Veracyte Q4 Earnings Beat Estimates, Revenues Grow Y/Y, Stock Rises

Veracyte, Inc. VCYT delivered fourth-quarter 2025 adjusted earnings of 53 cents per share, up 47.2% from the year-ago period. The bottom line beat the Zacks Consensus Estimate by 30.06%.

The company’s GAAP earnings per share were 52 cents compared with the year-ago period’s earnings of 7 cents per share.

EPS for 2025 of $1.78 increased 49.6% from the prior-year figure. The figure surpassed the Zacks Consensus Estimate by 6.2%.

VCYT’s Revenues

Revenues increased 18.5% year over year to $140.6 million, which outpaced the Zacks Consensus Estimate by 1.4%.

The company reported 2025 revenues of $517.1 million, which increased 16% from the prior-year level. The figure surpassed the Zacks Consensus Estimate by 0.4%. 

Following the earnings announcement yesterday, VCYT shares gained 1.9% in the after-hours session.  

VCYT’s Q4 Segmental Details

Testing revenues totaled $135.8 million, up 21.1% year over year, driven by Decipher and Afirma revenue growth of 27% and 16%, respectively. Total testing volume was roughly 45,500, an increase of 16% over the prior-year period.

Product revenues increased 27% year over year to $3 million in the fourth quarter.

Veracyte, Inc. Price, Consensus and EPS Surprise

 

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

Biopharmaceutical and other revenues of $962 million reflected a 72.2% decrease from the prior-year quarter, given the restructuring and liquidation proceedings of Veracyte SAS.

VCYT’s Q4 Margins

The total cost of revenues (product, testing, biopharmaceutical and other) was $36 million, down 3% year over year.

The gross profit rose 28.3% to $104.7 million. The gross margin expanded 568 basis points (bps) to 74.4%.

Selling and marketing expenses rose 4.5% to $25.9 million, while general and administrative expenses fell 35.5% to $17 million. R&D expenses totaled $20.8 million, up 8.1% year over year. The adjusted operating margin was 28.8% compared with 8.9% in the prior-year quarter.

VCYT’s Cash, Capital Structure & Solvency

Veracyte exited fourth-quarter 2025 with cash and cash equivalents of $362.6 million compared with $239.1 million at the end of 2024.

The cumulative net cash provided from operating activities at the end of the reported quarter was $136.3 million compared with $75.1 million a year ago.

VCYT’s 2026 Guidance

Veracyte reiterated its 2026 guidance, which it originally issued during its preliminary fourth-quarter financial report in January. The company expects revenues of $570 million to $582 million. This indicates 10-13% growth, with Testing revenues growing 14-16%. The Zacks Consensus Estimate for the metric is pegged at $577.3 million.

The adjusted EBITDA margin is expected to be 25% for 2026.

Our Take on VCYT Stock

Veracyte exited the fourth quarter of 2025 with earnings and revenues beating estimates. Performance benefited from the continued strength in the company’s core testing business. Throughout the year, Veracyte witnessed a steady pipeline of account wins in Affirma and increased utilization per account, with the fourth quarter continuing this trend.

The company also completed the full transition of all Afirma volume to the more scalable, lower-cost v2 transcriptome platform. Meanwhile, Decipher reached another record for both the number of quarterly ordering providers and orders per physician. Expansion of both margins is highly encouraging.

According to management, Veracyte is entering 2026 with a clear path to sustained double-digit growth, served by a portfolio of tests in prostate, breast, thyroid and bladder cancer.

Zacks Rank & Other Key Picks

Veracyte currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Cardinal Health CAH and Align Technology ALGN.

Intuitive Surgical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $2.53, which surpassed the Zacks Consensus Estimate by 12.4%. Revenues of $2.87 billion beat the Zacks Consensus Estimate by 4.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.

ISRG has an estimated long-term earnings growth rate of 15.7% compared with the industry’s 12.7% growth. The company beat earnings estimates in the trailing four quarters, the average surprise being 13.24%.

Cardinal Health,carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of $2.63, exceeding the Zacks Consensus Estimate by 10%. Revenues of $65.6 billion topped the Zacks Consensus Estimate by 0.9%.

CAH has a long-term earnings growth rate of 15% compared with the industry’s 9.6% growth. The company’s earnings outpaced estimates in the trailing four quarters, the average surprise being 9.3%.

Align Technology,carrying a Zacks Rank #2 at present, posted a fourth-quarter 2025 adjusted EPS of $3.29, exceeding the Zacks Consensus Estimate by 10.1%. Revenues of $1.05 billion outperformed the Zacks Consensus Estimate by 5.3%.

ALGN has an estimated long-term earnings growth rate of 10.1% compared with the industry’s 9.5% growth. The company’s earnings outpaced estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 6.16%.

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