GRAIL (NASDAQ:GRAL) Issues Quarterly Earnings Results

GRAIL (NASDAQ:GRAL) posted its quarterly earnings results on Wednesday. The company reported ($2.21) EPS for the quarter, beating the consensus estimate of ($2.45) by $0.24, FiscalAI reports. GRAIL had a negative return on equity of 15.99% and a negative net margin of 243.80%. The firm had revenue of $37.53 million during the quarter, compared to analysts’ expectations of $44.21 million.

Here are the key takeaways from GRAIL’s conference call:

• Galleri received a favorable FDA advisory committee vote, with GRAIL expecting an FDA decision by early Q1 2027. The company said discussions with the FDA are active, including label negotiations, but no decision date has been provided.
• GRAIL highlighted clinical results showing Galleri detected 4–6.5 times more cancers when added to standard screening, with nearly half of detected cancers at stages 1 or 2; it also reported a 20% reduction in stage 4 diagnoses for a prespecified group of 12 cancers. However, the NHS-Galleri trial did not show a reduction in the combined incidence of stage 3 and 4 cancers.
• Test volume rose 24% year over year in Q3 and 36% in the first nine months, with the company citing provider activation and reactivation. GRAIL is expanding sales, health-system integrations and marketing, while using promotional pricing to encourage demand ahead of a potential FDA decision.
• Q3 revenue increased just 4% to $37.5 million despite 24% volume growth, as lower average selling prices weighed on results. Adjusted gross margin fell to 42% from 55%, adjusted EBITDA loss widened 29%, and GRAIL lowered full-year Galleri sales revenue growth guidance to 17%–21%; the Illumina royalty is also expected to resume in late December.
• GRAIL ended the quarter with $788.7 million in cash and said its cash position provides runway into 2029; its 2026 cash-burn guidance of no more than $300 million was unchanged.

GRAIL Price Performance

Shares of GRAL traded up $2.31 during mid-day trading on Friday, reaching $121.44. The company had a trading volume of 755,942 shares, compared to its average volume of 978,459. The company has a market capitalization of $5.42 billion, a P/E ratio of -12.78 and a beta of 2.86. GRAIL has a twelve month low of $41.50 and a twelve month high of $166.48. The company’s 50-day moving average is $116.37 and its 200-day moving average is $79.23.

Insider Activity at GRAIL

In related news, insider Andrew Partridge sold 7,873 shares of the business’s stock in a transaction on Monday, October 5th. The stock was sold at an average price of $146.39, for a total value of $1,152,528.47. Following the sale, the insider owned 155,865 shares of the company’s stock, valued at $22,817,077.35. The trade was a 4.81% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, CFO Aaron Freidin sold 23,619 shares of the company’s stock in a transaction on Monday, October 5th. The shares were sold at an average price of $146.39, for a total value of $3,457,585.41. Following the completion of the sale, the chief financial officer owned 225,364 shares in the company, valued at $32,991,035.96. This trade represents a 9.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 129,944 shares of company stock valued at $14,832,805 in the last 90 days. 1.83% of the stock is owned by corporate insiders.

Key Headlines Impacting GRAIL

Here are the key news stories impacting GRAIL this week:

• Positive Sentiment: GRAIL said third-quarter Galleri test volume rose about 24% year over year to more than 56,000 tests, while revenue grew 14% to $37.3 million. The FDA advisory committee also voted in favor of approval of Galleri; a final FDA decision is expected in early 2027. GRAIL third-quarter results
• Neutral Sentiment: RBC raised its price target to $100 from $84 but maintained a sector-perform rating. The higher target is still below the roughly $122 share price cited in the coverage, tempering the significance of the increase. RBC target and rating
• Negative Sentiment: Revenue fell short of expectations: GRAIL reported about $37.5 million versus analyst estimates of $44.2 million. Although its quarterly loss per share was narrower than expected, the company is cutting Galleri prices to encourage adoption ahead of the FDA decision, which could pressure revenue growth and margins. GRAIL earnings and pricing outlook

Analyst Upgrades and Downgrades

A number of research firms have recently issued reports on GRAL. Canaccord Genuity Group boosted their price objective on GRAIL from $80.00 to $150.00 and gave the company a “buy” rating in a research report on Monday, September 28th. Royal Bank Of Canada upped their target price on GRAIL from $84.00 to $100.00 and gave the company a “sector perform” rating in a research note on Thursday. Mizuho raised their target price on GRAIL from $65.00 to $100.00 and gave the stock a “neutral” rating in a research report on Friday, September 25th. Weiss Ratings reiterated a “sell (d-)” rating on shares of GRAIL in a research note on Thursday, October 15th. Finally, Guggenheim lifted their price target on shares of GRAIL from $75.00 to $155.00 and gave the stock a “buy” rating in a research note on Thursday, October 1st. Five investment analysts have rated the stock with a Buy rating, six have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, GRAIL currently has a consensus rating of “Hold” and a consensus price target of $121.40.

GRAIL Company Profile

GRAIL, Inc (NASDAQ: GRAL) is a healthcare company focused on developing blood-based screening technologies for the early detection of cancer. Its principal product is Galleri, a multi-cancer early detection test designed to identify DNA patterns associated with multiple types of cancer from a single blood sample.

Galleri is intended for use alongside recommended cancer screenings and is available by prescription through qualified healthcare providers in the United States. The test is offered as a laboratory-developed test and has not been approved or cleared by the U.S.