Veracyte (NASDAQ:VCYT) Releases Quarterly Earnings Results

Veracyte (NASDAQ:VCYT) released its earnings results on Wednesday. The biotechnology company reported $0.51 EPS for the quarter, topping the consensus estimate of $0.41 by $0.10, FiscalAI reports. Veracyte had a return on equity of 9.13% and a net margin of 21.80%. The firm had revenue of $151.75 million during the quarter, compared to analysts’ expectations of $147.13 million. During the same period in the previous year, the firm posted $0.51 EPS. Veracyte’s revenue for the quarter was up 15.1% on a year-over-year basis.

Here are the key takeaways from Veracyte’s conference call:

• Third-quarter revenue rose 15% year over year to $151.8 million, with adjusted EBITDA of $41.2 million, or 27.2% of revenue, and $40.3 million in cash from operations. Afirma exceeded expectations, while Decipher Prostate volume came in below the company’s expectations.
• Decipher Prostate delivered nearly 30,000 tests, up 12% year over year, but Veracyte reset expected incremental annual volume growth to 12,000–15,000 tests, down from its prior expectation of 20,000. Management cited normalization after earlier guideline-driven growth, slower low-risk testing, and competitive distractions; it plans to expand the urology commercial team by about 30% in 2027.
• Afirma volume increased 12% to approximately 19,000 tests, its strongest sequential third-quarter increase since 2020. The V2 workflow’s lower no-result rate supported growth, and the company raised its 2026 Afirma revenue-growth outlook to approximately 16%.
• Veracyte narrowed its 2026 revenue outlook and lowered its testing-revenue expectations. For 2027, management preliminarily expects about 10% volume growth but only mid-single-digit revenue growth and approximately 22% adjusted EBITDA, citing prior-period collection comparisons, product mix, and investment needs.
• Veracyte is building future growth drivers in breast and bladder cancer, including Prosigna, TrueMRD, and acquired urine-based UroAmp; management expects these offerings to contribute more meaningfully from 2028 onward. Prosigna has secured Medicare coverage for eligible postmenopausal patients, but broader coverage and commercial adoption will take time; the board also authorized up to $100 million in share repurchases.

Veracyte Stock Down 54.3%

Shares of NASDAQ VCYT opened at $24.00 on Friday. The stock has a market cap of $1.93 billion, a PE ratio of 15.48 and a beta of 1.98. Veracyte has a 52-week low of $21.91 and a 52-week high of $60.91. The business has a 50-day moving average price of $44.49 and a 200 day moving average price of $42.95.

Analyst Ratings Changes

A number of equities analysts recently commented on the stock. UBS Group boosted their target price on shares of Veracyte from $52.00 to $65.00 and gave the stock a “buy” rating in a research note on Wednesday, September 9th. Morgan Stanley dropped their price target on shares of Veracyte from $47.00 to $44.00 and set an “underweight” rating on the stock in a research note on Tuesday, August 4th. Stephens cut their price objective on shares of Veracyte from $68.00 to $55.00 and set an “overweight” rating on the stock in a report on Tuesday, August 4th. Piper Sandler reduced their price objective on shares of Veracyte from $66.00 to $54.00 and set an “overweight” rating for the company in a research report on Tuesday, August 4th. Finally, Zacks Research downgraded shares of Veracyte from a “strong-buy” rating to a “hold” rating in a research report on Friday, October 2nd. One equities research analyst has rated the stock with a Strong Buy rating, six have assigned a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average price target of $51.40.

Key Headlines Impacting Veracyte

Here are the key news stories impacting Veracyte this week:

• Positive Sentiment: Third-quarter adjusted earnings of $0.51 per share topped estimates of about $0.41, while revenue of $151.8 million exceeded expectations and grew 15% year over year. The earnings call also highlighted strength in Afirma testing. Veracyte third-quarter results
• Positive Sentiment: Veracyte announced a $100 million share repurchase program, which could support shareholder returns, although it has not offset concern about the outlook. Veracyte third-quarter results
• Negative Sentiment: The main catalyst is that Decipher Prostate test volume fell short of expectations, prompting a reduced outlook. Investors appear concerned about the impact on future growth despite the quarterly beat. Veracyte stock falls despite quarterly beat
• Negative Sentiment: Leerink Partners downgraded Veracyte from Outperform to Market Perform and cut its price target from $55 to $35. Needham also lowered its target, from $69 to $46, though it kept a Buy rating. Leerink downgrade
• Negative Sentiment: The sharp selloff pushed VCYT below its 200-day moving average, a technical breakdown that may add to near-term selling pressure. Veracyte breaks below its 200-day moving average
• Negative Sentiment: Two law firms announced investigations into potential securities-law violations following the decline. These are investigations, not findings of wrongdoing, but may add uncertainty for investors. Investor investigation notice

Insider Buying and Selling

In other news, Director Jens Holstein sold 7,500 shares of the stock in a transaction that occurred on Tuesday, October 27th. The stock was sold at an average price of $50.00, for a total value of $375,000.00. Following the completion of the sale, the director directly owned 27,471 shares of the company’s stock, valued at approximately $1,373,550. This represents a 21.45% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Annie Mcguire sold 3,254 shares of the firm’s stock in a transaction that occurred on Friday, September 4th. The stock was sold at an average price of $43.09, for a total transaction of $140,214.86. Following the transaction, the executive vice president owned 131,160 shares in the company, valued at approximately $5,651,684.40. This trade represents a 2.42% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 62,609 shares of company stock valued at $2,858,904 in the last 90 days. Company insiders own 1.60% of the company’s stock.

About Veracyte

Veracyte, Inc is a diagnostics company that develops genomic tests to help physicians diagnose cancer, assess disease risk and guide treatment decisions. Its tests are designed to provide additional molecular information from patient samples, often helping reduce uncertainty and support more personalized care.

The company’s portfolio includes Afirma tests for thyroid nodules, Decipher tests for prostate cancer, Percepta tests for lung cancer and Envisio tests for breast cancer. Veracyte also develops and commercializes additional genomic assays intended for use across various cancer types and clinical settings.

Founded in 2008 and headquartered in South San Francisco, California, Veracyte primarily serves the U.S.