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Verily Pre will connect PacBio HiFi Sequencing with governed cloud analysis, multimodal health data and AI-ready research workflows  | Source: PacBio

MENLO PARK, Calif. and DALLAS, Oct. 19, 2026 (GLOBE NEWSWIRE) -- PacBio (NASDAQ: PACB), developer of the world’s most advanced sequencing technologies, and Verily Health Inc., a healthcare data intelligence company, announced today a multi-year strategic collaboration to integrate PacBio HiFi sequencing with Verily Health’s governed data and AI platform. The collaboration will link PacBio sequencing workflows to Verily Pre, combining long-read genomic data with real-world clinical data at population scale. The resulting AI-ready clinico-genomic datasets will support biomedical discovery efforts and AI model training and deployment.

The collaboration addresses a growing bottleneck in biomedical AI: increasingly powerful models require biological data with greater depth, context and scale. Long-read sequencing can reveal complex genetic variants, structural changes, methylation information, and full-length RNA transcripts that are difficult to capture with short-read approaches, offering richer insights into disease biology. Yet, processing these large, complex datasets and integrating them with clinical data for model training remains fragmented, unscalable and largely bespoke. PacBio and Verily Health intend to connect those steps, making rich genomic data more accessible and usable to power the next generation of biomedical AI applications. Verily Pre already supports population-scale biomedical research, while Workbench serves more than 20,000 researchers and has supported more than 700 publications. And because PacBio HiFi whole-genome sequencing workflows already run end-to-end within the Verily Pre environment, it provides an existing and robust technical foundation for the multi-year collaboration.

“This collaboration reflects a shared focus on making high-quality genomic data more accessible and useful across research and development, while creating a foundation for continued innovation in health,” said Stephen Gillett, Chairman and CEO of Verily Health. “Working with PacBio, we hope to deliver a meaningful impact to researchers and innovators working to find new answers for neurology, oncology, rare disease, and other areas of critical unmet need.”

“PacBio HiFi sequencing offers our customers the most complete and highest quality data available, which is ideal for training AI models where the input determines the success of the output” said Mark Van Oene, President and CEO of PacBio. “Through this collaboration with Verily Health, we are building a path to turn richer biological data into AI-ready data at scale to ultimately help researchers get more from both their sequencing and their models.”

Verily Pre provides the foundation to build, deploy and scale intelligent applications across healthcare and life sciences. Under the collaboration, Verily Health will configure Pre Workbench to connect PacBio sequencing workflows, acting as the secure governed research environment for the aggregation, analysis, and curation of HiFi genomic datasets. The companies also plan to use the Verily Pre trusted agentic environment (TAE) to run model training and inference, enabling researchers to explore deeper, longitudinal genomic datasets and support their workflows. Over the course of the multi-year collaboration, PacBio and Verily Health plan to expand the integration to support increasingly large and complex long-read programs across research organizations, biopharma and population genomics. The companies envision a common infrastructure that can scale with increasingly large and complex long-read programs, supporting multimodal research and AI development across biopharma, clinical institutions, population genomics and other areas of precision health.

About PacBio
PacBio (NASDAQ: PACB) is a premier life science technology company that designs, develops, and manufactures advanced sequencing solutions to help scientists and clinical researchers resolve genetically complex problems. Our products and technologies, which include our HiFi long-read sequencing, address solutions across a broad set of research applications including human germline sequencing, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications. For more information, please visit www.pacb.comand follow @PacBio.

PacBio products are provided for Research Use Only. Not for use in diagnostic procedures.

About Verily Health Inc.
At the intersection of technology, data science, and healthcare, Verily Health transforms complex health data into trusted intelligence, enabling health solutions that are more personal, predictive, and precise.

Verily’s flagship Governed Health Intelligence platform, Verily Pre, enables healthcare organizations to responsibly govern, model, and securely activate their protected health data at scale, deploying intelligence with the scientific rigor, oversight, and auditability needed for healthcare.

For more information about Verily Health, please visit verily.com

Disclaimer:
The Verily Pre platform is not a medical device and has not been evaluated by the FDA. Customers developing Software as a Medical Device (SaMD) are solely responsible for regulatory compliance.

Forward looking statements
This press release may contain “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, including statements relating to the availability, uses, accuracy, advantages, quality or performance of, or benefits of using, or expected benefits of using, PacBio products or technologies, including in connection with the collaboration between PacBio and Verily Health; plans to integrate PacBio HiFi sequencing with Verily Health’s governed data and AI platform to create AI-ready clinic-genomic datasets; making genomic data more accessible and usable to power future biomedical AI application and create a foundation for continued innovation in health; impact in finding new answers for neurology, oncology, rare disease, and other areas of critical unmet need; building a path to turn richer biological data into AI-ready data; Verily Health configuring Pre Workbench as secure governed research environment; the use of TAEs to run model training and inference; developing a common infrastructure capable of supporting increasingly large and complex long-read programs; and other future events. You should not place undue reliance on forward-looking statements because they are subject to assumptions, risks, and uncertainties and could cause actual outcomes and results to differ materially from currently anticipated results, including, challenges inherent in using , and collaborating with third parties to develop, new technologies; potential product performance, interoperability and quality issues; potential regulatory issues relating to the development and use AI technologies; rapidly changing technologies and extensive competition in, and potential FDA regulatory issues relating to, genomic sequencing; unanticipated increases in costs or expenses; interruptions or delays in the supply of components or materials for, or manufacturing of, PacBio products and products under development; third-party claims alleging infringement of patents and proprietary rights or seeking to invalidate PacBio's patents or proprietary rights, among others. Additional factors that could materially affect actual results can be found in PacBio's most recent filings with the Securities and Exchange Commission, including PacBio's most recent reports on Forms 8-K, 10-K, and 10-Q, and include those listed under the caption "Risk Factors." These forward-looking statements are based on current expectations and speak only as of the date hereof; except as required by law, PacBio disclaims any obligation to revise or update these forward-looking statements to reflect events or circumstances in the future, even if new information becomes available.

