Natera Inc., a diagnostics company specializing in ctDNA molecular testing, is experiencing robust growth propelled by its flagship Signatera oncology test. The company's fourth-quarter 2025 performance, as highlighted by Carillon Eagle Mid Cap Growth Fund, showcased impressive Signatera volume growth, exceeding consensus estimates and leading to an upward revision in revenue guidance. This success is further bolstered by strengthening profitability, evidenced by rising gross margins and consistent positive free cash flow. Natera's strategic focus on the oncology market and the broad potential of Signatera position it favorably for sustained expansion in the coming years.
Carillon Tower Advisers, an investment management firm, released its fourth-quarter 2025 investor letter for the Carillon Eagle Mid Cap Growth Fund. This letter provided a comprehensive overview of midcap stock performance, noting mixed results for the sector. While the Russell Midcap® Growth Index saw a 3.70% decline, the Russell Midcap® Value Index recorded a 1.41% increase. Materials led the growth index with a 17.51% absolute return, although its overall impact was limited due to its smaller weighting. Healthcare, with a 1.13% increase, and real estate, up 0.24%, were the only other sectors contributing positively. For the full year 2025, midcap stocks delivered positive returns, albeit lower than those observed in 2024. The Russell Midcap Growth Index rose by 8.66%, trailing the Value Index's 11.04% return. Within the growth index, utilities demonstrated the highest absolute return, surging by 29.40%.
The investment firm anticipates a positive outlook for equity markets in the upcoming year, extending into 2026. The letter identified several sectors offering potential opportunities, including cyclicals, healthcare, information technology, financials, and consumer spending. Natera Inc. was specifically recognized as a significant contributor to the Carillon Eagle Mid Cap Growth Fund's performance during the fourth quarter of 2025. Natera, a diagnostics company focused on ctDNA molecular testing services, closed at $207.04 per share on March 3, 2026. Over the preceding 52 weeks, the company's shares appreciated by 39.97%, contributing to a market capitalization of $28.872 billion. The one-month return for Natera Inc. was 0.70%.
The company's innovative Signatera oncology test has been a primary catalyst for its growth. The impressive total addressable market for Signatera suggests considerable potential for continued expansion. Natera's ability to exceed market expectations and maintain strong financial health underscores its promising future in the diagnostics industry. The company's revenue in the fourth quarter of 2025 reached approximately $666 million, marking a substantial 40% increase compared to the fourth quarter of 2024. This strong financial performance and strategic advancements highlight Natera's influential role in the healthcare sector.
Natera's robust performance, particularly with its Signatera oncology test, demonstrates its strong market position and growth potential. The company's financial discipline, characterized by improved gross margins and sustained positive free cash flow, provides a solid foundation for future endeavors. With an expanding market and a proven track record of exceeding expectations, Natera is well-equipped to achieve long-term success in the diagnostics field.