GRAIL (NASDAQ:GRAL) Issues Quarterly Earnings Results

GRAIL (NASDAQ:GRAL) posted its quarterly earnings results on Wednesday. The company reported ($2.56) EPS for the quarter, topping analysts’ consensus estimates of ($2.66) by $0.10, FiscalAI reports. GRAIL had a negative net margin of 253.22% and a negative return on equity of 16.42%. The business had revenue of $44.69 million during the quarter, compared to analysts’ expectations of $42.39 million.

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

• Galleri sales continued to grow: Second-quarter screening revenue rose 24% year over year to $42.6 million, while test volume increased 35% to more than 61,000. The company added approximately 1,000 ordering providers and said growth is coming from brick-and-mortar physicians, digital health partners, employers, and payer partnerships.
• FDA review remains on track: GRAIL expects an FDA advisory committee meeting in fall 2026 and continues to anticipate potential approval in the first part of 2027. Management said the PMA review is progressing through an iterative process and that it is preparing for the advisory committee.
• Clinical data showed strong detection and safety metrics: Management highlighted false-positive rates below 0.5%, positive predictive values of 50% to 60%, and substantially higher cancer detection when Galleri was added to standard screening. The company also emphasized that roughly 40% to 50% of detected cancers were stage I or II, although the NHS-Galleri trial did not meet its primary endpoint for reducing stage III and IV cancers.
• Samsung financing supports international expansion: GRAIL completed a $110 million strategic investment from Samsung and began planning commercialization in South Korea, with potential expansion to Japan and Singapore. Management said discussions around distribution and longer-term collaboration are just beginning.
• Investment and pricing pressures remain: Adjusted EBITDA loss widened 15% year over year to $90.3 million, while average selling price declined because of greater digital-health volume and lower employer pricing. An Illumina royalty expected to resume toward the end of the fourth quarter will also create a future margin headwind, though management expects minimal Q4 impact.

GRAIL Trading Up 2.0%

Shares of NASDAQ:GRAL traded up $1.48 during mid-day trading on Wednesday, hitting $74.18. 507,019 shares of the company traded hands, compared to its average volume of 929,295. GRAIL has a 12-month low of $29.95 and a 12-month high of $118.84. The stock has a market cap of $3.18 billion, a P/E ratio of -7.15 and a beta of 3.24. The stock has a 50-day moving average price of $66.91 and a two-hundred day moving average price of $66.88.

Wall Street Analyst Weigh In

GRAL has been the subject of several research reports. Robert W. Baird set a $70.00 target price on GRAIL in a research note on Wednesday, May 6th. Piper Sandler raised their price objective on GRAIL from $54.00 to $56.00 and gave the company a “neutral” rating in a research note on Wednesday, May 6th. TD Cowen restated a “buy” rating on shares of GRAIL in a report on Wednesday, July 15th. Mizuho upped their price objective on shares of GRAIL from $58.00 to $65.00 and gave the stock a “neutral” rating in a report on Wednesday, July 15th. Finally, Wall Street Zen raised shares of GRAIL from a “sell” rating to a “hold” rating in a research note on Saturday, May 9th. Four investment analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, GRAIL has a consensus rating of “Hold” and an average price target of $67.78.

Insider Buying and Selling

In other news, insider Andrew John Partridge sold 1,491 shares of the business’s stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $61.08, for a total value of $91,070.28. Following the transaction, the insider owned 163,738 shares in the company, valued at $10,001,117.04. The trade was a 0.90% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Company insiders own 1.83% of the company’s stock.

Institutional Trading of GRAIL

Hedge funds have recently added to or reduced their stakes in the stock. Farallon Capital Management LLC grew its holdings in GRAIL by 73.7% during the fourth quarter. Farallon Capital Management LLC now owns 2,342,684 shares of the company’s stock valued at $200,510,000 after purchasing an additional 993,684 shares during the period. State Street Corp raised its stake in shares of GRAIL by 38.8% during the 4th quarter. State Street Corp now owns 1,827,523 shares of the company’s stock valued at $156,418,000 after purchasing an additional 510,546 shares during the period. Morgan Stanley increased its position in shares of GRAIL by 63.8% during the fourth quarter. Morgan Stanley now owns 1,511,687 shares of the company’s stock valued at $129,385,000 after buying an additional 588,647 shares during the period. Alyeska Investment Group L.P. bought a new position in GRAIL in the 4th quarter valued at $37,874,000. Finally, RA Capital Management L.P. purchased a new position in shares of GRAIL during the fourth quarter worth about $36,655,000.

About GRAIL

GRAIL, Inc (NASDAQ: GRAL) is a biotechnology company dedicated to the early detection of cancer through a multi-cancer blood test. Leveraging advances in next-generation sequencing, cell-free DNA (cfDNA) analysis and machine learning, GRAIL has developed the Galleri™ test, which aims to identify more than 50 types of cancer at their earliest stages. The company’s platform analyzes methylation patterns in circulating tumor DNA to pinpoint tumor presence and tissue of origin, enabling physicians to pursue timely diagnostic follow-up.

Founded in 2016 as a spin-out from Illumina, GRAIL established its headquarters in Menlo Park, California, with additional research and operations centers in the United Kingdom.