Key Takeaways:
Veracyte Inc. (NASDAQ:VCYT) raised its full-year 2026 outlook after reporting first-quarter revenue of $139.1 million, a 21% year-over-year increase that beat consensus estimates, driven by strong demand for its genomic cancer tests.
"We had an excellent start to 2026," Marc Stapley, Veracyte’s chief executive officer, said on the company's earnings call. "This quarter highlights years of disciplined execution that have transformed Veracyte, Inc. into a stronger, more focused, scalable company."
The genomic diagnostics company posted adjusted earnings of 52 cents per share, significantly exceeding the Zacks Consensus Estimate of 34 cents. Revenue of $139.1 million surpassed estimates by 6.6%. The performance was fueled by a 24% volume increase in its Decipher prostate cancer test and a 12% rise in its Afirma thyroid cancer test.
Following the results, Veracyte raised its full-year revenue guidance to a range of $582 million to $592 million, up from $570 million to $582 million. The company also boosted its adjusted EBITDA margin outlook to greater than 26% for the year, signaling confidence in sustained profitability and growth ahead of two key product launches.
The company's testing revenue grew 26% to $135.1 million, with strong contributions from its flagship products. Decipher, its test for prostate cancer, saw volumes climb 24% to approximately 28,000 tests, with particularly strong traction in advanced disease, which grew nearly 30%. The Afirma franchise for thyroid cancer diagnostics delivered 12% volume growth, aided by operational improvements that reduced the "no-result rate" and provided actionable results to more patients.
"The financial performance we delivered this quarter reflects the significant transformation Marc described—five years of disciplined execution that have created a much more scalable, profitable, and resilient business," said Rebecca Chambers, Veracyte’s chief financial officer. The company ended the quarter with a non-GAAP gross margin of 75.7% and a cash balance of $439.1 million.
Veracyte is preparing for two significant product launches that are not yet factored into its updated guidance. The company expects to launch its Prosigna LDT test for breast cancer by mid-year, supported by data from the 4,500-patient OPTIMA trial set to be presented at the American Society of Clinical Oncology (ASCO) meeting in June.
Additionally, Veracyte plans to launch its TrueMRD minimal residual disease platform by the end of the second quarter, with an initial focus on muscle-invasive bladder cancer. The company sees this as a key entry into the large and growing MRD market, leveraging its established commercial channels in urology.
The guidance raise signals management expects continued momentum from its core business. Investors will watch for the successful commercial launches of Prosigna and TrueMRD later this year to assess the company's next phase of growth.
This article is for informational purposes only and does not constitute investment advice.
