Azenta, Inc.

What they do

Azenta provides automated ultra-cold storage, sample management, consumables, informatics, and genomic services (including next-generation sequencing and gene synthesis) to pharmaceutical, biotechnology, and research institutions. The company operates in two continuing segments: Sample Management Solutions and Multiomics. It has approximately 3,000 employees and sells in about 95 countries.

Revenue drivers

• Sample Management Solutions — Revenue of $88 million in Q3 2026, up 14% year over year, driven by Sample Repository Solutions and Consumables and Instruments, partially offset by lower Automated Stores revenue.
• Multiomics — Revenue of $73 million in Q3 2026, up 10% year over year, driven by Next Generation Sequencing and Gene Synthesis, partially offset by lower Sanger Sequencing revenue.
• Organic growth — Overall organic revenue grew 9% year over year in Q3 2026, excluding a 1% FX headwind and a 3% contribution from the UK Biocentre acquisition.

Recent performance

For the quarter ended June 30, 2026, revenue from continuing operations was $161 million, up 12% year over year (9% organic). GAAP diluted EPS from continuing operations was ($0.03), while total diluted EPS was $0.05, including $0.09 from discontinued operations. Non-GAAP diluted EPS from continuing operations was $0.16. Adjusted EBITDA was $18 million (11.4% margin), and operating margin was (2.6%), down 131 bps year over year. For fiscal 2025, revenue was $593.8 million with a net loss of $55.8 million.

Strategy

Management is focused on driving revenue growth and profitability in the core Sample Management Solutions and Multiomics segments after divesting B Medical Systems (closed July 1, 2026) and the semiconductor business (sold February 2022). The company is pursuing strategic acquisitions, such as UK Biocentre Limited, to expand capabilities. Priorities include improving recurring revenue, cost initiatives, and quality remediation in Automated Stores. The B Medical divestiture simplifies the portfolio and allows focus on core segments.

Risks

• Macroeconomic pressure — Economic downturns, reduced government research funding, inflation, or interest rate increases could reduce customer purchases and lower sales and cash flows.
• Operating results volatility — Customer demand, product mix, and competition can cause significant fluctuation in operating results, making past performance an unreliable indicator.
• Product quality and remediation — Quality remediation and rework activities in Automated Stores have pressured gross margin and could continue to impact profitability.
• Foreign exchange — Currency fluctuations may reduce reported revenue and margins, as seen in the 1% FX headwind on organic growth in Q3 2026.

Outlook

Management stated that the third quarter results exceeded expectations, with continued strength in recurring revenue businesses and a modest improvement in Multiomics in North America. The turnaround continues, and they remain focused on executing strategic priorities. No specific revenue or earnings guidance was provided in the excerpts.