VCYT

Interested in Veracyte, Inc.? Here are five stocks we like better. Veracyte reported strong Q2 results, with revenue up 15% to $150.3 million, testing revenue up 19% to $145.7 million, and adjusted EBITDA of $44 million. The company generated $45.8 million in operating cash flow and ended the quarter with $485.2 million in cash and short-term investments. The company raised its 2026 revenue outlook to $590 million–$596 million, representing 14%–15% growth, while maintaining its expectation for an adjusted EBITDA margin above 26%. Veracyte launched its Prosigna breast cancer test and TrueMRD bladder cancer recurrence-monitoring test; neither is included in current 2026 guidance. Core products also performed well, with Decipher Prostate revenue up 20% and Afirma revenue up 18%. Veracyte (NASDAQ:VCYT) reported second-quarter 2026 revenue growth of 15% and raised its full-year revenue outlook, while highlighting the launches of its Prosigna LDT breast cancer test and TrueMRD recurrence-monitoring test for muscle-invasive bladder cancer. Chief Executive Officer Marc Stapley called the quarter a milestone for the company, saying the new products expand Veracyte’s portfolio across the cancer-care continuum. The company also said it is approaching the milestone of serving its one millionth patient. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Total revenue was $150.3 million, up 15% from the prior-year period, while testing revenue increased 19% to $145.7 million, Chief Financial Officer Rebecca Chambers said. Total test volume rose 13% to about 51,000 tests, and testing volume increased 14% to 48,389 tests. Veracyte generated $45.8 million in cash from operations during the quarter and ended the period with $485.2 million in cash equivalents and short-term investments. GAAP net income was $25.5 million, while adjusted EBITDA totaled $44 million, or 29.2% of revenue. → Microsoft Just Flipped the AI Spending Narrative Overnight The company raised its 2026 total revenue guidance to a range of $590 million to $596 million, representing projected growth of 14% to 15%. Its prior outlook called for $582 million to $592 million in revenue. Testing revenue is now expected to be between $576 million and $582 million, representing growth of 17% to 18%. The forecast includes about $10 million in other testing revenue from cytology services and Decipher Bladder. → Carrier Earnings Could Send the Stock to a New All-Time High Chambers said the company continues to expect adjusted EBITDA margin of more than 26% for the year, despite investments behind growth initiatives. She said the higher revenue outlook reflects stronger-than-expected average selling prices and prior-period collections, or PPCs. Testing average selling price was $3,010, up 4% year over year and including about $4.5 million in PPCs. Normalized testing ASP, excluding PPCs, increased 3% to about $2,900. Non-GAAP gross margin rose 340 basis points to 74.9%. Testing gross margin rose 200 basis points to 76%, supported by workflow efficiencies, higher ASP and PPCs. Chambers said the company expects ASP to be slightly higher in 2026 than in 2025. However, she noted that Prosigna’s launch and reimbursement status could create a modest gross-margin headwind in the second half. Veracyte launched its Prosigna LDT in the United States following presentation of results from the OPTIMA trial at the American Society of Clinical Oncology meeting. Prosigna is designed to help guide treatment decisions for patients with estrogen receptor-positive, HER2-negative breast cancer by assessing recurrence risk over 10 years and likelihood of chemotherapy benefit. Stapley said the independent prospective Phase III OPTIMA trial enrolled more than 4,400 high-risk, early-stage breast cancer patients and met its primary endpoint. According to the company, the study showed that more than two-thirds of clinically high-risk patients may be able to avoid chemotherapy without compromising outcomes, including premenopausal women and patients with up to nine positive lymph nodes. The company said it is engaged with more than 100 institutions, including academic cancer centers, integrated health systems and regional oncology networks, regarding Prosigna adoption. Stapley said some organizations are evaluating use of the test across their breast cancer programs. During the question-and-answer session, Chief Commercial Officer John Leite said Prosigna has Medicare coverage through the company’s existing FDA-approved product. Veracyte is seeking a technical assessment for the centralized LDT version from MolDX, followed by pricing discussions. Leite said the company previously guided to pricing at the low end of about $2,500. The company is expanding its sales force earlier than originally planned in response to demand and is investing in electronic health record integration. Chambers said Veracyte expects to expand the Prosigna sales force from roughly 10 people to 15 by year-end. The company’s 2026 guidance does not include revenue from Prosigna or TrueMRD. Veracyte also launched