01—Abstract
Summary
Summary of the 10-Q filed May 7, 2026. Cited figures are marked; the original filing is the authoritative source.
Guardant Health, Inc. reported a significant increase in revenue for the first quarter of 2026, reaching $301.7 milliona, a 48% jump from the prior year's $203.5 million.
This growth was primarily driven by a substantial increase in test volumes across its oncology and screening segments, with the Shield screening test showing remarkable 633% revenue growth. Despite strong top-line performance, the company continued to experience operating losses, with a net loss of $112.1 million for the quarter, compared to $95.2 millionb in the same period last year.
This widening net loss reflects increased operating expenses, particularly in sales and marketing, which grew by 62% to support commercial expansion and marketing initiatives. The company maintains a solid liquidity position with approximately $1.2 billionc in cash, cash equivalents, and marketable securities as of March 31, 2026, which it believes is sufficient to fund operations for over 12 months.
02—Key points
Key Highlights
- Total revenue increased by 48% year-over-year to $301.7 million in Q1 2026.
- Oncology revenue grew by 36% to $205.0 million, driven by higher test volumes and improved reimbursement.
- Screening revenue experienced a significant surge of 633% to $41.6 million, fueled by increased adoption of the Shield test post-FDA approval.
- Net loss widened to $112.1 million from $95.2 million in the prior year's quarter.
- Sales and marketing expenses increased substantially by 62% to $169.1 million, reflecting investment in commercial expansion.
- The company maintained a strong liquidity position with $1.2 billion in cash, cash equivalents, and marketable securities at the end of the quarter.
- The acquisition of MetaSight Diagnostics Ltd. in December 2025 added $73.9 million in goodwill and $20.8 million in IPR&D.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q1 FY2026, Guardant Health, Inc. lost $0.37.
- Revenue$301.7M100.0%
- Cost of revenue−$104.9M34.8%
- Gross profit$196.7M65.2%
- Operating costs−$318.1M105.4%
- Operating income−$121.3M40.2%
- Interest, other & tax$9.3M3.1%
- Net income−$112.1M37.2%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 7, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $301.67M$203.47M | +48.3% |
| Cost of Revenue | $104.92M$74.72M | +40.4% |
| Gross Profit | $196.75M$128.75M | +52.8% |
| R&D Expenses | $91.04M$88.52M | +2.8% |
| Operating Expenses | $423.01M$314.51M | +34.5% |
| Operating Income | -$121.35M-$111.04M | −9.3% |
| Interest Expense | $1.35M$791K | +70.3% |
| Net Income | -$112.08M-$95.16M | −17.8% |
| EPS (Basic) | $-0.85$-0.77 | −10.4% |
| EPS (Diluted) | $-0.85$-0.77 | −10.4% |
| Shares Outstanding (Basic) | 131.27M123.87M | +6.0% |
| Shares Outstanding (Diluted) | 131.27M123.87M | +6.0% |
05—Questions
Frequently Asked Questions
What is driving the significant revenue growth in the first quarter of 2026?
Revenue growth was primarily driven by a substantial increase in test volumes across both the oncology and screening segments. Specifically, the Shield screening test saw a remarkable 633% increase in revenue, largely due to its second full quarter post-FDA approval, and the oncology segment benefited from increased volumes and improved reimbursement rates.
Why did the company's net loss increase despite revenue growth?
The increase in net loss is attributable to a significant rise in operating expenses. Sales and marketing expenses saw a substantial increase of 62%, reflecting investments in commercial infrastructure and marketing activities to support growth. Research and development and general and administrative expenses also increased, contributing to the wider net loss.
What is the company's financial outlook and liquidity position?
Guardant Health maintains a strong liquidity position with approximately $1.2 billion in cash, cash equivalents, and marketable securities as of March 31, 2026. Management believes this is sufficient to meet anticipated cash requirements for more than 12 months. Despite continued operating losses, the company anticipates continued revenue growth and is exploring capital raises for expansion and strategic investments.
Are there any significant legal matters impacting the company?
Yes, the company is involved in several legal proceedings, including a patent infringement suit with TwinStrand Biosciences where a jury verdict of $83.4 million was awarded, though the company is contesting this. There are also ongoing disputes and lawsuits related to false advertising claims with Natera and Tempus AI, and a civil investigative demand from the U.S. Attorney for the Southern District of Florida concerning billing to federal health insurance programs. The company is actively defending itself in these matters.
06—Continue