Veracyte Inc. announced results from the landmark OPTIMA Phase III trial showing its Prosigna genomic test can identify high-risk breast cancer patients who can safely avoid chemotherapy. The data, presented at the 2026 ASCO Annual Meeting, could expand adoption of the test and drive revenue growth. Shares of the diagnostics company have gained 5.7% year to date, giving it a market capitalization of $3.5 billion.
Veracyte Inc. announced results from the landmark OPTIMA Phase III trial showing its Prosigna genomic test can identify high-risk breast cancer patients who can safely avoid chemotherapy. The data, presented at the 2026 ASCO Annual Meeting, could expand adoption of the test and drive revenue growth. Shares of the diagnostics company have gained 5.7% year to date, giving it a market capitalization of $3.5 billion.
Veracyte Inc. said its Prosigna test identified high-risk breast cancer patients who can safely avoid chemotherapy, based on results from the landmark OPTIMA Phase III trial.
"The data strengthens the case for broader Prosigna adoption and supports our positive view on the stock," a Needham & Co. analyst said, as the firm issued a Buy rating on Veracyte.
The OPTIMA trial results were presented at the 2026 ASCO Annual Meeting. Veracyte raised its full-year 2026 revenue guidance to $582 million to $592 million, up from a prior range of $570 million to $582 million, after reporting first-quarter results. The company also lifted its adjusted EBITDA margin outlook to above 26%.
The ability to identify patients who can skip chemotherapy represents a significant value proposition for health systems and insurers, potentially driving test volumes. Veracyte exited the first quarter with $439 million in cash and no debt, with a current ratio of 9.31.
Veracyte's Prosigna test is one of several genomic assays in its portfolio, which also includes Afirma for thyroid cancer, Decipher Prostate for prostate cancer and Decipher Bladder for bladder cancer. In the first quarter, Afirma volumes rose 12% year over year to about 17,200 tests, while Decipher volume grew 24% to about 28,000 tests. Decipher revenue increased 30% in the period, with management noting nearly 30% growth across high-risk categories including radical prostatectomy and metastatic disease.
The company is also advancing its TrueMRD platform for minimal residual disease testing, with a launch planned for muscle-invasive bladder cancer by the end of the second quarter. Veracyte continues to develop in vitro diagnostic versions of Decipher and Prosigna for markets outside the United States.
The Zacks Consensus Estimate for 2026 earnings per share has risen 10.2% over the past 30 days to $1.84. Analysts project 2026 revenue of $580.3 million, up 12.2%, and 2027 revenue of $642.6 million, up 10.7%.
Veracyte's shares have surged 65.8% over the past year, outperforming the industry's 4.8% decline and the S&P 500's 33.1% gain. The stock carries a Zacks Rank of 3, equivalent to a Hold rating.
The trial results position Veracyte to capture a larger share of the breast cancer diagnostics market, where the ability to avoid chemotherapy is a priority for patients and providers. Investors will watch for adoption metrics and reimbursement updates following the ASCO presentation.
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