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Veracyte
(NASDAQ:VCYT)
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Rating:69Neutral
Price Target:
$47.00
▲(6.72% Upside)
Action:Downgraded
Date:08/30/26
The score is driven primarily by strong financial performance (profitability and free-cash-flow strength with low leverage). This is partially offset by weak technical momentum (below key moving averages with a negative MACD) and a valuation that remains only fair given a ~30 P/E and no dividend, while the corporate event impact is modest.
Positive Factors
Revenue growth and profitability inflection
Veracyte has expanded revenue substantially while moving from historical losses to durable profitability. Strong gross margins indicate valuable diagnostic offerings and provide operating leverage as testing volumes and commercial adoption continue to scale.
Negative Factors
Growth is moderating
Decelerating growth raises the risk that Veracyte’s current profitability improvement will not be supported by sustained operating expansion. Slower adoption or market maturation could reduce leverage from its fixed laboratory and commercial infrastructure.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue growth and profitability inflection
Veracyte has expanded revenue substantially while moving from historical losses to durable profitability. Strong gross margins indicate valuable diagnostic offerings and provide operating leverage as testing volumes and commercial adoption continue to scale.
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
$3.61B
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)31.0
Beta (1Y)1.08
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. Volume1,321,555
30 Day Avg. Volume1,371,718
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 Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$58.14Price Target Upside32.02% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering8
EPS Forecast (FY)1.9
Revenue Forecast (FY)$593.64M
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 performing and reporting clinical genomic tests and recognizing revenue from those testing services. Its core revenue stream is test (service) revenue generated when ordering clinicians send patient samples that a...
Veracyte Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Nov 10, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial picture: double-digit revenue and volume growth, margin expansion, robust adjusted EBITDA (30.8%), strong cash generation, and multiple near-term product catalysts (Prosigna LDT and TruMRD). The company emphasized a deep clinical evidence base, sustained Decipher momentum, operational wins on Afirma (V2 workflow), and continued investment in R&D and commercialization. Key risks discussed were binary clinical readouts (OPTIMA/ENZIMET), exclusion of new-product revenue from guidance, PPC variability, seasonal sample quality impacts, and the need for guideline/reimbursement progress—factors that inject execution and timing uncertainty but do not currently outweigh the suite of positive financial and commercial indicators.Positive Updates
Strong Top-Line Growth
Total revenue of $139.1M, up 21% year-over-year; testing revenue $135.1M, up 26% year-over-year.
Negative Updates
New Product Contribution Not Yet Included in Guidance
Full-year guidance ($582M–$592M, +13%–14% YoY) excludes potential revenue from Prosigna LDT and TruMRD launches, creating upside uncertainty but also conservative guidance assumptions.
Read all updates
Q1-2026 Updates
Positive
Negative
Strong Top-Line Growth
Total revenue of $139.1M, up 21% year-over-year; testing revenue $135.1M, up 26% year-over-year.
Read all positive updates
Company Guidance
Veracyte raised 2026 total revenue guidance to $582–592 million (13–14% YoY, up from $570–582M prior), with testing revenue growth expected at 16–18% excluding new tests; Decipher revenue is expected to grow ~20% and Afirma is guided to high single‑digit to low double‑digit growth (including a 2–3% full‑year benefit from improved Afirma no‑result rates, which contributed ~400 bps to Q1 volume). Q1 underpinnings cited: total revenue $139.1M (+21% YoY), testing revenue $135.1M (+26%), total volume ~47.6K tests (+17%), testing volume ~45.2K tests (+19%), testing ASP $2,980 (+6%; normalized ASP $2,900, +3% ex‑PPC), non‑GAAP gross margin 75.7% (+350 bps), testing gross margin 70.4% (+230 bps), non‑GAAP operating expenses $64.6M (+7% YoY), GAAP net income $28.7M, adjusted EBITDA $42.8M (30.8% of revenue, +73% YoY), cash from operations $35.2M, and cash/cash equivalents/short‑term investments $439.1M. The company raised full‑year adjusted EBITDA guidance to >26% (above its 25% long‑term target), reiterated guidance excludes any future prior‑period collections (PPCs) and does not include potential contributions from the upcoming Prosigna LDT or TruMRD launches.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 | -6.98M | -60.18M |
| 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
51.03
Negative
46.57
Negative
42.63
Positive
Market Momentum
-1.60
Negative
46.48
Neutral
70.00
Neutral
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 above the 20-day moving average (MA) of 43.60, below the 50-day MA of 51.03, and above the 200-day MA of 42.63, indicating a neutral trend. The MACD of -1.60 indicates Negative momentum. The RSI at 46.48 is Neutral, neither overbought nor oversold. The STOCH value of 70.00 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
71 Outperform | $3.00B | 107.16 | 15.05% | ― | 76.11% | ― | |
69 Neutral | $3.61B | 31.02 | 8.64% | ― | 17.28% | 323.64% | |
60 Neutral | $8.16B | -13.87 | -69.59% | ― | ― | 1.28% | |
58 Neutral | $6.34B | -147.87 | -55.79% | ― | 77.12% | 64.40% | |
56 Neutral | $4.71B | -22.48 | -350.78% | ― | ― | -24.72% | |
52 Neutral | $3.07B | -12.03 | -37.17% | ― | ― | -47.00% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
VCYT
Veracyte
42.53
10.10
31.14%
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ARQT
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23.90
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IRON
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79.23
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30.40%
Veracyte Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Veracyte shareholders endorse board, pay and incentive plans
Positive
Jun 11, 2026
At its recent annual meeting, Veracyte stockholders elected nine directors, including Eliav Barr, Muna Bhanji, Karin Eastham, Robert S. Epstein, Jens Holstein, Evan Jones, Tom Miller, Brent Shafer, and Marc Stapley, to serve until the 2027 annual ...
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.