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Pacific Biosciences
(NASDAQ:PACB)
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Rating:44Neutral
Price Target:
$1.50
▲(10.29% Upside)
Action:Reiterated
Date:08/07/26
The score is primarily held down by weak financial performance—large ongoing losses, continued cash burn, and a stressed balance sheet with negative equity. Technicals also remain bearish with the stock trading below major moving averages, despite oversold readings. Earnings-call updates add mixed signals: lowered guidance and delayed breakeven offset by product adoption momentum and cost-reduction actions; valuation provides limited support due to negative earnings and no dividend data.
Positive Factors
Recurring Consumables Growth
Consumables growth and rising clinical usage strengthen PacBio’s recurring revenue base. As the installed instrument base expands, higher utilization can generate repeat reagent demand and improve revenue visibility beyond one-time system sales.
Negative Factors
Persistent Losses and Cash Burn
Large operating losses continue to consume cash and show that PacBio is not yet self-funding. Sustained investment needs may constrain product development and commercial execution, while increasing dependence on financing or further cost reductions.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Consumables Growth
Consumables growth and rising clinical usage strengthen PacBio’s recurring revenue base. As the installed instrument base expands, higher utilization can generate repeat reagent demand and improve revenue visibility beyond one-time system sales.
Read all positive factors
Pacific Biosciences Key Performance Indicators (KPIs)
Any
Remaining Performance Obligations
Represents contracted but unrecognized revenue from instrument orders, service agreements, and reagent commitments, giving visibility into near‑term booked revenue. Large RPOs suggest strong forward sales and revenue certainty; shrinking RPOs can warn of weakening demand or cancellations.
Represents contracted but unrecognized revenue from instrument orders, service agreements, and reagent commitments, giving visibility into near‑term booked revenue. Large RPOs suggest strong forward sales and revenue certainty; shrinking RPOs can warn of weakening demand or cancellations.
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The Fly
The FlyPacific Biosciences (PACB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$419.62M
Dividend YieldN/A
Average Volume (3M)6.09M
Price to Earnings (P/E)―
Beta (1Y)0.80
Revenue Growth2.02%
EPS Growth75.85%
CountryUS
Employees485
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.43
Shares Outstanding310,830,750
10 Day Avg. Volume6,402,960
30 Day Avg. Volume6,088,716
Financial Highlights & Ratios
PEG Ratio-0.02
Price to Book (P/B)104.87
Price to Sales (P/S)3.51
P/FCF Ratio-4.92
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$2.31Price Target Upside70.04% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.45
Revenue Forecast (FY)$159.31M
Pacific Biosciences Business Overview & Revenue Model
Company Description
Pacific Biosciences of California, Inc. (PACB) specializes in pioneering and manufacturing advanced genetic sequencing platforms, empowering researchers and institutions to unravel intricate genetic challenges. At the heart of its offerings are th...
How the Company Makes Money
PacBio primarily generates revenue by selling and supporting sequencing platforms and driving recurring pull-through from the consumables required to run those instruments. Key revenue streams include: (1) Instrument revenue: one-time sales of seq...
Pacific Biosciences Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 11, 2026
Earnings Call Sentiment Neutral
The call presented a balanced mix of strong product and commercial momentum — notably the SPRQ-Nx launch, independent clinical validation, Revio multi-system orders, robust EMEA growth, and improving Vega ASP — alongside meaningful near-term financial and operational headwinds, including gross margin pressure from compute and manufacturing costs, lowered full-year revenue guidance, Asia Pacific revenue weakness, a decline in cash balance, and a delayed cash-flow breakeven into 2028. Management emphasized cost discipline, restructuring to reduce expenses, and confidence that SPRQ-Nx adoption will drive consumables volume and margin expansion over the back half of 2026 and into 2027.Positive Updates
SPRQ-Nx Full Commercial Rollout and Early Adoption
Full global commercial rollout of SPRQ-Nx chemistry; in June over one-third (>33%) of installed base opted into the new software enabling multi-use SMRT Cells (up to 3 uses). U.S. list price per 20x HiFi human genome drops to $345 (a 30% reduction versus previous SPRQ chemistry). Company expects >50% of installed base to adopt SPRQ-Nx by end of Q3 and majority by year-end; SPRQ-Nx launching on Vega in August (up to 90 Gb/run).
Negative Updates
Lowered Full-Year Revenue Guidance
2026 revenue guidance reduced to $155 million–$165 million (down from prior guidance), reflecting a more gradual SPRQ-Nx adoption curve, Americas academic/government funding weakness, and slower China recovery assumptions.
Read all updates
Q2-2026 Updates
Positive
Negative
SPRQ-Nx Full Commercial Rollout and Early Adoption
Full global commercial rollout of SPRQ-Nx chemistry; in June over one-third (>33%) of installed base opted into the new software enabling multi-use SMRT Cells (up to 3 uses). U.S. list price per 20x HiFi human genome drops to $345 (a 30% reduction versus previous SPRQ chemistry). Company expects >50% of installed base to adopt SPRQ-Nx by end of Q3 and majority by year-end; SPRQ-Nx launching on Vega in August (up to 90 Gb/run).
