Shares of Natera (NTRA) surged 10.83% on Thursday following the release of the company's impressive second-quarter 2025 financial results and an upgraded full-year outlook. The genetic testing company significantly outperformed market expectations, demonstrating robust growth across its key business segments.

Natera reported total revenues of $546.6 million for Q2 2025, marking a substantial 32.2% increase from the same period last year. This figure handily beat analyst estimates of $476.3 million. The strong performance was primarily driven by a 32.3% rise in product revenues, which reached $544.4 million. The company processed approximately 853,100 tests during the quarter, up from 760,300 tests in Q2 2024, with oncology testing volumes showing particularly impressive growth.

Investors were further encouraged by Natera's improved profitability metrics. The company's gross margin increased to 63.4% from 58.8% in the previous year, reflecting enhanced operational efficiency. Despite reporting a wider net loss of $100.9 million for the quarter, which was impacted by legal accruals and stock-based compensation expenses, the market responded positively to the overall financial picture and future prospects.

Adding to the optimism, Natera raised its full-year 2025 revenue guidance. The company now expects revenues in the range of $2.02 billion to $2.10 billion, up from the previous forecast of $1.94 billion to $2.02 billion. This upward revision signals management's confidence in continued strong adoption of its core product lines and ability to capitalize on market opportunities.

CEO Steve Chapman highlighted the company's commitment to advancing its pipeline of data and innovation, which aims to benefit more patients in the future. With positive updates on product development and clinical data, particularly in oncology and women's health segments, Natera appears well-positioned for sustained growth. The stock's significant jump reflects investor enthusiasm for the company's robust performance and promising outlook in the rapidly evolving field of genetic testing and precision medicine.