Why Guardant Health Was Such an Investor Darling This Week
Key Points
The cancer-focused biotech surprised on the upside for both revenue and profitability in its latest reported quarter.
Revenue rose by almost 40% year over year in that period.
- 10 stocks we like better than Guardant Health ›
Guardant Health (NASDAQ: GH) unveiled its latest set of quarterly results on Thursday, and the biotech's encouraging performance gave the stock significant upward momentum. The company's shares were up by 28% week to date as of early Friday morning, according to data compiled by S&P Global Market Intelligence.
Higher revenue and a narrower deficit
In its third quarter, Guardant's revenue came in just above $265 million, for a robust (39%) year-over-year increase. It also managed to trim its net loss not according to generally accepted accounting principles (GAAP); this was a bit more than $48 million ($0.39 per share) against the $55 million of the year-ago quarter.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Image source: Getty Images.
Both headline numbers crushed the average analyst estimates. Pundits following Guardant had estimated it would earn less than $236 million on the top line, and post a much deeper non-GAAP (adjusted) net loss of $0.79 per share.
Another reason for investors to be cheerful was Guardant's raising of its full-year 2025 guidance. Revenue is now anticipated to come in at $965 million to $970 million, a notably higher range than the previous $915 million to $925 million. The new adjusted gross margin forecast is 64% to 65%, up slightly from the preceding 63% to 64%.
The bulls had their say
A flurry of analyst price target raises, and even a recommendation upgrade, closely followed Guardant's earnings release. The upgrading party was Nephron's Jack Meehan, who now believes the stock is worthy of a hold, one peg higher than his previous sell. He set his price target at $80 per share.
Should you invest $1,000 in Guardant Health right now?
Before you buy stock in Guardant Health, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Guardant Health wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $593,442!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,269,127!*
Now, it’s worth noting Stock Advisor’s total average return is 1,071% — a market-crushing outperformance compared to 196% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of October 27, 2025
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Guardant Health. The Motley Fool has a disclosure policy.
Recommended Articles
