Veracyte Authorizes $100 Million Share Buyback, Cuts 2026 Test Revenue Outlook
Key Facts
Veracyte reported results on November 4, 2026, for the third quarter ended September 30, and said its board authorized a common stock repurchase program of up to $100 million. The announcement coincided with an update to the company’s 2026 fiscal-year outlook: it maintained expected total revenue growth at 14% to 15%, but lowered its test revenue outlook range. Total revenue in the quarter was $151.8 million, up 15% from $131.9 million in the same period of 2025. Test revenue was $146.4 million for the quarter. The quarterly figures reflect year-over-year growth, while the annual outlook revision puts test performance at the center of the company’s announcement.
Veracyte lowered its 2026 test revenue outlook to a range of $571 million to $573 million, from its previous estimate of $576 million to $582 million. Meanwhile, its total revenue outlook range became $590 million to $593 million, compared with a previous range of $590 million to $596 million. The company said the updated total revenue outlook represents annual growth of 14% to 15%. In May, it had raised its full-year revenue estimate to $582–$592 million from $570–$582 million, with expected growth of 13% to 14%. The sequence of estimates shows the company raised its outlook in May, then narrowed its total revenue range in November while lowering its test revenue range compared with its previous estimate.
By product, revenue from the Decipher Prostate test rose 12% to $92.3 million in the third quarter, while Afirma revenue increased 19% to $51.5 million. CEO Mark Stapley said Afirma “exceeded expectations,” while Decipher Prostate volume came in below the company’s expectations. Stapley added: “We remain confident in the long-term outlook for our business.” The growth rates show differing performance between the two tests during the quarter, with Afirma revenue growing faster than Decipher Prostate revenue. The company reported combined test revenue of $146.4 million, within total quarterly revenue of $151.8 million.
The company posted third-quarter net income of $31.5 million under generally accepted accounting principles, and diluted earnings per share of $0.38. It also recorded net cash from operating activities of $121.3 million during the first nine months of 2026. The repurchase plan allows purchases in the open market, through negotiated transactions or by other means. The plan does not obligate the company to repurchase a specific number of shares, and it may be amended, suspended or terminated without prior notice. The company said the timing, amount and terms of any purchases will depend on multiple factors, without the announcement specifying a commitment to complete the full program.
Veracyte said it had surpassed the threshold of 1 million patients who had received its tests as of the announcement date. It also said its Prosigna test for estimating breast cancer recurrence risk received Medicare coverage in the United States for eligible patients with early-stage hormone receptor-positive cancer. The coverage announcement adds a development concerning access to the test for this patient group, alongside the quarterly results and outlook update. VCYT shares closed at $52.52 on November 4, 2026, according to EL7 data. This was the closing price recorded on the day the company reported results and authorized the repurchase program.