Guardant Health’s third quarter was marked by robust revenue growth and a positive market reaction, with outperformance across its main business lines. Management attributed these results to accelerating oncology test volumes, continued adoption of the Guardant360 platform, and the early commercial success of Shield in cancer screening. Co-CEO Helmy Eltoukhy highlighted the company’s ability to deliver “broad-based growth across our business,” citing stronger biopharma partnerships and effective cost controls, particularly in the Reveal and Shield product lines. The company’s progress in expanding its clinical utility and reducing per-test costs contributed meaningfully to margin improvements this quarter.
Is now the time to buy GH? Find out in our full research report (it’s free for active Edge members).
Guardant Health (GH) Q3 CY2025 Highlights:
- Revenue: $265.2 million vs analyst estimates of $235.5 million (38.5% year-on-year growth, 12.6% beat)
- Adjusted EPS: -$0.39 vs analyst estimates of -$0.49 (20.3% beat)
- Adjusted EBITDA: -$45.51 million vs analyst estimates of -$53.51 million (-17.2% margin, 15% beat)
- The company lifted its revenue guidance for the full year to $967.5 million at the midpoint from $920 million, a 5.2% increase
- Operating Margin: -37.3%, up from -61.3% in the same quarter last year
- Sales Volumes rose 37% year on year (21% in the same quarter last year)
- Market Capitalization: $12.37 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Guardant Health’s Q3 Earnings Call
- Bradley Bowers (Mizuho) asked about Shield’s average selling price (ASP) sustainability, particularly as ADLT pricing phases out. CFO Michael Bell explained the current ASP is supported by Medicare rates and that commercial reimbursement mix will become more relevant over time.
- Douglas Schenkel (Wolfe Research) inquired about the likelihood and timing of Shield’s inclusion in American Cancer Society guidelines and the impact on reimbursement. Co-CEO AmirAli Talasaz stated that while inclusion is likely, management is not assuming any upside from guideline changes in its current outlook.
- Puneet Souda (Leerink Partners) questioned the outlook for Shield’s growth in 2026 and early adoption of multi-cancer detection (MCD). Talasaz emphasized confidence in long-term momentum but cautioned against projecting specific growth rates before additional data is available.
- Patrick Donnelly (Citi) asked about Reveal’s progress in increasing tests per patient and the key near-term catalysts. Co-CEO Helmy Eltoukhy highlighted improvements in pulling in subsequent test orders and ongoing studies in new tumor types as future growth drivers.
- Luke Sergott (Barclays) sought detail on the step-up in operating expenses and salesforce expansion. CFO Michael Bell confirmed incremental gross profit from screening is being reinvested in building out the Shield commercial team and scaling sales and marketing.
Catalysts in Upcoming Quarters
As we look to future quarters, the StockStory team will closely monitor (1) the pace and impact of Shield adoption following the launch of partnerships with Quest Diagnostics and PathGroup, (2) regulatory and reimbursement developments, particularly the potential for guideline inclusion and expanded Medicare coverage, and (3) the rollout of new Smart apps and Reveal Ultra in oncology. Execution on these fronts, along with continued improvements in gross margins and commercial infrastructure, will be key indicators of Guardant Health’s ability to sustain its growth trajectory.
Guardant Health currently trades at $91.25, up from $72.26 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members).
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