TrueMRD for recurrence monitoring in muscle-invasive bladder cancer patients following radical cystectomy. The test secured Medicare reimbursement and is the company’s first commercial product on its minimal residual disease platform. Stapley said TrueMRD uses whole-genome sequencing for both the initial landmark test and subsequent surveillance testing. Decipher Prostate revenue increased 20% year over year, driven primarily by 17% volume growth and improved ASP, Stapley said. The company processed just under 30,000 Decipher Prostate tests during the quarter. Veracyte reduced its full-year Decipher volume expectation by approximately 1%, or slightly more than 1,000 tests, primarily due to lower expectations in low-risk disease. Stapley said most of that shortfall occurred during the second quarter and reflected changes to guidelines affecting active-surveillance testing rather than a loss of market share. Management said Decipher’s intermediate- and high-risk prostate cancer segments continue to show strong growth, supported by clinical evidence and guideline positioning. The company expects about 31,000 Decipher tests in the third quarter and 33,000 in the fourth quarter, while maintaining its expectation for roughly 20% Decipher revenue growth for the full year. Afirma delivered approximately 18,600 tests, representing 10% volume growth, while revenue rose 18%. The company attributed the performance to greater use among existing physicians, expansion of its ordering base, market-share gains, improved reimbursement and the V2 transcriptome workflow. Stapley said the workflow reduced Afirma’s no-result rate and contributed approximately 400 basis points of volume growth during the quarter. Veracyte raised its full-year Afirma revenue growth outlook to approximately 12% to 14%, including an anticipated no-result-rate benefit of about 3% for the year. Looking ahead, management said it plans to continue investing in evidence generation, product development, commercial execution and operational infrastructure. Stapley said the company sees opportunities for longer-term growth across Prosigna, TrueMRD, Decipher, Afirma and bladder cancer diagnostics. Veracyte, Inc is a genomic diagnostics company focused on improving diagnostic accuracy and patient care through advanced molecular testing. Founded in 2008 and headquartered in South San Francisco, California, the company develops and commercializes minimally invasive genomic tests that aid in the diagnosis of thyroid, lung and other diseases. Veracyte's proprietary platform analyzes gene expression patterns in clinical samples to help physicians make more informed treatment decisions, reducing unnecessary surgeries and improving patient outcomes. The company's flagship product, the Afirma Genomic Sequencing Classifier, is designed to assess thyroid nodules with indeterminate cytology, helping clinicians distinguish benign from suspicious nodules. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Veracyte Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Total Revenue: $150.3 million in Q2 2026, up 15% year-over-year. Testing Revenue: $145.7 million, up 19% year-over-year. Total Volume: Approximately 51,000 tests, up 13% year-over-year. Testing Volume: 48,389 tests, up 14% year-over-year. Testing ASP: $3,010, up 4% year-over-year; normalized ASP up 3% to approximately $2,900 excluding prior period collections. Non-GAAP Gross Margin: 74.9%, up 340 basis points year-over-year; testing gross margin up 200 basis points to 76%. Non-GAAP Operating Expenses: $70 million, up 16% year-over-year. GAAP Net Income: $25.5 million in Q2 2026. Adjusted EBITDA: $44 million, or 29.2% of revenue, up 23% year-over-year. Cash Flow: $45.8 million generated from operations; ended quarter with $485.2 million in cash, cash equivalents, and short-term investments. Decipher Prostate Revenue: Up 20% year-over-year, driven by 17% volume growth and improved ASP; just under 30,000 tests resulted in Q2. Affirma Volume: Approximately 18,600 tests, up 10% year-over-year; revenue up 18%. Full-Year 2026 Revenue Guidance: Raised to $590 million to $596 million, representing 14% to 15% growth. Full-Year 2026 Testing Revenue Guidance: $576 million to $582 million, representing 17% to 18% growth. Full-Year 2026 Adjusted EBITDA Guidance: Greater than 26%. Warning! GuruFocus has detected 7 Warning Sign with VCYT. Is VCYT fairly valued? Test your thesis with our free DCF calculator. Release Date: July 30, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Launched Prosigna LDT and TrueMRD for MIBC, expanding portfolio into breast cancer and MRD markets. Delivered strong Q2 2026 results with 15% total revenue growth and 19% testing revenue growth. Achieved industry-leading profitability with adjusted EBITDA margin of 29.2%, above the 25% long-term target. Decipher Prostate grew 20% year-over-year, driven by strong volume and ASP gains, with record orders per physician. Affirma continued to gain market share with 10% volume growth and 18% revenue growth, supported by improved no-result rates. Raised