Pacific Biosciences of California (NASDAQ:PACB) Announces Quarterly Earnings Results, Misses Estimates By $0.01 EPS

Pacific Biosciences of California (NASDAQ:PACB) announced its quarterly earnings data on Wednesday. The biotechnology company reported ($0.14) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.13) by ($0.01), FiscalAI reports. Pacific Biosciences of California had a negative net margin of 80.35% and a negative return on equity of 571.06%.

Here are the key takeaways from Pacific Biosciences of California’s conference call:

• Leadership transition: Christian Henry stepped down as CEO and will remain on PacBio’s board as an advisor, with Mark Van Oene taking over immediately and prioritizing clinical-market expansion, SMRT Next adoption, and leaner execution.
• SMRT Next momentum is encouraging, with more than one-third of the installed base enabling the new software in June. PacBio expects the multi-use chemistry, which lowers the listed cost of a 20x HiFi genome by 30%, to drive higher throughput, larger population-scale projects, and improved utilization over time.
• Second-quarter revenue was $39 million, roughly flat year over year, while Vega placements declined to 26 from 38 amid academic and government funding constraints. PacBio lowered its 2026 revenue outlook to $155 million–$165 million and expects consumables pull-through of only $200,000–$225,000 per Revio system.
• Non-GAAP gross margin fell to 36% due to compute and memory costs, lower manufacturing volumes, and $1.1 million of Vega manufacturing-transition expenses. The company now expects 2026 gross margin of 35%–37% and cash-flow breakeven in 2028, a year later than previously anticipated, despite planned restructuring savings.
• Clinical adoption continues to strengthen, particularly in EMEA, where revenue grew 52% year over year and clinical consumables shipments rose 67% globally. Recent publications supporting HiFi sequencing for rare-disease diagnostics and other clinical applications could help accelerate payer and health-system adoption.

Pacific Biosciences of California Stock Performance

NASDAQ:PACB traded down $0.15 on Wednesday, reaching $1.29. The company’s stock had a trading volume of 11,563,018 shares, compared to its average volume of 6,571,097. Pacific Biosciences of California has a 1-year low of $1.09 and a 1-year high of $2.73. The business’s 50-day moving average price is $1.47 and its two-hundred day moving average price is $1.57. The firm has a market cap of $400.67 million, a PE ratio of -3.00 and a beta of 2.31.

Hedge Funds Weigh In On Pacific Biosciences of California

Institutional investors have recently modified their holdings of the business. Zacks Investment Management acquired a new position in shares of Pacific Biosciences of California in the 3rd quarter valued at approximately $25,000. Russell Investments Group Ltd. acquired a new stake in Pacific Biosciences of California during the 3rd quarter worth approximately $29,000. Caitong International Asset Management Co. Ltd raised its holdings in Pacific Biosciences of California by 891.1% during the 3rd quarter. Caitong International Asset Management Co. Ltd now owns 22,776 shares of the biotechnology company’s stock worth $29,000 after buying an additional 20,478 shares during the period. Cibc World Markets Corp bought a new position in Pacific Biosciences of California in the fourth quarter valued at approximately $34,000. Finally, CIBC Bancorp USA Inc. bought a new position in Pacific Biosciences of California in the third quarter valued at approximately $38,000.

Analysts Set New Price Targets

PACB has been the topic of a number of analyst reports. Zacks Research downgraded Pacific Biosciences of California from a “strong-buy” rating to a “hold” rating in a research note on Monday, April 20th. Weiss Ratings reiterated a “sell (e+)” rating on shares of Pacific Biosciences of California in a report on Friday, July 17th. Finally, Barclays raised their target price on Pacific Biosciences of California from $1.00 to $1.50 and gave the stock an “underweight” rating in a report on Monday, May 11th. One equities research analyst has rated the stock with a Buy rating, two have issued a Hold rating and two have assigned a Sell rating to the stock. According to data from MarketBeat, the stock has an average rating of “Reduce” and an average target price of $1.83.

About Pacific Biosciences of California

Pacific Biosciences of California, Inc develops, manufactures and sells high-performance DNA sequencing systems for genetic and genomic analysis. The company’s proprietary single-molecule, real-time (SMRT) sequencing technology is designed to enable long-read sequencing, offering high accuracy for applications such as de novo genome assembly, transcriptome characterization and structural variation analysis. Pacific Biosciences markets a suite of instruments, including the Sequel and Sequel IIe systems, alongside reagents, consumables and data analysis software to support a range of life science research.

Founded in 2004 and headquartered in Menlo Park, California, Pacific Biosciences has expanded its global reach by serving academic institutions, biotechnology and pharmaceutical companies, and government research centers across North America, Europe and Asia.