GET DAILY SIGNALSCareDx (CDNA) Delivers +52% Revenue Growth in Q2 2026, Raises Full-Year Outlook
Key Takeaways
- Total revenue climbed 52% year over year to approximately $132 million, well ahead of the roughly $114 million consensus estimate.
- Testing services revenue surged 61% to $100 million, with testing volume up 17% to about 58,000 tests.
- Non-GAAP (adjusted) earnings per share reached $0.37, compared with a $0.23 consensus estimate and $0.10 in the prior-year quarter.
- GAAP net income was $111 million, boosted by a $113 million gain from the June 30 sale of the Lab Products business to Eurobio Scientific.
- Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose to $25 million from $5 million a year earlier.
- Management raised full-year 2026 revenue guidance to $490 million–$500 million and adjusted EBITDA guidance to $66 million–$78 million.
- For more context, review CDNA's Major News, Today's Price Move, Price Targets, and Forecasts pages.
- Explore Trending AI Robots to see how AI-driven trading strategies are approaching stocks like CDNA.
Why These Results Stand Out
CareDx is a precision medicine diagnostics company focused on transplant, specialty oncology, and cell therapy. Its second quarter 2026 report carries outsized weight because it reflects a strategic transformation: the company completed the sale of its Lab Products business and closed its acquisition of Naveris, sharpening its focus on high-margin molecular testing. Investors were also watching whether demand for transplant surveillance testing and improving reimbursement dynamics would continue to drive growth. The results confirmed strong commercial momentum across testing services and patient and digital solutions, while the raised guidance signaled management's confidence in a sustained, profitable trajectory.
Breaking Down the Quarter
For the quarter ended June 30, 2026, CareDx reported total revenue of approximately $132 million, up 52% from $87 million a year earlier and above the consensus estimate of roughly $114 million. Testing services revenue increased 61% to $100 million, supported by testing volume of about 58,000 (up 17%), while patient and digital solutions revenue grew 50% to $19 million and lab product revenue rose 8% to $13 million. Average revenue per test was approximately $1,720, including $16 million recognized for tests performed in prior periods.
GAAP net income was $111 million, compared with a net loss of $9 million a year earlier, reflecting a $113 million gain on the Lab Products divestiture that closed June 30. GAAP diluted earnings per share were $2.07. On a non-GAAP basis, which excludes that gain, net income was $20 million and diluted earnings per share were $0.37, versus $0.10 a year ago. Adjusted EBITDA reached $25 million, up from $5 million, aided by strong testing services growth, improved gross profit, and cost discipline. The company ended the quarter with $374 million in cash and no debt, generating $31 million in cash flow from operations. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Market Reaction
CareDx shares advanced sharply following the report, with the stock rising more than 30% as investors rewarded the top- and bottom-line beats and the raised full-year outlook. The reaction reflected relief that testing demand and reimbursement trends remained favorable, and that the Lab Products divestiture positioned the company as a more focused, higher-margin diagnostics business. Analyst responses were generally constructive, though some remained cautious about the sustainability of prior-period revenue recognition and the ongoing influence of Medicare coverage policy on long-term testing economics.
What to Watch Going Forward
Looking ahead, investors will watch whether CareDx can sustain its testing services momentum now that the Lab Products segment is no longer included in results. Management's revised 2026 revenue guidance of $490 million to $500 million, and adjusted EBITDA guidance of $66 million to $78 million, imply continued double-digit growth and meaningful margin expansion.
Reimbursement policy remains the most important variable. The company has noted that CMS (the Centers for Medicare & Medicaid Services) finalized Medicare coverage for its AlloSure and AlloMap tests, which supports patient access. However, any future changes to coverage criteria or test frequency could affect volumes and pricing.
Product pipeline progress also matters. CareDx continues to advance AlloHeme toward CLIA (Clinical Laboratory Improvement Amendments) readiness, with an early commercial launch anticipated for 2027. The integration of the acquired Naveris business and its NavDx test will be another area to monitor, as management works to expand beyond solid organ transplant into specialty oncology and cell therapy. Finally, investors should track gross margins, operating expense discipline, and cash collections as signals of whether the company can convert revenue growth into durable profitability. From what I see, the combination of revenue beats and margin expansion makes this an important quarter to track closely.
Using AI Tools in My Research
I often rely on Tickeron’s AI Screener when digging into earnings reports like this one. It helps me quickly filter peers in diagnostics and transplant testing by fundamentals, technical signals, and performance trends. The tool surfaces comparable setups efficiently, which adds useful context to the numbers without replacing my own analysis of guidance and reimbursement risks. This approach keeps my review data-driven while highlighting potential follow-through opportunities in the space.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
CDNA's MACD Histogram crosses above signal line
The Moving Average Convergence Divergence (MACD) for CDNA turned positive on October 28, 2026. Looking at past instances where CDNA's MACD turned positive, the stock continued to rise in 41 of 44 cases over the following month. The odds of a continued upward trend are 90%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 20, 2026. You may want to consider a long position or call options on CDNA as a result. In 81 of 98 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 83%.
Following a +4.38% 3-day Advance, the price is estimated to grow further. Considering data from situations where CDNA advanced for three days, in 241 of 291 cases, the price rose further within the following month. The odds of a continued upward trend are 83%.
The Aroon Indicator entered an Uptrend today. In 195 of 216 cases where CDNA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 90%.
Bearish Trend Analysis
The 10-day RSI Indicator for CDNA moved out of overbought territory on October 29, 2026. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 34 similar instances where the indicator moved out of overbought territory. In 19 of the 34 cases, the stock moved lower in the following days. This puts the odds of a move lower at 56%.
The Stochastic Oscillator has been in the overbought zone for 2 days. Expect a price pull-back in the near future.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where CDNA declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 86%.
CDNA broke above its upper Bollinger Band on September 24, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 4 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is 34 (best 1 - 100 worst), indicating steady price growth. CDNA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 34 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 93 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. CDNA’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 86, placing this stock worse than average.
The Tickeron Valuation Rating of 97 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (8.694) is normal, around the industry mean (66.893). P/E Ratio (33.111) is within average values for comparable stocks, (2.527). CDNA's Projected Growth (PEG Ratio) (48.410) is very high in comparison to the industry average of (3.473). Dividend Yield (0.000) settles around the average of (0.002) among similar stocks. P/S Ratio (6.146) is also within normal values, averaging (9.775).
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a molecular diagnostics company which develops, markets and delivers diagnostic surveillance solutions for organ transplant recipients
Industry MedicalSpecialties
Advertisement