Veracyte (NASDAQ:VCYT) Posts Quarterly Earnings Results, Beats Estimates By $0.10 EPS

Veracyte (NASDAQ:VCYT) posted its quarterly earnings data on Wednesday. The biotechnology company reported $0.51 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.41 by $0.10, FiscalAI reports. The company had revenue of $151.75 million for the quarter, compared to the consensus estimate of $147.13 million. Veracyte had a net margin of 20.37% and a return on equity of 9.26%. The firm’s revenue was up 15.1% compared to the same quarter last year. During the same quarter last year, the firm posted $0.51 earnings per share.

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 Up 4.4%

Shares of VCYT opened at $52.52 on Thursday. The business has a 50-day simple moving average of $44.90 and a two-hundred day simple moving average of $43.04. The stock has a market cap of $4.22 billion, a price-to-earnings ratio of 37.25 and a beta of 1.98. Veracyte has a 52 week low of $29.45 and a 52 week high of $60.91.

Analysts Set New Price Targets

A number of analysts have commented on the stock. Wall Street Zen cut shares of Veracyte from a “strong-buy” rating to a “buy” rating in a report on Saturday, October 10th. Needham & Company LLC reiterated a “buy” rating on shares of Veracyte in a research report on Tuesday, September 15th. 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. Leerink Partners cut shares of Veracyte from an “outperform” rating to a “market perform” rating and set a $35.00 price target on the stock. in a research note on Thursday. 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 issued a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $53.70.

Key Stories Impacting Veracyte

Here are the key news stories impacting Veracyte this week:

• Positive Sentiment: Veracyte reported Q3 adjusted earnings of $0.51 per share, above analyst estimates of $0.41, and revenue of $151.8 million, topping expectations of about $147.1 million. Revenue rose 15% year over year, including testing revenue of $146.4 million. Veracyte Announces Third Quarter 2026 Financial Results
• Positive Sentiment: The company authorized a $100 million share repurchase program, which may support shareholder returns and signal management confidence. Veracyte authorizes a Buyback Plan
• Positive Sentiment: Analysts’ average price target is reported at $55.78, indicating potential upside relative to the share price cited in the background information. Veracyte Stock Has Average Price Target of $55.78
• Neutral Sentiment: Despite the revenue increase, quarterly EPS matched the year-ago result of $0.51, so earnings growth has not yet reflected the stronger sales. Veracyte Tops Q3 Earnings and Revenue Estimates

Insider Activity

In related news, CFO Rebecca Chambers sold 3,652 shares of the stock in a transaction that occurred on Friday, September 4th. The shares were sold at an average price of $43.10, for a total value of $157,401.20. Following the completion of the sale, the chief financial officer directly owned 166,025 shares of the company’s stock, valued at approximately $7,155,677.50. This represents a 2.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this link. 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. Also, Director Karin Eastham sold 14,850 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 transaction of $742,500.00. Following the completion of the sale, the director directly owned 10,247 shares of the company’s stock, valued at $512,350. This represents a 59.17% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders sold 62,609 shares of company stock worth $2,858,904. 1.60% of the stock is currently owned by corporate insiders.

Veracyte Company Profile

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.