Natera (NASDAQ:NTRA) Releases Earnings Results, Beats Estimates By $0.81 EPS

Natera (NASDAQ:NTRA) announced its quarterly earnings results on Thursday. The medical research company reported $0.35 EPS for the quarter, beating the consensus estimate of ($0.46) by $0.81, Zacks reports. Natera had a negative net margin of 14.61% and a negative return on equity of 25.07%. The company had revenue of $665.50 million for the quarter, compared to analyst estimates of $600.68 million. During the same period in the prior year, the firm posted ($0.41) earnings per share.

Here are the key takeaways from Natera’s conference call:

• Natera reported a strong Q4 with about 924,000 tests processed, MRD clinical units of 225,000 (+56% YoY), revenue of $666M (+~40% YoY), a record gross margin of 66.9%, and >$107M of operating cash flow in 2025 while guiding 2026 revenue to $2.62–2.70B with 63–65% gross margins.
• MRD adoption and product expansion accelerated—management said >50% of U.S. oncologists ordered Signatera in Q4, launched Signatera Genome, submitted the tissue‑free Latitude MRD to MolDX, and integrated phased‑variant technology (analytic LODs below 1 in 10 million) for improved sensitivity and pharma partnerships.
• In women’s health, Natera launched the 21‑gene Fetal Focus single‑gene NIPT (96% sensitivity, 98% specificity) with prospective EXPAND validation and an oral plenary at SMFM, which management says is driving new OBGYN/MFM account growth.
• Organ‑health momentum continues—Prospera enrollment completed in the randomized ACES‑EMB heart transplant trial (readout mid‑2027) and a lung transplant study showed clinicians omitted a 9‑month surveillance biopsy in ~75% of low‑risk patients without worse short‑term outcomes, supporting biopsy‑reduction use cases.
• Management noted some Q4 upside was driven by one‑time items—~$60M of revenue true‑ups, a deferred‑tax benefit related to the Foresight deal, and higher pharma mix—and warned some margin drivers may not repeat while several new products still lack broad reimbursement, representing execution and reimbursement risk.

Natera Price Performance

Shares of Natera stock traded down $8.06 during trading on Friday, hitting $208.04. 2,761,795 shares of the company’s stock traded hands, compared to its average volume of 1,166,271. The firm’s fifty day moving average price is $227.00 and its 200 day moving average price is $203.19. Natera has a twelve month low of $125.38 and a twelve month high of $256.36. The company has a market cap of $28.78 billion, a PE ratio of -90.85 and a beta of 1.64.

Analyst Ratings Changes

NTRA has been the subject of several research analyst reports. Wells Fargo & Company raised their price objective on Natera from $205.00 to $215.00 and gave the company an “equal weight” rating in a research note on Friday. BTIG Research raised their price objective on Natera from $230.00 to $260.00 and gave the company a “buy” rating in a research report on Friday, December 5th. Stephens boosted their target price on shares of Natera from $197.00 to $235.00 and gave the stock an “overweight” rating in a research report on Thursday, November 13th. Morgan Stanley upped their price objective on Natera from $220.00 to $265.00 and gave the company an “overweight” rating in a research note on Monday, December 1st. Finally, TD Cowen restated a “buy” rating on shares of Natera in a research note on Wednesday, January 7th. One investment analyst has rated the stock with a Strong Buy rating, thirteen have given a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $254.47.

Key Stories Impacting Natera

Here are the key news stories impacting Natera this week:

