TD Cowen reiterated a Buy rating on GeneDx Holdings Corp. (NASDAQ: WGS) and kept a $165.00 price target ahead of the company’s investor call on fiscal 2026 guidance. The firm’s note aligns with a broader analyst consensus that classifies the stock as a Strong Buy, with price targets in the analyst community extending as high as $200.
At the center of the upcoming discussion are the revenue drivers GeneDx cites for fiscal 2026. Management has apportioned expected growth across three buckets: 25% to 27% from the company’s base business focused on geneticists and pediatric neurologists treating intellectual disability, developmental delay and epilepsy; 7% to 8% from geographic and channel expansion into pediatricians, neonatal intensive care units and prenatal care; and roughly 1% attributable to new product introductions.
TD Cowen highlighted that investors will be looking for granular detail on cost trends, margin trajectory and free cash flow generation tied to that revenue mix. The firm noted that fiscal 2026 guidance keeps GeneDx net income positive, an important metric for market participants tracking the conversion of growth into profitability and cash.
Market performance and operational momentum provide contrasting signals. GeneDx shares have declined 37% year-to-date after two strong prior years, a pullback the research note flagged while also noting InvestingPro data that suggests the stock may be approaching oversold territory. Operational guidance for fiscal 2026 calls for exome and genome volume growth of 33% to 35%, a target that follows an in-line fourth quarter and builds on an impressive 50.5% revenue increase over the last twelve months.
Analyst consensus expectations referenced in the note include GeneDx delivering roughly 28% revenue growth and about 34% exome and genome volume and sales growth in fiscal 2026 while maintaining profitability. TD Cowen cites a valuation of approximately 4 times enterprise value to sales for the company.
Separate company disclosures show GeneDx’s fourth-quarter results, where revenue rose 27% year-over-year to $121.0 million, a figure that slightly exceeded the consensus estimate of $120.4 million and Canaccord Genuity’s $120.9 million projection. However, the quarter produced an earnings shortfall versus expectations, yielding a mixed reception to the results. Within the quarter, the WES/WGS segment generated $104.0 million, up 32% year-over-year and in line with prior estimates.
Canaccord Genuity retained its Buy rating on GeneDx and kept a $170 price target. Taken together, the public disclosures and analyst notes underscore continued top-line expansion driven by sequencing volumes and channel expansion even as profitability metrics and quarterly earnings performance create near-term scrutiny.
Context for investors
Investors will be watching the company call for specific color on cost structure, margin levers and free cash flow conversion to assess whether projected revenue growth will translate into sustainable cash generation and improved earnings performance.