Pacific Biosciences (PACB)
NASDAQ:PACB
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Pacific Biosciences
(NASDAQ:PACB)
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Rating:45Neutral
Price Target:
$1.00
▼(-40.83% Downside)
Action:Reiterated
Date:05/09/26
The score is held down primarily by weak financial performance—large ongoing losses, continued cash burn, and high leverage against a very thin equity base. Technicals also remain soft with the stock trading below major moving averages. Offsetting these negatives, the earnings call showed consumables-led progress and cost control, but guidance was trimmed and margins remain under pressure, limiting the overall score.
Positive Factors
Recurring consumables growth (installed-base revenue)
Consistent record consumables revenue indicates durable recurring demand from the installed base, supporting a razor/razor-blade model. As instruments are deployed, ongoing SMRT Cell and reagent purchases create predictable, high-margin pull‑through that can stabilize revenue even if instrument sales fluctuate.
Negative Factors
Severely leveraged balance sheet
Very high debt relative to equity restricts financial flexibility and increases refinancing or covenant risk during stress. Thin equity limits absorption of losses and raises the likelihood of dilution or costly capital raises, constraining long-term investment and strategic optionality.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring consumables growth (installed-base revenue)
Consistent record consumables revenue indicates durable recurring demand from the installed base, supporting a razor/razor-blade model. As instruments are deployed, ongoing SMRT Cell and reagent purchases create predictable, high-margin pull‑through that can stabilize revenue even if instrument sales fluctuate.
Read all positive factors
Pacific Biosciences Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes income from different business units or product lines, highlighting which areas drive growth and which may need strategic adjustments.
Analyzes income from different business units or product lines, highlighting which areas drive growth and which may need strategic adjustments.
Data provided by:
The Fly
The FlyPacific Biosciences (PACB) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$378.93M
Dividend YieldN/A
Average Volume (3M)6.28M
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth5.04%
EPS Growth81.29%
CountryUS
Employees575
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-0.43
Shares Outstanding310,601,680
10 Day Avg. Volume6,084,431
30 Day Avg. Volume6,280,036
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 Cap2.71
Enterprise Value/Revenue6.41
Enterprise Value/Gross Profit17.29
Enterprise Value/Ebitda-7.01
Forecast
1Y Price Target
$2.38Price Target Upside40.53% Upside
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)-0.43
Revenue Forecast (FY)$169.71M
Pacific Biosciences Business Overview & Revenue Model
Company Description
Pacific Biosciences of California, Inc. designs, develops, and manufactures sequencing systems to resolve genetically complex problems. The company provides PacBio's Systems, which conduct, monitor, and analyse biochemical sequencing reactions; co...
How the Company Makes Money
PacBio generates revenue primarily through product and service sales tied to its sequencing platforms. The core model is an installed-base “razor/razor-blade” approach: (1) Instrument revenue: one-time sales (or placements) of sequencing systems (...
Pacific Biosciences Earnings Call Summary
Earnings Call Date:May 07, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 05, 2026
Earnings Call Sentiment Neutral
The call presented a mixed picture: strong commercial and strategic progress in consumables, clinical adoption, SPRQ-Nx beta success, and a major Basecamp collaboration, alongside meaningful near-term headwinds including flat total revenue, a decline in instrument revenue, gross margin pressure from rising compute costs and promotional ASP compression, and a modest downward revision to guidance. Operational improvements (lower operating expenses, improved non-GAAP net loss) and strategic actions bolster the long-term outlook, but near-term revenue and margin challenges temper enthusiasm.Positive Updates
Record Consumable Revenue (Third Consecutive Quarter)
Consumable revenue reached a record $21.8M in Q1 2026, up 9% year-over-year from $20.1M, marking the third consecutive record quarter for consumables.
Negative Updates
Total Revenue Flat and Guidance Reduced
Total revenue was flat at $37.2M in Q1 2026 (unchanged year-over-year). Management lowered the high-end of 2026 revenue guidance by $5M to a range of $165M–$175M.
Read all updates
Q1-2026 Updates
Positive
Negative
Record Consumable Revenue (Third Consecutive Quarter)
Consumable revenue reached a record $21.8M in Q1 2026, up 9% year-over-year from $20.1M, marking the third consecutive record quarter for consumables.