• Positive Sentiment: Quarterly beat — Natera reported Q4 revenue of $665.5M and GAAP EPS of $0.35, well ahead of street estimates (revenue ~$600.7M, EPS loss consensus). The beat supports near-term growth expectations and underpins the stock’s recent strength. Natera Reports Fourth Quarter and Full Year 2025 Financial Results
• Positive Sentiment: Favorable clinical data — New Signatera MRD data presented at ASCO GU highlight potential utility across genitourinary cancers (including bladder preservation), which may expand clinical adoption and long-term revenue for Natera’s oncology franchise. Signatera MRD Data at ASCO GU
• Positive Sentiment: Trial results — Natera reported results from the SINERGY trial, another clinical datapoint that could support commercial adoption of its assays. Natera Announces Results From the SINERGY Trial
• Positive Sentiment: Analyst upgrades/targets — Robert W. Baird raised its price target to $257 (outperform) and Wells Fargo raised its target to $215 (equal weight), signaling some sell-side confidence in upside from current levels. Benzinga – Analyst Price Target Changes
• Neutral Sentiment: Full-year revenue guidance roughly in line with consensus — Management issued FY2026 revenue guidance (roughly $2.6B–$2.7B), which appears consistent with street expectations and reduces upside surprise potential from guidance alone. (See Q4 release for guidance details.) Natera Reports Fourth Quarter and Full Year 2025 Financial Results
• Neutral Sentiment: Analyst consensus — Aggregated analyst coverage remains constructive (average “Moderate Buy”), which supports medium-term expectations but doesn’t preclude short-term volatility. Analyst Average Rating
• Negative Sentiment: Valuation and fundamentals concerns — Despite the beat, Natera still shows negative net margin and negative return on equity on a GAAP basis; combined with a high market capitalization and a recent run-up toward 52-week highs, investors may be taking profits. MarketBeat Q4 Coverage
• Negative Sentiment: Heavy intraday volume and selling pressure — Trading volume was well above average, consistent with a distribution day where some holders trimmed positions after the company’s strong quarter; that drove the stock lower despite the positives. (See intraday volume and price action for context.)

Insider Buying and Selling

In other Natera news, insider John Fesko sold 17,806 shares of the stock in a transaction on Tuesday, January 20th. The shares were sold at an average price of $234.74, for a total value of $4,179,780.44. Following the sale, the insider directly owned 177,591 shares in the company, valued at approximately $41,687,711.34. This trade represents a 9.11% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, CEO Steven Leonard Chapman sold 85,299 shares of the stock in a transaction dated Monday, February 2nd. The stock was sold at an average price of $230.72, for a total value of $19,680,185.28. Following the transaction, the chief executive officer owned 127,881 shares of the company’s stock, valued at approximately $29,504,704.32. This trade represents a 40.01% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last 90 days, insiders sold 368,119 shares of company stock valued at $85,956,782. Insiders own 5.63% of the company’s stock.

Hedge Funds Weigh In On Natera

Institutional investors and hedge funds have recently modified their holdings of the business. Wellington Management Group LLP lifted its position in shares of Natera by 94.7% during the fourth quarter. Wellington Management Group LLP now owns 4,976,325 shares of the medical research company’s stock valued at $1,140,026,000 after purchasing an additional 2,420,263 shares in the last quarter. State Street Corp grew its position in Natera by 2.2% during the third quarter. State Street Corp now owns 3,389,599 shares of the medical research company’s stock worth $545,624,000 after buying an additional 72,087 shares in the last quarter. Coatue Management LLC increased its holdings in shares of Natera by 1,446.1% in the 4th quarter. Coatue Management LLC now owns 2,633,334 shares of the medical research company’s stock worth $603,270,000 after buying an additional 2,463,008 shares during the last quarter. AQR Capital Management LLC raised its holdings in shares of Natera by 8.3% during the 4th quarter. AQR Capital Management LLC now owns 2,599,299 shares of the medical research company’s stock valued at $595,473,000 after buying an additional 199,234 shares in the last quarter. Finally, Invesco Ltd. boosted its position in Natera by 8.9% during the fourth quarter. Invesco Ltd. now owns 1,329,166 shares of the medical research company’s stock valued at $304,499,000 after buying an additional 108,437 shares during the period. 99.90% of the stock is currently owned by institutional investors.

Natera Company Profile

Natera is a global diagnostics company that develops and commercializes cell-free DNA and other genetic testing technologies for clinical applications. The company focuses on three principal areas: reproductive health (including non-invasive prenatal testing and carrier screening), oncology (tumor-informed assays for minimal residual disease and recurrence monitoring), and organ transplantation (cell-free DNA tests to detect allograft injury). Natera combines laboratory testing, proprietary bioinformatics, and clinical reporting to deliver personalized genetic information to clinicians and patients.

Key product offerings include Panorama, a non-invasive prenatal test that screens for fetal chromosomal abnormalities and select single-gene conditions; Horizon carrier screening for inherited conditions; Signatera, a personalized, tumor-informed assay used for detecting minimal residual disease and monitoring treatment response in cancer patients; and Prospera, a donor-derived cell-free DNA test used to assess the risk of organ rejection.