Shares of Veracyte (VCYT) surged 5.90% in after-hours trading on Tuesday following the release of its impressive third-quarter 2025 financial results. The genomic diagnostics company reported better-than-expected revenue and earnings, driven by strong growth in its testing segment and operational efficiency.

Veracyte announced total revenue of $131.9 million for Q3, representing a 14% year-over-year increase and beating analyst estimates of $124.6 million. The company's testing revenue, which accounts for the bulk of its business, grew by an impressive 17% to $127.8 million, fueled by strong demand for its Decipher Prostate and Afirma tests. Earnings per share came in at $0.51, significantly outperforming the analyst consensus estimate of $0.13 and marking a 54.55% increase from the same period last year.

Adding to investor optimism, Veracyte raised its full-year 2025 guidance. The company now expects total revenue between $506 million and $510 million, up from its previous forecast. Additionally, Veracyte increased its adjusted EBITDA guidance to over 25% of revenue, signaling improved profitability. The strong quarterly performance, coupled with the upward revision in guidance, has bolstered investor confidence in Veracyte's growth trajectory and operational execution, leading to the significant after-hours stock price appreciation.