Fulgent Genetics Shares Surge on Unexpected Profit and Raised Outlook

Fulgent Genetics US3596641098

Fulgent Genetics Inc. has delivered a powerful positive surprise to the market, reporting an unexpected quarterly profit and significantly upgrading its full-year guidance. This performance signals a notable improvement in the company's operational strength and financial trajectory.

For the third quarter of 2025, the diagnostic testing company announced financial figures that comfortably surpassed analyst forecasts. Fulgent Genetics posted non-GAAP earnings per share of $0.14, a stark contrast to the anticipated loss of $0.23 per share. Revenue climbed 17% year-over-year to reach $84.1 million, also edging past market expectations which had been set at $83.1 million.

Management Lifts Full-Year Forecasts

Bolstered by the strong Q3 performance, the company's leadership has substantially revised its outlook for the entirety of 2025. The most dramatic shift is in profitability: management now projects adjusted earnings of $0.30 per share, a remarkable turnaround from the previous forecast of a $0.35 per share loss. The revenue outlook has also been raised, with the company now anticipating approximately $325 million in annual sales.

Key Financial Data:
* Q3 2025 Non-GAAP EPS: $0.14 (actual) versus estimate of -$0.23
* Q3 2025 Revenue: $84.1 million (actual) versus estimate of $83.1 million
* Revised 2025 Non-GAAP EPS Guidance: Positive $0.30, revised from -$0.35
* Revised 2025 Revenue Guidance: Approximately $325.0 million

Therapeutic Pipeline Shows Promise

Beyond its core laboratory diagnostics business, Fulgent is making strategic advances in its therapeutic development segment. The company's drug candidate, FID-007, is currently in Phase II trials for the treatment of head and neck tumors. Preliminary data presented at the European Society for Medical Oncology (ESMO) conference in October indicated promising efficacy. This therapeutic arm represents a key strategic expansion for the company's long-term growth model.

The positive sentiment generated by the earnings beat and guidance upgrade remains a dominant theme for the stock, despite a slight pullback of 1.80% in the share price last Friday. The ability to exceed profitability expectations and raise annual targets points to a solidifying operational and financial position as the year concludes. Investors will next scrutinize the company's performance when it reports quarterly results in February 2026.