Media Contacts

PacBio
Investors: 
[email protected]
Media:
[email protected]

Verily Health
Laurie Ferguson
[email protected] 

Pacific Biosciences of California, Inc. (NASDAQ:PACB – Get Free Report) insider James Gibson II sold 661,815 shares of Pacific Biosciences of California stock in a transaction that occurred on Tuesday, October 6th. The stock was sold at an average price of $3.11, for a total value of $2,058,244.65. Following the completion of the sale, the insider owned 1,083,848 shares of the company’s stock, valued at approximately $3,370,767.28. The trade was a 37.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan.

Shares of PACB opened at $2.33 on Friday. The firm has a market cap of $724.23 million, a PE ratio of -5.42 and a beta of 2.19. Pacific Biosciences of California, Inc. has a 52-week low of $1.07 and a 52-week high of $3.43. The business’s 50 day moving average price is $1.54 and its two-hundred day moving average price is $1.48.

Pacific Biosciences of California (NASDAQ:PACB – Get Free Report) last announced its quarterly earnings data on Monday, August 3rd. The biotechnology company reported ($0.14) EPS for the quarter, missing the consensus estimate of ($0.13) by ($0.01). The company had revenue of $39.01 million for the quarter, compared to analyst estimates of $42.90 million. Pacific Biosciences of California had a negative return on equity of 5,752.12% and a negative net margin of 82.49%. Research analysts predict that Pacific Biosciences of California, Inc. will post -0.52 EPS for the current fiscal year.

Wall Street Analyst Weigh In Several brokerages recently issued reports on PACB. UBS Group initiated coverage on shares of Pacific Biosciences of California in a research note on Wednesday, September 9th. They set a “neutral” rating and a $1.35 target price on the stock. Wall Street Zen downgraded shares of Pacific Biosciences of California from a “hold” rating to a “sell” rating in a research note on Saturday, August 8th. Finally, Weiss Ratings downgraded shares of Pacific Biosciences of California from a “sell (d-)” rating to a “sell (e+)” rating in a research note on Monday, September 28th. One analyst has rated the stock with a Buy rating, three have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat, Pacific Biosciences of California presently has an average rating of “Reduce” and an average price target of $1.71. Read Our Latest Research Report on Pacific Biosciences of California

Institutional Trading of Pacific Biosciences of California Hedge funds and other institutional investors have recently added to or reduced their stakes in the business. BlackRock Inc. purchased a new position in shares of Pacific Biosciences of California during the 2nd quarter worth $54,330,000. Casdin Capital LLC grew its position in shares of Pacific Biosciences of California by 483.6% during the 4th quarter. Casdin Capital LLC now owns 4,223,767 shares of the biotechnology company’s stock valued at $7,898,000 after acquiring an additional 3,500,000 shares during the period. Bank of America Corp DE bought a new stake in shares of Pacific Biosciences of California during the 2nd quarter valued at $2,265,000. Hhlr Advisors LTD. bought a new stake in shares of Pacific Biosciences of California during the 2nd quarter valued at $1,544,000. Finally, Bank of New York Mellon Corp purchased a new stake in shares of Pacific Biosciences of California in the 2nd quarter worth $1,290,000.

Pacific Biosciences of California Company Profile (Get Free Report)

Pacific Biosciences of California, Inc develops and sells advanced genetic sequencing technologies. The company’s platform is based on single-molecule, real-time (SMRT) sequencing, which is designed to produce highly accurate, long DNA reads. These reads can help researchers identify genetic variation, assemble genomes, and analyze complex biological systems that may be difficult to study using short-read sequencing methods.

PacBio’s product portfolio includes the Revio and Sequel IIe sequencing systems, SMRT Cells and other consumables, library-preparation products, and software for instrument operation, data analysis, and interpretation.

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Deciphering Disruption: Inside Cathie Wood's Latest PlaysPacific Biosciences of California NASDAQ: PACB is maintaining its existing strategy while sharpening execution around clinical genomics, cost controls and the rollout of products designed to improve sequencing economics, Chief Executive Officer Mark Van Oene said during a Morgan Stanley discussion.

Van Oene, who recently took the CEO role after more than five years at the company, said the company’s principal strategic opportunity is expanding in differentiated clinical applications, particularly germline genomics. He identified carrier screening, newborn screening and rare-disease testing as priority areas.

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Strategic Buy Lights Up This Biotech Stock: Time to Invest?“This is not me making a wholesale change on the strategy,” Van Oene said. “It really is … the execution.”

Restructuring Savings and Product Priorities The company recently completed a restructuring intended to reduce cash burn. Van Oene said investors should expect Pacific Biosciences to deliver approximately $40 million in savings next year through headcount reductions and lower non-recurring expenses. He also said a near-term priority is stabilizing commercial and research-and-development teams affected by the restructuring.

Product execution will center on the company’s SPRQ-Nx reagents, which began shipping at the end of May. The reagents enable customers to reuse a sequencing chip up to three times, a capability Van Oene described as significant for both customer pricing and the company’s gross margins.

Pacific Biosciences lowered its list price by 30% with the rollout, according to Van Oene. He said early customer feedback has been encouraging, with strong results on first and second sequencing runs, though yields have been somewhat lower on third runs. The company is working with customers on workflow and timing considerations.

Van Oene said the lower pricing is generating new projects, larger-scale discussions and, in some cases, expansions of customers’ Revio instrument fleets. However, he said the transition has reduced consumable pull-through per instrument to closer to $200,000 during the second quarter and expects that pressure to continue through the current quarter.

