PacBio (NASDAQ:PACB) reports bullish Q3 2026

Genomics company Pacific Biosciences of California (NASDAQ:PACB) reported Q3 2026 results beating Wall Street’s revenue expectations, with revenue rising 5.5% year on year to $40.56 million. Its non-GAAP loss of $0.11 per share was 16.1% above analysts’ consensus estimates.

For more on PacBio, read our free full research report.

“PacBio is entering an exciting phase as the investments we’ve made in our technology begin to unlock new opportunities,” said Mark Van Oene, President and Chief Executive Officer. “SPRQ-Nx is changing the economics of HiFi sequencing, while growing clinical adoption and strategic collaborations in population genomics and AI are expanding the markets we can serve. We have a tremendous opportunity ahead of us, and my focus is clear: sharpen our execution, prioritize what matters most, and translate the strength of our technology into sustainable growth.”

Revenue growth

Examining a company’s long-term performance can provide clues about its quality. Even a weak business can perform well for one or two quarters, but a high-quality one grows for years. PacBio’s revenue grew at a mediocre 5.8% compounded annual growth rate over the last five years, falling short of the healthcare sector standard.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. PacBio’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 3.5% annually.

This quarter, PacBio reported year-on-year revenue growth of 5.5%, and its $40.56 million in revenue exceeded Wall Street’s consensus estimates by 3.2%.

Looking ahead, sell-side analysts expect revenue to grow 9.4% over the next 12 months, according to S&P, an improvement versus the last two years. This is a strong growth outlook, suggesting its newer products and services will drive better revenue performance.

Adjusted operating margin

PacBio’s high expenses have contributed to an average adjusted operating margin of negative 149% over the last five years. Unprofitable healthcare companies warrant extra scrutiny because they can be vulnerable in a downturn. Its ability to endure a full cycle remains uncertain.

On the positive side, PacBio’s adjusted operating margin rose over the last five years, as its revenue growth gave it operating leverage. More recently, that trajectory has remained intact, as its margin has also increased by 54.4 percentage points on a two-year basis.

PacBio’s adjusted operating margin was negative 91.2% this quarter. The company’s consistent lack of profits raises concerns.

Earnings per share

Long-term changes in earnings per share, or EPS, matter for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Although PacBio’s full-year earnings are still negative, it reduced its losses and improved its EPS by 13.5% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability.

In Q3, PacBio reported adjusted EPS of negative $0.11, up from negative $0.12 in the same quarter last year. This comfortably beat analysts’ consensus estimates, a positive result for shareholders. Over the next 12 months, Wall Street expects PacBio to narrow its losses. Analysts forecast its full-year EPS will improve from negative $0.49 to negative $0.45, according to S&P.

Key takeaways from PacBio’s Q3 results

PacBio’s revenue and EPS both topped consensus estimates, giving its Q3 results some clear positives. Shares edged higher 1.2% to $2.60 immediately after the report.

PacBio reported solid quarterly earnings, but is the stock a good investment? The latest quarter matters, but longer-term fundamentals and valuation matter far more when deciding if the stock is a buy. For more on PacBio, read our full research report here (it’s free).