MYGN Stock Up on Q4 Earnings and Revenue Beat, Gross Margin Down

Myriad Genetics, Inc. MYGN reported fourth-quarter 2025 adjusted earnings of 4 cents per share, which surpassed the Zacks Consensus Estimate by 350% and increased 33.3% year over year. 

Adjusted earnings exclude amortization expenses from acquired intangible assets, equity compensation and real estate optimization. GAAP loss per share came in at 8 cents in the quarter compared with the prior-year quarter’s loss of 47 cents.

For the full year, adjusted earnings were 6 cents per share compared with the year-ago period’s earnings of 14 cents. The Zacks Consensus Estimate projected the company’s 2025 earnings per share (EPS) to be flat.

MYGN’s Revenues

Total revenues fell 0.4% year over year to $209.8 million but exceeded the Zacks Consensus Estimate by 1.07%. Testing volumes increased 2% year over year.

For full-year 2025, revenues totaled $824.5 million, declining 1.6% from the year-ago period. The figure topped the Zacks Consensus Estimate slightly by 0.3%.

Following the announcement yesterday, shares of MYGN jumped 21.7% in the after-hours session.  

Detailed Breakdown of MYGN’s Q4 Revenues

In the fourth quarter, Hereditary Cancer testing revenues increased 3% year over year to $96.8 million. Tumor Profiling testing revenues rose 2% year over year to $31.5 million. Prenatal testing revenues came in flat at $44.9 million, while Mental Health revenues decreased 10% to $36.6 million.

Myriad Genetics, Inc. Price, Consensus and EPS Surprise

Myriad Genetics, Inc. price-consensus-eps-surprise-chart | Myriad Genetics, Inc. Quote

MYGN’s Q4 Margin Performance

The gross margin fell 168 basis points (bps) to 70% due to a 5.5% increase in the cost of revenues.

Research and development expenses dropped 14.1% year over year to $25.5 million. SG&A expenses dipped 16.4% to $55.6 million in the reported quarter.

The adjusted operating loss was $3 million compared with a loss of $17.3 million in the year-ago quarter.

MYGN’s Financial Position

Myriad Genetics exited the fourth quarter of 2025 with cash and cash equivalents of $149.6 million compared with $102.4 million at the end of the fourth quarter of 2024.

Long-term debt amounted to $119.9 million, higher than $39.6 million at the end of the fourth quarter of 2024.

The cumulative net cash outflow from operating activities at the end of the reported quarter was $1.8 million compared with an outflow of $8.7 million in the year-ago period.

Myriad Genetics’ 2026 Guidance

Myriad Genetics reiterated its full-year 2026 guidance, which it introduced during preliminary fourth-quarter 2025 results in January. Revenues are expected to be between $860 million and $880 million in 2026. The Zacks Consensus Estimate is pegged at $867.5 million.

Full-year adjusted gross margin is expected to be in the 68%-69% range. Adjusted EBITDA is forecasted in the $37-$49 million band.

Our Take on MYGN

Myriad Genetics exited the fourth quarter of 2025 with better-than-expected earnings and revenues. The company generated strong test volume growth in hereditary cancer testing, which reflects continued momentum in the unaffected market. MYGN is making strong progress in its cancer care continuum strategy to maintain leadership in hereditary cancer testing while expanding into other attractive cancer testing applications. The newly launched expanded MyRisk panel has been well-received in the market. The company is also in the final preparation mode to start commercial testing of PRECISE MRD for breast cancer for a select set of customers.

However, the contraction of gross margin in the quarter is discouraging. Within Mental Health, quarterly revenues were once again impacted by UnitedHealthcare's coverage policy change in January 2025.

MYGN’s Zacks Rank & Key Picks

Myriad Genetics currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Cardinal Health CAH and Align Technology ALGN.

Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 13.24%.

Cardinal Health, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter fiscal 2026 adjusted EPS of $2.63, exceeding the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion topped the Zacks Consensus Estimate by 0.9%.

CAH has a long-term earnings growth rate of 15% compared with the industry’s 9.6% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 9.3%.

Align Technology, carrying a Zacks Rank #2 at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.

ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.16%.

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This article originally published on Zacks Investment Research (zacks.com).

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