlyGuardant 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
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
Positive
109.93
Price Trends
100.24
Positive
81.28
Positive
63.67
Positive
Market Momentum
2.40
Negative
61.94
Neutral
81.38
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 109.93 is above the 20-day moving average (MA) of 102.55, above the 50-day MA of 100.24, and above the 200-day MA of 63.67, indicating a bullish trend. The MACD of 2.40 indicates Negative momentum. The RSI at 61.94 is Neutral, neither overbought nor oversold. The STOCH value of 81.38 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $10.80B | 24.83 | 11.29% | 3.31% | 5.32% | 336.29% | |
73 Outperform | $35.19B | -104.88 | -29.02% | ― | 38.17% | -28.77% | |
70 Outperform | $19.30B | -19.14 | -34.54% | ― | 14.47% | -353.69% | |
67 Neutral | $11.68B | 50.86 | 3.04% | 0.29% | 3.37% | -18.80% | |
63 Neutral | $5.98B | -440.83 | -1.30% | ― | 11.09% | -165.89% | |
61 Neutral | $14.22B | -33.84 | ― | ― | 30.38% | 24.17% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
GH
Guardant Health
108.74
72.04
196.29%
EXAS
Exact Sciences
101.78
45.28
80.14%
RVTY
Revvity
101.71
-14.38
-12.39%
QGEN
Qiagen
47.31
2.87
6.46%
RDNT
Radnet
78.38
9.60
13.96%
NTRA
Natera
239.56
64.56
36.89%
Guardant Health Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Guardant Health Completes $402.5M Convertible Notes Offering
Positive
Nov 7, 2025
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.
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.