GeneDx stock (NASDAQ: WGS) plunged 14% on Monday after the genomics testing company released preliminary full-year 2025 results that met expectations.
But the company unveiled 2026 guidance that investors deemed disappointingly conservative, wiping out significant gains and reigniting concerns about the high-growth biotech’s ability to maintain breakneck expansion.
GeneDx stock fell from Friday’s close of approximately $139 to intraday lows near $120, marking the latest sharp reversal for the company.
GeneDx stock: Guidance miss that changed sentiment
GeneDx reported preliminary 2025 revenue of $427 million, representing 41% year-over-year growth and roughly in line with the company’s prior guidance of $425 to $428 million.
The real estate exome and genome testing business generated $360 million in revenue, up 54% from 2024, with test volumes reaching 97,271 for the year, up 30.5%.
But the market’s attention was fixed squarely on management’s 2026 outlook.
GeneDx projected 2026 revenue between $540 and $555 million, implying growth of just 27 to 30% from full-year 2025.
Critically, the company’s core exome and genome testing revenue is expected to grow only 33 to 35% next year, a dramatic deceleration from the 54% pace achieved in 2025.
For context, GeneDx shares surged 51% during 2025, partly on the premise that the company’s rapid acceleration of test volumes and improving profitability would persist.
The guidance effectively told investors that expansion is moderating, a message that high-momentum biotechs rarely deliver without triggering sharp selloffs.
Priced for perfection: The GeneDx pattern
This reversal fits a familiar playbook for GeneDx.
In April 2025, the company beat Wall Street’s revenue forecast of $79.5 million with actual results of $87.1 million, yet shares plummeted 43% because the beat margin was viewed as too modest and test volumes declined sequentially.
GeneDx’s stock price reflects something closer to a venture-stage growth narrative priced into a public company.
With a current forward price-to-sales ratio near 8 times, the stock assumes sustained 30-plus percent annual growth well into the future.
Any hint of deceleration triggers de-rating, as Monday’s move demonstrated.
Operationally, the company remains compelling.
Full-year 2025 adjusted gross margins held steady at 71%, and management reaffirmed the goal of positive adjusted net income in 2026.
CEO Katherine Stueland emphasized momentum in the NICU (neonatal intensive care) market and Epic Aura integration, initiatives designed to accelerate second-half 2026 growth.
Yet guidance of 27 to 30% revenue growth, while respectable for most biotech companies, is insufficient to justify GeneDx’s current valuation.
The stock will likely stabilise only once management either raises 2026 guidance during earnings season (due February 23, 2026) or investors reset expectations lower.
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