full-year 2026 revenue guidance to $590-$596 million, reflecting confidence in growth. Prosigna has strong clinical evidence from the OPTIMA trial, including Level 1A data for premenopausal and node-positive patients. TrueMRD platform is extensible to multiple tumor types, offering long-term growth potential. Strong cash generation with $45.8 million from operations and $485.2 million in cash. Expanding sales force for Prosigna ahead of plan due to high demand and engagement from over 100 institutions. Reduced Decipher volume guidance by approximately 1% (1,000 tests) due to lower-than-expected growth in low-risk setting. Prosigna and TrueMRD revenue contributions are excluded from 2026 guidance due to lack of Medicare reimbursement for Prosigna and early launch stage. Prosigna launch faces headwinds from EMR integration and reimbursement uncertainties, with Medicare coverage still pending. Low-risk Decipher growth is only single-digit, impacted by NCCN guideline changes, limiting near-term expansion. Increased operating expenses by 16% year-over-year, driven by investments in launches and R&D, which may pressure margins. TrueMRD is in early commercialization stages with no revenue contribution expected this year, limiting near-term impact. Prosigna adoption may be slower due to the need for physician education and workflow integration, despite early enthusiasm. Affirma faces a harder comparison next year due to benefits from no-result rate improvements and PPCs in 2026. Guidance assumes no PPCs in the back half, which could lead to volatility if collections are lower than expected. Potential for increased competition in the breast cancer testing market, though not explicitly mentioned, remains a risk. Q: With the lower Decipher guidance of about 1,000 tests, are you seeing a threat specifically from AI-based testing, and how do you view the future workflow between AI and molecular testing? A: Marc Stapley (CEO) clarified that the reduction is not due to AI competition but is isolated to the low-risk category, driven by the 2024 NCCN guideline change that removed genomic testing for active surveillance. He noted that molecular and AI tests are complementary, measuring different biology, and physicians prefer more information. Rebecca Chambers (CFO) added that the strength in intermediate and high-risk categories remains robust, with low-risk representing an incremental growth opportunity for 2027-2029. Q: Can you provide more color on the commercial strategy for Prosigna, particularly regarding EMR integration, which has been cited as a headwind for adoption? A: John Leite (Global Chief Commercial Officer) acknowledged that EHR integration is critical for streamlining workflows and automating test ordering at scale. He stated that Veracyte is heavily investing in internal and external resources to integrate with as many practices as possible, leveraging existing efforts from the Decipher and Affirma businesses to accelerate Prosigna's integration. Q: What is the current penetration level for molecular diagnostics in the low-risk Decipher population, and where do you see it going over the next few years? A: Marc Stapley (CEO) stated that Veracyte is approximately 20% penetrated in the low-risk market, with penetration growing every quarter. He noted that for growth to accelerate into double digits, NCCN guideline inclusion will be needed, which is expected to be supported by multiple study readouts in 2027-2028. Rebecca Chambers (CFO) added that the company believes it can achieve at least 80% penetration in this segment, similar to other risk categories, highlighting significant white space. Q: Prosigna launched with commercial coverage but not MolDx. How are you managing patient access for Medicare beneficiaries, and what is your expectation for the MolDx timeline? A: John Leite (Global Chief Commercial Officer) explained that Prosigna already has Medicare coverage via the FDA-approved product, and the transition to the centralized LDT requires a tech assessment submission covering lab validation and bridging studies. He noted constructive exchanges with MolDx, expects approval "eminently," and guided that pricing could be around $2,500 at the low end. Q: The first two quarters have been meaningfully above the 26% adjusted EBITDA floor. How much of this is due to pulling forward investment, and can you provide color on the level of investment for Prosigna? A: Rebecca Chambers (CFO) stated that the company is expanding the Prosigna sales force from roughly 10 to 15 people this year, which is not a material cost. She emphasized that the guidance reflects a huge opportunity to invest in the pipeline across MRD, Decipher, Affirma, and Prosigna to drive higher future revenue growth. She also noted that PPCs, which are not guided, have been a significant contributor to outperformance, and Prosigna volume in the back half will create a slight gross margin headwind. Q: Was there any impact from ACA enrollment on Decipher low-risk volumes, and how should we think about the stable growth trajectory for