CareDx Stock Rockets 22% After Blowout Quarter and Big Guidance Hike, Extending a Nearly 500% One-Year Run

Shares of CareDx soared more than 22% on Friday after the transplant diagnostics company reported third-quarter results that far exceeded Wall Street's expectations and sharply raised its full-year outlook.

CareDx stock jumped $15.89, or 22.22%, to close at $87.41. The shares opened at $80.62, up from Thursday's close of $71.52, and climbed as high as about $90.87 during the session.

Trading volume reached about 3.56 million shares, nearly three times the stock's three-month average of about 1.31 million. The company's market value rose to about $4.6 billion.

The rally came on a difficult day for the broader market, when the S&P 500 fell 1.82% amid a sell-off in technology stocks.

A big beat

CareDx reported third-quarter revenue of $139.4 million, up 39% from a year earlier and well above analysts' expectations of about $122 million.

Adjusted earnings came in at 70 cents per share, far ahead of the consensus estimate of about 25 cents. On a GAAP basis, earnings rose to 35 cents per share from 3 cents a year earlier.

Earnings before interest, taxes, depreciation and amortization doubled to $30 million. The company also generated $13 million in cash flow from operations.

Testing volumes surge

The growth was driven by CareDx's testing services business, where revenue jumped 65% to $119 million.

Testing volumes climbed 51% to about 75,900, boosted by the company's acquisition in July of Naveris, a maker of cancer blood tests. The deal has expanded CareDx's reach into specialty oncology, beyond its core business of monitoring transplant patients for signs of organ rejection.

CareDx's patient and digital solutions revenue rose 31% to $20 million, helped by growth in its pharmacy services.

Guidance raised

The company lifted its outlook for the year. CareDx now expects 2026 revenue of $520 million to $530 million, up from its previous forecast of $490 million to $500 million and above the Wall Street consensus of about $495 million.

It also raised its adjusted EBITDA target to $90 million to $100 million, from a prior range of $66 million to $78 million.

Chief Executive John Hanna said growing clinical interest in how molecular information can guide patient care is fueling demand. "We believe these dynamics create meaningful opportunities for continued profitable growth," he said.

Clinical data adds support

Investors also responded to new clinical data. At the American Society of Nephrology's Kidney Week 2026, CareDx presented multinational data on its AlloSure Kidney and AlloSure Plus tests, which help detect signs of transplant rejection.

Analysts said the data strengthened the case for long-term demand for the company's transplant testing services.

Analyst targets trail the stock

Several analysts raised their price targets before the rally. Canaccord Genuity lifted its target to $80 from $65, and BTIG set a target of $81, both with buy ratings.

After Friday's surge, the stock is now trading above both targets, suggesting analysts may need to revisit their valuations.

A remarkable run

CareDx has been one of the market's best-performing health care stocks this year. The shares have gained about 357% year to date and nearly 492% over the past 52 weeks, rising from a low of about $14.27.

The stock's 50-day moving average was about $59, while its 200-day average was about $33, underscoring the scale of the rally.

The shares trade at about 36 times trailing earnings.

Risks remain

Despite the strong results, the stock's steep rise leaves it vulnerable to volatility. CareDx has a beta of about 2.4, meaning its shares tend to swing much more than the overall market.

Investors will be watching whether the company can maintain its growth pace as it integrates Naveris and expands into oncology, as well as any changes to reimbursement for its tests, which have been a key factor for diagnostics companies.

For now, the third-quarter results have given investors fresh reasons to bet on CareDx's transformation into a broader precision medicine company.