GeneDx (NASDAQ:WGS) Issues Earnings Results, Beats Estimates By $0.03 EPS

GeneDx (NASDAQ:WGS) posted its earnings results on Monday. The company reported $0.14 earnings per share for the quarter, topping analysts’ consensus estimates of $0.11 by $0.03, Zacks reports. GeneDx had a net margin of 0.52% and a return on equity of 20.22%. The firm had revenue of $120.99 million for the quarter, compared to analyst estimates of $120.80 million.

Here are the key takeaways from GeneDx’s conference call:

• Strong financials and guidance: GeneDx reported Q4 revenue of $121M and FY revenue of $428M (54% exome/genome growth) and reaffirmed 2026 guidance of $540–$555M with 33–35% exome/genome volume growth.
• Durable competitive moat: The company touts its proprietary Infinity dataset (>2.5M rare tests, >1M exomes/genomes, >50% non‑European) and an FDA Breakthrough Device Designation as long‑term differentiators for accuracy and scale.
• Accelerating commercial expansion: GeneDx is nearly tripling its salesforce, adding a 50‑rep pediatrics team and NICU/prenatal reps, and plans a one‑minute pediatric ordering workflow (mid‑2026) to penetrate large new markets late 2026/2027.
• Margin and profitability progress: Adjusted gross margin improved to ~71% in 2025 (exome/genome margins in the 80s) and management expects positive adjusted net income for full‑year 2026 despite a deliberate investment cycle.
• Near‑term execution and reimbursement risks: Q1 seasonality, weather/disruption impacts, and payer uncertainty (no Medi‑Cal pricing included and historically high denial rates when entering new outpatient markets) could pressure near‑term volumes, ASPs and collections.

GeneDx Trading Up 6.1%

NASDAQ WGS opened at $87.08 on Tuesday. The stock has a market capitalization of $2.52 billion, a P/E ratio of 967.56 and a beta of 2.01. The business has a 50 day simple moving average of $111.12 and a 200 day simple moving average of $124.65. The company has a debt-to-equity ratio of 0.18, a current ratio of 2.71 and a quick ratio of 2.59. GeneDx has a one year low of $55.17 and a one year high of $170.87.

Wall Street Analyst Weigh In

WGS has been the topic of several recent research reports. Guggenheim reaffirmed a “buy” rating and set a $170.00 target price (up from $115.00) on shares of GeneDx in a report on Wednesday, October 29th. Weiss Ratings restated a “sell (d)” rating on shares of GeneDx in a research report on Wednesday, January 21st. Canaccord Genuity Group lifted their price objective on GeneDx from $160.00 to $170.00 and gave the stock a “buy” rating in a research note on Monday, December 22nd. BTIG Research increased their target price on shares of GeneDx from $165.00 to $200.00 and gave the company a “buy” rating in a research report on Friday, December 12th. Finally, Wall Street Zen lowered shares of GeneDx from a “buy” rating to a “hold” rating in a research note on Sunday, February 8th. Seven equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock has an average rating of “Moderate Buy” and an average price target of $156.43.

GeneDx News Summary

Here are the key news stories impacting GeneDx this week:

• Positive Sentiment: Q4 results slightly beat expectations: GAAP EPS was $0.14 vs. a $0.11 consensus and revenue was $120.99M vs. ~$120.8M consensus — a classic earnings beat that likely drove buying interest. GeneDx Q4 Earnings and Revenues Beat Estimates
• Positive Sentiment: Company reaffirmed full‑year 2026 guidance in its press release, which removes some uncertainty about near‑term expectations and supports the share move. GeneDx Reports Fourth Quarter and Full Year 2025 Financial Results and Reaffirms Guidance for Full Year 2026
• Positive Sentiment: Trading volume jumped well above average on the print, indicating strong investor attention and likely contributing to the price rise. (See company release and MarketBeat summary for volume/context.) MarketBeat: GeneDx Earnings Summary & Call
• Neutral Sentiment: Full earnings call transcripts and slides are posted (useful for management commentary on volumes, margins and product mix). Read the call for color on drivers and execution. GeneDx (WGS) Q4 2025 Earnings Call Transcript
• Neutral Sentiment: Several outlets labeled the print “mixed” (some headlines suggested an earnings miss), which can create short‑term headline volatility despite the underlying beat. Investors should read the release/call rather than rely on summary headlines. GeneDx delivers mixed Q4 results
• Negative Sentiment: Profitability and valuation remain concerns: net margin was only ~0.5% for the quarter and the shares trade at a very high P/E, which leaves the stock vulnerable if growth or margin improvement disappoints. MarketBeat: WGS Profile & Valuation

Insiders Place Their Bets

In other news, CEO Katherine Stueland sold 10,857 shares of the firm’s stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $143.89, for a total transaction of $1,562,213.73. Following the completion of the sale, the chief executive officer owned 14,237 shares of the company’s stock, valued at $2,048,561.93. This trade represents a 43.27% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Kevin Feeley sold 3,855 shares of the business’s stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $143.87, for a total transaction of $554,618.85. Following the transaction, the chief financial officer owned 8,731 shares in the company, valued at $1,256,128.97. The trade was a 30.63% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 30,961 shares of company stock worth $3,933,831. Corporate insiders own 29.60% of the company’s stock.

Hedge Funds Weigh In On GeneDx

A number of institutional investors and hedge funds have recently made changes to their positions in WGS. Kestra Advisory Services LLC acquired a new stake in shares of GeneDx in the 4th quarter valued at about $27,000. Quarry LP grew its position in GeneDx by 248.8% in the 3rd quarter. Quarry LP now owns 293 shares of the company’s stock valued at $32,000 after purchasing an additional 209 shares during the period. Greenline Wealth Management LLC bought a new stake in shares of GeneDx in the 4th quarter worth $33,000. Empowered Funds LLC purchased a new position in GeneDx in the fourth quarter worth $73,000. Finally, Van ECK Associates Corp bought a new position in GeneDx in the 4th quarter valued at $161,000. Institutional investors own 61.72% of the company’s stock.

About GeneDx

GeneDx is a clinical diagnostics company specializing in comprehensive genetic and genomic testing for rare and inherited disorders. The company offers a broad portfolio of assays, including targeted gene panels, whole exome sequencing, whole genome sequencing and chromosomal microarray analysis. GeneDx’s laboratory services support the diagnosis of a wide range of conditions—from rare pediatric diseases and hereditary cancer syndromes to neuromuscular and metabolic disorders—by providing clinicians with detailed variant interpretation and reporting.

Founded in 2000 and based in Gaithersburg, Maryland, GeneDx was established with the aim of accelerating the translation of genomic discoveries into clinical care.