He characterized the rollout as a two-quarter transition and said the company expects consumable revenue and annual pull-through to begin recovering by year-end. Successful adoption could also support gross-margin improvement, with Van Oene citing SPRQ-Nx as the company’s first product intended to more meaningfully increase margins.

Clinical Growth and High-Throughput Development Van Oene said European hospitals and academic medical centers are already using whole-genome sequencing for rare disease at volumes reaching thousands of samples. In Europe, he sees a growing transition toward using HiFi sequencing as a frontline test rather than as a reflex test or a limited subset of cases.

In the U.S., he expects earlier clinical adoption to be led by targeted carrier-screening panels. He cited Quest’s launch of ataxia panels and said additional targeted tests may precede broader whole-genome sequencing for rare and undiagnosed diseases.

The company is also continuing to invest in a high-throughput sequencing platform targeted for launch later next year. Van Oene said the platform remains Pacific Biosciences’ largest R&D expense and a central capital-allocation priority. He said the company does not plan to add major new development programs, instead focusing on launching its portfolio of three HiFi sequencing technologies.

“The real growth starts to happen from the high-throughput platform,” Van Oene said, adding that high-throughput sequencing is expected to be important for both revenue and margin expansion.

Successful SPRQ-Nx adoption and gross-margin improvement; Growth in recurring clinical consumables revenue, which Van Oene said should grow more than 50% over the next several years; and Development, commercialization and utilization of the high-throughput platform. Funding Environment and New Customer Segments Van Oene described the U.S. academic and government funding environment as uncertain, noting that NIH grant funding had been challenging even before the current administration. He said the company had not seen a traditional September budget “flush” and is not assuming a major improvement in its forecasts.

As a result, Pacific Biosciences is focusing more heavily on clinical customers, biopharma, philanthropy and other funding sources. Van Oene said the company is also seeing renewed interest from biopharmaceutical customers seeking larger and more comprehensive genomic data sets for target discovery.

The company is investing in software and data infrastructure alongside its sequencing systems. Van Oene highlighted HiFi Solves, a federated network through which hospital systems can run, share and analyze HiFi data. He said Pacific Biosciences has developed secondary-analysis pipelines covering areas including phasing, structural variation, copy-number analysis and methylation, and is working to make those tools more accessible through software and partnerships.

AI Opportunity Remains Outside Base Case Van Oene also identified AI-driven therapeutics and healthcare as a potential longer-term customer category. He pointed to a deal with Basecamp Research Group in England, which is building a biology foundation model using a large atlas of genes found in soil samples. Basecamp is sending samples to Pacific Biosciences for HiFi sequencing, he said.

He said early indicators from that relationship suggest demand for higher-quality, more comprehensive sequencing data, including in metagenomics and transcriptomics. Still, Van Oene said potential AI-related revenue is not included in the company’s base-case model for margin improvement or reaching cash-flow breakeven.

In the longer term, Van Oene said multi-use SMRT Cell technology could be a key factor in making Pacific Biosciences’ business more sustainable. By amortizing the cost of what had been a single-use sequencing chip across multiple runs, the company expects to improve customer economics, expand pricing flexibility and increase gross margins.

About Pacific Biosciences of California (NASDAQ:PACB)Pacific Biosciences of California, Inc NASDAQ: PACB develops and commercializes life-science technologies for DNA sequencing. The company is best known for its Single Molecule, Real-Time (SMRT) sequencing platform, which produces highly accurate, long-read sequencing data used to study genomes, transcriptomes and other biological systems.

PacBio's product portfolio includes the Revio and Sequel IIe long-read sequencing systems, associated consumables and sample-preparation solutions, and software for data analysis and interpretation.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Deciphering Disruption: Inside Cathie Wood's Latest PlaysPacific Biosciences of California NASDAQ: PACB reported second-quarter revenue of $39 million, including $20 million in consumables revenue, $13 million in instrument revenue and $6 million in services revenue, CFO Jim Gibson said during the Canaccord Genuity Growth Conference.

Revenue increased sequentially, Gibson said, while services revenue declined slightly year over year following the completion of a large population genetics study in Asia. The company highlighted 67% growth in its clinical business and said clinical consumables represented a mid-teens percentage of total consumables revenue.

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Leadership transition and restructuring Strategic Buy Lights Up This Biotech Stock: Time to Invest?PacBio recently completed the transition to Mark Van Oene as chief executive officer. Gibson said Van Oene, who joined PacBio about five years ago, previously led research and development and operations and was involved in the launches of the Revio and Vega sequencing systems as well as the company’s SPRQ-Nx and original SPRQ chemistry products.

According to Gibson, Van Oene’s priorities include expanding PacBio’s clinical presence and building on growth in Europe, the Middle East and Africa, or EMEA, as well as other international markets.

The company also announced a targeted reduction in force as it manages higher compute and memory costs and a slower-than-expected transition to its SPRQ-Nx chemistry. Gibson said the restructuring substantially reduced marketing functions and removed management layers, with marketing efforts becoming more focused on clinical markets and integrated with the commercial organization.

PacBio expects the actions to reduce compensation and benefits expenses by $15 million to $20 million. Gibson also said the company expects to be past much of its major spending for a new high-throughput sequencing platform by 2027, potentially reducing spending by another $30 million to $40 million that year.

SPRQ-Nx transition affects consumables PacBio commercially launched SPRQ-Nx in May. The chemistry supports three uses per chip and carries an average selling price roughly 35% below the prior offering, Gibson said. While approximately one-third of customers had converted their software to enable the multi-use workflow, some larger service providers have continued using existing inventory before placing more orders for the new chemistry.

