PacBio Stock Up on Q2 Earnings & Revenue Beat Estimates, Margin Rises

Pacific Biosciences of California, Inc. PACB, popularly known as PacBio, delivered an adjusted loss per share of 13 cents in second-quarter 2025, narrower than the year-ago adjusted loss of 20 cents per share. The adjusted loss per share topped the Zacks Consensus Estimate by 27.8%.

The company’s GAAP loss per share was 14 cents in the quarter compared with the year-ago period’s loss of 64 cents.

PacBio’s Revenues in Detail

PacBio registered total revenues of $39.8 million in the second quarter, up 10.4% year over year. The figure also surpassed the Zacks Consensus Estimate by 9.1%.

Shares of this company gained 8.7% in yesterday’s after-market trading. The company’s shares have plunged 25.2% in the year-to-date period compared with the industry’s decline of 11.7%. The broader S&P 500 Index has increased 7.6% in the same time frame.

PACB’s Geographical Analysis

PacBio’s revenues from the Americas were $17.7 million, down 15% year over year. The decline resulted from the region being most affected by government funding headwinds and uncertainty regarding NIH funding.

In the Asia-Pacific region, PacBio recorded revenues of $12.6 million, reflecting a 53% increase year over year. Growth was driven primarily by increased Revio and Vega placements and increased revenue from a popgen project in South East Asia.

The Europe, the Middle East and Africa (EMEA) region registered revenues of $9.5 million, which improved 35% year over year. In the EMEA region, Europe experienced strong Revio placementsin the hospital and clinical research customer base and growing demand for the Vega platform.

PacBio’s Segmental Analysis

Total Product revenues amounted to $33.1 million, up 4.2% from the year-ago quarter.

Within the Product segment, Instrument revenues were $14.2 million, down 3.4% year over year. This primarily resulted from lower shipments of the Revio system.Instrument revenues in the first quarter of 2025 included 15 Revio sequencing systems and 38 Vega sequencing systems.

PACB ended the quarter with 297 cumulative Revio system shipments.

Consumables revenues for the second quarter of 2025 were $18.9 million, up 11.2% from the prior-year quarter. AnnualizedRevio pull-through per system was $219,000 in the quarter.

Service and other revenues totaled $6.7million, up 57% year over year. This was driven by an increase in service contract revenues related to Revio.

PACB’s Margin Trend

In the quarter under review, PacBio’s adjusted gross profit increased 15.1% year over year to $15.2 million. The adjusted gross margin expanded 100 basis points to 38%.

Sales, general and administrative expenses declined 21.2% year over year to $36.2 million. Research and development expenses decreased 41.5% year over year to $22.5 million. Adjusted total operating expenses of $58.1 million decreased 18.2% year over year.

Total operating loss was $44.9 million in the reported quarter compared with the prior-year quarter’s $175.8 million.

Pacific Biosciences of California, Inc. Price, Consensus and EPS Surprise

Pacific Biosciences of California, Inc. price-consensus-eps-surprise-chart | Pacific Biosciences of California, Inc. Quote

PacBio’s Financial Position

PacBio exited the second quarter of 2025 with cash and investmentsof $314.7million compared with $343.1million at the end of the first quarter of 2025.

PACB’s Guidance

PacBio has provided its revenue outlook for the third quarter of 2025 and revised the outlook for 2025.

Management expects third-quarter 2025 revenues to be flat compared with the second quarter of 2025 due to typical seasonality and lower Revio systems revenues. However, this is likely to be partially offset by increased Vega system revenues. The Zacks Consensus Estimate is pegged at $40.1 million.

The company now expects to achieve revenues between $155 millionand $165 million for 2025 compared with the previous guidance of $150 million to $170 million. The Zacks Consensus Estimate is pegged at $155.4 million.

Our Take

PacBio exited the first quarter of 2025 with better-than-expected results, where both earnings and revenues beat their respective Zacks Consensus Estimate. A robust increase in its Service and other revenues, along with Consumables revenues, was encouraging. The expansion of the adjusted gross margin and reduction in total operating loss also bode well.

During the quarter, PacBio achieved a significant milestone with the publication of the Platinum Pedigree benchmark in Nature Methods. Developed using PacBio’s HiFi sequencing technology, this is the most comprehensive family-based variant dataset published to date. It sets a new gold standard for assessing complex genomic variation and substantially enhances the performance of AI-based variant calling tools.

The company also made strategic advances in global scientific collaboration and population-scale genomics. As a new member of the 1000 Genomes Long Read Project, PacBio is contributing isoform-level transcriptome sequencing using its Kinnex RNA kit and Revio system. This participation helps broaden access to full-length isoform data across genetically diverse populations and showcases the scalability of PacBio's long-read solutions. Additionally, PacBio technology powered the first Arab human pangenome, an achievement that opens doors to better understanding genetic variation in Middle Eastern populations—marking another critical step in democratizing precision genomics.

PacBio continued expanding its international commercial footprint, signing a new distribution agreement with Haorui Gene to scale adoption of HiFi sequencing in China. This partnership gives PacBio broader access to clinical laboratory networks and aims to accelerate the integration of HiFi sequencing into research and clinical workflows, particularly in transfusion medicine and hematology.

PacBio’sZacks Rank and Stocks to Consider

PACB currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. MEDP, West Pharmaceutical Services, Inc. WST and Boston Scientific Corporation BSX.

Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.

West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.

West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).

Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%.

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This article originally published on Zacks Investment Research (zacks.com).

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