Veracyte Q3 revenue beats estimates on Afirma growth; cuts testing revenue outlook

What happened

Veracyte said third-quarter revenue rose 15% year over year and beat analyst expectations. Afirma test revenue increased 19%, while Decipher Prostate revenue rose 12% despite lower-than-expected test volume. The company narrowed its 2026 revenue outlook, cut its testing revenue forecast, and announced a share repurchase program.

Confirmed

Global impact / market context

The results show stronger sales from Afirma and Prosigna, but weaker-than-expected Decipher Prostate test volume and a lower testing forecast point to uneven demand. Lower testing revenue could constrain future sales growth, while the share repurchase uses cash to buy back company shares.

Analyst inference

Quarterly revenue exceeded the stated analyst consensus, yet Veracyte narrowed its 2026 total revenue range and reduced its testing revenue outlook. It still expects adjusted EBITDA margin, a measure of operating profitability before certain costs, to exceed 26% in 2026, alongside the announced repurchase.

Confirmed

What to watch

1. Track Afirma growth and Decipher Prostate test volumes: stronger demand could support revenue, while continued volume weakness could weigh on the company’s testing outlook. Analyst inference
2. Watch whether Veracyte meets its lowered 2026 testing and total revenue forecasts; these expectations shape anticipated sales and could influence planned company spending. Confirmed
3. Look for details on the announced share repurchase program. Buying back shares uses company cash, potentially reducing funds available for other spending or business needs. Confirmed

Evidence

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