Decipher overall? A: Marc Stapley (CEO) attributed the low-risk volume adjustment to comp issues and the NCCN guideline change, not ACA enrollment. He described Decipher's growth as highly predictable, with a trend line of approximately 20,000 tests per year plus or minus 1,000, and expects this to continue for the next couple of years. Rebecca Chambers (CFO) reminded that Affirma will face a harder comp next year due to the no-result rate benefit and outstanding PPCs in 2026. Q: Can you elaborate on the market traction for Prosigna since launch, particularly regarding the premenopausal and node-positive populations, and any volume numbers for this year or next? A: John Leite (Global Chief Commercial Officer) noted that the market responded very favorably to the Optima data, with the premenopausal and high node burden results being game-changing. He stated that while some physicians will start with these populations and expand, others are ready to switch entirely for logistical ease. He declined to provide volume guidance, stating the company needs more data over the coming months to guide accurately. Q: Can you update us on the TrueMRD pipeline, including when we should expect the next data readout and the next MolDx submission or indication? A: Marc Stapley (CEO) stated that the focus is currently on the muscle invasive bladder cancer launch as the landmark test to pilot the MRD approach. He mentioned that development and clinical teams are working on the next assays and evidence development, with a review of ongoing studies this week. He indicated that more details will be shared when the company is ready to launch additional tests, with the bladder test serving as the proof point for expansion. Q: Can you comment on early adoption of Prosigna, and do you believe the OPTIMA study results could be key to guideline inclusion? A: John Leite (Global Chief Commercial Officer) expressed satisfaction with early adoption, noting positive reactions from physicians and even direct patient inquiries. He confirmed that the OPTIMA trial is generally acknowledged as Level 1A evidence and should make its way to guidelines, but publication is the next milestone, which is out of the company's hands as it is an independent study. Q: Can you give an update on the Nightingale study and when we might hear intermediate data? A: Marc Stapley (CEO) reminded that the Nightingale study, for the peritoneonasal swab test, completed enrollment in August 2025. The company is about a year into patient follow-ups, and it will be a while before the study fully reads out. He characterized it as a longer-term growth driver, with results expected once all patients have been followed for at least one to two years. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Grew total revenue to $150.3 million and testing revenue to $145.7 million, representing increases of 15% and 19% year-over-year, respectivelyConference call and webcast today at 4:30 p.m. ET SOUTH SAN FRANCISCO, Calif., July 30, 2026 (GLOBE NEWSWIRE) -- Veracyte, Inc. (Nasdaq: VCYT), a leading cancer diagnostics company, today announced financial results for the second quarter ended June 30, 2026. “Q2 was a milestone quarter for Veracyte as we launched two new products, Prosigna LDT and TrueMRD for MIBC, while also delivering strong double-digit revenue growth, profitability and cash generation,” said Marc Stapley, Veracyte’s chief executive officer. “These launches meaningfully expand our ability to serve more patients across the cancer care continuum and, combined with the strength of our core business, position us well to deliver durable double-digit growth.” Key Financial Highlights For the three-month period ended June 30, 2026, as compared to the same period in 2025: Increased total revenue by 15% to $150.3 million and testing revenue by 19% to $145.7 million, driven by Decipher growth of 20% to $91.9 million and Afirma growth of 18% to $51.2 million. Increased total volume by 13% to 50,967 tests and testing volume by 14% to 48,389 tests, driven by Decipher growth of 17% to approximately 29,700 tests and Afirma growth of 10% to approximately 18,600 tests. Recorded GAAP net income of $25.5 million, or 17.0% of revenue, and delivered adjusted EBITDA of $44.0 million, or 29.2% of revenue. Generated $45.8 million of cash from operations to end the quarter with $485.2 million of cash, cash equivalents, and short-term investments as of June 30, 2026. Key Business Highlights Launched the Prosigna Breast Test in the U.S. for patients diagnosed with early-stage hormone-receptor positive (HR+) breast cancer. Launched the TrueMRD Monitoring Test for patients with muscle-invasive bladder cancer (MIBC). Secured Medicare coverage for the TrueMRD Monitoring Test, representing the first Medicare coverage decision for the whole-genome sequencing-based TrueMRD platform. Further expanded the clinical evidence of our testing portfolio, including new predictive evidence from the OPTIMA trial supporting the clinical utility of Prosigna and the ENZAMET trial expanding the Decipher clinical