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Veracyte
(NASDAQ:VCYT)
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Rating:78Outperform
Price Target:
$51.00
▲(15.80% Upside)
Action:Upgraded
Date:10/21/26
The score is primarily supported by strong financial performance (profitability inflection, robust free cash flow, and very low leverage) and a positive earnings outlook with raised 2026 revenue guidance and solid EBITDA expectations. Offsetting factors are a technically neutral setup with limited momentum and a moderate-to-demanding valuation (P/E ~31) without dividend support.
Positive Factors
Profitability and Revenue Growth
Veracyte has moved from substantial historical losses to stronger profitability while continuing to grow revenue. Improving margins indicate operating leverage and a more scalable diagnostics model, supporting the company’s ability to fund product development and strengthen earnings over the next several quarters.
Negative Factors
Prosigna Reimbursement Uncertainty
Prosigna’s commercial contribution remains dependent on completing the reimbursement and pricing process for the centralized LDT. Until that is resolved, adoption may not translate into expected revenue, making the launch’s contribution to medium-term growth less certain.
Read all positive and negative factors
Positive Factors
Negative Factors
Profitability and Revenue Growth
Veracyte has moved from substantial historical losses to stronger profitability while continuing to grow revenue. Improving margins indicate operating leverage and a more scalable diagnostics model, supporting the company’s ability to fund product development and strengthen earnings over the next several quarters.
Read all positive factors
Veracyte Key Performance Indicators (KPIs)
Any
Revenue By Segment
Shows how Veracyte’s sales split across business lines, diagnostic tests, and regions, revealing which tests or markets are driving growth. Reveals concentration risk, margin differences between tests and services, and sensitivity to reimbursement changes or adoption of new tests — all key to forecasting future revenue and profitability.
Shows how Veracyte’s sales split across business lines, diagnostic tests, and regions, revealing which tests or markets are driving growth. Reveals concentration risk, margin differences between tests and services, and sensitivity to reimbursement changes or adoption of new tests — all key to forecasting future revenue and profitability.
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The Fly
The FlyVeracyte (VCYT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.04B
Dividend YieldN/A
Average Volume (3M)1.40M
Price to Earnings (P/E)34.9
Beta (1Y)0.96
Revenue Growth17.28%
EPS Growth323.64%
CountryUS
Employees755
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)1.44
Shares Outstanding80,390,730
10 Day Avg. Volume1,092,157
30 Day Avg. Volume1,396,104
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)2.53
Price to Sales (P/S)6.40
P/FCF Ratio26.13
Enterprise Value/Market Cap1.08
Enterprise Value/Revenue7.78
Enterprise Value/Gross Profit10.80
Enterprise Value/Ebitda33.71
Forecast
1Y Price Target
$58.50Price Target Upside32.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering10
EPS Forecast (FY)1.91
Revenue Forecast (FY)$593.71M
Veracyte Business Overview & Revenue Model
Company Description
Veracyte, Inc. operates as a diagnostics company in the United States and internationally. The company offers Afirma Genomic Sequencing Classifier for cancerous thyroid nodules; Decipher Prostate Genomic Classifiers for prostate cancer diagnosis; ...
How the Company Makes Money
Veracyte primarily makes money by selling clinical genomic diagnostic tests that are ordered by physicians and run in Veracyte’s laboratories, with revenue recognized when tests are performed and reimbursed by payers (e.g., private insurers and go...
Veracyte Earnings Call Summary
Earnings Call Date:Jul 30, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call was strongly positive, characterized by 15% total revenue growth, 19% testing revenue growth, improved profitability and cash generation, raised full-year revenue guidance, successful launches of Prosigna LDT and TrueMRD, and continued momentum in Decipher and Afirma. The primary challenges were concentrated in the low-risk Decipher segment, pending Prosigna LDT reimbursement and workflow integration, early TrueMRD commercialization, and tougher Afirma comparisons expected next year.Positive Updates
Strong Second-Quarter Revenue and Volume Growth
Total revenue was $150.3 million, up 15% year-over-year, while total volume increased 13% to approximately 51,000 tests. Testing revenue was $145.7 million, up 19%, and testing volume was 48,389 tests, up 14%.
Negative Updates
Decipher Low-Risk Volume Outlook Reduced
The company reduced its expected Decipher volume for the year by approximately 1%, or slightly more than 1,000 tests, primarily in the low-risk setting. Management attributed the change to the NCCN guideline update that removed genomic and AI-based testing from active-surveillance guidance; low-risk Decipher growth is currently in the single digits rather than double digits.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Second-Quarter Revenue and Volume Growth
Total revenue was $150.3 million, up 15% year-over-year, while total volume increased 13% to approximately 51,000 tests. Testing revenue was $145.7 million, up 19%, and testing volume was 48,389 tests, up 14%.
