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Veracyte (VCYT) Down 15.4% Since Last Earnings Report: Can It Rebound?
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It has been about a month since the last earnings report for Veracyte (VCYT - Free Report) . Shares have lost about 15.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Veracyte due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Veracyte Q4 Earnings Beat Estimates, Revenues Up Y/Y
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 7 cents per share.
Full-year 2025 EPS grew 49.6% year over year to $1.78. 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%.
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, reflecting an increase of 16% year over year.
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’s level, 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, originally issued with its preliminary fourth-quarter financial report in January. The company expects revenues in the range of $570 million to $582 million, implying growth of 10-13%, with testing revenues projected to increase 14-16%. The Zacks Consensus Estimate for revenues is currently pegged at $577.3 million.
The adjusted EBITDA margin is expected to be 25% for 2026.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
The consensus estimate has shifted -5.21% due to these changes.
VGM Scores
At this time, Veracyte has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Veracyte has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Veracyte is part of the Zacks Medical - Instruments industry. Over the past month, Inogen (INGN - Free Report) , a stock from the same industry, has gained 0.9%. The company reported its results for the quarter ended December 2025 more than a month ago.
Inogen reported revenues of $81.72 million in the last reported quarter, representing a year-over-year change of +2%. EPS of -$0.26 for the same period compares with -$0.41 a year ago.
Inogen is expected to post a loss of $0.24 per share for the current quarter, representing a year-over-year change of +4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Inogen has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Veracyte (VCYT) Down 15.4% Since Last Earnings Report: Can It Rebound?
It has been about a month since the last earnings report for Veracyte (VCYT - Free Report) . Shares have lost about 15.4% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Veracyte due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Veracyte Q4 Earnings Beat Estimates, Revenues Up Y/Y
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 7 cents per share.
Full-year 2025 EPS grew 49.6% year over year to $1.78. 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%.
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, reflecting an increase of 16% year over year.
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’s level, 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, originally issued with its preliminary fourth-quarter financial report in January. The company expects revenues in the range of $570 million to $582 million, implying growth of 10-13%, with testing revenues projected to increase 14-16%. The Zacks Consensus Estimate for revenues is currently pegged at $577.3 million.
The adjusted EBITDA margin is expected to be 25% for 2026.
How Have Estimates Been Moving Since Then?
It turns out, estimates revision flatlined during the past month.
The consensus estimate has shifted -5.21% due to these changes.
VGM Scores
At this time, Veracyte has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Veracyte has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Veracyte is part of the Zacks Medical - Instruments industry. Over the past month, Inogen (INGN - Free Report) , a stock from the same industry, has gained 0.9%. The company reported its results for the quarter ended December 2025 more than a month ago.
Inogen reported revenues of $81.72 million in the last reported quarter, representing a year-over-year change of +2%. EPS of -$0.26 for the same period compares with -$0.41 a year ago.
Inogen is expected to post a loss of $0.24 per share for the current quarter, representing a year-over-year change of +4%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
Inogen has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.