The Short Answer
Guardant Health stock (GH) is doubtful on the current quantitative screen. Guardant Health is a precision-oncology company whose blood-based (liquid-biopsy) tests help detect and monitor cancer and guide treatment, including its Guardant360 and Shield screening products. The diagnostic business is permissible, but the latest filing shows convertible debt and liquidity above the displayed asset-based limits.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-15.
1,503.471 / 1,915.291
2,107.575 / 1,915.291
1,126.695 / 1,915.291
11.151 / 301.665
- Financial
- Fails
- Overall
- Fails
Debt/assets is 78.50%, liquidity/assets is 110.04% and receivables plus cash/assets is 58.83%, above the examined limits; interest income/revenue is 3.70%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 78.50%, liquidity/assets is 110.04% and receivables plus cash/assets is 58.83%, above the examined MSCI limits; interest income/revenue is 3.70%.
- Financial
- Fails
- Overall
- Fails
Debt/assets is 78.50% and liquidity/assets is 110.04%, above the examined Malaysia SAC limits; this is not an official classification.
- Financial
- Not calculated
- Overall
- Fails
A licensed historical market-cap series is not stored; the asset-based screens fail decisively on debt and liquidity.
Business-activity disclosure
Guardant develops blood-based cancer diagnostics and screening tests. Medical diagnostics are generally permissible, while test use, customer, collaboration and product-level disclosure remains methodology-dependent.
Limitation: The filing does not allocate every diagnostic, customer or collaboration revenue stream into a universal prohibited-activity numerator.
Purification
Guardant discloses $11.151 million of investment income interest, but no scholar-approved purification percentage is inferred.
Inputs, assumptions and primary sources
- Amounts are USD millions from Guardant Health's March 31, 2026 Form 10-Q.
- Debt is $1,503.471 million of noncurrent convertible debt; operating leases are excluded.
- Cash and cash equivalents are $989.291 million. Available-for-sale debt securities are $1,118.284 million and are included as identifiable interest-bearing securities; restricted cash is not added again.
- Accounts receivable, net is $137.404 million and first-quarter revenue is $301.665 million.
- Investment income interest is $11.151 million; the filing does not provide a universal prohibited-revenue numerator for diagnostics, screening or collaborations.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
The March 31, 2026 Form 10-Q reports $1,503.471 million of convertible debt, $2,107.575 million of cash and available-for-sale debt securities, and $1,915.291 million of assets. Debt/assets is 78.50% and liquidity/assets is 110.04%; interest income is 3.70% of revenue.
Sharia Screening Methodology
Islamic scholars use several criteria to screen stocks:
- Business activity screen: Is the company's primary business halal?
- Debt ratio: Total debt / market cap must be under 33%
- Interest income: Interest income / total revenue must be under 5%
- Haram revenue: Revenue from haram sources must be under 5%
- Receivables ratio: Total receivables / total assets must be under 49–70% (varies by board)
What Guardant Health Does
Guardant Health, Inc. (headquartered in Palo Alto, California) is a precision-oncology company:
- Therapy selection: Guardant360 liquid-biopsy tests to guide cancer treatment.
- Monitoring: Tests to track disease and recurrence.
- Screening: Shield, a blood-based colorectal-cancer screening test.
Developing and selling diagnostic tests that benefit human health is a permissible activity, so the business-activity screen passes.
Why It Passes (and What to Check)
1. Permissible Core Business
Guardant's revenue comes from cancer diagnostics — a clearly permissible activity that benefits human health. There is no haram revenue line.
2. Debt Ratio (Deciding Screen)
Guardant has used convertible notes to fund growth, so confirm the total-debt-to-market-cap ratio against the 33% threshold using the latest filings. This is the deciding screen for the verdict.
3. Interest Income (Purify)
Guardant earns interest income on its large cash and marketable-securities balance. This should be checked against the 5% threshold and the corresponding portion of returns purified.
Current Quantitative Screen (March 31, 2026)
- Debt / assets: 78.50% — $1,503.471 million / $1,915.291 million (fails 33.333%)
- Cash + interest-bearing securities / assets: 110.04% — $2,107.575 million / $1,915.291 million (fails 33.333%)
- Receivables + cash / assets: 58.83% — $1,126.695 million / $1,915.291 million (fails 50%)
- Interest income / revenue: 3.70% — $11.151 million / $301.665 million
The quantitative result is DOUBTFUL because debt, liquidity and receivables-plus-cash exceed the displayed asset-based limits. This is a filing-based research result, not an outside-agency classification.
What About Purification?
Purify the portion of returns attributable to interest income earned on Guardant's cash and marketable-securities balance — donating that share of gains to charity.
How to Read the Result
The cancer-diagnostics business is qualitatively permissible, but GH is DOUBTFUL on the current financial screen. Investors should obtain qualified Sharia advice and revisit the result after a new filing.
Bottom Line
Guardant Health (GH) is doubtful on the current examined screen. The cancer-diagnostics business is permissible, but debt/assets is 78.50%, liquidity/assets is 110.04%, and receivables-plus-cash/assets is 58.83%. Re-screen after the next filing and consult a qualified adviser for a school-specific methodology.
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