Here's How Veracyte Stock Is Placed Ahead of Q4 Earnings

Veracyte, Inc. VCYT is scheduled to report fourth-quarter 2025 results on Feb. 25, after market close. 

In the last reported quarter, the company’s adjusted earnings per share (EPS) of 51 cents surpassed the Zacks Consensus Estimate by 59.38%. Earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 45.12%.

Q4 Estimates for VCYT

The Zacks Consensus Estimate for revenues is pegged at $138.7 million, suggesting a 16.9% rise from the year-ago reported figure.

The Zacks Consensus Estimate for EPS of 41 cents indicates a 13.9% year-over-year increase.

Estimate Revision Trend Ahead of VCYT’s Q4 Earnings

Estimates for earnings have moved north 2.5% in the past 30 days.

Here’s a brief recap of the company’s performance leading up to this announcement.

VCYT: Factors at Play

Testing

The company’s core testing business is likely to have delivered solid revenue growth in the fourth quarter, supported by continued strength in both Decipher and Afirma volumes. Afirma volumes might have grown, driven by a steady stream of new account wins and increased utilization per account.

Decipher Prostate delivered approximately 26,700 tests in the third quarter, marking its 14th consecutive quarter of more than 25% year-over-year volume growth. We expect this trend to have persisted in the fourth quarter as well. Test volume may have increased due to growing clinical adoption across risk categories, as physicians increasingly recognize its utility in guiding treatment decisions.

Test volumes in the high-risk localized segment might have also increased, indicating accelerated traction in this key category. Ongoing research activity remains robust, with 23 new abstracts and publications on Decipher Prostate and GRID, bringing the cumulative total to 240 publications and reinforcing the growing body of clinical evidence supporting the platform.

Product

Third-quarter product volume was approximately 2,200 tests and product revenues grew 4% year over year. We expect this trend to have persisted in the fourth quarter as well. 

However, in the third earnings call, management stated that it expects product gross margin to decline in the fourth quarter due to its transition to a contract manufacturing model.

Veracyte, Inc. Price and EPS Surprise

Veracyte, Inc. price-eps-surprise | Veracyte, Inc. Quote

Biopharmaceutical and other

Revenues in this segment are expected to decrease, given the Veracyte SAS restructuring and liquidation proceedings. Gross margin is also expected to be in negative. 

Earnings Whispers for VCYT Stock

Per our proven model, stocks with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold), along with a positive Earnings ESP, have a higher chance of beating estimates, which is exactly the case here:

Earnings ESP: Vercayte has an Earnings ESP of +7.98%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: Vercayte currently carries a Zacks Rank #2.

Other Key MedTech Picks

Here are some other medical stocks worth considering, as these, too, have the right combination of elements to post an earnings beat this time around:

AngioDynamics ANGO has an Earnings ESP of +4.76% and a Zacks Rank #1. The company is set to release third-quarter fiscal 2026 results soon.

ANGO’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 82.14%. The Zacks Consensus Estimate for the company’s fiscal third-quarter EPS suggests a decrease of 466.3% from the year-ago figure.

Globus Medical GMED has an Earnings ESP of +3.92% and a Zacks Rank #2. The company is expected to release fourth-quarter 2025 results soon.

GMED’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 16.24%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS implies a surge of 26.2% from the year-ago reported figure.

Merit Medical Systems MMSI has an Earnings ESP of +2.09% and a Zacks Rank #2. The company is slated to release fourth-quarter 2025 results on Feb. 24.

MMSI’s earnings topped estimates in each of the trailing four quarters, the average surprise being 14.1%. The Zacks Consensus Estimate for the company’s fourth-quarter EPS calls for an increase of 3.2% from the year-ago quarter’s figure.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

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

Zacks Investment Research