“We did see a slight lull in Q2” as customers worked through inventory, Gibson said, adding that usage rates remained high even when customers were not replenishing supplies.

The company expects many customers to complete that inventory transition by the latter part of 2026. PacBio also expects that lower pricing could drive increased sample volumes, though Gibson said it was too early to draw conclusions from order data. He estimated each Revio system would need to run roughly 10 to 15 more samples per month to return to revenue parity after the price reduction.

PacBio lowered its revenue outlook, with Gibson citing the slower SPRQ-Nx conversion and reduced expectations for a second-half pickup in academic and government demand for Vega systems. He said demand for Revio remains strong and that the company continues to see solid Vega placements.

Population studies and clinical opportunity Gibson said PacBio signed two notable fleet-expansion agreements with existing customers and secured a large new population genomics initiative that received five Revio systems. The company expects to provide additional details about that initiative during the third quarter.

He said large projects enabled by SPRQ-Nx are expected to become more meaningful contributors to revenue in 2027, as installations and project ramps generally take four to six months. PacBio previously announced a 100,000-sample GeneDx project, which Gibson described as the company’s largest project to date. He said the GeneDx program and the newly announced population genetics initiative are not expected to contribute substantially in 2026.

Gibson said PacBio won the GeneDx business through a competitive process in which customers prioritized data depth, coverage and reproducibility. He said researchers and clinical-oriented organizations are increasingly interested in generating more complete genomic data sets at the outset rather than potentially enriching short-read data sets years later.

In EMEA, PacBio reported more than 50% year-over-year growth, supported by rare-disease testing, favorable reimbursement conditions for whole-genome sequencing and the fit of Revio throughput at smaller hospitals and within single-payer healthcare systems. In the U.S., Gibson said larger centralized testing labs are seeking higher-throughput systems and favorable reimbursement conditions for whole-genome sequencing.

Path toward cash-flow positivity PacBio is developing an ultra-high-throughput platform that Gibson said is intended to improve price parity with short-read sequencing, support larger data sets and provide customers with more flexibility over compute requirements. The company is also working to optimize its existing systems’ use of GPUs and memory, after buying inventory to secure supply for the remainder of the year.

Gibson said PacBio’s path to cash-flow positivity in 2028 depends on successfully launching the new platform as a portfolio addition, improving compute and DRAM economics, and converting a majority of customers to SPRQ-Nx. He said the company would need to be “knocking on the door of 50%” gross margin to support that objective.

About Pacific Biosciences of California (NASDAQ:PACB)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.

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MENLO PARK, Calif., Aug. 05, 2026 (GLOBE NEWSWIRE) -- PacBio (NASDAQ: PACB) today announced financial results for the quarter ended June 30, 2026.

Recent Business Highlights

Total revenue of $39.0 million was driven by growing consumables and new Revio and Vega placements as the Company commenced its full rollout of SPRQ-Nx chemistry. Instrument revenue consisted of both single-system and multi-system orders, including an order for several Revio systems from a new population-scale customerCommenced global commercial rollout of SPRQ-Nx, delivering whole genome sequencing at $345 USD list price per genome with enhanced methylation detection and DeepConsensus, an AI-powered consensus algorithm co-developed with GoogleCommenced sequencing and sample delivery for Basecamp Research, a frontier AI lab for therapeutic design, marking a significant operational milestone for PacBio's largest population-scale program to datePublished in a landmark New England Journal of Medicine study, "Clinical Long-Read Genome Sequencing for Rare-Disease Diagnostics." The publication demonstrates that HiFi long-read sequencing is a clinically effective first-tier diagnostic test that improves diagnostic yield while simplifying the laboratory workflow, reducing turnaround time, and enhancing the overall economics of rare disease diagnosticsPublished in a Nature Genetics article, “Near-perfect genome sequencing in medical genetics.” The publication highlights long-read sequencing as a pillar of near-perfect genome sequencing (NPGS), alongside diploid genome assembly, pangenome references, and AI-driven variant interpretationContributed to a published preprint from the HiFi Solves Sub-fertility Consortium in Asia Pacific. The preprint demonstrates that PacBio HiFi whole genome sequencing can provide a more complete view of reproductive genetics in one workflowImplemented restructuring actions primarily to streamline marketing and R&D organizations, strengthen the go-to-market commercial organization, and drive greater cost discipline going forward
Second quarter results:

 Q2 2026Q2 2025Revenue (in millions)$39.0$39.8Consumable revenue (in millions)$20.1$18.9Instrument revenue (in millions)$12.8$14.2Service and other revenue (in millions)$6.1$6.7Revio™system placements2015Vega™ system placements2638Annualized Revio pull-through per system~$202,000~$219,000Ending cash, cash equivalents, and investments (in millions)$236.9$314.7    Gross profit and margin, operating expenses, net loss, and net loss per share are reported on a GAAP and non-GAAP basis. The non-GAAP measures are described below and reconciled to the corresponding GAAP measures at the end of this release.

GAAP gross profit for the second quarter of 2026 was $12.6 million compared to $14.7 million during the second quarter of 2025. Non-GAAP gross profit for the second quarter of 2026 was $13.9 million compared to $15.2 million for the second quarter of 2025. GAAP gross margin was 32% for the second quarter of 2026 compared to 37% for the second quarter of 2025. Non-GAAP gross margin was 36% for the second quarter of 2026 compared to 38% for the second quarter of 2025. The decline in non-GAAP gross margin was primarily driven by higher compute and memory costs, Vega manufacturing transition costs, and lower Revio average selling prices associated with strategic multi-system customer placements.

