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Veracyte Q3 revenue beats estimates on Afirma growth; cuts testing revenue outlook

By Reuters News


Overview

  • Cancer diagnostics firm's Q3 revenue rose 15%, beating analyst expectations

  • Q3 non-GAAP diluted EPS was unchanged yr/yr at $0.51

  • Company announced $100 mln share repurchase program


Outlook

  • Veracyte narrows 2026 revenue guidance to $590 mln-$593 mln from $590 mln-$596 mln

  • Company cuts 2026 testing revenue forecast to $571 mln-$573 mln from $576 mln-$582 mln

  • Veracyte continues to expect adjusted EBITDA margin above 26% for 2026


Result Drivers

  • AFIRMA GROWTH - Afirma test revenue rose 19% yr/yr to $51.5 mln, helping drive overall revenue growth

  • PROSIGNA ADOPTION - Product revenue jumped 40% to $4.6 mln, attributed to strong adoption of Prosigna IVD after phase III OPTIMA trial results at ASCO

  • DECIPHER PROSTATE GROWTH - Decipher Prostate revenue rose 12% to $92.3 mln, though test volume was below company expectations


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q3 Revenue

Beat

$151.80 mln

$147.44 mln (12 Analysts)

Q3 Net Income

$31.50 mln

Q3 Gross Margin

70.60%

Q3 Adjusted Operating Expenses

$72.90 mln


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

  • The average consensus recommendation for the biotechnology & medical research peer group is "buy"

  • Wall Street's median 12-month price target for Veracyte, Inc. is $63.00, about 25.3% above its November 3 closing price of $50.29

  • The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 28 three months ago


Reuters Recommended Reads

  • Nov 2 - IDEXX Laboratories Q3 revenue beats estimates, lifts FY profit outlook

  • Nov 2 - Cerus Q3 adjusted EBITDA beats analyst estimates on higher IFC sales, platelet franchise strength

  • Nov 2 - Neurocrine Biosciences Q3 revenue jumps 41% on strong INGREZZA, CRENESSITY, VYKAT XR demand


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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