evidence base. Together, Decipher and Afirma were featured in nearly 60 abstracts and presentations during the quarter. A reconciliation of GAAP to non-GAAP financial measures has been provided in the tables included in this press release. An explanation of these measures is also included below under the heading "Note Regarding Use of Non-GAAP Financial Measures." Second Quarter 2026 Financial Results Total revenue for the second quarter of 2026 was $150.3 million, an increase of 15% compared to $130.2 million reported in the second quarter of 2025. Testing revenue was $145.7 million, an increase of 19% compared to $122.3 million in the second quarter of 2025, driven by growth in our Decipher Prostate and Afirma tests. Product revenue was $3.9 million, an increase of 7% compared to $3.6 million in the second quarter of 2025. Biopharmaceutical and other revenue was $0.8 million, an expected decrease compared to $4.3 million in the second quarter of 2025 given the restructuring and liquidation proceedings of Veracyte SAS. Total gross margin for the second quarter of 2026 was 72%, compared to 69% in the second quarter of 2025. Non-GAAP gross margin was 75%, compared to 72% in the second quarter of 2025. Operating expenses were $85.6 million for the second quarter of 2026 compared to $95.0 million in the second quarter of 2025. Non-GAAP operating expenses grew 16% to $70.0 million compared to $60.3 million in the second quarter of 2025. Net income for the second quarter of 2026 was $25.5 million, an increase of $26.5 million compared to the second quarter of 2025. Diluted net earnings per common share was $0.31, an improvement of $0.32 compared to the second quarter of 2025. Non-GAAP diluted net earnings per common share was $0.54, an increase of $0.10 compared to the second quarter of 2025. Net cash provided by operating activities in the first six months of 2026 was $81.0 million, an improvement of $42.1 million compared to the same period in 2025. Adjusted EBITDA for the second quarter of 2026 was $44.0 million, an improvement of 23% compared to the second quarter of 2025, representing 29.2% of revenue compared to 27.5% of revenue in the same period in 2025. 2026 Financial Outlook The company is raising 2026 total revenue guidance to $590 million to $596 million, or 14% to 15% growth, from prior guidance of $582 to $592 million, or 13% to 14% growth. The company is also raising testing revenue guidance to $576 million to $582 million, or 17% to 18% growth, from prior guidance of $570 million to $580 million, excluding the contribution from recently launched tests. The company continues to expect adjusted EBITDA margin to be greater than 26%. The company is unable to provide a quantitative reconciliation of expected adjusted EBITDA margin to expected GAAP net income margin, the most directly comparable forward-looking GAAP measure without unreasonable effort, because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, that are dependent on various factors, are out of the company’s control, or that cannot be reasonably predicted. Such adjustments include, but are not limited to, acquisition-related expenses, and other adjustments. Any associated estimate of these items and their impact on GAAP performance for the guidance period could vary materially. For more information on the non-GAAP financial measures, please refer to the section titled “Note Regarding Use of Non-GAAP Financial Measures” at the end of this press release. Conference Call and Webcast Details Veracyte will host a conference call and webcast today at 4:30 p.m. Eastern Time to discuss the company's financial results and provide a general business update. The conference call will be webcast live from the company’s website and will be available via the following link: https://edge.media-server.com/mmc/p/wwu2pyd7. The webcast should be accessed 10 minutes prior to the conference call start time. A replay of the webcast will be available for one year following the conclusion of the live broadcast and will be accessible on the company’s website at https://investor.veracyte.com/events-presentations. About Veracyte Veracyte (Nasdaq: VCYT) is a global diagnostics company with a vision to transform cancer care for patients around the world. The company’s molecular tests assess the unique biology of each patient’s tumor to help clinicians answer essential questions about cancer care. Veracyte’s Diagnostics Platform combines broad genomic and clinical data, advanced bioinformatics and AI, and a powerful evidence-generation engine to support continued innovation and pipeline development. The company’s portfolio includes the Afirma® Genomic Sequencing Classifier test, Decipher® Bladder Genomic Classifier test, Decipher® Prostate Genomic Classifier test, Prosigna® Breast Risk of Recurrence test, and the TrueMRD™ Monitoring Test for MIBC. For more information, visit Veracyte’s website or follow the company on LinkedIn or X (Twitter). Cautionary Note Regarding Forward-Looking Statements This press release contains forward-looking statements, including, but