Read all positive updates
Company Guidance
PacBio lowered its 2026 revenue guidance to $165–$175 million (reducing the high end by $5 million) and said consumables will be the primary growth driver, while non‑GAAP operating expenses are guided to $220–225 million (down from 2025); management expects non‑GAAP gross‑margin improvement toward the lower end of its prior 100–400 basis‑point range despite input cost pressure from memory/compute. For context, Q1 revenue was $37.2M (instruments $9.7M, consumables $21.8M, service $5.6M), Q1 non‑GAAP gross profit was $13.8M (37% margin vs 40% a year ago), Q1 non‑GAAP operating expense was $49.9M, non‑GAAP net loss was $35.9M ($0.12/sh), cash totaled ~$276M (including ~$48.1M net proceeds from the Illumina sale), and instrument shipments were 15 Revio / 27 Vega (cumulative 346 Revio / 174 Vega) with annualized Revio pull‑through ~ $229K (target range $225K–$250K); guidance assumes no meaningful recovery in academic/government funding, SPRQ‑Nx commercialization later this month should boost Revio and consumable demand, Vega ASPs are expected to normalize in Q2 after a Q1 promotion, and gross margins should begin to improve in Q2 though gains will be tempered by rising compute costs.Pacific Biosciences Financial Statement Overview
Summary
Income Statement
24
Negative
Balance Sheet
18
Very Negative
Cash Flow
22
Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 160.03M | 160.00M | 154.01M | 200.52M | 128.30M | 130.51M |
| Gross Profit | 59.34M | 50.67M | 37.28M | 52.78M | 49.03M | 58.86M |
| EBITDA | -146.34M | -34.20M | -242.77M | -271.13M | -282.24M | -250.76M |
| Net Income | -128.58M | -546.38M | -309.85M | -306.74M | -314.25M | -181.22M |
Balance Sheet | ||||||
| Total Assets | 782.37M | 784.08M | 1.26B | 1.75B | 1.77B | 2.01B |
| Cash, Cash Equivalents and Short-Term Investments | 275.98M | 279.51M | 389.93M | 631.42M | 772.32M | 1.04B |
| Total Debt | 703.39M | 759.46M | 672.43M | 933.93M | 948.48M | 955.36M |
| Total Liabilities | 780.00M | 778.73M | 753.85M | 1.04B | 1.20B | 1.22B |
| Stockholders Equity | 2.37M | 5.35M | 506.59M | 701.30M | 562.90M | 790.99M |
Cash Flow | ||||||
| Free Cash Flow | -116.21M | -113.92M | -212.25M | -275.39M | -280.14M | -117.11M |
| Operating Cash Flow | -111.84M | -111.21M | -206.06M | -266.55M | -263.21M | -111.18M |
| Investing Cash Flow | 106.07M | 115.45M | 124.00M | 4.60M | 116.08M | -678.53M |
| Financing Cash Flow | 2.91M | 3.43M | -42.99M | 116.27M | 9.62M | 1.17B |
Pacific Biosciences Technical Analysis
Negative
1.69
Price Trends
1.43
Negative
1.67
Negative
1.67
Negative
Market Momentum
-0.09
Positive
39.37
Neutral
38.66
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PACB, the sentiment is Negative. The current price of 1.69 is above the 20-day moving average (MA) of 1.40, above the 50-day MA of 1.43, and above the 200-day MA of 1.67, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 39.37 is Neutral, neither overbought nor oversold. The STOCH value of 38.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 |
|---|---|---|---|---|---|---|---|
56 Neutral | $275.28M | -4.71 | -25.50% | ― | -5.89% | 53.75% | |
52 Neutral | $1.17B | -20.44 | -36.79% | ― | 20.20% | -0.81% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $79.99M | -0.93 | -55.88% | ― | 2.01% | 85.71% | |
47 Neutral | $576.87M | -16.57 | -120.74% | ― | 18.06% | 21.86% | |
47 Neutral | $517.86M | -7.45 | -20.77% | ― | 3.61% | -568.29% | |
45 Neutral | $378.93M | -12.20 | -488.45% | ― | 5.04% | 81.29% |
* Healthcare Sector Average
PACB
Pacific Biosciences
1.22
0.30
32.46%
BFLY
Butterfly Network
4.47
1.94
76.68%
OM
Outset Medical
4.32
-14.47
-77.01%
MASS
908 Devices
7.28
1.84
33.82%
NPCE
NeuroPace
16.92
4.26
33.65%
CTKB
Cytek Biosciences
4.01
1.59
65.70%
Pacific Biosciences Corporate Events
Business Operations and StrategyExecutive/Board ChangesLegal Proceedings
Pacific Biosciences Secures Key Patent License, Ends Litigation
Positive
Mar 6, 2026
On March 2, 2026, Pacific Biosciences said Chief Accounting Officer Michele Farmer had resigned effective March 21, 2026, to pursue another opportunity, with the company emphasizing there was no disagreement over accounting or other practices and ...
Business Operations and StrategyExecutive/Board Changes
PacBio Adds AI-Driven Drug Discovery Leader to Board
Positive
Mar 5, 2026
On March 3, 2026, PacBio’s board of directors expanded to ten members and appointed Christopher Gibson, Ph.D., co-founder and chairman of AI-driven drug discovery company Recursion, as a Class I director with a term running until the 2026 an...
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.