Natera stock absorbs strong Q3 growth as outlook rises

Natera reported strong third-quarter growth on Thursday, November 5, after the US market closed, with total revenue of 794.0 million US dollars for the period ended September 30. The company raised its full-year 2026 revenue outlook by 140 million US dollars at the midpoint, reinforcing the growth case for its oncology, women's health and organ health testing businesses. The results and outlook were published by Morningstar, citing Business Wire.

Revenue growth broadens

Revenue increased 34.1% from 592.2 million US dollars in the third quarter of 2025. Natera attributed the advance to higher testing volume and improvements in average selling prices. Gross margin was 64.7%, compared with 64.9% a year earlier.

Testing activity expanded faster than sales. Natera processed 1,093,100 tests, up from 893,600 in the prior-year quarter, while oncology tests rose to 339,500 from 211,000. That represents a 60.9% increase in oncology testing and keeps cancer monitoring at the center of the company's growth strategy.

Higher spending remains a factor

Total operating expenses rose 19.5% to 576.1 million US dollars. The increase primarily reflected headcount growth for new products and higher clinical-trial costs. As a result, Natera still reported a net loss, although the loss narrowed to 59.9 million US dollars, or 0.42 US dollars per diluted share, from 87.5 million US dollars, or 0.64 US dollars per share, in the year-earlier quarter.

The figures show the trade-off facing investors: revenue and test volumes are scaling, while the company continues to invest in clinical development and commercial capacity. The release also said cash, cash equivalents and restricted cash increased by approximately 5.7 million US dollars between June 30 and September 30.

Outlook moves above 3 billion

Natera now expects 2026 revenue of 3.005 billion to 3.035 billion US dollars, compared with its previous range of 2.850 billion to 2.910 billion US dollars. Management maintained a gross-margin outlook of approximately 64% to 66%, expects positive cash flow and projects selling, general and administrative costs of 1.225 billion to 1.300 billion US dollars. Research and development spending is expected at 825 million to 925 million US dollars.

The raised forecast gives the stock a stronger fundamental reference point, but execution remains important. Investors will watch whether testing growth, reimbursement progress and pricing improvements continue to offset higher operating costs. Natera's next quarterly update will show whether the revised sales range is tracking toward the upper half.

Natera stock traded at 281.55 euros on Lang & Schwarz at 14:34 CET on Monday, November 9; the real-time quote of Natera stock is available here.

For the broader US market context, see the S&P 500 market topic.

More news and analyses are available in the Natera stock topic.