The Top 5 Analyst Questions From PacBio's Q2 Earnings Call

PacBio’s second quarter was marked by robust international demand and higher consumables usage, which helped the company surpass Wall Street’s expectations. Management attributed the revenue growth to strong performance in the Asia-Pacific and Europe, Middle East, and Africa (EMEA) regions, with CEO Christian Henry highlighting a 45% year-over-year increase across these markets. The company noted that adoption of its long-read sequencing platforms, particularly through the new Vega system and recently introduced SPRQ chemistry, was a key driver of increased gigabase output and broader customer uptake.

Is now the time to buy PACB? Find out in our full research report (it’s free).

While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.

Our Top 5 Analyst Questions From PacBio’s Q2 Earnings Call

• David Westenberg (Piper Sandler) asked about the impact of U.S. macro conditions on instrument versus consumables demand. CEO Christian Henry explained that funding uncertainty is primarily weighing on instrument sales, while consumables usage remains healthy.
• Jack Meehan (Nephron Research) inquired about clinical adoption and the proportion of consumables used by clinical customers. Henry noted that about 15% of consumable revenue is now clinical, with further growth anticipated as more assays reach routine use.
• Kyle Mikson (Canaccord) questioned whether new clinical lab customers are replacing legacy technologies or adding PacBio alongside existing platforms. Henry responded that most labs use multiple technologies but are increasingly adopting PacBio for accuracy and workflow improvements.
• Douglas Schenkel (Wolfe Research) probed the potential for pent-up demand if NIH funding is clarified. Henry acknowledged a significant pipeline of “near opportunities” that could convert to orders if macro conditions improve.
• Mason Carrico (Stephens) asked about the concentration of revenue in large-scale projects in Europe. Henry clarified that while such initiatives help, recent growth is increasingly broad-based, especially in hospital settings focused on rare disease.

Catalysts in Upcoming Quarters

Looking forward, the StockStory team will be watching (1) whether consumables growth continues to outpace instrument sales declines as clinical adoption accelerates, (2) funding trends and clarity around U.S. NIH appropriations and their impact on instrument demand, and (3) the pace of new customer wins and expansion in international markets—especially as Vega and Revio platforms gain traction. Progress on SMRT Cell innovation and cost reductions will also be key markers of execution.

PacBio currently trades at $1.28, up from $1.27 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).

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