Myriad Genetics Inc. (NASDAQ: MYGN) shares plunged 37.80% to $3.34 in after-hours trading on Thursday, reacting sharply to second-quarter 2026 results that featured an 11% revenue decline, a $38.9 million operating loss, and the suspension of full-year adjusted EBITDA guidance. The Salt Lake City-based molecular diagnostic company had closed regular session trading up 6.55% at $5.37 before the post-market sell-off. The steep discount reflects investor concern over persistent reimbursement pressures and volume declines in key segments, prompting the firm to lower its annual revenue outlook.

The market reaction underscores the severity of the headwinds facing Myriad Genetics, which reported Q2 revenue of $190.7 million, down from $214.1 million in the same period last year. CEO Sam Raha acknowledged that performance "fell short of expectations," citing increased payer friction and a 9% drop in average revenue per test as primary drivers. To address these challenges, the company is executing an efficiency program called Ascend, supported by a leading professional services firm, while maintaining strong laboratory operations.

Segment Performance Breakdown

The Cancer Care Continuum segment showed resilience with test volumes rising 6% year-over-year, yet revenue fell 11% to $114.1 million due to reimbursement decreases in hereditary cancer testing. Prenatal Health revenue dropped 16% to $39.8 million, driven by a 9% volume decline. Mental Health revenue, led by the GeneSight test, decreased 3% to $36.8 million despite a 4% volume increase, as aged receivable write-offs reduced average revenue per test by 6%.

Strategic Initiatives and Market Context

Despite the financial headwinds, Myriad Genetics advanced its precision oncology portfolio by launching Prolaris + AI, its first AI-enabled prostate cancer test, in partnership with PATHOMIQ. The company also expanded Precise MRD availability to colorectal and renal cancers and submitted a request to the Molecular Diagnostics Program (MolDX) for Medicare coverage of Precise MRD for breast cancer patients.

Trading metrics indicate a volatile period for MYGN shares, which have gained approximately 39.84% over the past 12 months but currently trade near their 52-week low of $3.53, against a high of $8.59. The company’s market capitalization stands at approximately $507.19 million. Benzinga Edge Stock Rankings note positive short- and medium-term price trends, though the long-term trend remains negative.

Revised Financial Outlook

Myriad Genetics has suspended its previous full-year 2026 Adjusted EBITDA guidance due to uncertainty in pricing trends. The updated guidance for the fiscal year is:

• Revenue: $770 million – $790 million (revised lower)
• Adjusted Gross Margin %: 66% – 67%

Gross margin for Q2 stood at 66.6%, down 460 basis points year-over-year. Operating expenses were $165.9 million, compared to $481.0 million in Q2 2025, which included non-cash impairment charges of $316.7 million. Cash and cash equivalents totaled $115.2 million at quarter-end.

What the Numbers Show

The divergence between flat test volumes (down only 1%) and an 11% revenue decline highlights severe pricing pressure rather than demand erosion. The 9% drop in average revenue per test is the critical metric driving the operating loss. While oncology volumes are growing, the inability to maintain reimbursement rates across hereditary cancer and mental health segments is compressing margins. The suspension of EBITDA guidance signals management’s caution regarding the trajectory of these reimbursement headwinds through the rest of FY26.

Myriad Genetics (NASDAQ: MYGN) has lowered its full-year sales guidance for FY2026, signaling a material shift in revenue expectations for the genetic testing company. The firm revised its outlook downward from a previous range of $860.000 million to $880.000 million to a new band of $770.000 million to $790.000 million. This updated projection now falls below the consensus analyst estimate of $863.568 million, indicating potential headwinds in the company’s near-term commercial performance.

The revision reflects a substantial gap between market expectations and management’s revised internal forecasts. By lowering the midpoint of its guidance by approximately $90 million from the prior estimate, Myriad Genetics highlights challenges in meeting earlier growth targets. The new upper bound of $790.000 million is nearly $74 million lower than the initial high-end projection of $860.000 million.

Guidance Revision Details

The following table outlines the changes in Myriad Genetics’ FY2026 sales outlook:

The company’s decision to issue this downward revision underscores the importance of accurate forecasting in the healthcare diagnostics sector. Investors will likely scrutinize subsequent quarterly reports to understand the specific operational or market factors driving this change in trajectory.

What the Numbers Show

The divergence between the new guidance and the analyst estimate suggests that external market conditions or internal operational metrics have deteriorated since the last forecast was issued. With the new high-end guidance of $790.000 million falling well below the $863.568 million estimate, the company faces pressure to demonstrate clear pathways for revenue recovery in future quarters.