Genetic testing company Myriad Genetics (NASDAQ: MYGN) missed Wall Street’s revenue expectations in Q1 CY2026 as sales rose 2.3% year on year to $200.4 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $870 million at the midpoint. Its non-GAAP loss of $0.09 per share was 34.7% below analysts’ consensus estimates.
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Myriad Genetics (MYGN) Q1 CY2026 Highlights:
- Revenue: $200.4 million vs analyst estimates of $202.3 million (2.3% year-on-year growth, 1% miss)
- Adjusted EPS: -$0.09 vs analyst expectations of -$0.07 (34.7% miss)
- Adjusted EBITDA: -$4.03 million vs analyst estimates of $682,830 (-2% margin, significant miss)
- The company reconfirmed its revenue guidance for the full year of $870 million at the midpoint
- EBITDA guidance for the full year is $43 million at the midpoint, above analyst estimates of $39.64 million
- Operating Margin: -15.3%, in line with the same quarter last year
- Market Capitalization: $475 million
StockStory’s Take
Myriad Genetics began 2026 with results that fell short of Wall Street’s expectations, as the company posted modest year-over-year sales growth but missed on both revenue and adjusted earnings. Management attributed these results mainly to continued investments in new product launches and an expanded commercial team, as well as ongoing challenges in the prenatal business. CEO Samraat Raha described the quarter as a period of “solid growth of our mental health business” and highlighted double-digit hereditary cancer testing volume gains, but acknowledged the need for improved execution and further operational discipline to deliver on profitability targets.
Looking ahead, Myriad Genetics’ guidance for 2026 relies on anticipated gains from its expanded salesforce, the full commercial launch of new products, and a recovery in its prenatal segment. Management expects sequential improvement through the year, underpinned by the rollout of FirstGene and broader adoption of the Precise MRD and AI-enabled Prolaris tests. CFO Ben Wheeler emphasized the company’s focus on balancing investment timing with profitability, stating, “We are committed to profitable growth and will manage our annual operating expenses to grow at a slower rate than our annual revenue.”
Key Insights from Management’s Remarks
Management attributed the quarter’s performance to robust hereditary cancer testing, early investment in commercial expansion, and mixed results across other major product lines.
- Hereditary cancer testing momentum: The hereditary cancer portfolio saw 14% volume growth, outpacing market trends in both affected and unaffected populations, driven by the MyRisk panel and deeper community oncology relationships.
- Mental health business steady: GeneSight achieved 7% test volume growth and 24% revenue growth, benefiting from improved payer coverage, favorable biomarker legislation, and expanded provider adoption.
- Prenatal segment lagged: Prenatal revenue declined 15% year-over-year due to earlier disruptions in ordering systems and delayed account reactivation, though management pointed to quarter-over-quarter stabilization and expected recovery.
- Commercial team expansion: Over 100 new sales representatives were added, primarily focused on hereditary cancer and upcoming product launches, with management noting that ramping productivity will take several quarters.
- Early-stage product launches: The company began limited launches for Precise MRD (breast cancer) and disease-specific MyRisk panels, with broader launches planned for AI-enhanced Prolaris and FirstGene later in the year.
Drivers of Future Performance
Management’s full year outlook is shaped by ongoing investments in commercial capabilities, upcoming product launches, and anticipated stabilization in prenatal testing.
- Product launch cycle: Myriad expects major revenue contributions from the full-scale launches of Precise MRD for multiple cancer types, the AI-enabled Prolaris test, and the FirstGene prenatal screen, which management believes will differentiate the company in core markets.
- Salesforce productivity ramp: The expanded sales team is expected to deliver incremental growth through improved targeting and account engagement, though management noted that full productivity will be realized over several quarters.
- Prenatal business recovery: Management anticipates that the dedicated prenatal sales force and FirstGene launch will drive a return to growth in the segment, supported by improved payer dynamics and account win-backs, but acknowledged execution risk and the need for continued operational focus.
Catalysts in Upcoming Quarters
In the coming quarters, our team will be watching (1) the pace of adoption and expansion for the Precise MRD and AI-enabled Prolaris tests, (2) stabilization and recovery in the prenatal segment, particularly following the FirstGene launch, and (3) the realization of incremental sales productivity from the expanded commercial team. Execution on these milestones will be critical for supporting the company’s growth and margin improvement objectives.
Myriad Genetics currently trades at $4.01, down from $5.02 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it’s free).
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