PacBio (NASDAQ:PACB) Reports Strong Q4 CY2025

PacBio (NASDAQ:PACB) Reports Strong Q4 CY2025

Anthony Lee

Fri, February 13, 2026 at 6:56 AM GMT+9 4 min read

In this article:

PACB 0.00%

Genomics company Pacific Biosciences of California (NASDAQ:PACB) reported Q4 CY2025 results exceeding market revenue expectations, with sales up 13.8% year over year to $44.65 million. Its non-GAAP loss of $0.12 per share was 10.8% above analysts’ consensus estimates.

Is now the time to buy PacBio? Find out in our full research report.

PacBio (PACB) Q4 CY2025 Highlights:

• Revenue: $44.65 million vs analyst estimates of $43.04 million (13.8% year-on-year growth, 3.7% beat)
• Adjusted EPS: -$0.12 vs analyst estimates of -$0.13 (10.8% beat)
• Adjusted EBITDA: -$41.01 million (-91.9% margin, 9.8% year-on-year growth)
• Operating Margin: -92.3%, up from -387% in the same quarter last year
• Market Capitalization: $555.5 million

“Our fourth quarter results exceeded expectations, with revenue growing 14% year-over-year and 16% sequentially,” said Christian Henry, President and CEO of PacBio.

Company Overview

Pioneering what scientists call “HiFi long-read sequencing,” recognized as Nature Methods’ method of the year for 2022, Pacific Biosciences (NASDAQ:PACB) develops advanced DNA sequencing systems that enable scientists and researchers to analyze genomes with unprecedented accuracy and completeness.

Revenue Growth

A company’s long-term sales performance is one indicator of its overall quality. Any business can experience short-term success, but top performers enjoy sustained growth over years. Over the last five years, PacBio grew its sales at a solid 15.2% compounded annual growth rate. Its growth outpaced the average healthcare company and shows its offerings resonate with customers.

PacBio Quarterly Revenue

We at StockStory emphasize long-term growth, but within healthcare, a five-year historical view may miss recent innovations or disruptive industry trends. PacBio’s recent performance marks a sharp deviation from its five-year trend, with revenue declining at an annualized rate of 10.7% over the past two years.

PacBio Year-On-Year Revenue Growth

This quarter, PacBio reported year-over-year revenue growth of 13.8%, with $44.65 million in revenue exceeding Wall Street estimates by 3.7%.

Looking ahead, sell-side analysts expect revenue to grow 11.5% over the next 12 months, an improvement compared to the last two years. This projection is promising and suggests that its newer products and services will drive better top-line performance.

Microsoft, Alphabet, Coca-Cola, Monster Beverage—all started as under-the-radar growth stories riding massive trends. We’ve identified the next one: a profitable AI semiconductor play that Wall Street is still overlooking. Access our full report here.

Operating Margin

Operating margin is one of the best measures of profitability because it shows how much money a company keeps after deducting all core expenses, like marketing and R&D.

PacBio’s high expenses have resulted in an average operating margin of -243% over the past five years. Unprofitable healthcare companies require extra caution because they could be caught unprepared when market conditions change. It’s hard to trust that the business can sustain a full cycle.

Analyzing its profitability trend, PacBio’s operating margin has decreased significantly over the last five years. Its two-year trajectory shows it failed to recover to previous peak levels, with its margin falling by 179.4 percentage points. This performance indicates rising expenses that the company couldn’t pass on to customers.

PacBio Trailing 12-Month Operating Margin (GAAP)

In Q4, PacBio posted a negative 92.3% operating margin.

Earnings Per Share

We track long-term changes in EPS for the same reason as revenue growth. Unlike revenue, EPS indicates whether a company’s growth is profitable.

Although PacBio’s full-year earnings remain negative, it has reduced losses and improved EPS by 3.6% annually over the past five years. The next few quarters will be critical for assessing its long-term profitability.

PacBio Trailing 12-Month EPS (Non-GAAP)

In Q4, PacBio reported adjusted EPS of -$0.12, up from -$0.20 in the same quarter last year. This result easily beat analysts’ estimates, and shareholders should be satisfied. Over the next 12 months, Wall Street expects PacBio to improve its earnings losses, with forecasts for full-year EPS improving from -$0.52 to -$0.51.

Key Takeaways from PacBio’s Q4 Results

We were pleased to see PacBio beat analysts’ revenue expectations this quarter. We also noted its EPS outperformed estimates. Overall, this was a solid report with some upside potential. The stock remained flat at $1.85 immediately after the announcement.

PacBio posted strong earnings, but one quarter doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. What happens in the latest quarter matters, but longer-term business quality and valuation are more important when deciding whether to invest. Our comprehensive research report covers these aspects and is available for free here.