Read all positive updates
Company Guidance
For 2026, Veracyte is raising full-year total revenue guidance to $590 million-$596 million, representing 14% to 15% year-over-year growth compared to the prior range of $582 million-$592 million; testing revenue is expected to be $576 million-$582 million, representing 17% to 18% year-over-year growth compared to the prior range of $570 million-$580 million, with testing volume growth modestly below revenue and approximately $10 million of other testing revenue from cytology services and Decipher Bladder. Guidance assumes approximately 20% Decipher revenue growth, approximately 31,000 tests in Q3 and 33,000 in Q4, and ASP to be slightly higher this year compared to 2025. Afirma revenue guidance is approximately 12% to 14% year-over-year growth, with an anticipated no result rate of benefit of approximately 3% for the year; Q3 volume is expected to be slightly down sequentially, with a larger step-up in Q4, and revenue is expected to step down sequentially given close to $3 million of PPCs in the second quarter. Full-year Adjusted EBITDA guidance is maintained at greater than 26%, and revenue guidance excludes contribution from Prosigna LDT and TrueMRD.Veracyte Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
88
Very Positive
Cash Flow
86
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 561.90M | 517.14M | 445.76M | 361.05M | 296.54M | 219.51M |
| Gross Profit | 405.10M | 360.05M | 298.14M | 248.15M | 194.95M | 145.11M |
| EBITDA | 129.77M | 89.62M | 49.20M | -49.41M | -10.30M | -61.81M |
| Net Income | 114.48M | 66.35M | 24.14M | -74.40M | -36.56M | -75.56M |
Balance Sheet | ||||||
| Total Assets | 1.49B | 1.41B | 1.30B | 1.11B | 1.16B | 1.19B |
| Cash, Cash Equivalents and Short-Term Investments | 485.23M | 412.89M | 289.44M | 216.45M | 178.85M | 177.16M |
| Total Debt | 40.11M | 39.65M | 50.74M | 12.63M | 14.72M | 18.85M |
| Total Liabilities | 97.96M | 96.44M | 124.07M | 70.80M | 81.22M | 91.31M |
| Stockholders Equity | 1.39B | 1.31B | 1.18B | 1.04B | 1.08B | 1.10B |
Cash Flow | ||||||
| Free Cash Flow | 165.46M | 126.63M | 63.81M | 34.26M | -1.01M | -37.00M |
| Operating Cash Flow | 178.38M | 136.31M | 75.10M | 44.22M | 7.54M | -31.62M |
| Investing Cash Flow | -98.67M | -9.21M | -56.27M | 15.11M | -29.39M | -739.21M |
| Financing Cash Flow | 338.00K | -4.22M | 4.90M | 2.84M | 3.49M | 596.32M |
Veracyte Technical Analysis
Positive
44.04
Price Trends
43.86
Positive
48.40
Positive
42.70
Positive
Market Momentum
1.01
Negative
65.50
Neutral
88.58
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VCYT, the sentiment is Positive. The current price of 44.04 is below the 20-day moving average (MA) of 45.29, above the 50-day MA of 43.86, and above the 200-day MA of 42.70, indicating a bullish trend. The MACD of 1.01 indicates Negative momentum. The RSI at 65.50 is Neutral, neither overbought nor oversold. The STOCH value of 88.58 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VCYT.
Veracyte Risk Analysis
Veracyte disclosed 56 risk factors in its most recent earnings report. Veracyte reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Veracyte Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $4.04B | 34.92 | 8.64% | ― | 17.28% | 323.64% | |
71 Outperform | $1.05B | -52.33 | -4.15% | ― | 3.18% | -100.37% | |
67 Neutral | $59.22B | -302.07 | -11.73% | ― | 37.82% | 28.02% | |
60 Neutral | $23.89B | -51.02 | 211.46% | ― | 42.74% | -4.60% | |
53 Neutral | $601.64M | -5.26 | -32.59% | 13.45% | -3.16% | 72.02% | |
52 Neutral | $2.22B | -43.52 | -6.31% | 0.75% | 11.19% | 50.58% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
VCYT
Veracyte
50.28
14.68
41.24%
MYGN
Myriad Genetics
6.29
-1.84
-22.63%
NEO
NeoGenomics
17.27
7.35
74.09%
NTRA
Natera
410.82
221.25
116.71%
GH
Guardant Health
178.06
108.48
155.91%
CSTL
Castle Biosciences
34.51
10.36
42.90%
Veracyte Corporate Events
Business Operations and StrategyFinancial DisclosuresM&A Transactions
Veracyte Completes Convergent Genomics Acquisition to Expand Urology
Positive
Sep 14, 2026
On Sept. 14, 2026, Veracyte completed the acquisition of Convergent Genomics Inc., a bladder cancer-focused genomic diagnostics company, in a cash deal worth $150 million upfront plus up to $30 million tied to UroAmp reimbursement milestones. Conv...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.