Oncology (cancer) diagnostics company NeoGenomics (NASDAQ: NEO) reported revenue ahead of Wall Street’s expectations in Q2 CY2026, with sales up 11.2% year on year to $201.7 million. The company expects the full year’s revenue to be around $804 million, close to analysts’ estimates. Its non-GAAP profit of $0.05 per share was $0.02 above analysts’ consensus estimates.
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NeoGenomics (NEO) Q2 CY2026 Highlights:
- Revenue: $201.7 million vs analyst estimates of $197.3 million (11.2% year-on-year growth, 2.2% beat)
- Adjusted EPS: $0.05 vs analyst estimates of $0.03 ($0.02 beat)
- Adjusted EBITDA: $14.47 million vs analyst estimates of $12.67 million (7.2% margin, 14.2% beat)
- The company slightly lifted its revenue guidance for the full year to $804 million at the midpoint from $800 million
- Adjusted EPS guidance for the full year is $0.19 at the midpoint, beating analyst estimates by 2.8%
- EBITDA guidance for the full year is $57 million at the midpoint, above analyst estimates of $56.18 million
- Operating Margin: -4.8%, up from -26.3% in the same quarter last year
- Free Cash Flow Margin: 12.4%, up from 7.7% in the same quarter last year
- Market Capitalization: $1.71 billion
“Our second quarter results reflect the consistent operating and financial performance investors expect from this team,” said Tony Zook, Chief Executive Officer of NeoGenomics.
Company Overview
Operating a network of CAP-accredited and CLIA-certified laboratories across the United States and United Kingdom, NeoGenomics (NASDAQ: NEO) provides specialized cancer diagnostic testing services, including genetic analysis, molecular testing, and pathology consultation for oncologists and healthcare providers.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, NeoGenomics’s 9.4% annualized revenue growth over the last five years was decent. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. NeoGenomics’s annualized revenue growth of 10.4% over the last two years is above its five-year trend, suggesting some bright spots. 
This quarter, NeoGenomics reported year-on-year revenue growth of 11.2%, and its $201.7 million of revenue exceeded Wall Street’s estimates by 2.2%.
Looking ahead, sell-side analysts expect revenue to grow 9.7% over the next 12 months, similar to its two-year rate. This projection is noteworthy and suggests the market sees success for its products and services.
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Adjusted Operating Margin
Adjusted operating margin is a key measure of profitability. Think of it as net income (the bottom line) excluding the impact of non-recurring expenses, taxes, and interest on debt - metrics less connected to business fundamentals.
Although NeoGenomics broke even this quarter from an operational perspective, it’s generally struggled over a longer time period. Its expensive cost structure has contributed to an average adjusted operating margin of negative 8.4% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.
On the plus side, NeoGenomics’s adjusted operating margin rose by 22.4 percentage points over the last five years, as its sales growth gave it operating leverage. Zooming in on its more recent performance, we can see the company’s trajectory is intact as its margin has also increased by 4.1 percentage points on a two-year basis.
In Q2, NeoGenomics generated a negative 0.8% adjusted operating margin.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
NeoGenomics’s flat EPS over the last five years was below its 9.4% annualized revenue growth. However, its adjusted operating margin actually improved during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings.
In Q2, NeoGenomics reported adjusted EPS of $0.05, up from $0.03 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects NeoGenomics’s full-year EPS to grow 90.2% from $0.15 to $0.29.
Key Takeaways from NeoGenomics’s Q2 Results
It was good to see NeoGenomics beat analysts’ EPS expectations this quarter. We were also glad its full-year EPS guidance outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The stock traded up 5% to $14.08 immediately after reporting.
NeoGenomics put up rock-solid earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
