Myriad Genetics Is Down 47% in a Day-Q2 Miss, Guidance Slash, and No Mercy

Myriad shares fell because Q2 removed the market's remaining patience

Myriad went from a previous close of $5.37 to a low of $2.81 in a single session, a roughly 47% one-day drop after a second quarter that left little room for optimism.

Why the selloff was so severe

Myriad reported Q2 revenue of $190.7 million versus analyst estimates of $207.8 million. Adjusted EPS was -$0.25 versus estimates of -$0.06. Management also cut its full-year revenue outlook from $870 million to $780 million at the midpoint. The market did not just react to one weak quarter; it repriced the base case.

Why the timing matters

In Q1, Myriad still had some cover. first-quarter revenue of $200.4 million grew 2% year over year, and management reaffirmed its 2026 guidance. By Q2, that cushion was gone. Revenue fell, losses widened, and the full-year target was cut. Investors typically stop paying for future recovery until the present stops worsening.

Near term, the setup remains weak unless management can show revenue stabilizing and guidance holding. Until then, the selloff looks more like a warning than an opportunity.

The problem was broader than a single disappointing quarter

What Q1 already showed

Q1 was not as weak as Q2, but it still showed portfolio fragility. first-quarter revenue of $200.4 million grew 2% year over year, but that masked a 12% year-over-year decline in Prenatal Health test volume. That volume loss was offset by 13% growth in Cancer Care Continuum and 7% growth in Mental Health. The business was already leaning more heavily on a few franchises.

Management did point to one stabilizing signal: first-quarter 2026 gross margin was 68.7%, up 20.0 basis points from a year earlier. But margin alone does not solve operating leverage when revenue starts slipping.

Why Q2 forced a fresh base case

Q2 was worse because the weakness spread across the income statement and cash flow. Revenue fell to Q2 revenue of $190.7 million, a 10.5% year-on-year decline. Adjusted EPS was -$0.25. Adjusted EBITDA was -$16.9 million on an -8.9% margin. Free cash flow was -$11.5 million. Management then cut full-year revenue guidance to $780 million at the midpoint from $870 million.

That is why the repricing was so sharp. When revenue, profitability, cash generation, and forward sales all worsen together, investors stop treating the quarter as noise and rebuild the model from a lower base. A 10.3% reduction in the midpoint is a reset, not a nudge.

What would signal a bottom in Myriad Genetics stock

After the crash to $2.81 from a previous close of $5.37, with the stock last trading at $2.86 on 15,100,119 shares, Myriad is now more of a trading watchlist than a long-term debate. The high-$2 zone matters only if it becomes support.

The clearest operating benchmark is revenue recovery toward the range of first-quarter 2026 revenue of $200.4 million. That is the last quarter before the breakdown, when the business still had guidance cover.

What would suggest the selloff is ending

• Revenue stops contracting.
• Guidance stops moving lower.
• Shares stabilize around the $2.81 to $2.86 area as fundamentals firm.

What would suggest more pain

• Another quarter of revenue decline alongside weaker profitability or cash flow.
• Another cut to the full-year outlook.
• A failure to hold the levels created by this crash.

What could prove the bears wrong

Myriad still has products and milestones that could support a rebound if execution improves: - It launched Precise MRD and expanded Precise MRD to include colorectal cancer and renal cancers. - It received FDA approval of the MyChoice CDx test as the companion diagnostic for Zejula. - It launched Prolaris + AI.

If those initiatives begin showing up in stable or improving results while shares hold the post-crash range, the bearish case gets challenged quickly. If revenue or guidance slips again, the reset is still unfinished.