Read all positive updates
Company Guidance
Management lowered 2026 revenue guidance to $155–$165 million and now expects non‑GAAP gross margin of 35–37% and non‑GAAP operating expenses of $215–$220 million (down ~$5 million from the prior range); year‑end unrestricted cash is forecast at ~$175–$185 million (Q2 cash was $236.9 million), and cash‑flow breakeven is now expected in 2028 (vs. prior end‑of‑2027 target). They revised consumables pull‑through to $200,000–$225,000 per Revio system for the full year (current annualized pull‑through ~ $202,000), cited a temporary Vega manufacturing charge of ~$2.5 million, and expect the recent restructuring (≈40 roles) to cut compensation‑related expense by ~$15–$20 million in 2027 plus an additional ~$15–$20 million of annual savings as development spending winds down; SPRQ‑Nx adoption is expected to have >50% of the installed base opted in by end‑Q3 and the vast majority by year‑end, and management said cash burn should step down meaningfully in 2027.Pacific Biosciences Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
14
Very Negative
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 159.27M | 160.00M | 154.01M | 200.52M | 128.30M | 130.51M |
| Gross Profit | 57.30M | 50.67M | 37.28M | 52.78M | 49.03M | 58.86M |
| EBITDA | -109.08M | -34.20M | -242.77M | -271.13M | -282.24M | -250.76M |
| Net Income | -131.39M | -546.38M | -309.85M | -306.74M | -314.25M | -181.22M |
Balance Sheet | ||||||
| Total Assets | 751.85M | 784.08M | 1.26B | 1.75B | 1.77B | 2.01B |
| Cash, Cash Equivalents and Short-Term Investments | 236.87M | 279.51M | 389.93M | 631.42M | 772.32M | 1.04B |
| Total Debt | 706.13M | 759.46M | 672.43M | 933.93M | 948.48M | 955.36M |
| Total Liabilities | 785.06M | 778.73M | 753.85M | 1.04B | 1.20B | 1.22B |
| Stockholders Equity | -33.21M | 5.35M | 506.59M | 701.30M | 562.90M | 790.99M |
Cash Flow | ||||||
| Free Cash Flow | -171.16M | -113.92M | -212.25M | -275.39M | -280.14M | -117.11M |
| Operating Cash Flow | -162.74M | -111.21M | -206.06M | -266.55M | -263.21M | -111.18M |
| Investing Cash Flow | 156.72M | 115.45M | 124.00M | 4.60M | 116.08M | -678.53M |
| Financing Cash Flow | 4.60M | 3.43M | -42.99M | 116.27M | 9.62M | 1.17B |
Pacific Biosciences Technical Analysis
Neutral
1.36
Price Trends
1.40
Negative
1.43
Negative
1.66
Negative
Market Momentum
-0.05
Negative
53.58
Neutral
79.22
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACB, the sentiment is Neutral. The current price of 1.36 is above the 20-day moving average (MA) of 1.27, below the 50-day MA of 1.40, and below the 200-day MA of 1.66, indicating a neutral trend. The MACD of -0.05 indicates Negative momentum. The RSI at 53.58 is Neutral, neither overbought nor oversold. The STOCH value of 79.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PACB.
Pacific Biosciences Risk Analysis
Pacific Biosciences disclosed 66 risk factors in its most recent earnings report. Pacific Biosciences reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Pacific Biosciences Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
62 Neutral | $2.59B | -33.00 | -38.36% | ― | 28.14% | -5.15% | |
61 Neutral | $441.44M | -11.48 | -25.50% | ― | 0.72% | 56.39% | |
55 Neutral | $79.05M | -1.03 | -62.25% | ― | -1.26% | 79.82% | |
55 Neutral | $625.22M | -7.72 | -23.53% | ― | 5.44% | -1130.00% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $481.57M | -24.54 | -119.68% | ― | 11.59% | 31.90% | |
44 Neutral | $419.62M | -3.14 | -4961.74% | ― | 2.02% | 75.85% |
* Healthcare Sector Average
PACB
Pacific Biosciences
1.35
0.03
2.27%
BFLY
Butterfly Network
9.55
8.00
516.13%
OM
Outset Medical
4.21
-9.51
-69.31%
MASS
908 Devices
10.68
4.41
70.33%
NPCE
NeuroPace
14.03
5.38
62.20%
CTKB
Cytek Biosciences
4.81
0.70
17.03%
Pacific Biosciences Corporate Events
Business Operations and StrategyExecutive/Board ChangesFinancial Disclosures
PacBio Restructures Operations and Appoints New CEO
Negative
Aug 5, 2026
On July 30, 2026, PacBio’s board approved a restructuring plan that includes operating expense reductions and a workforce cut of about 40 employees, or roughly 8% of staff, with related charges of around $2 million to be taken in the third q...
Executive/Board Changes
Pacific Biosciences Announces Resignation of Board Member
Neutral
Jul 9, 2026
On July 8, 2026, Pacific Biosciences of California, Inc. announced that board member Christopher M. Smith resigned from its board of directors, effective immediately. The company stated it is not aware of any disagreement with Smith regarding oper...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Pacific Biosciences Shareholders Approve Governance and Compensation Measures
Positive
Jun 4, 2026
On April 21, 2026, Pacific Biosciences’ board approved, subject to stockholder consent, an amendment to its 2020 Equity Incentive Plan to add 16,000,000 shares of common stock for future equity awards. The move underscores the company’...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.