GAAP operating expenses totaled $57.2 million for the second quarter of 2026 compared to $59.5 million for the second quarter of 2025. Non-GAAP operating expenses totaled $56.1 million for the second quarter of 2026 compared to $58.1 million for the second quarter of 2025. GAAP and non-GAAP operating expenses for the second quarter of 2026 and the second quarter of 2025 included non-cash share-based compensation of $8.6 million and $11.0 million, respectively.

GAAP net loss for the second quarter of 2026 was $44.7 million compared to $41.9 million for the second quarter of 2025. Non-GAAP net loss for the second quarter of 2026 was $41.9 million compared to $40.0 million for the second quarter of 2025.

GAAP net loss per share for the second quarter of 2026 was $0.14 compared to $0.14 for the second quarter of 2025. Non-GAAP net loss per share for the second quarter of 2026 was $0.14 compared to $0.13 for the second quarter of 2025.

2026 Financial Outlook

PacBio expects revenue for the full year 2026 to be in the range of $155 million to $165 million.

Quarterly Conference Call Information

Management will host a quarterly conference call today at 4:30 p.m. Eastern Time to review financial results for the second quarter ended June 30, 2026. Investors can access the call by dialing 1-888-349-0136 (or 1-412-317-0459 for international callers) and requesting to join the “PacBio Q2 Earnings Call". The call will be webcast live and available for replay at PacBio's website at https://investor.pacificbiosciences.com.

About PacBio

PacBio (NASDAQ: PACB) is a premier life science technology company that designs, develops, and manufactures advanced sequencing solutions to help scientists and clinical researchers resolve genetically complex problems. Our products and technologies, which primarily consist of our HiFi long-read sequencing systems, address solutions across a broad set of research applications, including human germline sequencing, plant and animal sciences, infectious disease and microbiology, oncology, and other emerging applications. For more information, please visit www.pacb.com and follow @PacBio.

PacBio products are provided for Research Use Only. Not for use in diagnostic procedures.

Statement regarding use of non‐GAAP financial measures

PacBio reports non‐GAAP results for basic net income (loss) per share, net income (loss), gross margins, gross profit (loss) and operating expenses in addition to, and not as a substitute for, or because it believes that such information is superior to, financial measures calculated in accordance with GAAP. PacBio believes that non-GAAP financial information, when taken collectively, may be helpful to investors because it provides consistency and comparability with past financial performance. However, non-GAAP financial information is presented for supplemental informational purposes only, has limitations as an analytical tool and should not be considered in isolation or as a substitute for financial information presented in accordance with GAAP. In addition, other companies may calculate similarly titled non-GAAP measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of PacBio’s non-GAAP financial measures as tools for comparison.

PacBio's financial measures under GAAP include substantial charges that are listed in the itemized reconciliations between GAAP and non‐GAAP financial measures included in this press release. PacBio excludes recurring charges from its non-GAAP financial statements, including amortization of acquired intangible assets and changes in fair value of contingent consideration, and further excludes infrequent and limited charges including impairment charges, restructuring-related expenses for discrete restructuring events, settlement charges, disposition of short-read assets, benefits from income taxes and other adjustments and rounding differences.

Management has excluded the effects of these items in non‐GAAP measures to assist investors in analyzing and assessing past and future operating performance. In addition, management uses non-GAAP measures to compare PacBio’s performance relative to forecasts and strategic plans and to benchmark its performance externally against competitors.

PacBio encourages investors to carefully consider its results under GAAP, as well as its supplemental non‐GAAP information and the reconciliation between these presentations, to more fully understand its business. A reconciliation of PacBio’s non-GAAP financial measures to their most directly comparable financial measure stated in accordance with GAAP has been provided in the financial statement tables included in this press release. PacBio is unable to reconcile future-looking non-GAAP guidance without unreasonable effort because certain items that impact this measure are out of PacBio's control and/or cannot be reasonably predicted at this time.

Forward-Looking Statements

This press release contains “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and the U.S. Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements relating to PacBio’s initiatives as well as the expected financial impact and timing of these plans and initiatives, including PacBio's expectations regarding long-read sequencing and SPRQ-Nx; PacBio's expectations regarding its restructuring efforts; PacBio’s financial guidance and expectations for future periods; new and continued reception of PacBio’s products and their expansion into new or existing markets; and the availability, uses, accuracy, coverage, advantages, quality or performance of, or benefits or expected benefits of using, PacBio products or technologies. Reported results and orders for any instrument system should not be considered an indication of future performance. You should not place undue reliance on forward-looking statements because they are subject to assumptions, risks, and uncertainties and could cause actual outcomes and results to differ materially from currently anticipated results, including, but not limited to, challenges inherent in developing, manufacturing, launching, marketing and selling new products, and achieving anticipated new sales; potential cancellation of existing instrument orders; assumptions, risks and uncertainties related to the ability to attract new customers and retain and grow sales from existing customers; risks related to PacBio's ability to successfully execute and realize the benefits of acquisitions; the impact of new, increased or enhanced tariffs and export restrictions; rapidly changing technologies and extensive competition in genomic sequencing; unanticipated increases in costs or expenses; high costs of computer memory components; interruptions or delays in the supply of components or materials for, or manufacturing of, PacBio products and products under development; potential product performance and quality issues and potential delays in development timelines; the possible loss of key employees, customers, or suppliers; customers and prospective customers curtailing or suspending activities using PacBio's products; third-party claims alleging infringement of patents and proprietary rights or seeking to invalidate PacBio's patents or proprietary rights; risks associated with international operations; and other risks associated with general macroeconomic conditions and global economic or political instability, including war and other international conflicts, such as the conflicts in the Middle East. Additional factors that could materially affect actual results can be found in PacBio's most recent filings with the Securities and Exchange Commission, including PacBio's most recent reports on Forms 8-K, 10-K, and 10-Q, and include those listed under the caption “Risk Factors.” These forward-looking statements are based on current expectations and speak only as of the date hereof; except as required by law, PacBio disclaims any obligation to revise or update these forward-looking statements to reflect events or circumstances in the future, even if new information becomes available.

