A month has gone by since the last earnings report for Pacific Biosciences of California (PACB). Shares have added about 11.6% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Pacific Biosciences due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Pacific Biosciences of California, Inc. before we dive into how investors and analysts have reacted as of late.
PacBio Q2 Earnings Meet Estimates, Revenues Miss, 2026 Sales View Cut
PacBio reported an adjusted loss per share of 14 cents for the second quarter of 2026, wider than the year-ago adjusted loss of 13 cents per share. The figure came in line with the Zacks Consensus Estimate.
The company's GAAP loss per share was 14 cents in the quarter, flat year over year.
PacBio's Q2 Revenues in Detail
PacBio registered total revenues of $39 million, down 2% year over year. The figure missed the Zacks Consensus Estimate by 4.2%. Consumables growth and higher Revio placements were offset by weaker instrument sales and a sharp revenue decline in Asia Pacific.
PACB's Geographical Results Remain Uneven
Americas revenues were $17.6 million, down 0.6% year over year. Continued uncertainty surrounding NIH, academic and government funding weighed on capital purchasing, though clinical and commercial customer activity remained resilient.
Asia-Pacific revenues totaled $7 million, down 45% year over year. The decrease reflected the completion of a significant population-sequencing program, weaker academic and government demand and lower consumables purchases as customers prepared for the SPRQ-Nx transition.
EMEA revenues increased 52% year over year to $14.4 million. Growth was driven by clinical customers moving from pilot programs into routine production, stronger Vega demand and a strategic multi-system Revio placement supporting a national genomics initiative.
PacBio's Q2 Segmental Analysis
In the quarter under review, total Product revenues amounted to $32.9 million, down 0.4% from the year-ago quarter.
Within the Product segment, Instrument revenues were $12.8 million, down 9.9% year over year. The decline reflected a lower average selling price, including strategic Revio placements at key accounts, and fewer Vega shipments amid academic and government funding constraints. Instrument revenues in the quarter included 20 Revio sequencing systems and 26 Vega sequencing systems.
PACB ended the quarter with 366 cumulative Revio system shipments and 200 cumulative Vega system shipments.
Consumables revenues for the quarter were $20.1 million, up 6.3% from the prior-year quarter, supported by installed-base expansion and continued Revio utilization. Shipments to clinical customers increased 67% and represented a mid-teens percentage of total consumables shipments. Annualized Revio pull-through per system was approximately $202,000 in the quarter.
Growth was partly tempered by customers using existing inventory and validating workflows ahead of broader SPRQ-Nx adoption.
Service and other revenues totaled $6.1 million, down 9.4% year over year.
PacBio's Margin Trend
In the quarter under review, PacBio's adjusted gross profit decreased 8.3% year over year to $13.9 million. The adjusted gross margin contracted 200 basis points to 36%.
Sales, general and administrative expenses declined 7.7% year over year to $33.4 million. Research and development expenses increased 2.2% year over year to $23 million. Adjusted total operating expenses of $56.1 million decreased 3.4% year over year.
Total operating loss was $44.6 million in the reported quarter compared with the prior-year quarter's $44.9 million.
PacBio's Financial Position
PacBio exited the second quarter of 2026 with cash and investments of $236.9 million compared with $275.9 million at the end of the first quarter of 2026.
PACB Lowers 2026 Revenue Outlook
PacBio reduced its 2026 revenue guidance to $155-$165 million from the prior range of $165-$175 million. The Zacks Consensus Estimate is pegged at $165.8 million.
The company now expects an adjusted gross margin of 35%-37%. Adjusted operating expenses are projected at $215-$220 million, down $5 million from the previous guidance range.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -8.33% due to these changes.
VGM Scores
Currently, Pacific Biosciences has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. However, the stock has a score of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise Pacific Biosciences has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.
Performance of an Industry Player
Pacific Biosciences belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Edwards Lifesciences (EW), has gained 0.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.
Edwards Lifesciences reported revenues of $1.74 billion in the last reported quarter, representing a year-over-year change of +13.6%. EPS of $0.78 for the same period compares with $0.67 a year ago.
For the current quarter, Edwards Lifesciences is expected to post earnings of $0.73 per share, indicating a change of +9% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Edwards Lifesciences. Also, the stock has a VGM Score of C.
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This article originally published on Zacks Investment Research (zacks.com).