not limited to our statements related to our plans, objectives, and expectations (financial and otherwise), including with respect to our 2026 financial and operating results; and our intentions with respect to the development, launch, commercialization, adoption, and reimbursement of our tests and products. Forward-looking statements can be identified by words such as: “appears,” “anticipate,” “intend,” “plan,” “expect,” “believe,” “should,” “may,” “could,” “would,” “will,” “enable,” “positioned,” “offers,” “designed,” “ultimately,” “strategic,” “outlook,” “guidance,” and similar references to future periods. Actual results may differ materially from those projected or suggested in any forward-looking statements. These statements involve risks and uncertainties, which could cause actual results to differ materially from our predictions, and include, but are not limited to: our ability to launch, commercialize and receive reimbursement for our products; our ability to execute on our business strategies relating to the C2i Genomics acquisition, integration of the business and the realization of expected benefits and synergies; our ability to demonstrate the validity and utility of our genomic tests and biopharma and other offerings; our ability to continue executing on our business plan; our ability to continue to scale our global operations and enhance our internal control environment; the impact of the war in Ukraine and other regional conflicts on European economies; the impact of foreign currency fluctuations, volatile interest rates, inflation, the impact of legislation and policies enacted by the current U.S. administration; turmoil in the global banking and finance system; the ongoing conflict in the Middle East; and the performance and utility of our tests in the clinical environment. Additional factors that may impact these forward-looking statements can be found under the caption “Risk Factors” in our Annual Report on Form 10-K filed on February 26, 2026, as well as in other documents that we may file from time to time with the Securities and Exchange Commission. Copies of these documents, when available, may be found in the Investors section of our website at investor.veracyte.com. These forward-looking statements speak only as of the date hereof and, except as required by law, we specifically disclaim any obligation to update these forward-looking statements, whether as a result of new information, future events or otherwise. Note Regarding Use of Non-GAAP Financial Measures In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this press release and the accompanying tables contain, and reference certain non‐GAAP results including non-GAAP gross margin, non-GAAP operating expenses, adjusted EBITDA, adjusted EBITDA as a percentage of revenue (also referred to as adjusted EBITDA margin), non-GAAP net income, and non-GAAP earnings per share (EPS) and non-GAAP weighted average shares outstanding. These non-GAAP financial measures are not meant to be considered superior to or a substitute for financial measures calculated in accordance with GAAP, and investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. We use non-GAAP financial measures to internally evaluate and analyze financial results. We believe these non-GAAP financial measures provide investors with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and enable comparison of our financial results with other public companies, many of which present similar non-GAAP financial measures. However, the non-GAAP financial measures we present may be different from those used by other companies, including similarly titled measures. We compute these non-GAAP measures by adjusting the applicable GAAP measure to remove the impact of certain recurring and non-recurring charges and gains and to adjust for the impact of income tax items related to such adjustments to our GAAP financial statements. In particular, we exclude amortization of acquired intangible assets, acquisition-related expenses relating to our acquisitions of Decipher Biosciences, HalioDx and C2i Genomics, impairment charges associated with the nCounter license and other biopharmaceutical services related to HalioDx intangible assets, all stock-based compensation and certain costs related to restructuring from all of our non-GAAP financial measures as well as depreciation and income tax items from our adjusted EBITDA and adjusted EBITDA as a percentage of revenue. Beginning in the second quarter of 2024, we changed our non-GAAP policy to exclude all stock-based compensation to align with our peers and we have also excluded all stock-based compensation from our prior period non-GAAP financial measures. Management has excluded the effects of these items in non-GAAP financial measures to help investors gain a better understanding of the core operating results and future prospects of the company, consistent with how management measures and forecasts the company's performance, especially when comparing such results to previous periods or forecasts. The company encourages investors to carefully consider its results under GAAP, together with its supplemental non‐GAAP information and the reconciliation between these presentations. See “Reconciliation of U.S. GAAP to Non-GAAP Financial Measures” for a reconciliation of each non-GAAP measure presented to the comparable GAAP financial measure. 1. Cost of revenue, research and development, sales and marketing and general and administrative expenses include the following stock-based compensation related expenses: Investors:Kelly Gura [email protected] Media:Molly [email protected]+1-650-351-8780

