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

Veracyte (NASDAQ:VCYT) posted its quarterly earnings results on Thursday. The biotechnology company reported $0.54 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.44 by $0.10, FiscalAI reports. Veracyte had a net margin of 16.25% and a return on equity of 9.07%. The firm had revenue of $150.32 million for the quarter, compared to analysts’ expectations of $144.59 million. During the same period in the prior year, the company posted $0.44 earnings per share. The firm’s quarterly revenue was up 15.5% on a year-over-year basis.

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

• Strong Q2 results: Revenue rose 15% year over year to $150.3 million, testing volume increased 13% to approximately 51,000 tests, and adjusted EBITDA grew 23% to $44 million, or 29.2% of revenue. The company generated $45.8 million in operating cash flow and ended the quarter with $485.2 million in cash and short-term investments.
• Veracyte raised its 2026 revenue outlook to $590 million-$596 million, reflecting 14%-15% growth, while maintaining adjusted EBITDA guidance above 26%. The outlook assumes approximately 20% Decipher revenue growth and excludes contributions from the recently launched Prosigna LDT and TrueMRD products.
• The company launched Prosigna LDT for ER-positive, HER2-negative breast cancer and TrueMRD for recurrence monitoring in muscle-invasive bladder cancer. Early physician and patient response has been encouraging, more than 100 institutions are engaged on Prosigna, and Veracyte is expanding its sales force and investing in electronic health-record integration.
• Decipher Prostate volume expectations were reduced by approximately 1,000 tests for 2026, primarily because low-risk testing is growing only at a single-digit rate after an NCCN guideline change removed genomic testing from active-surveillance recommendations. Management expects additional clinical studies, with initial readouts beginning as early as 2027, to support potential future adoption.
• Afirma continued to gain traction, with volume up 10% and revenue up 18% year over year to approximately 18,600 tests. Higher reimbursement, pricing improvements, market-share gains, and the V2 transcriptome workflow’s lower no-result rate supported growth and improved testing gross margins.

Veracyte Price Performance

VCYT traded up $4.07 on Thursday, reaching $59.78. 1,541,179 shares of the company traded hands, compared to its average volume of 1,033,706. Veracyte has a 52-week low of $22.92 and a 52-week high of $60.91. The company has a market cap of $4.77 billion, a price-to-earnings ratio of 54.84 and a beta of 1.93. The stock’s 50 day moving average price is $53.40 and its 200-day moving average price is $42.17.

Insider Buying and Selling at Veracyte

In related news, insider John Leite sold 13,975 shares of the stock in a transaction that occurred on Thursday, June 4th. The stock was sold at an average price of $50.07, for a total value of $699,728.25. Following the transaction, the insider owned 132,305 shares in the company, valued at approximately $6,624,511.35. This represents a 9.55% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible 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 Robert S. Epstein sold 10,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $44.01, for a total transaction of $440,100.00. Following the transaction, the director directly owned 52,446 shares in the company, valued at approximately $2,308,148.46. The trade was a 16.01% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 206,696 shares of company stock worth $10,079,058 over the last 90 days. 1.60% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Veracyte

A number of large investors have recently bought and sold shares of the business. Royal Bank of Canada lifted its holdings in Veracyte by 23.3% in the 1st quarter. Royal Bank of Canada now owns 28,712 shares of the biotechnology company’s stock worth $852,000 after purchasing an additional 5,435 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Veracyte by 12.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 195,793 shares of the biotechnology company’s stock valued at $5,805,000 after purchasing an additional 21,330 shares during the period. Jane Street Group LLC lifted its stake in shares of Veracyte by 94.7% in the first quarter. Jane Street Group LLC now owns 216,909 shares of the biotechnology company’s stock worth $6,431,000 after buying an additional 105,499 shares during the last quarter. Intech Investment Management LLC grew its stake in Veracyte by 54.1% in the 1st quarter. Intech Investment Management LLC now owns 42,762 shares of the biotechnology company’s stock valued at $1,268,000 after buying an additional 15,017 shares during the last quarter. Finally, Russell Investments Group Ltd. raised its holdings in Veracyte by 32.2% in the 2nd quarter. Russell Investments Group Ltd. now owns 48,786 shares of the biotechnology company’s stock worth $1,319,000 after acquiring an additional 11,889 shares during the period.

Analyst Upgrades and Downgrades

A number of analysts have recently weighed in on VCYT shares. Jefferies Financial Group started coverage on Veracyte in a research report on Monday, April 13th. They set a “buy” rating and a $45.00 price target on the stock. Zacks Research cut Veracyte from a “strong-buy” rating to a “hold” rating in a research note on Monday, July 13th. Weiss Ratings reiterated a “hold (c)” rating on shares of Veracyte in a research report on Wednesday, June 24th. Wolfe Research started coverage on shares of Veracyte in a report on Tuesday, June 2nd. They issued an “outperform” rating and a $55.00 target price on the stock. Finally, Wall Street Zen upgraded Veracyte from a “buy” rating to a “strong-buy” rating in a report on Sunday, July 12th. One analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, Veracyte currently has a consensus rating of “Moderate Buy” and a consensus price target of $55.88.

Veracyte Company Profile

Veracyte, Inc is a genomic diagnostics company focused on improving diagnostic accuracy and patient care through advanced molecular testing. Founded in 2008 and headquartered in South San Francisco, California, the company develops and commercializes minimally invasive genomic tests that aid in the diagnosis of thyroid, lung and other diseases. Veracyte’s proprietary platform analyzes gene expression patterns in clinical samples to help physicians make more informed treatment decisions, reducing unnecessary surgeries and improving patient outcomes.

The company’s flagship product, the Afirma Genomic Sequencing Classifier, is designed to assess thyroid nodules with indeterminate cytology, helping clinicians distinguish benign from suspicious nodules.