Diagnostics company Guardant Health (NASDAQ: GH) beat Wall Street’s revenue expectations in Q3 2026, with revenue up 36.1% year on year to $361 million. The company expects the full year’s revenue to be around $1.37 billion, close to analysts’ consensus estimates. Its non-GAAP loss of $0.29 per share was 7.8% above analysts’ consensus estimates.
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Guardant Health (GH) Q3 2026 highlights:
- Revenue $361 million vs S&P analysts’ consensus estimates of $350.8 million (36.1% year-on-year growth, 2.9% beat)
- Adjusted EPS -$0.29 vs S&P analysts’ consensus estimates of -$0.31 (7.8% beat)
- Adjusted EBITDA -$37.28 million (-10.3% margin, 18.1% year-on-year growth)
- Revenue guidance The company lifted its revenue guidance for the full year to $1.37 billion at the midpoint from $1.35 billion, a 1.1% increase
- Operating margin -36.8%, in line with the same quarter last year
- Free cash flow -$37.19 million compared to -$45.76 million in the same quarter last year
- Market capitalization $22.62 billion
“Revenue grew 36% year over year as we continued to execute across Oncology, Screening, and Biopharma,” said Helmy Eltoukhy, co-founder and co-CEO. “Oncology volume grew 58% with broad contributions across our portfolio. The FDA approval of Guardant360 CDx for longitudinal ESR1 testing is a major advance for breast cancer patients, ushering in a new paradigm of cancer treatment. It reinforces the role of Guardant360 in enabling earlier therapy decisions and strengthens our leadership across the cancer care continuum.”
Revenue growth
Examining a company’s long-term performance can provide clues about its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Guardant Health’s revenue grew at a strong 30% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Guardant Health’s annualized revenue growth of 35.9% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
This quarter, Guardant Health reported year-on-year revenue growth of 36.1%, and its $361 million of revenue exceeded Wall Street’s consensus estimates by 2.9%.
Looking ahead, sell-side analysts expect revenue to grow 31.8% over the next 12 months, according to S&P, a deceleration versus the last two years. Still, this projection is strong and suggests the market is forecasting success for its products and services.
Adjusted operating margin
Adjusted operating margin is one of the best measures of profitability because it shows how much a company earns after subtracting all core expenses, like marketing and research and development. It also removes various one-time costs to provide a clearer picture of normalized profits.
Guardant Health’s high expenses have contributed to an average adjusted operating margin of negative 42.9% over the last five years. Unprofitable healthcare companies require extra attention because they can be vulnerable in a downturn. It’s difficult to be confident the business can endure a full cycle.
On the positive side, Guardant Health’s adjusted operating margin rose by 68.6 percentage points over the last five years, as its revenue growth provided operating leverage. More recently, the company’s trajectory has remained intact, with its margin increasing by 21.6 percentage points over two years. These gains are a positive sign and indicate continued momentum.
Guardant Health’s adjusted operating margin was negative 18.4% this quarter.
Earnings per share
The long-term change in earnings per share, or EPS, matters for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Although Guardant Health’s full-year earnings are still negative, it reduced its losses and improved its EPS by 16.3% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability.
In Q3, Guardant Health reported adjusted EPS of negative $0.29, up from negative $0.39 in the same quarter last year. This result beat analysts’ consensus estimates by 7.8%. Over the next 12 months, Wall Street expects Guardant Health to narrow its losses. Analysts forecast its full-year EPS will improve from negative $1.66 to negative $0.79, according to S&P.
Key takeaways from Guardant Health’s Q3 results
Guardant Health delivered a solid Q3, with revenue and EPS both topping analysts’ consensus estimates. Those beats were key positives, but the market seemed to be hoping for more. Shares plunged 10.2% to $137.56 immediately after the results.
When deciding whether to invest in the stock, it’s important to consider its valuation, business quality and latest quarterly results. Read our full research report here (it’s free).
