PacBio Q4 Earnings and Revenues Beat Estimates, Gross Margin Up

Pacific Biosciences of California, Inc. PACB, popularly known as PacBio, delivered an adjusted loss per share of 12 cents in fourth-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 36.8%.

The company’s GAAP loss per share was 13 cents in the quarter compared with the year-ago period’s loss of 49 cents.

PacBio’s Revenues in Detail

PacBio registered total revenues of $44.6 million in the fourth quarter, up 13.8% year over year. The figure beat the Zacks Consensus Estimate by 9.4%.

PACB’s Geographical Analysis

PacBio’s revenues from the Americas were $20.7 million, up 3%year over year.

In the Asia-Pacific region, PacBio recorded revenues of $9.3 million, reflecting a 4% increase year over year.

The Europe, the Middle East and Africa (EMEA) region registered revenues of $14.6 million, which improved 45% year over year.

PacBio’s Segmental Analysis

Total Product revenues amounted to $38.9 million, up 14.3% from the year-ago quarter.

Within the Product segment, Instrument revenues were $17.3 million, up 13.1% year over year.Instrument revenues in the fourth quarter of 2025 included 21 Revio sequencing systems and 42 Vega sequencing systems.

PACB ended the quarter with 331 cumulative Revio system shipments.

Consumables revenues for the fourth quarter of 2025 were $21.6 million, up 14.9% from the prior-year quarter. AnnualizedRevio pull-through per system was $242,000 in the quarter.

Service and other revenues totaled $5.7million, up 11.8% 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 44.7% year over year to $17.8 million. The adjusted gross margin expanded 900 basis points to 41%.

Sales, general and administrative expenses declined 18.2% year over year to $34.1 million. Research and development expenses decreased 16.7% year over year to $22.9 million. Adjusted total operating expenses of $56.2 million decreased 18.1% year over year.

Total operating loss was $41.2 million in the reported quarter compared with the prior-year quarter’s $153 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 fourth quarter of 2025 with cash and investmentsof $279.5million compared with $298.7million at the end of the third quarter of 2025.

PACB’s 2026 Guidance

PacBio has provide its revenue outlook for full year 2026.

Management expects 2026 revenues to grow in the range of 3%-12% year over year to $165-180 million.The Zacks Consensus Estimate is pegged at $177.4 million.

Our Take

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

During the quarter, PacBio advanced its strategic focus on long-read sequencing through a series of clinical, research, and portfolio actions. The company joined the iHope initiative as the first long-read genomic sequencing partner, integrating HiFi sequencing into one of the world’s largest equitable rare-disease genomic testing networks, while also announcing collaborations with the n-Lorem Foundation and EspeRare to accelerate precision therapies for rare genetic diseases. HiFi sequencing was further validated with its adoption as a first-line approach for investigating sudden unexplained death in childhood.

On the technology front, PacBio expanded its multiomics capabilities with the launch of CiFi, a new long-read 3C method enabling chromosome-scale assemblies from a single SMRT Cell, developed in collaboration with UC Davis researchers. Complementing these operational milestones, the company completed the sale of its short-read sequencing assets for net cash proceeds of approximately $48.1 million, strengthening the balance sheet and extending its cash runway.

PacBio’s Zacks 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 DaVita Inc. DVA, Cardinal Health, Inc. CAH and Doximity, Inc. DOCS.

DaVita reported fourth-quarter 2025 adjusted earnings per share (EPS) of $3.40, beating the Zacks Consensus Estimate by 5.1%. Revenues of $3.62 billion surpassed the Zacks Consensus Estimate by 2.7%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita has a long-term estimated growth rate of 20.2%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 1.2%.

Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, reported second-quarter fiscal 2026 adjusted EPS of $2.63, beating the Zacks Consensus Estimate by 9.9%. Revenues of $65.63 billion topped the consensus mark by 0.9%.

Cardinal Health has a long-term estimated growth rate of 15%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.3%.

Doximity reported fourth-quarter fiscal 2026 adjusted EPS of 46 cents, beating the Zacks Consensus Estimate by 4.6%. Revenues of $185.1 million surpassed the Zacks Consensus Estimate by 2.2%. It currently carries a Zacks Rank #2.

Doximity has a long-term estimated growth rate of 16.1%. DOCS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.9%.

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

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