CareDx Shares Jump 15.07% After Beating Third-Quarter Estimates and Raising 2026 Outlook

Key Facts

CareDx shares jumped 15.07% in after-hours trading following the October 29 session, reaching $82.30 after regular trading closed at $71.52, according to Reuters via Investing.com. The move followed the company’s third-quarter results, which exceeded analyst estimates for revenue and adjusted earnings. Adjusted earnings were $0.70 per share, compared with an estimate of $0.26, while revenue reached $139 million against expectations of $121.95 million. CareDx said revenue rose 39% year over year, from $100 million in the third quarter of 2025. The results also showed an improvement in net income under generally accepted accounting principles, which came to $19 million compared with $2 million in the year-earlier period.

Growth in testing services was the main revenue driver, with revenue of $119 million in the third quarter, up 65% year over year from $72 million in the same period of 2025. That total included $12 million in specialty oncology revenue, according to the company’s statement. In another measure of operating performance, adjusted EBITDA margin reached about 22%, compared with about 15% a year earlier. The company says this measure is not based on generally accepted accounting principles and therefore differs from reported net income under those principles. GAAP net income was $19 million, up from $2 million in the third quarter of 2025.

Chief Executive John Hanna said the company recorded continued growth in its organ transplant business and made progress expanding its specialty oncology activity. He added that the company advanced its product pipeline and clinical evidence, including cell therapy. Hanna said: "We delivered another strong quarter of solid execution, with continued growth in our organ transplant business, progress expanding specialty oncology, and important milestones in our pipeline and clinical evidence, including cell therapy." As part of its business structure, CareDx completed the sale of its lab products unit on June 30, 2026. As a result, third-quarter results did not include revenue from that unit, according to the company’s statement.

The company raised its fiscal 2026 revenue guidance range to $520–530 million, from the previous range of $490–500 million. It also raised its adjusted EBITDA guidance to $90–100 million, from $66–78 million previously. The revision reflects the company’s higher full-year estimates following its third-quarter results, while its fourth-quarter outlook includes revenue of between $131 million and $141 million. CareDx forecast fourth-quarter adjusted EBITDA of $16–26 million. These projections set specific operating figures for the remainder of 2026.

In a development for the stock, Canaccord on October 30 raised its price target for CareDx to $99 from $80, while maintaining its buy rating, according to Reuters via Investing.com. The analyst firm appeared to link testing volume growth to the integration of Epic Aura and CareDx’s investments in patient engagement. CareDx expects Epic-enabled orders to begin on January 1, 2027. That date sets a future start for orders through the system, following the third-quarter results and new annual guidance. This comes among the operational developments cited by the company and analysts in the context of growth in testing activity.