We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
VCYT Q4 EPS jumped 47% y/y to 53 cents, beating estimates as revenues rose 18.5% to $140.6M.
VCYT testing revenues climbed 21%, fueled by Decipher and Afirma growth, and higher volumes.
Veracyte expanded the gross margin to 74.4% and reiterated the 2026 revenue guidance of $570-$582M.
Veracyte, Inc. (VCYT - Free Report) delivered fourth-quarter 2025 adjusted earnings of 53 cents per share, up 47.2% from the year-ago period. The bottom line beat the Zacks Consensus Estimate by 30.06%.
The company’s GAAP earnings per share were 52 cents compared with the year-ago period’s earnings of 7 cents per share.
EPS for 2025 of $1.78 increased 49.6% from the prior-year figure. The figure surpassed the Zacks Consensus Estimate by 6.2%.
VCYT’s Revenues
Revenues increased 18.5% year over year to $140.6 million, which outpaced the Zacks Consensus Estimate by 1.4%.
The company reported 2025 revenues of $517.1 million, which increased 16% from the prior-year level. The figure surpassed the Zacks Consensus Estimate by 0.4%.
Following the earnings announcement yesterday, VCYT shares gained 1.9% in the after-hours session.
VCYT’s Q4 Segmental Details
Testing revenues totaled $135.8 million, up 21.1% year over year, driven by Decipher and Afirma revenue growth of 27% and 16%, respectively. Total testing volume was roughly 45,500, an increase of 16% over the prior-year period.
Product revenues increased 27% year over year to $3 million in the fourth quarter.
Biopharmaceutical and other revenues of $962 million reflected a 72.2% decrease from the prior-year quarter, given the restructuring and liquidation proceedings of Veracyte SAS.
VCYT’s Q4 Margins
The total cost of revenues (product, testing, biopharmaceutical and other) was $36 million, down 3% year over year.
The gross profit rose 28.3% to $104.7 million. The gross margin expanded 568 basis points (bps) to 74.4%.
Selling and marketing expenses rose 4.5% to $25.9 million, while general and administrative expenses fell 35.5% to $17 million. R&D expenses totaled $20.8 million, up 8.1% year over year. The adjusted operating margin was 28.8% compared with 8.9% in the prior-year quarter.
VCYT’s Cash, Capital Structure & Solvency
Veracyte exited fourth-quarter 2025 with cash and cash equivalents of $362.6 million compared with $239.1 million at the end of 2024.
The cumulative net cash provided from operating activities at the end of the reported quarter was $136.3 million compared with $75.1 million a year ago.
VCYT’s 2026 Guidance
Veracyte reiterated its 2026 guidance, which it originally issued during its preliminary fourth-quarter financial report in January. The company expects revenues of $570 million to $582 million. This indicates 10-13% growth, with Testing revenues growing 14-16%. The Zacks Consensus Estimate for the metric is pegged at $577.3 million.
The adjusted EBITDA margin is expected to be 25% for 2026.
Our Take on VCYT Stock
Veracyte exited the fourth quarter of 2025 with earnings and revenues beating estimates. Performance benefited from the continued strength in the company’s core testing business. Throughout the year, Veracyte witnessed a steady pipeline of account wins in Affirma and increased utilization per account, with the fourth quarter continuing this trend.
The company also completed the full transition of all Afirma volume to the more scalable, lower-cost v2 transcriptome platform. Meanwhile, Decipher reached another record for both the number of quarterly ordering providers and orders per physician. Expansion of both margins is highly encouraging.
According to management, Veracyte is entering 2026 with a clear path to sustained double-digit growth, served by a portfolio of tests in prostate, breast, thyroid and bladder cancer.
Zacks Rank & Other Key Picks
Veracyte currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Cardinal Health (CAH - Free Report) and Align Technology (ALGN - Free Report) .
Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in the trailing four quarters, the average surprise being 13.24%.
Cardinal Health,carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of $2.63, exceeding the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion topped the Zacks Consensus Estimate by 0.9%.
CAH has a long-term earnings growth rate of 15% compared with the industry’s 9.6% growth. The company’s earnings outpaced estimates in the trailing four quarters, the average surprise being 9.3%.
Align Technology,carrying a Zacks Rank #2 at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.
ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.16%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Veracyte Q4 Earnings Beat Estimates, Revenues Grow Y/Y, Stock Rises
Key Takeaways
Veracyte, Inc. (VCYT - Free Report) delivered fourth-quarter 2025 adjusted earnings of 53 cents per share, up 47.2% from the year-ago period. The bottom line beat the Zacks Consensus Estimate by 30.06%.
The company’s GAAP earnings per share were 52 cents compared with the year-ago period’s earnings of 7 cents per share.
EPS for 2025 of $1.78 increased 49.6% from the prior-year figure. The figure surpassed the Zacks Consensus Estimate by 6.2%.
VCYT’s Revenues
Revenues increased 18.5% year over year to $140.6 million, which outpaced the Zacks Consensus Estimate by 1.4%.
The company reported 2025 revenues of $517.1 million, which increased 16% from the prior-year level. The figure surpassed the Zacks Consensus Estimate by 0.4%.
Following the earnings announcement yesterday, VCYT shares gained 1.9% in the after-hours session.
VCYT’s Q4 Segmental Details
Testing revenues totaled $135.8 million, up 21.1% year over year, driven by Decipher and Afirma revenue growth of 27% and 16%, respectively. Total testing volume was roughly 45,500, an increase of 16% over the prior-year period.
Product revenues increased 27% year over year to $3 million in the fourth quarter.
Veracyte, Inc. Price, Consensus and EPS Surprise
Veracyte, Inc. price-consensus-eps-surprise-chart | Veracyte, Inc. Quote
Biopharmaceutical and other revenues of $962 million reflected a 72.2% decrease from the prior-year quarter, given the restructuring and liquidation proceedings of Veracyte SAS.
VCYT’s Q4 Margins
The total cost of revenues (product, testing, biopharmaceutical and other) was $36 million, down 3% year over year.
The gross profit rose 28.3% to $104.7 million. The gross margin expanded 568 basis points (bps) to 74.4%.
Selling and marketing expenses rose 4.5% to $25.9 million, while general and administrative expenses fell 35.5% to $17 million. R&D expenses totaled $20.8 million, up 8.1% year over year. The adjusted operating margin was 28.8% compared with 8.9% in the prior-year quarter.
VCYT’s Cash, Capital Structure & Solvency
Veracyte exited fourth-quarter 2025 with cash and cash equivalents of $362.6 million compared with $239.1 million at the end of 2024.
The cumulative net cash provided from operating activities at the end of the reported quarter was $136.3 million compared with $75.1 million a year ago.
VCYT’s 2026 Guidance
Veracyte reiterated its 2026 guidance, which it originally issued during its preliminary fourth-quarter financial report in January. The company expects revenues of $570 million to $582 million. This indicates 10-13% growth, with Testing revenues growing 14-16%. The Zacks Consensus Estimate for the metric is pegged at $577.3 million.
The adjusted EBITDA margin is expected to be 25% for 2026.
Our Take on VCYT Stock
Veracyte exited the fourth quarter of 2025 with earnings and revenues beating estimates. Performance benefited from the continued strength in the company’s core testing business. Throughout the year, Veracyte witnessed a steady pipeline of account wins in Affirma and increased utilization per account, with the fourth quarter continuing this trend.
The company also completed the full transition of all Afirma volume to the more scalable, lower-cost v2 transcriptome platform. Meanwhile, Decipher reached another record for both the number of quarterly ordering providers and orders per physician. Expansion of both margins is highly encouraging.
According to management, Veracyte is entering 2026 with a clear path to sustained double-digit growth, served by a portfolio of tests in prostate, breast, thyroid and bladder cancer.
Zacks Rank & Other Key Picks
Veracyte currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Cardinal Health (CAH - Free Report) and Align Technology (ALGN - Free Report) .
Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in the trailing four quarters, the average surprise being 13.24%.
Cardinal Health,carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of $2.63, exceeding the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion topped the Zacks Consensus Estimate by 0.9%.
CAH has a long-term earnings growth rate of 15% compared with the industry’s 9.6% growth. The company’s earnings outpaced estimates in the trailing four quarters, the average surprise being 9.3%.
Align Technology,carrying a Zacks Rank #2 at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.
ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.16%.