GeneDx Holdings Corp. (WGS) experienced a severe pre-market plunge of 40.07% on Tuesday, extending losses from a sharp post-market decline the previous day.

The dramatic sell-off was triggered by the rare disease genomics firm's disappointing first-quarter 2026 financial results and a substantial reduction in its full-year outlook. The company reported Q1 revenue of $102.3 million, which represented a 17% year-over-year increase but fell significantly short of analyst consensus estimates of approximately $113 million. Furthermore, GeneDx posted an adjusted loss per share of $0.28, badly missing the expected loss of $0.01.

Investor sentiment was severely impacted by management's decision to drastically lower its full-year 2026 revenue guidance. The company now expects revenue in the range of $475 million to $490 million, a sharp reduction from the previous outlook of $540 million to $555 million. In response to the disappointing results and revised forecast, several analysts cut their price targets on the stock, including Guggenheim (to $70 from $100), Jefferies (to $100 from $150), and Canaccord Genuity (to $75 from $100).