Genetic testing company Myriad Genetics (NASDAQ: MYGN) missed Wall Street’s revenue expectations in Q1 CY2026 as sales rose 2.3% year on year to $200.4 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $870 million at the midpoint. Its non-GAAP loss of $0.09 per share was 34.7% below analysts’ consensus estimates.

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"We are seeing strong performance across a number of key areas, including the Cancer Care Continuum as we begin to realize a return on our focused strategy. We have implemented a dedicated hereditary cancer sales force and other key programs designed to support the expected continued growth in germline testing. And with decisive steps taken to address our Prenatal Health business, we expect improved performance in the remainder of 2026,” said Sam Raha, President and CEO, Myriad Genetics.

Company Overview

Founded in 1991 as one of the pioneers in translating genetic discoveries into clinical applications, Myriad Genetics (NASDAQ: MYGN) develops genetic tests that assess disease risk, guide treatment decisions, and provide insights across oncology, women's health, and mental health.

Revenue Growth

Examining a company’s long-term performance can provide clues about its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Over the last five years, Myriad Genetics grew its sales at a decent 7.9% compounded annual growth rate. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.

We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Myriad Genetics’s recent performance shows its demand has slowed as its annualized revenue growth of 3.5% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs.

This quarter, Myriad Genetics’s revenue grew by 2.3% year on year to $200.4 million, falling short of Wall Street’s estimates.

Looking ahead, sell-side analysts expect revenue to grow 5.9% over the next 12 months, an improvement versus the last two years. This projection is above the sector average and indicates its newer products and services will fuel better top-line performance.

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Adjusted Operating Margin

Myriad Genetics was roughly breakeven when averaging the last five years of quarterly operating profits, lousy for a healthcare business.

Looking at the trend in its profitability, Myriad Genetics’s adjusted operating margin decreased by 1.8 percentage points over the last five years. This raises questions about the company’s expense base because its revenue growth should have given it leverage on its fixed costs, resulting in better economies of scale and profitability. Myriad Genetics’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers.

In Q1, Myriad Genetics generated a negative 12.1% adjusted operating margin.

Earnings Per Share

Revenue trends explain a company’s historical growth, but the long-term change in earnings per share (EPS) points to the profitability of that growth – for example, a company could inflate its sales through excessive spending on advertising and promotions.

Myriad Genetics’s full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it’s at a critical moment in its life.

In Q1, Myriad Genetics reported adjusted EPS of negative $0.09, down from negative $0.03 in the same quarter last year. This print missed analysts’ estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects Myriad Genetics’s full-year EPS of $0 to grow 1,243,858,188,282,712,000%.

Key Takeaways from Myriad Genetics’s Q1 Results

It was great to see Myriad Genetics’s full-year EBITDA guidance top analysts’ expectations. We were also glad its full-year revenue guidance was in line with Wall Street’s estimates. On the other hand, its EPS missed and its revenue fell slightly short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 16.2% to $4.21 immediately after reporting.

Myriad Genetics’s earnings report left more to be desired. Let’s look forward to see if this quarter has created an opportunity to buy the stock. What happened in the latest quarter matters, but not as much as longer-term business quality and valuation, when deciding whether to invest in this stock. We cover that in our actionable full research report which you can read here (it’s free).