Veracyte Inc (VCYT)
NASDAQ:VCYT
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Veracyte
(NASDAQ:VCYT)
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Rating:81Outperform
Price Target:
$52.00
▲(53.85% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by strong financial execution (profitability inflection, solid cash generation, and a low-leverage balance sheet) and a very constructive earnings update with raised guidance and margin/EBITDA strength. Technicals also support the view with clear upward momentum, though indicators are close to stretched levels. Valuation is reasonable but not particularly compelling and lacks dividend support.
Positive Factors
Margin Expansion & Profitability
Sustained, materially higher margins and a 30.8% adjusted EBITDA margin indicate scalable lab operations and meaningful operating leverage. This transition to durable profitability supports reinvestment in R&D/commercialization while providing a structural cushion for cash generation and capital allocation decisions over the medium term.
Negative Factors
Binary Trial Dependence
Key product and label progress hinge on binary clinical outcomes. A failed or delayed OPTIMA/ENZIMET readout can materially postpone Prosigna rollouts and limit Decipher's guideline-driven adoption. That binary risk creates persistent execution uncertainty for revenue and reimbursement timing over quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Margin Expansion & Profitability
Sustained, materially higher margins and a 30.8% adjusted EBITDA margin indicate scalable lab operations and meaningful operating leverage. This transition to durable profitability supports reinvestment in R&D/commercialization while providing a structural cushion for cash generation and capital allocation decisions over the medium term.
Read all positive factors
Veracyte Key Performance Indicators (KPIs)
Any
Revenue By Segment
Breaks down revenue by different business segments, highlighting which areas are driving growth and profitability, and indicating where the company is focusing its strategic efforts.
Breaks down revenue by different business segments, highlighting which areas are driving growth and profitability, and indicating where the company is focusing its strategic efforts.
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The Fly
The FlyVeracyte (VCYT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.61B
Dividend YieldN/A
Average Volume (3M)969.64K
Price to Earnings (P/E)22.3
Beta (1Y)1.32
Revenue Growth16.91%
EPS Growth159.69%
CountryUS
Employees824
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)1.11
Shares Outstanding79,792,650
10 Day Avg. Volume1,061,650
30 Day Avg. Volume969,640
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)2.53
Price to Sales (P/S)6.40
P/FCF Ratio26.13
Enterprise Value/Market Cap0.93
Enterprise Value/Revenue6.22
Enterprise Value/Gross Profit8.72
Enterprise Value/Ebitda31.75
Forecast
1Y Price Target
$45.28Price Target Upside33.97% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)1.82
Revenue Forecast (FY)$586.10M
Veracyte Business Overview & Revenue Model
Company Description
Veracyte, Inc. operates as a diagnostics company worldwide. The company offers Afirma Genomic Sequencing Classifier and Xpression Atlas, which are used to determine patients with indeterminate results are benign to avoid unnecessary surgery; Decip...
How the Company Makes Money
Veracyte primarily makes money by providing diagnostic testing services and recognizing revenue when its tests are ordered by clinicians and performed on patient samples. The main revenue stream is test revenue: the company performs proprietary ge...
Veracyte Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial picture: double-digit revenue and volume growth, margin expansion, robust adjusted EBITDA (30.8%), strong cash generation, and multiple near-term product catalysts (Prosigna LDT and TruMRD). The company emphasized a deep clinical evidence base, sustained Decipher momentum, operational wins on Afirma (V2 workflow), and continued investment in R&D and commercialization. Key risks discussed were binary clinical readouts (OPTIMA/ENZIMET), exclusion of new-product revenue from guidance, PPC variability, seasonal sample quality impacts, and the need for guideline/reimbursement progress—factors that inject execution and timing uncertainty but do not currently outweigh the suite of positive financial and commercial indicators.Positive Updates
Strong Top-Line Growth
Total revenue of $139.1M, up 21% year-over-year; testing revenue $135.1M, up 26% year-over-year.
Negative Updates
New Product Contribution Not Yet Included in Guidance
Full-year guidance ($582M–$592M, +13%–14% YoY) excludes potential revenue from Prosigna LDT and TruMRD launches, creating upside uncertainty but also conservative guidance assumptions.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue of $139.1M, up 21% year-over-year; testing revenue $135.1M, up 26% year-over-year.
