Fulgent Genetics Stock Skyrockets: Here’s Why Investors Are Piling In

Wall Street's latest darling? Fulgent Genetics—and Friday's rally proves it.

Diagnostics Disruption Pays Off

No fluke—this surge was built on real momentum. The molecular diagnostics player smashed expectations, leaving analysts scrambling to upgrade targets.

Short Squeeze Fueling the Fire

Bearish bets got torched as the stock ripped through resistance levels. Classic case of fundamentals meeting favorable technicals.

Institutional FOMO Hits Critical Mass

When healthcare ETFs start rebalancing, everyone wants a seat at the table—even if they're late to the party.

Another biotech proving that in this market, 'growth' trumps 'value' every time. Until the next earnings miss, of course.

A surprise on the bottom line

That morning, before market open, Fulgent unveiled its second-quarter results. The genetic testing specialist posted revenue just shy of $82 million, a figure that was more than 15% higher year over year. Non-GAAP (adjusted) net income went the opposite way with a steep (56%) decrease to slightly over $2 million ($0.07 per share).

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Yet the analysts tracking the stock were, as a group, expecting worse. In fact, they were modeling an adjusted bottom-line loss of $0.18 per share on revenue of only $76 million.

In its earnings release, Fulgent credited diversification for the better-than-expected results. It quoted CEO Ming Hsieh as saying that throughout the first half of this year, "we made good progress in growing revenue for our laboratory services business and in advancing our clinical trials for the therapeutic development business."

The kind of adjustment investors love

Fulgent also raised its revenue and adjusted bottom-line guidance for full-year 2025.

Management now anticipates the company will book "core" revenue -- that is, revenue minus the take from COVID testing products and services -- of roughly $320 million and an adjusted net loss of $0.35 per share. Those numbers top the average pundit projections of $0.55 for net loss and under $311 million for revenue.