Myriad Genetics (MYGN) Stock Forecast & Price Target

Myriad Genetics is viewed positively because the prenatal divestiture should improve its margin mix by removing a dilutive business operating at about 40% gross margin, with management targeting 500+ bps of gross margin uplift and 100+ bps of year-over-year revenue growth benefit in the first 12 months post-close. The company also raised FY26 revenue guidance to $780M-$790M from $770M-$790M, supported by stronger revenue per test, while cash, equivalents, and short-term investments of $107M and total liquidity of roughly $182M provide balance-sheet flexibility. Further upside comes from potential GeneSight coverage gains, Prolaris clinical evidence progress, a 2026 clinical MRD launch into a $20B market that is only 5% penetrated, and continued reimbursement and ASP improvement from EMR integration and AI capabilities.

Myriad Genetics is facing a structural slowdown as reimbursement pressure, share loss, and weaker pricing in hereditary cancer and prenatal testing have pushed revenue lower and margins down, with 2Q26 revenue declining low double digits and margins compressing 460 bps Y/Y. Although 3Q26 showed a 9% q/q rebound in hereditary cancer revenue per test and the Prenatal sale adds $200M+ of cash, the company still expects 1%-5% ASP declines, intensified competition, and limited confidence that new products can offset core business erosion. With the business unable to clearly grow or cut its way to sustainable profitability, and valuation already reflecting major headwinds, the negative outlook is driven by deteriorating operating quality and uncertain long-term growth.