NeoGenomics delivered an 11.4% year-over-year revenue increase in Q3, surpassing Wall Street’s expectations. Management emphasized that clinical revenue growth was primarily fueled by strong adoption of next-generation sequencing (NGS) tests and ongoing improvements in average price per test, aided by a strategic shift away from low-margin, high-volume contracts. CEO Anthony Zook highlighted that “NGS revenue grew a strong 29%,” attributing margin expansion to a higher mix of advanced tests and operational efficiency initiatives. Discipline in operating expenses and investment in infrastructure also supported profitability gains during the period.
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NeoGenomics (NEO) Q3 2026 highlights:
- Revenue $209.3 million vs S&P analysts’ estimates of $206.9 million (11.4% year-on-year growth, 1.1% beat)
- Adjusted EPS $0.07 vs S&P analysts’ estimates of $0.06 (26.2% beat)
- Adjusted EBITDA $18.67 million vs analyst estimates of $15.83 million (8.9% margin, 17.9% beat)
- Revenue guidance The company slightly lifted its revenue guidance for the full year to $808 million at the midpoint from $804 million
- Adjusted EPS guidance Management raised its full-year adjusted EPS guidance to $0.22 at the midpoint, a 16.2% increase
- EBITDA guidance $60 million at the midpoint for the full year, above analyst estimates of $57.3 million
- Operating margin -3.8%, up from -14.4% in the same quarter last year
- Market capitalization $2.32 billion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our top 5 analyst questions from NeoGenomics’s Q3 earnings call
- David Westenberg (Piper Sandler) asked about lessons learned from prior leadership transitions and how the current CEO-to-CEO handoff would ensure strategic continuity. CEO Anthony Zook and incoming CEO Warren Stone emphasized the transition was planned from a position of strength with ongoing joint leadership.
- Puneet Souda (Leerink) questioned the sustainability of average price per test (AUP) growth and whether it could be maintained in 2027. CFO Abhishek Jain explained that AUP growth is driven by the mix shift to high-value NGS tests and ongoing reimbursement initiatives, with expectations for mid-single digit growth in a normalized environment.
- William Bonello (Craig-Hallum) inquired about the relative impact of sales force expansion versus new product launches on NGS growth. Zook and Stone confirmed both factors contributed, with new product launches especially important and further commercial investment planned.
- Mark Massaro (BTIG) asked about RaDaR ST orders in non-reimbursed indications and the strategy for growing test adoption ahead of broader reimbursement. Stone described a proactive approach to expand use cases and build early adoption, aiming to drive future multi-product workflows.
- Tycho Peterson (Jefferies) probed on gross margin improvement and the expected benefits from the Lab of the Future and NovaSeq X transition. Jain highlighted ongoing efficiency gains, with the full impact of NovaSeq X expected in 2028 and some near-term headwinds from non-reimbursed MRD testing.
Catalysts in upcoming quarters
In the coming quarters, the StockStory team will focus on (1) the pace of RaDaR ST reimbursement expansion and its impact on MRD test adoption, (2) sustained double-digit growth in NGS volumes and the effect of portfolio upgrades, and (3) measurable improvements in gross margin from ongoing Lab of the Future investments. Monitoring execution of planned sales force expansions and integration of digital pathology and AI initiatives will also be key signs of progress.
NeoGenomics currently trades at $17.22, down from $17.99 just before the earnings. Is there an opportunity in the stock? Find out in our full research report (it’s free).
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