The unaudited condensed consolidated financial statements that follow should be read in conjunction with the notes set forth in PacBio's Quarterly Report on Form 10-Q when filed with the Securities and Exchange Commission.

Contacts

Investors:
[email protected]

Media:
[email protected]

  Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Statements of Operations
   Three Months Ended(in thousands, except per share amounts)June 30,
2026 March 31,
2026 June 30,
2025Revenue:     Product revenue$32,950  $31,534  $33,083 Service and other revenue 6,057   5,644   6,683 Total revenue 39,007   37,178   39,766 Cost of Revenue:     Cost of product revenue (1) (2) (3) 20,944   19,972   20,022 Cost of service and other revenue 5,242   4,182   4,853 Amortization of acquired intangible assets 183   183   183 Loss on purchase commitment (1) —   —   24 Total cost of revenue 26,369   24,337   25,082 Gross profit 12,638   12,841   14,684 Operating Expense:     Research and development 23,022   19,608   22,529 Sales, general and administrative (1) (2) 33,393   31,153   36,175 Settlement charges (2) —   15,400   — Gain on disposal of assets (3) —   (45,796)  — Amortization of acquired intangible assets 833   833   833 Total operating expense 57,248   21,198   59,537 Operating loss (44,610)  (8,357)  (44,853)Interest expense (4) (2,110)  (1,740)  (1,738)Other income, net 2,037   2,006   4,696 Loss before income taxes (44,683)  (8,091)  (41,895)Income tax provision 58   184   35 Net loss$(44,741) $(8,275) $(41,930)      Net loss per share:     Basic$(0.14) $(0.03) $(0.14)Diluted$(0.14) $(0.03) $(0.14)      Weighted average shares outstanding used in calculating net loss per share:     Basic 310,405   305,819   300,162 Diluted 310,405   305,819   300,162              (1)  Balances for the three months ended June 30, 2025 include restructuring costs. Refer to the Reconciliation of Non-GAAP Financial Measures table below for additional information on such costs and related amounts.

(2)  Balances for the three months ended June 30, 2026 and March 31, 2026 include litigation settlement charges and related legal fees in connection with the agreement entered into with Personal Genomics of Taiwan, Inc. Refer to the Reconciliation of Non-GAAP Financial Measures table below for additional information on such costs and related amounts.

(3)  Balances for the three months ended June 30, 2026 and March 31, 2026 include amounts related to the disposition of short-read assets, including the gain on the sale of certain assets related to our short-read DNA sequencing technology and related clustering, sequencing reagent, and detection technologies, and related non-recurring customer transition costs. Refer to the Reconciliation of Non-GAAP Financial Measures table below for additional information on such costs and related amounts.

(4)  Balance for the three months ended June 30, 2026 includes interest expense related to the Personal Genomics of Taiwan, Inc. settlement liability.

 Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Statements of Operations
     Three Months Ended Six Months Ended(in thousands, except per share amounts)June 30,
2026 June 30,
2025 June 30,
2026 June 30,
2025Revenue:       Product revenue$32,950  $33,083  $64,484  $64,196 Service and other revenue 6,057   6,683   11,701   12,723 Total revenue 39,007   39,766   76,185   76,919 Cost of Revenue:       Cost of product revenue (1) (3) (4) 20,944   20,022   40,916   46,355 Cost of service and other revenue 5,242   4,853   9,424   8,631 Amortization of acquired intangible assets 183   183   366   4,528 Loss on purchase commitment (1) —   24   —   4,092 Total cost of revenue 26,369   25,082   50,706   63,606 Gross profit 12,638   14,684   25,479   13,313 Operating Expense:       Research and development (1) 23,022   22,529   42,630   51,582 Sales, general and administrative (1) (3) 33,393   36,175   64,546   76,343 Impairment charges (2) —   —   —   15,000 Settlement charges (3) —   —   15,400   — Gain on disposal of assets (4) —   —   (45,796)  — Amortization of acquired intangible assets (5) 833   833   1,666   362,875 Change in fair value of contingent consideration (6) —   —   —   (18,700)Total operating expense 57,248   59,537   78,446   487,100 Operating loss (44,610)  (44,853)  (52,967)  (473,787)Interest expense (2,110)  (1,738)  (3,850)  (3,475)Other income, net 2,037   4,696   4,043   8,990 Loss before income taxes (44,683)  (41,895)  (52,774)  (468,272)Income tax provision 58   35   242   (267)Net loss$(44,741) $(41,930) $(53,016) $(468,005)        Net loss per share:       Basic$(0.14) $(0.14) $(0.17) $(1.57)Diluted$(0.14) $(0.14) $(0.17) $(1.57)        Weighted average shares outstanding used in calculating net loss per share:       Basic 310,405   300,162   308,250   298,519 Diluted 310,405   300,162   308,250   298,519                  (1)  Balances for the three and six months ended June 30, 2025 include restructuring costs. Refer to the Reconciliation of Non-GAAP Financial Measures table below for additional information on such costs and related amounts.

(2)  In-process research and development ("IPR&D") impairment charge during the six months ended June 30, 2025 was driven primarily by macroeconomic factors and restructuring initiatives, including the focus on long-read innovation, resulting in changes to the timing and amounts of cash flows.

(3)  Balances for the three and six months ended June 30, 2026 include litigation settlement charges and related legal fees in connection with the agreement entered into with Personal Genomics of Taiwan, Inc. Refer to the Reconciliation of Non-GAAP Financial Measures table below for additional information on such costs and related amounts.