Veracyte (VCYT) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.44 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +25.58%. A quarter ago, it was expected that this molecular diagnostic company would post earnings of $0.34 per share when it actually produced earnings of $0.52, delivering a surprise of +52.94%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Veracyte, which belongs to the Zacks Medical - Instruments industry, posted revenues of $150.32 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 4.13%. This compares to year-ago revenues of $130.16 million. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Veracyte shares have added about 32.3% since the beginning of the year versus the S&P 500's gain of 6.9%. While Veracyte has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Veracyte was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.44 on $149.11 million in revenues for the coming quarter and $1.85 on $583.57 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Instruments is currently in the bottom 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Stereotaxis Inc. (STXS), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 11. This company is expected to post quarterly loss of $0.03 per share in its upcoming report, which represents a year-over-year change of +40%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Stereotaxis Inc.'s revenues are expected to be $9.5 million, up 8% from the year-ago quarter. 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 Veracyte, Inc. (VCYT) : Free Stock Analysis Report Stereotaxis Inc. (STXS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Meridian Funds, managed by ArrowMark Partners, released its second-quarter 2026 investor letter for “Meridian Small Cap Growth Fund”. A copy of the letter can be downloaded here. The U.S. market saw a strong rally in the second quarter, fueled by easing geopolitical tensions, falling oil prices, and robust corporate earnings. Growth stocks, especially in technology and healthcare, led the charge, supported by AI-related investments from hyperscalers that added momentum. Meanwhile, traditional safe havens like gold declined. In this context, the Meridian Small Cap Growth Fund (the “Fund”) achieved a 21.54% return for the quarter ending June 30, 2026. This lagged behind its benchmark, the Russell 2000 Growth Index, which gained 25.71%, due to factor and style headwinds—as high-beta and momentum stocks soared, its lower-volatility, quality-focused holdings underperformed. The Fund continues to prioritize quality businesses, risk management, and downside protection, with portfolio adjustments driven by strategic allocation. In addition, please check the Fund’s top five holdings to know its best picks in 2026. In its Q2 2026 investor letter, Meridian Small Cap Growth Fund highlighted Veracyte, Inc. (NASDAQ:VCYT). Veracyte, Inc. (NASDAQ:VCYT), a global diagnostic company, contributed to the fund's performance during the quarter. On July 29, 2026, Veracyte, Inc. (NASDAQ:VCYT) closed at $55.71 per share, reflecting a market capitalization of $4.44 billion. Veracyte, Inc. (NASDAQ:VCYT) posted a one-month return of -2.40%, while its shares gained 136.96% over the past 52 weeks. Meridian Small Cap Growth Fund stated the following regarding Veracyte, Inc. (NASDAQ:VCYT) in its Q2 2026 investor update: Veracyte, Inc. (NASDAQ:VCYT) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 32 hedge fund portfolios held Veracyte, Inc. (NASDAQ:VCYT) at the end of the first quarter, up from 28 in the previous quarter. in Q1 2026, Veracyte, Inc. (NASDAQ:VCYT) reported revenue of $139.1 million, representing 21% year-over-year growth. While we acknowledge the potential of Veracyte, Inc. (NASDAQ:VCYT) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors. READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years. Disclosure: None. This article is originally published at Insider Monkey.

