Pacific Biosciences shows a perfect recent earnings beat streak and analyst-projected upside, but persistent cash burn below the quality floor and heavy bearish positioning in a volatile stock temper the case for near-term conviction.
Thesis pillars
- Cash Burn Quality Floor Breach→Stable
- Perfect Earnings Beat Streak↑Improving
- Analyst Upside Despite Light Coverage↓Deteriorating
- +2 more pillars — see the Why tab for full reasoning
Pillars as of Jul 5, 2026, based on the 10-K filed Feb 25, 2026
Pacific Biosciences of Californ (PACB) Stock Analysis
Breakout setup
Healthcare · Medical Devices
Sell if holding. Engine safety override at $2.83: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.0/10. Specifically: High short interest: 17%; Below-average business quality.
Pacific Biosciences (PacBio) is a life science technology company that designs, develops, and manufactures HiFi long-read DNA sequencing systems, including its Revio, Vega, and Sequel instruments, serving academic, government, clinical, and pharmaceutical customers researching... Read more
Sell if holding. Engine safety override at $2.83: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.0/10. Specifically: High short interest: 17%; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 64, MACD bullish. Score 4.0/10, high confidence.
Passes 4/8 gates (positive momentum, news events none recent, semi cycle peak clear, materials cycle peak clear). Fails on favorable risk/reward ratio and earnings proximity 6d<=7d. Suitability: aggressive.
About Pacific Biosciences of Californ
About Pacific Biosciences of Californ
Pacific Biosciences ended 2025 with a $49.2 million order backlog, of which it expects to convert approximately 80% to revenue in 2026, after completing a $50.0 million asset sale of its short-read DNA sequencing technology to Illumina Cambridge in January 2026 that narrowed the company to long-read HiFi sequencing. PacBio's Revio, Vega, and Sequel instruments, along with SMRT Cell and reagent consumables, serve academic, government, clinical, and pharmaceutical customers researching human genomics, oncology, infectious disease, and agricultural genetics.
PacBio earns revenue from instrument sales alongside recurring, high-margin SMRT Cell and reagent consumables that customers purchase per sequencing run, distributed through a global direct sales force and regional distribution partners across Australia, Asia, Europe, the Middle East, and the Americas. The company holds or exclusively licenses 450 issued U.S. patents covering its Single-Molecule Real-Time (SMRT) sequencing technology, and competes against Illumina, BGI Genomics, Thermo Fisher, Oxford Nanopore, Roche, Qiagen, Element Biosciences, Bionano Genomics, Ultima Genomics, and 10x Genomics. PacBio recorded $15.0 million of impairment charges in 2025 following $184.5 million in 2024, along with $359.3 million of accelerated amortization tied to the 2021 Omniome acquisition, reflecting a period of portfolio rationalization alongside expense-reduction plans initiated in 2024 and 2025.
Show full overview
PacBio's 10-K discloses that no single customer accounted for 10% or more of total revenue in 2025, 2024, or 2023, indicating a diversified academic, government, and commercial customer base, but the company also discloses that some components required in its instruments and consumables are currently sole-sourced or single-sourced, an exposure it manages around at its Menlo Park, California facility using domestic and international subcontract manufacturers. With over $640 million in convertible notes outstanding as of December 31, 2025 and continuing net losses, any sole-source component disruption would compound an already capital-constrained balance sheet.
See also: Healthcare · Medical Devices
From Pacific Biosciences of Californ's most recent 10-K filing, extracted July 6, 2026.
Recent developments
updated 2026-10-29Recent Developments — Pacific Biosciences of Californ
Latest news
- NEWS 10 Health Care Stocks Whale Activity In Today’s Session — benzinga Oct 28, 2026 neutral
- NEWS 12 Health Care Stocks Moving In Wednesday's Intraday Session — benzinga Oct 28, 2026 neutral
- NEWS Vertiv, Evercore, Brinker, GE HealthCare And Other Big Stocks Moving Higher On Wednesday — benzinga Oct 28, 2026 neutral
- NEWS PacBio Announces Participation in Upcoming Investor Conferences — fiscal.ai Oct 27, 2026 neutral
- NEWS Stephens Maintains Buy Rating and Raises Price Target for PacBio — fiscal.ai Oct 24, 2026 positive
Generated 2026-10-29T11:14:34Z.
Upcoming dated catalysts
Thesis
Key Metrics
Quality Signals
Options Flow
Concentration Risks(10-K Item 1A)
- HIGHSuppliersole-sourced or single-sourced components10-K Item 1: 'Some of the components required in our products are currently either sole sourced or single sourced.'
Material Events(8-K, last 90d)
- 2026-06-04Item 5.02LOWPacBio's Board approved, and stockholders ratified at the June 3, 2026 Annual Meeting, an amendment to the 2020 Equity Incentive Plan reserving an additional 16,000,000 shares for issuance. The item covers only the compensatory plan amendment; no officer departure or appointment was involved.SEC filing →
Model-generated analysis — not investment advice. Not a registered investment advisor. Past performance does not guarantee future results. How we score · Editorial policy
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Rating Breakdown
4 floor-breakers
Revenue shrinking — -1.9% YoY. Growth thesis broken unless recovery story develops.static
Ranks in the bottom of its industry peers on the composite signal. Better names in the same sector exist.static
Unprofitable operations — net margin -82.5%. Quality floor flags this regardless of sector context.static
Technicals below the gate floor. Component breakdown shows what dragged the score down.static
Price Targets
Position Sizing
Risk Alerts
Earnings
Verdict History
Frequently Asked Questions
Sell if holding. Engine safety override at $2.83: a dimension score below its floor triggers a hard block regardless of the otherwise-positive setup — overall score 4.0/10. Specifically: High short interest: 17%; Below-average business quality. Chart setup: Golden cross, above all MAs, RSI 64, MACD bullish. Prior stop was $2.63. Score 4.0/10, high confidence.
Analyst target $2.21 reached (−21.8% from $2.83); no take-profit level is published. Prior stop was $2.63. Stop-loss: $2.63.
Concentration risk — Supplier: sole-sourced or single-sourced components; Target reached (-21.8% upside); Quality below floor (2.5 < 4.0).
Pacific Biosciences of Californ trades at a P/E of N/A (forward -6.7). TrendMatrix value score: 4.7/10. Verdict: Sell.
14 analysts cover PACB with a consensus score of 3.9/5. Average price target: $3.
What does Pacific Biosciences of Californ do?Pacific Biosciences (PacBio) is a life science technology company that designs, develops, and manufactures HiFi...
Pacific Biosciences (PacBio) is a life science technology company that designs, develops, and manufactures HiFi long-read DNA sequencing systems, including its Revio, Vega, and Sequel instruments, serving academic, government, clinical, and pharmaceutical customers researching human genomics, oncology, infectious disease, and agricultural genetics. In January 2026, PacBio completed the $50 million sale of its short-read sequencing technology assets to Illumina Cambridge, narrowing its focus to long-read HiFi sequencing. The company recorded a $15.0 million impairment charge in 2025 and continu