Veracyte falls 54.3% after quarterly results flagging prostate test volumes

What happened

Veracyte (VCYT) fell 54.3% on November 5, 2026, after third-quarter results showed Decipher Prostate volumes below expectations and management issued a cautious preliminary 2027 outlook. The company reported third-quarter total revenue of $151.8 million and quarterly earnings per share of $0.51, above the Zacks consensus of $0.44.

Management said it expects mid-single-digit revenue growth in 2027 as it invests in commercial teams and expands its cancer testing portfolio. The company also announced a $100 million share repurchase program alongside the results.

How big was the move

The stock opened 43.7% below the previous close and closed the session down 54.3%, a decline described as 5.1 times a typical daily move for this stock. Trading was unusually heavy, with volume 12.8 times its 20-day average, while the S&P 500 fell 4.4% on the day.

The Healthcare sector median fell 5.7% on the session, leaving the stock 48.6 percentage points worse than the sector median. The one-session plunge extended into the five-session window, with the stock down 54.0% over the last five sessions and the S&P 500 down 4.7% over the same period.

The technical picture

The stock traded sharply below its short- and medium-term moving averages, at 47.8% below its 20-day moving average and 46.1% below its 50-day moving average. It was also 44.0% below its 200-day moving average. The 50-day average remained above the 200-day average, a sign of an established uptrend despite the recent collapse in price.

Momentum indicators illustrated the abrupt selloff. The Relative Strength Index (14 days) sat at 25, below 30, a level often called oversold. Volatility was elevated, at 170% annualized over 60 days, the highest reading of the past five years, and the stock traded 60.6% below its 52-week high.

Fundamentals and valuation

For the four quarters through September 30, 2026, the company reported revenue of $581.8 million, which grew 17.5% from a year earlier. Diluted earnings per share for that period were $1.54, which rose 310.1% from a year earlier.

Gross margin widened to 72.3% from 68.5% a year earlier, and operating margin reached 15.4% versus 5.0% a year earlier. Free-cash-flow margin was 27.7%, and the balance sheet showed net cash of $159.1 million. Share count increased by 3.9% over one year.

Valuation measures contrasted with the operational improvement. The stock traded at 15.6 times trailing earnings and 12.6 times expected earnings, with a free-cash-flow yield of 4.0% and a market value of $4.02 billion. Its price-to-earnings reading was lower than 88% of its own readings over the past five years; the five-year median was 62.0 times earnings.

Earnings and analyst expectations

Veracyte’s last report, on November 4, 2026, showed earnings per share of $0.51 against $0.41 expected, 24.4% above estimates. That report marked the seventh consecutive quarter beating estimates; the average surprise over the last four reports was 34.7% above estimates.

Analysts maintain a consensus price target of $57.43, which is 139.3% above the closing price, based on 22 analysts covering the stock. Sixty-eight percent of those analysts rate the stock Buy or Strong Buy. Veracyte’s next report is scheduled for February 24, 2027.

What to watch

• November 4, 2026: last report showed earnings per share of $0.51 against $0.41 expected and cited Decipher Prostate volumes below expectations
• A preliminary 2027 outlook calling for mid-single-digit revenue growth as the company invests in commercial teams
• Announced $100 million share repurchase program alongside third-quarter results
• Ongoing investigations announced by law firms into potential securities law violations following the disclosure on volumes
• Next earnings report on February 24, 2027