CareDx (NasdaqGM:CDNA) Q4 2025 Earnings call February 24, 2026 04:30 PM ET Company ParticipantsAndrew Cooper - VP of Equity ResearchBrandon Couillard - Managing DirectorCaroline Corner - Director of Investor RelationsJohn Hanna - President and CEOKeith Kennedy - COONathan Smith - CFOTycho Peterson - Managing DirectorConference Call ParticipantsAndrew Brackmann - Equity Research AnalystBill Bonello - Senior Research AnalystEduardo Martinez - Equity Research AnalystMason Carrico - Research AnalystVivian Cerva ...

Safe Harbor Statement These slides and the accompanying oral presentation contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this presentation, including statements regarding the future financial position of CareDx®, Inc. (together with its subsidiaries, "CareDx" or the "Company"), including financial targets and ...

Highlights Fourth quarter 2025 revenue of $209.8 million was consistent with fourth quarter 2024 revenue, but grew 4% year-over-year when excluding the previously discussed headwind1 of $8.1 million.Full year 2025 revenue of $824.5 million decreased 2% year-over-year. Excluding headwinds2, full year 2025 revenue grew 2% year-over-year. Drivers of fourth quarter 2025 test volume growth year-over-year include Prolaris prostate cancer test at 12%, Hereditary cancer testing at 9%, and GeneSight at 9%. Fourth qu ...

Core Insights - Myriad Genetics announced the publication of the analytical validation of the FirstGene Multiple Prenatal Screen, demonstrating exceptional sensitivity and specificity for each test component [1][2] Group 1: Test Validation and Performance - The study assessed nearly 500 samples and found that every component of the FirstGene screen achieved ≥98.2% analytical sensitivity and ≥99.0% analytical specificity [2] - The FirstGene screen is designed to analyze key aspects of maternal and fetal genomes simultaneously, enhancing accuracy and reproducibility [3] Group 2: Clinical Application and Utility - The FirstGene screen aims to streamline prenatal genetic risk assessment by combining aneuploidy screening, recessive screening, and fetomaternal antigen testing into a single assay [4] - The screen is currently being utilized in the CONNECTOR study, which evaluates its performance in real-world clinical practice and aims to support clinical validity and utility [5] Group 3: Technological Innovation - The FirstGene screen employs fetal-fraction amplification and a novel trajectory analysis algorithm to improve genotype resolution [3] - The publication of these results is considered a significant milestone towards the broad commercialization of the FirstGene screen [3]

Core Insights - The company reported strong financial performance for 2025, with revenue growth of 4% to $44.56 billion and adjusted EPS growth of 5% to $22.87 per share, reflecting effective management and operational excellence [5][22][30] - The company is well-positioned for 2026, initiating revenue guidance of $46.3 billion to $47.2 billion, representing 4% to 6% growth, and adjusted EPS guidance of $24.22 to $24.80, indicating 6% to 8% growth [22][40][43] Financial Performance - Q4 revenue grew 7% year over year to $12.21 billion, with adjusted operating income increasing 6% to $2.88 billion and adjusted EPS rising 8% to $6.57 per share [5][27] - For the full year, adjusted operating margin was 22.7%, with total adjusted operating income of $10.11 billion [5][29] - The company experienced a 3% organic growth in Q4, with a 2% contribution from acquisitions and a 2% tailwind from foreign exchange [28][30] Market Performance - In the pharma and biotech sector, Q4 growth was high single digits, driven by strong performance in bioproduction and research channels, while full-year growth was mid-single digits [6][8] - The academic and government market saw low single-digit declines, impacted by macro conditions in the US and China [7] - Diagnostics and healthcare delivered low single-digit growth in Q4, with flat growth for the full year [8] Growth Strategy - The company's growth strategy is based on three pillars: high-impact innovation, trusted partner status with customers, and a strong commercial engine [8][12] - Significant innovations in 2025 included the launch of high-impact products in chromatography, mass spectrometry, and bioproduction, enhancing the company's competitive position [9][10][11] Capital Deployment - In 2025, the company deployed approximately $16.5 billion, including $13 billion for mergers and acquisitions and $3.6 billion returned to shareholders through stock buybacks and dividends [15][34] - Key acquisitions included the filtration and separation business from Solventa and a sterile fill-finish site from Sanofi, enhancing the company's capabilities [16][34] Operational Excellence - The PPI business system played a critical role in managing costs and driving operational excellence, contributing to strong earnings growth [19][30] - The company plans to integrate artificial intelligence into its PPI system to further enhance operational efficiency [19] Corporate Social Responsibility - The company increased the use of renewable energy and expanded zero waste certification across its operations, aligning with long-term sustainability commitments [20] - Efforts to expand access to STEM and advance global health equity were highlighted as part of the company's mission-driven culture [20]

