The GeneDx Holdings Corp. (WGS) Q2 earnings report is the best Top Tier Earnings Inflection of the quarter.
The $17M beat was its most sizeable revenue beat ever. So too was its bottom line $0.50 EPS beat.
CEO Katherine Stueland confirmed:
Our strong Q2 performance was driven by our core business, underscoring its strength and resilience.
These results, coupled with the ever-expanding opportunities ahead, including general pediatrics, demonstrate that we’re just beginning to deliver on the promise of how our technology can fundamentally change the way genomics can inform healthcare, shifting from reactive to proactive care.”
In regards to the “ever-expanding opportunities” mentioned above, consider that:
Looming beyond is General Pediatrics, which is more a 2H’26/1H’2 story. But layer that on top of the two new indications this year, and we believe a magical 6-8 quarter ramp is coming.
WGS should be able to growth revenues 30%+ in 2026.
$200 will be a magnet in 4 quarters.
The leverage will be significant too.
There are only around 28M shares outstanding and all the big investments have already been made over the last couple of years. As revenues scale, the inherent leverage in the model will be stunning. It began this quarter with EPS tripling consensus.
Take a look at current estimates. We see $4 in EPS on $575M in revenue for 2026 and $6 in EPS on $725M in revenues for 2027.
Pricewise, we see a move to $125-$140, 3yr highs, happening in the next two weeks, if not sooner.
Technically, this is a beautiful 70pt Diamond continuation pattern, with a measured move to an intermediate target of $155 heading into year-end.
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Disclosure: We are long WGS stock and calls. We may change our positioning at a moment’s notice, without notifying you of any such moves.
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