(4)  Balances for the three and six months ended June 30, 2026 include amounts related to the disposition of short-read assets, including the gain on the sale of certain assets related to our short-read DNA sequencing technology and related clustering, sequencing reagent, and detection technologies, and related non-recurring customer transition costs. Refer to the Reconciliation of Non-GAAP Financial Measures table below for additional information on such costs and related amounts.

(5)  Balance for the six months ended June 30, 2025 includes accelerated amortization of acquired intangible assets related to restructuring initiatives. Refer to the Reconciliation of Non-GAAP Financial Measures table below for additional information on such costs and related amounts.

(6)  Change in fair value of contingent consideration during the six months ended June 30, 2025 was due to fair value adjustments of milestone payments payable upon the achievement of a milestone event.

      Pacific Biosciences of California, Inc.
Unaudited Condensed Consolidated Balance Sheets
      (in thousands) June 30,
2026 December 31,
2025
Assets     Cash and investments $236,873  $279,506 Accounts receivable, net  31,104   35,448 Inventory, net  61,084   49,285 Prepaid expenses and other current assets  9,545   10,793 Property and equipment, net  26,972   24,146 Operating lease right-of-use assets, net  40,331   41,695 Restricted cash  1,604   1,552 Intangible assets, net  13,084   15,124 Goodwill  317,761   317,761 Other long-term assets  13,492   8,773 Total Assets $751,850  $784,083       Liabilities and Stockholders' (Deficit) Equity     Accounts payable $19,224  $20,770 Accrued expenses  30,322   33,646 Deferred revenue  19,442   19,865 Operating lease liabilities  61,795   57,040 Convertible senior notes, net  644,332   645,382 Other liabilities  9,948   2,031 Stockholders' (deficit) equity  (33,213)  5,349 Total Liabilities and Stockholders' (Deficit) Equity $751,850  $784,083           Pacific Biosciences of California, Inc.
Reconciliation of Non-GAAP Financial Measures
       Three Months Ended Six Months Ended(in thousands, except per share amounts) June 30,
2026 March 31,
2026 June 30,
2025 June 30,
2026 June 30,
2025GAAP net loss $(44,741) $(8,275) $(41,930) $(53,016) $(468,005)Change in fair value of contingent consideration (1)  —   —   —   —   (18,700)Settlement charges (2)  284   16,804   —   17,088   — Amortization of acquired intangible assets  1,016   1,016   1,016   2,032   8,144 Amortization of patent license (3)  516   —   —   516   — Disposition of short-read assets (4)  611   (45,490)  —   (44,879)  — Interest expense (5)  369   —   —   369   — Income tax benefit (6)  —   —   —   —   (546)Restructuring (7)  —   —   963   —   394,751 Non-GAAP net loss $(41,945) $(35,945) $(39,951) $(77,890) $(84,356)           GAAP basic net loss per share $(0.14) $(0.03) $(0.14) $(0.17) $(1.57)Change in fair value of contingent consideration (1)  —   —   —   —   (0.06)Settlement charges (2)  —   0.05   —   0.06   — Amortization of acquired intangible assets  —   —   —   0.01   0.03 Disposition of short-read assets (4)  —   (0.15)  —   (0.15)  — Restructuring (7)  —   —   —   —   1.32 Other adjustments and rounding differences  —   0.01   0.01   —   — Non-GAAP basic net loss per share $(0.14) $(0.12) $(0.13) $(0.25) $(0.28)           GAAP gross profit $12,638  $12,841  $14,684  $25,479  $13,313 Settlement charges (2)  —   500   —   500   — Amortization of acquired intangible assets  183   183   183   366   4,528 Amortization of patent license (3)  516   —   —   516   — Disposition of short-read assets (4)  611   306   —   917   — Restructuring (7)  —   —   348   —   12,375 Non-GAAP gross profit $13,948  $13,830  $15,215  $27,778  $30,216            GAAP gross profit %  32%  35%  37%  33%  17%           Non-GAAP gross profit %  36%  37%  38%  36%  39%           GAAP total operating expense $57,248  $21,198  $59,537  $78,446  $487,100 Change in fair value of contingent consideration (1)  —   —   —   —   18,700 Settlement charges (2)  (284)  (16,304)  —   (16,588)  — Amortization of acquired intangible assets  (833)  (833)  (833)  (1,666)  (3,616)Disposition of short-read assets (4)  —   45,796   —   45,796   — Restructuring (7)  —   —   (615)  —   (382,376)Non-GAAP total operating expense $56,131  $49,857  $58,089  $105,988  $119,808                       (1)  Change in fair value of contingent consideration during the six months ended June 30, 2025 was due to fair value adjustments of milestone payments payable upon the achievement of a milestone event.

(2)  Balances for the three months ended June 30, 2026 and March 31, 2026 and the six months ended June 30, 2026 include litigation settlement charges and related legal fees in connection with the agreement entered into with Personal Genomics of Taiwan, Inc.

(3)  Balances for the three and six months ended June 30, 2026 include amortization of a patent license acquired in connection with the agreement entered into with Personal Genomics of Taiwan, Inc.

(4)  Balances for the three months ended June 30, 2026 and March 31, 2026 and the six months ended June 30, 2026 include amounts related to the disposition of short-read assets, including the gain on the sale of certain assets related to our short-read DNA sequencing technology and related clustering, sequencing reagent, and detection technologies, and related non-recurring customer transition costs.

(5)  Interest expense for the three and six months ended June 30, 2026 is related to the liability incurred in connection with the agreement entered into with Personal Genomics of Taiwan, Inc.

(6)  A deferred income tax benefit during the six months ended June 30, 2025 is primarily related to the change in the deferred tax liability balance resulting from the accelerated amortization of acquired intangible assets and IPR&D impairment.