TransMedics (TMDX) is expected to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on August 4. On the other hand, if they miss, the stock may move lower. While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise. This medical technology company is expected to post quarterly earnings of $0.50 per share in its upcoming report, which represents a year-over-year change of -45.7%. Revenues are expected to be $184.17 million, up 17% from the year-ago quarter. The consensus EPS estimate for the quarter has been revised 2.85% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction). The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For TransMedics, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +8.87%. On the other hand, the stock currently carries a Zacks Rank of #5. So, this combination makes it difficult to conclusively predict that TransMedics will beat the consensus EPS estimate. While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that TransMedics would post earnings of $0.62 per share when it actually produced earnings of $0.30, delivering a surprise of -51.61%. Over the last four quarters, the company has beaten consensus EPS estimates three times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. TransMedics doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Among the stocks in the Zacks Medical - Instruments industry, Veracyte (VCYT), is soon expected to post earnings of $0.43 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -2.3%. This quarter's revenue is expected to be $144.36 million, up 10.9% from the year-ago quarter. The consensus EPS estimate for Veracyte has remained unchanged over the last 30 days. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -1.16%. This Earnings ESP, combined with its Zacks Rank #4 (Sell), makes it difficult to conclusively predict that Veracyte will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 TransMedics Group, Inc. (TMDX) : Free Stock Analysis Report Veracyte, Inc. (VCYT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The market expects Veracyte (VCYT) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This molecular diagnostic company is expected to post quarterly earnings of $0.43 per share in its upcoming report, which represents a year-over-year change of -2.3%. Revenues are expected to be $144.36 million, up 10.9% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Veracyte, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.16%. On the other hand, the stock currently carries a Zacks Rank of #4. So, this combination makes it difficult to conclusively predict that Veracyte will beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Veracyte would post earnings of $0.34 per share when it actually produced earnings of $0.52, delivering a surprise of +52.94%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Veracyte doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. IQVIA Holdings (IQV), another stock in the Zacks Medical - Instruments industry, is expected to report earnings per share of $3.02 for the quarter ended June 2026. This estimate points to a year-over-year change of +7.5%. Revenues for the quarter are expected to be $4.3 billion, up 7% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for IQVIA has been revised 0.5% down to the current level. Nevertheless, the company now has an Earnings ESP of -2.98%, reflecting a lower Most Accurate Estimate. This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that IQVIA will beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. 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 Veracyte, Inc. (VCYT) : Free Stock Analysis Report IQVIA Holdings Inc. (IQV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Veracyte (VCYT). Shares have added about 18.2% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is Veracyte due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. Veracyte, Inc. (VCYT) delivered first-quarter 2026 adjusted earnings of 52 cents per share, up 67.7% from the year-ago period. The bottom line beat the Zacks Consensus Estimate by 52.9%. The company’s GAAP earnings per share were 35 cents compared with the year-ago period’s 9 cents per share. Revenues increased 21.5% year over year to $ 139.1 million, which outpaced the Zacks Consensus Estimate by 6.6%. Veracyte raised its 2026 total revenue guidance to $582-$592 million or 13-14% growth (up from $570-$582 million or 10-13%). The Zacks Consensus Estimate for revenues is currently pegged at $580.3 million, implying 12.2% year-over-year growth. Additionally, Veracyte raised its adjusted EBITDA margin guidance to greater than 26%, up from its prior expectation of approximately 25%. It turns out, estimates review flatlined during the past month. At this time, Veracyte has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Veracyte has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Veracyte belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Edwards Lifesciences (EW), has gained 3.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026. Edwards Lifesciences reported revenues of $1.65 billion in the last reported quarter, representing a year-over-year change of +16.7%. EPS of $0.78 for the same period compares with $0.64 a year ago. For the current quarter, Edwards Lifesciences is expected to post earnings of $0.73 per share, indicating a change of +9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Edwards Lifesciences. Also, the stock has a VGM Score of D. 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 Veracyte, Inc. (VCYT) : Free Stock Analysis Report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research