Group 1 - Revvity, Inc. (RVTY) is a leading provider of health sciences solutions with a market cap of $11.4 billion, focusing on multi-omics technologies and diagnostic services [1][2] - RVTY is classified as a large-cap stock, highlighting its size and influence in the diagnostics and research industry, supported by strengths such as diversification, scale, and technological capabilities [2] - Despite a 21.7% decline from its 52-week high of $128.29, RVTY stock has gained 21.3% over the past three months, outperforming the Health Care Select Sector SPDR Fund's (XLV) 11.6% gains [3][4] Group 2 - Over the longer term, RVTY shares rose 5% over six months but fell 13.4% over the past 52 weeks, underperforming XLV's six-month gains of 12.6% and 9.3% returns over the last year [4] - RVTY reported Q3 results with revenue of $7 billion, a year-over-year increase of 2.2%, while adjusted EPS decreased by 7.8% to $1.18 [5] - Wall Street analysts maintain a "Moderate Buy" rating for RVTY, with a mean price target of $112.53 indicating a potential upside of 12% from current levels [6]

Core Insights - Waters Corporation (WAT) is a leading company in analytical instruments and scientific software, with a market cap of $23.6 billion, serving various industries including pharmaceuticals and life sciences [1][2] Company Performance - WAT is classified as a large-cap stock, reflecting its significant size and influence in the diagnostics and research industry [2] - The company's stock is currently trading 6.5% below its 52-week high of $423.56, but has increased by 35.1% over the past three months, outperforming the Nasdaq Composite's 8.1% rise [3] - Over the past 52 weeks, WAT's stock has gained 1.4%, which is below the Nasdaq's 20.2% increase, and on a year-to-date basis, WAT is up 6.7% compared to Nasdaq's 22.5% return [4] Recent Financial Results - On November 4, WAT's shares surged 6.3% following strong Q3 results that exceeded analyst expectations [5] - The company's net sales for Q3 improved by 8% year-over-year to $800 million, surpassing consensus estimates by 2.6% [5] - Adjusted EPS climbed 16% from the previous year to $3.40, exceeding analyst expectations of $3.21, and WAT raised its fiscal 2025 sales and adjusted EPS guidance [5]

Core Insights - Mettler-Toledo International Inc. (MTD) is valued at a market cap of $28.9 billion and is a leader in precision instruments and measurement solutions, serving highly regulated industries such as pharmaceuticals and biotechnology [1][2] Company Performance - MTD is classified as a large-cap stock, with its market cap exceeding $10 billion, highlighting its size and influence in the diagnostics and research industry [2] - The company's stock is currently trading 7.2% below its 52-week high of $1,525.17, reached on November 25, while shares have gained 8.4% over the past three months, underperforming the Health Care Select Sector SPDR Fund's (XLV) 11.1% rise [3] - Year-to-date, MTD shares are up 15.6%, outperforming XLV's 11.4% return, and have surged 13.4% over the past 52 weeks, compared to XLV's 5.6% increase [4] Financial Results - MTD reported Q3 earnings with total revenue increasing 7.9% year-over-year to $1 billion, surpassing consensus estimates by 3.9%, and adjusted EPS of $11.15 improved 9.2% from the previous year, exceeding analyst expectations of $10.62 [5] Competitive Position - MTD has outperformed its rival, Thermo Fisher Scientific Inc. (TMO), which gained 10% over the past 52 weeks and 10.1% year-to-date [6] - Analysts maintain a moderately optimistic outlook for MTD, with a consensus rating of "Moderate Buy" from 13 analysts and a mean price target of $1,514.08, suggesting a 7% premium to current price levels [6]