Read all positive updates
Company Guidance
Veracyte raised 2026 total revenue guidance to $582–592 million (13–14% YoY, up from $570–582M prior), with testing revenue growth expected at 16–18% excluding new tests; Decipher revenue is expected to grow ~20% and Afirma is guided to high single‑digit to low double‑digit growth (including a 2–3% full‑year benefit from improved Afirma no‑result rates, which contributed ~400 bps to Q1 volume). Q1 underpinnings cited: total revenue $139.1M (+21% YoY), testing revenue $135.1M (+26%), total volume ~47.6K tests (+17%), testing volume ~45.2K tests (+19%), testing ASP $2,980 (+6%; normalized ASP $2,900, +3% ex‑PPC), non‑GAAP gross margin 75.7% (+350 bps), testing gross margin 70.4% (+230 bps), non‑GAAP operating expenses $64.6M (+7% YoY), GAAP net income $28.7M, adjusted EBITDA $42.8M (30.8% of revenue, +73% YoY), cash from operations $35.2M, and cash/cash equivalents/short‑term investments $439.1M. The company raised full‑year adjusted EBITDA guidance to >26% (above its 25% long‑term target), reiterated guidance excludes any future prior‑period collections (PPCs) and does not include potential contributions from the upcoming Prosigna LDT or TruMRD launches.Veracyte Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
86
Very Positive
Cash Flow
83
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 541.74M | 517.14M | 445.76M | 361.05M | 296.54M | 219.51M |
| Gross Profit | 386.31M | 360.05M | 298.14M | 248.15M | 194.95M | 145.11M |
| EBITDA | 106.10M | 89.62M | 49.20M | -49.41M | -6.98M | -60.18M |
| Net Income | 88.01M | 66.35M | 24.14M | -74.40M | -36.56M | -75.56M |
Balance Sheet | ||||||
| Total Assets | 1.44B | 1.41B | 1.30B | 1.11B | 1.16B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 439.06M | 412.89M | 289.44M | 216.45M | 178.85M | 177.16M |
| Total Debt | 39.33M | 39.65M | 50.74M | 12.63M | 14.72M | 18.85M |
| Total Liabilities | 91.99M | 96.44M | 124.07M | 70.80M | 81.22M | 91.31M |
| Stockholders Equity | 1.34B | 1.31B | 1.18B | 1.04B | 1.08B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 154.81M | 126.63M | 63.81M | 34.26M | -1.01M | -37.00M |
| Operating Cash Flow | 166.16M | 136.31M | 75.10M | 44.22M | 7.54M | -31.62M |
| Investing Cash Flow | -85.35M | -9.21M | -56.27M | 15.11M | -29.39M | -739.21M |
| Financing Cash Flow | -4.37M | -4.22M | 4.90M | 2.84M | 3.49M | 596.32M |
Veracyte Technical Analysis
Positive
33.80
Price Trends
34.97
Positive
36.70
Positive
36.73
Positive
Market Momentum
2.73
Negative
73.75
Negative
93.70
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VCYT, the sentiment is Positive. The current price of 33.8 is below the 20-day moving average (MA) of 38.37, below the 50-day MA of 34.97, and below the 200-day MA of 36.73, indicating a bullish trend. The MACD of 2.73 indicates Negative momentum. The RSI at 73.75 is Negative, neither overbought nor oversold. The STOCH value of 93.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VCYT.
Veracyte Risk Analysis
Veracyte disclosed 56 risk factors in its most recent earnings report. Veracyte reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Veracyte Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $3.61B | 22.31 | 6.86% | ― | 16.91% | 159.69% | |
64 Neutral | $2.63B | -67.46 | -1.41% | ― | 95.29% | 98.21% | |
62 Neutral | $4.16B | -18.39 | -26.79% | ― | 96.03% | 82.27% | |
62 Neutral | $7.01B | -8.96 | -65.80% | ― | ― | -1.22% | |
61 Neutral | $6.95B | -29.41 | -244.61% | ― | ― | -28.74% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $2.56B | -9.69 | -36.95% | ― | ― | -68.57% |
* Healthcare Sector Average
VCYT
Veracyte
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Veracyte Corporate Events
Business Operations and StrategyExecutive/Board Changes
Veracyte Appoints Kevin Haas as Chief Technology Leader
Positive
Mar 16, 2026
On March 16, 2026, Veracyte, Inc. announced it had appointed former Myriad Genetics executive Dr. Kevin Haas as Chief Development and Technology Officer, effective March 24, 2026, bringing extensive experience in technology, engineering and bioinf...
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.