Canaccord Genuity on Monday, January 26, 2026, reaffirmed its Buy recommendation on Pacific Biosciences of California (NASDAQ:PACB) and kept a $3.00 price target in place. That price objective equated to about 16% upside versus the stock's trading level at $2.58, with shares approaching their 52-week high of $2.73 after a 16.74% gain over the prior week.
The company had released preliminary fourth-quarter and full-year 2025 results earlier in January - on Monday, January 12 - that outperformed analyst estimates and the FactSet consensus, delivering a modest revenue beat for the quarter. According to InvestingPro data cited alongside the results, Pacific Biosciences has continued to deplete cash quickly despite the better-than-expected quarter, and the company's market capitalization stood at roughly $779 million. Investors are directed to additional InvestingPro resources, including 13 supplementary InvestingPro Tips and detailed financial metrics for PACB.
Operationally, the most pronounced improvement was a 53% quarter-over-quarter rebound in instrument revenue. Consumables revenue also reached a record level, rising 15% year-over-year. Those trends point to a potential turnaround after a challenging 2025 period that the company said was affected by pressure on NIH funding and U.S.-China tariff issues.
Despite those revenue gains, Pacific Biosciences remained unprofitable on a trailing-twelve-month basis, reporting diluted earnings per share of -$1.71. Analysts, however, are forecasting a narrower loss for fiscal 2025, with a consensus estimate of -$0.53 per share.
In its note reiterating the Buy rating, Canaccord highlighted that the company is making progress on reducing cash burn and improving its financial posture. The firm pointed to several potential growth drivers for 2026, most notably the planned broad commercial launch of new multi-use SMRT cells and the rollout of SPRQ-Nx chemistry. Canaccord also noted that the company's current ratio of 6.24 indicates that liquid assets are ample relative to short-term obligations, which provides some financial flexibility even as cash consumption continues.
According to the Canaccord assessment, the new products could lower the cost-per-genome, broaden the range of use cases for the technology, and bolster Pacific Biosciences' competitive stance. The research note further suggested that wider clinical adoption and additional partnerships could act as meaningful proof points for the company's ability to create long-term value.
Investors looking for the next formal update have February 12, 2026 on the calendar for Pacific Biosciences' next earnings report. For readers seeking a deeper dive, a Pro Research Report covering PACB's financial condition, growth prospects, and valuation is available through InvestingPro, which covers more than 1,400 U.S. equities with in-depth analysis and intelligence.
Additional preliminary unaudited figures released by the company show fourth-quarter 2025 revenue of $44.6 million, representing a 14% increase year-over-year. Full-year 2025 revenue was reported at approximately $160 million, a 4% rise from 2024. Within the fourth-quarter breakdown, instrument revenue reached $17.3 million and consumables revenue climbed to $21.6 million. Following those disclosures, Canaccord maintained its Buy rating and the $3.00 price target.
Beyond the topline numbers, Pacific Biosciences announced a strategic collaboration with the n-Lorem Foundation and EspeRare aimed at advancing therapies for ultra-rare genetic diseases. The company also unveiled CiFi, a new method for chromosome-scale genome assembly developed with researchers at the University of California, Davis.
The company had earlier reported results for the third quarter of 2025 showing a narrower-than-expected loss, with an earnings per share figure of -$0.12, though revenue that quarter was below projections at $38.4 million.
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Summary
Pacific Biosciences' preliminary fourth-quarter and full-year 2025 results beat expectations and showed strong sequential instrument revenue growth and record consumables sales. Canaccord Genuity maintained a Buy rating and a $3.00 price target on January 26, 2026, while noting progress on cash-burn reduction and highlighting product launches and chemistry improvements as potential catalysts for 2026. The company remains unprofitable and continues to consume cash, tempering near-term optimism.
Key points
- Canaccord Genuity reiterated Buy and held a $3.00 price target for PACB on January 26, 2026; the target implies about 16% upside from the then-current price of $2.58.
- Preliminary Q4 2025 revenue was $44.6 million (up 14% year-over-year) and full-year 2025 revenue was approximately $160 million (up 4% from 2024); Q4 instrument revenue totaled $17.3 million and consumables revenue was $21.6 million.
- Operationally, instrument revenue rose 53% quarter-over-quarter and consumables were up 15% year-over-year, suggesting early signs of recovery following funding and tariff pressures in 2025.
Risks and uncertainties
- Continued rapid cash burn despite revenue improvements - this affects the company's liquidity profile and could pressure the broader biotech financing environment.
- Persistent unprofitability - diluted EPS was -$1.71 on a trailing-twelve-month basis, and the company remains dependent on narrowing losses to restore investor confidence.
- External pressures referenced by the company - including NIH funding constraints and U.S./China tariff issues - which could continue to affect revenue growth and the adoption of genomics products.