Core Insights - IQVIA Holdings Inc. is a significant player in the life sciences industry, providing clinical research services and healthcare intelligence, with a market cap of $38.4 billion [1][2] Company Overview - The company operates through three main segments: Technology & Analytics (TAS), Research & Development (R&DS), and Contract Sales & Medical Solutions (CSMS) [1] - IQVIA is categorized as a large-cap stock, reflecting its substantial size and influence in the diagnostics and research industry [2] Stock Performance - IQVIA's stock reached a 52-week high of $234.29 on November 25 and is currently trading 3% below that peak [3] - Over the past three months, IQVIA's stock prices have increased by 23.1%, outperforming the S&P 500 Index, which gained 6.2% during the same period [3] - Year-to-date, IQVIA's stock has gained 15.6%, while over the past 52 weeks, it has increased by 13%, compared to the S&P 500's gains of 16.5% and 13.2%, respectively [4] Financial Performance - Following the release of better-than-expected Q3 results on October 28, IQVIA's stock saw a slight uptick [5] - The company reported a 5.2% year-over-year growth in topline revenue, reaching $4.1 billion, which exceeded market expectations [5] - Adjusted EPS grew by 5.6% year-over-year to $3.00, surpassing consensus estimates by 1.4% [5] Competitive Position - IQVIA has outperformed its peer Agilent Technologies, Inc., which recorded 11.1% gains year-to-date and 7.2% returns over the past year [6]

Summary of Tempus AI Conference Call Company Overview - **Company**: Tempus AI - **Industry**: Life Science Tools and Diagnostics Key Points Financial Performance - Achieved first positive Adjusted EBITDA in Q3, a long-term goal set for the company [2][3] - Projected top-line growth of approximately 25% annually over the next three years, with plans to reinvest two-thirds of incremental growth profit back into the business [2][3] Data and Product Differentiation - Connected to over 5,000 institutions with access to over 45 million patient records, providing a large database for biopharma collaborations [5][6] - Data business operates on multi-year subscriptions, licensing cohorts of data to improve clinical trial design and drug development [8][9] - Acquisition of Ambry allows for earlier patient interaction and expansion into hereditary screening and rare diseases [10][11][12] Strategic Partnerships - Multi-year deal with AstraZeneca valued at $320 million and a $200 million deal with Pathos AI, focusing on leveraging extensive data for drug discovery [13][14] - Collaboration with Personalis to offer both tumor-informed and tumor-naive assays, aiming to be a one-stop shop for physicians [31][33] Product Development and Market Strategy - Launch of xT CDx solid tumor DNA test with a $4,500 reimbursement rate, aiming for significant market uptake by 2026 [17][18] - Plans to expand into other disease areas, including cardiology and rare diseases, while maintaining a focus on profitability [21][22] Revenue and Margin Outlook - Average reimbursement for tests is approximately $1,600, with expectations for long-term positive reimbursement trends [20] - Data margins are stable, with potential for high margins in AI applications as the business grows [24] Research and Development Focus - Investments primarily in traditional R&D and technology development, with a cautious approach to expanding the sales force [28][29] - Continuous evaluation of new diagnostic tests based on physician needs while maintaining a streamlined customer experience [34] Capital Deployment Strategy - Active in M&A, with a focus on acquiring companies that enhance data and AI capabilities, while balancing build versus buy strategies [39][40] Future Outlook - Long-term vision includes the potential for AI applications to become the largest segment of the business, with ongoing efforts to ensure reimbursement for new technologies [30][38] Additional Insights - The company emphasizes the importance of providing insights to physicians to improve patient care and outcomes, particularly in oncology [19][18] - The integration of Ambry's data is seen as a multi-year effort, with excitement about the potential insights that can be derived [11][12]