NeoGenomics Inc. (NEO) shares surged 7.28% in pre-market trading on Tuesday following the release of its strong third-quarter 2025 financial results. The cancer diagnostics company reported better-than-expected revenue and earnings, demonstrating robust growth in its clinical services segment.

For the third quarter, NeoGenomics posted consolidated revenue of $188 million, representing a 12% increase compared to the same period last year. This figure surpassed Wall Street analysts' expectations of $183.8 million. The company's clinical revenue grew by an impressive 18%, driven by a 15% rise in clinical test volumes. Notably, next-generation sequencing (NGS) revenue saw a significant 24% year-over-year growth, now accounting for nearly one-third of clinical revenue.

On the earnings front, NeoGenomics reported adjusted earnings per share of $0.03, beating the consensus estimate of $0.02. While this represents a decrease from $0.05 per share in the prior year, it still exceeded market expectations. The company's adjusted EBITDA for the quarter was $12.2 million, showcasing its operational efficiency despite ongoing investments in growth initiatives. In light of these results, NeoGenomics reaffirmed its full-year 2025 guidance for revenue, net loss, and adjusted EBITDA, instilling confidence in investors about its future performance.

CEO Tony Zook commented on the results, stating, "During the third quarter, we again delivered strong clinical test volumes and revenue while advancing our long-term growth initiatives in therapy selection and MRD – two of the largest and fastest growing areas of cancer testing with significant unmet needs." This positive outlook, combined with the company's solid financial performance, has fueled investor optimism, leading to the significant pre-market stock price increase.