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Investing.com -- Guardant Health Inc (NASDAQ:GH) shares surged 5.7% after the cancer testing company reported better-than-expected second quarter results and raised its full-year guidance, driven by strong performance across all business segments.
The precision oncology company posted a second quarter adjusted loss of -$0.44 per share, significantly better than analysts’ expectations of -$0.72 per share. Revenue jumped 31% YoY to $232.1 million, comfortably exceeding the consensus estimate of $211.27 million.
Oncology revenue, which accounts for the largest portion of Guardant’s business, increased 22% to $158.7 million, with test volume growing 30% compared to the same period last year. The company’s screening segment generated $14.8 million from approximately 16,000 Shield tests, while biopharma and data revenue rose 28% to $56 million.
"Q2 was another exceptional quarter for Guardant and we were able to increase our 2025 revenue guidance yet again. We saw especially strong performance from Guardant360 Liquid, where year-over-year growth accelerated for the fourth consecutive quarter," said Helmy Eltoukhy, co-founder and co-CEO.
Guardant Health raised its full-year 2025 revenue guidance to between $915 million and $925 million, representing growth of 24-25% compared to 2024. This outlook significantly exceeds the analyst consensus of $885.1 million. The company also improved its non-GAAP gross margin forecast to 63-64%, up from previous expectations of 62-63%.
The improved outlook reflects stronger growth across all segments. Oncology revenue is now expected to grow approximately 20% YoY, up from prior guidance of 18%. Screening revenue forecasts were substantially increased to $55-60 million, compared to the previous range of $40-45 million, driven by higher Shield test volumes.
Guardant Health maintained its expectation to reach free cash flow breakeven in its core business, excluding screening, by the fourth quarter of 2025.
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