Natera (NTRA) Is Up 5.2% After Raising 2025 Revenue Guidance and Expanding Women’s Health Portfolio

• Natera announced strong third quarter results and raised its 2025 revenue guidance by US$160 million, now expecting between US$2.18 billion and US$2.26 billion, alongside an expanded gross margin outlook driven by continued improvements in average selling prices and cost of goods sold.
• The extension of its Fetal Focus single-gene prenatal test panel to cover 20 genes signals both a broadening women’s health offering and increased opportunity for clinical adoption.
• We’ll examine how Natera’s raised financial guidance and product expansion could shift its investment narrative around growth and profitability.

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Natera Investment Narrative Recap

To be a Natera shareholder, you need to believe in the ongoing adoption of advanced molecular diagnostics and the company’s ability to translate product innovation into sustained top-line growth and margin improvement. The raised revenue and gross margin guidance for 2025 affirms current momentum, which could support the key short-term catalyst of expanded reimbursement and adoption, but does not eliminate persistent pressure from high net losses, a risk that remains material as operating expenses continue to rise.

The announcement expanding the Fetal Focus panel to cover 20 genes stands out as most relevant, as it signals further broadening in women’s health and strengthens the company’s clinical offering. This product development closely aligns with the core catalyst for Natera: driving volume growth and payer acceptance through continuous innovation and robust clinical data, which underpins their updated financial outlook.

However, investors should also be aware that despite upgraded guidance, rising R&D and selling expenses could delay the path to sustainable profitability if...

Read the full narrative on Natera (it's free!)

Natera's outlook anticipates $3.0 billion in revenue and $110.9 million in earnings by 2028. This is based on a forecasted annual revenue growth rate of 15.2% and an earnings increase of $364.1 million from the current earnings of -$253.2 million.

Uncover how Natera's forecasts yield a $222.58 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Simply Wall St Community members produced nine different fair value estimates for Natera, ranging from US$49.54 to US$268 per share. With this breadth of opinion, consider that ongoing high expenses may influence whether future earnings can support valuations at the top end, so take time to explore diverse viewpoints before forming your own outlook.

Explore 9 other fair value estimates on Natera - why the stock might be worth less than half the current price!

Build Your Own Natera Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Natera research is our analysis highlighting 1 key reward that could impact your investment decision.
• Our free Natera research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Natera's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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