NeoGenomics Shares Plunge 0.77% to 2025 Low on Revised Guidance Legal Delays Competitive Pressures

Neogenomics (NEO) shares fell 0.77% on Monday, marking their lowest level since October 2025, with an intraday drop of 1.32%. The decline reflects ongoing investor concerns about the oncology diagnostics firm’s financial performance and competitive landscape.

Recent volatility in the stock has been driven by a combination of factors. The company revised its full-year 2025 revenue guidance downward to $720–$726 million, a 3.6% reduction from prior estimates, due to pharma headwinds and litigation delays. Q2 earnings revealed a $45.1 million net loss, with operating costs and unmet revenue targets exacerbating worries about profitability. Analysts noted the guidance cut as a red flag for long-term growth, particularly as the RaDaR® ST assay’s commercialization remains constrained by legal disputes.

Competitive pressures have further weighed on sentiment. Exact Sciences’ launch of the Cancerguard™ multi-cancer early detection test in July intensified rivalry in a critical growth segment. Investors feared market share erosion, as NeoGenomics’ own MCED offerings face delays in adoption. The litigation victory against Natera, while positive, did little to offset immediate revenue shortfalls linked to delayed contract renewals during the dispute.

Analyst sentiment has turned cautious, with Morgan Stanley, Needham & Company, and BTIG Research reducing price targets for NEO to $8.00 per share. These downgrades highlighted risks from reimbursement uncertainties, operational inefficiencies, and sector-wide healthcare sector declines. The stock’s 69.1% year-to-date drop underscores a broader reassessment of its value proposition amid heightened competition and litigation risks.

Broader healthcare sector weakness also played a role. Managed care providers and biotech firms faced sell-offs due to regulatory challenges and unfavorable clinical outcomes, amplifying risk aversion. NeoGenomics’ stock, already volatile, remains exposed to sector dynamics, with its recovery dependent on addressing operational challenges and gaining traction in the MCED market.