(7)  Restructuring-related costs incurred in connection with the 2025 plan during the three and six months ended June 30, 2025 consist primarily of costs included in cost of revenue related to excess inventory and purchase commitment losses, as well as costs included in operating expenses related to employee separation, accelerated depreciation, IPR&D impairment, and accelerated amortization of acquired intangibles.

Key Takeaways PacBio gains from product development and a Q1 earnings beat despite funding challenges.PACB's SPRQ-Nx chemistry boosts yields and targets sub-$300 genome sequencing at scale.PacBio sees research funding uncertainty weighing on Revio and Vega demand through 2026. Pacific Biosciences of California, Inc. (PACB - Free Report) , popularly known as PacBio, has been gaining from its continued product development. The optimism, led by strong first-quarter results, is expected to contribute further. However, concerns about funding headwinds persist.

In the year-to-date period, this Zacks Rank #2 (Buy) company’s shares have lost 11.2% compared with the 12.4% decline of the industry. The S&P 500 Composite has improved 9.4% in the said time frame.

The renowned global provider of sequencing systems has a market capitalization of $521.8 million. The company projects 22.6% growth for 2026 and expects to maintain its strong performance in the future. PacBio’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an average surprise of 29.8%.

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Factors Favoring PACB’s GrowthSequencing Technologies Strengthen Market Leadership: PacBio differentiates itself in the genomics industry through its proprietary HiFi long-read sequencing, based on Single-Molecule Real-Time (SMRT) technology. This technology enables the high-accuracy, real-time detection of complex genomic structures, such as structural variations, haplotypes and epigenetic modifications.

Per a report by Data Bridge Market Research, the global SMRT market size was valued at $2.88 billion in 2024 and is projected to reach $4.36 billion by 2032, at a CAGR of 5.3%. Additionally, PacBio has expanded its offerings by integrating Sequencing by Binding chemistry with the launch of its Onso system in 2022, a short-read platform delivering ≥90% of bases at Q40+ accuracy, 15 times more precise than traditional sequencing methods. By providing both long-read and short-read technologies, PacBio uniquely serves diverse research and clinical applications while driving down costs and enhancing variant detection.

Robust Product Portfolio Driving Growth: PacBio continues to strengthen its competitive position through innovation in its HiFi sequencing platform. The company's SPRQ-Nx chemistry is gaining traction, delivering higher sequencing yields and enabling human whole-genome sequencing costs below $300 at scale through reusable SMRT Cells. Management plans to extend the technology to the Vega platform later this year, enhancing throughput and workflow efficiency.

PacBio is also advancing its next-generation ultra-high-throughput sequencing platform to target large-scale clinical and population genomics opportunities. Additionally, its collaboration with Basecamp Research to sequence roughly 100,000 metagenomic samples highlights the expanding role of HiFi sequencing in AI-driven biological research and underscores the technology's growing adoption across emerging applications.

Strong Q1 Results: PacBio exited the first quarter of 2026 with mixed results, wherein earnings beat the Zacks Consensus Estimate while revenues missed the same. Stable top-line performance, despite softer instrument sales, reflected continued strength in consumables demand and improving utilization trends across the installed base.

Growth in consumables revenues, expansion across the EMEA region and disciplined expense management were encouraging. The company also reported a significantly narrower operating loss year over year, supported by lower operating expenses and continued restructuring benefits.

A Factor That May Offset PACB’s GainsFunding Headwinds Continue to Weigh on Instrument Demand: PacBio continues to face funding-related headwinds that are weighing on instrument demand, particularly across academic and government research markets. Uncertainty around grant funding and cautious capital spending have pressured purchases of both Revio and Vega systems, with Vega being more exposed to academic budget constraints.

While the company is seeing growing interest from clinical and commercial customers, management does not anticipate a meaningful recovery in research funding through 2026 and recently lowered the high end of its annual revenue outlook due in part to weaker instrument demand. Although the upcoming commercial launch of SPRQ-Nx chemistry could improve the attractiveness of PacBio’s sequencing platforms by lowering costs and boosting throughput, near-term instrument growth is expected to remain dependent on expanding clinical adoption rather than a broad recovery in research spending.

Estimate TrendPacBio has been witnessing a stable estimate revision trend for 2026. Over the past 30 days, the Zacks Consensus Estimate for its adjusted loss per share has remained stable at 41 cents.

The Zacks Consensus Estimate for 2026 revenues is pegged at $165.8 million, indicating a 3.6% increase from the year-ago reported numbers.

Other Key PicksSome other top-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , West Pharmaceutical (WST - Free Report) and Intuitive Surgical (ISRG - Free Report) .

Globus Medical, currently carrying a Zacks Rank #2, reported a first-quarter 2026 adjusted earnings per share (EPS) of $1.12 per share, which surpassed the Zacks Consensus Estimate by 22.1%. Revenues of $759.9 million beat the Zacks Consensus Estimate by 4.0%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GMED has an estimated long-term earnings growth rate of 10.2% compared with the industry’s 12.6% growth. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 26.3%.

West Pharmaceutical, currently carrying a Zacks Rank #2, reported first-quarter 2026 EPS of $2.13, which beat the Zacks Consensus Estimate by 26.8%. Revenues of $844.9 million surpassed the Zacks Consensus Estimate by 8.5%. 

WST has an estimated long-term earnings growth rate of 13.9% compared with the industry’s 9.5% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.4%.

Intuitive Surgical, carrying a Zacks Rank #2 at present, reported first-quarter 2026 adjusted EPS of $2.50, which beat the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion surpassed the Zacks Consensus Estimate by 6.2%.

ISRG has a long-term estimated growth rate of 14.6% compared with the industry’s 12.6% growth. The company’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.