New York, Feb 24, 2026, 08:26 EST — Premarket.
- After yesterday’s strong finish, shares slipped slightly in premarket trading.
- After releasing its 2025 results, the company stuck with its 2026 outlook.
- Brokers cut their targets as attention turns to how volume trends will shape up heading into early 2026.
GeneDx Holdings Corp dropped roughly 0.5% premarket Tuesday, last seen at $86.65. The genetic-testing stock settled Monday at $87.08, after jumping $4.89, or nearly 6% in that session.
Investors are weighing whether GeneDx’s rapid gains in complex genetic testing will translate into more reliable profits. The 2026 outlook has shifted—it’s the measuring stick now, not the main story.
GeneDx reported fourth-quarter revenue of $121.0 million, with exome and genome test sales accounting for $104.0 million. Test volumes jumped 34% to 27,761. Adjusted gross margin came in at 71%, excluding items such as stock-based compensation and other costs. Adjusted net income landed at $4.4 million, but the company recorded a GAAP net loss of $17.7 million. CEO Katherine Stueland said families are still waiting “far too long for answers” on genomic diagnosis. For 2025, revenue hit $427.5 million, with adjusted net income of $41.8 million. A $6.8 million one-time payor recovery skewed the prior-year comparison. GeneDx closed out 2025 holding $172.3 million in cash and equivalents. SEC
GeneDx stuck with its full-year 2026 outlook, calling for $540 million to $555 million in revenue, along with 33% to 35% exome and genome revenue and volume growth. The company sees adjusted gross margin at 70% or better, and expects to deliver positive adjusted net income. Growth drivers break down as: 25% to 27% from foundational markets, 7% to 8% from expansion markets, and around 1% from future markets. Whole-exome sequencing targets just the protein-coding DNA segments, whereas whole-genome sequencing takes in a broader swath of the genome.
BTIG’s Mark Massaro lowered his price target on GeneDx to $170 from $200, staying bullish with a Buy call. The firm pointed out that 2026’s growth might show up later in the year, given how long it could take to break into new markets and scale up sales. Snowstorms could weigh on early results, BTIG warned. GeneDx shares have dropped nearly 33% so far this year.
TD Cowen’s Daniel Brennan kept his Buy on the stock, though he trimmed his price target down to $135 from $165. He cited the recent drop in shares and sees a more compelling setup versus the 2026 growth picture. Jefferies stuck with its Buy rating as well, holding at a $150 target, according to TipRanks.
GeneDx flagged a material weakness in IT controls within a system linked to its revenue process, according to the annual report. Management acknowledged that as of Dec. 31, internal controls over financial reporting weren’t effective, and Ernst & Young delivered an adverse opinion on those controls. The assessment points to a gap significant enough that a material misstatement could slip through unnoticed, although none has been identified so far.
Traders are watching to see if GeneDx can maintain its volume growth in what’s typically a softer first quarter, all while keeping margins close to the lower end of its guidance. Diagnostics names tend to react fast to any hiccups with reimbursement or payer approvals.
GeneDx is set to deliver its next report on May 13. Investors are expected to push for updates on test volume momentum heading into early 2026, as well as more specifics on when new-market gains could materialize.
