FY'26 organic revenue is now expected to range from down approximately 2% to up 1%, compared to prior guidance of 3% to 5% growth
FY'26 Adjusted EBITDA margin is now expected to range from down approximately 125 basis points to flat, compared to prior expectations of approximately 300 basis points of expansion
Long-range plan timing updated to 2029 versus 2028 before in connection with revised 2026 guidance. Market opportunities, strategic priorities, and value creation framework remain intact.
BURLINGTON, Mass., May 5, 2026 /PRNewswire/ -- Azenta, Inc. (NASDAQ:AZTA) today reported financial results for the second quarter ended March 31, 2026.
The results of B Medical Systems are treated as discontinued operations and reflected in total diluted EPS, following the Company's announcement in the first fiscal quarter of 2025 of its intention to pursue a sale and the entry into a definitive agreement to sell the business.
Quarter Ended
Dollars in millions, except per share data
March 31,
December 31,
March 31,
Change
2026
2025
2025(1)
Prior Qtr
Prior Yr.
Revenue from Continuing Operations
$ 145
$ 149
$ 143
(3) %
1 %
Organic growth
(3) %
Sample Management Solutions
$ 81
$ 81
$ 80
(0) %
2 %
Multiomics
$ 64
$ 67
$ 64
(5) %
0 %
Diluted EPS Continuing Operations
$ (3.41)
$ (0.11)
$ (0.43)
NM
NM
Diluted EPS Total
$ (3.49)
$ (0.34)
$ (1.04)
NM
NM
Non-GAAP Diluted EPS Continuing Operations
$ (0.04)
$ 0.09
$ 0.01
NM
NM
Adjusted EBITDA - Continuing Operations
$ 8
$ 13
$ 12
(39) %
(36) %
Adjusted EBITDA Margin - Continuing Operations
5.4 %
8.5 %
8.5 %
(1) Reflects revisions for an immaterial classification error among cost of revenue, research and development expenses, and selling, general and administrative expenses, and other immaterial adjustments, as further described in the Annual Report on Form 10-K for the fiscal year ended September 30, 2025.
Management Comments"Our second quarter results fell short of our expectations, reflecting both execution gaps and a more cautious demand environment, particularly in North America," said John Marotta, President and CEO of Azenta Life Sciences. "As a result, we have revised our fiscal 2026 outlook and taken decisive actions to strengthen execution, reinforce operational discipline, and improve visibility across the business. At the same time, we saw areas of resilience, including continued growth in Sample Repository Solutions and Consumables and Instruments, reinforcing the strength of our recurring revenue offerings.
In 2026, our priority is the transformation of our Multiomics business, with a focus on strengthening commercial execution, optimizing our operating footprint, and improving productivity through Azenta Business System. We have strengthened leadership and are increasing operational rigor to drive greater accountability and consistency across the organization.
Given the updated 2026 outlook, we are extending the timeline of our long‑range plan targets from 2028 to 2029. This reflects a disciplined and prudent approach to execution in the current environment and, while postponing achievement of the financial targets, does not change our confidence in our strategy. While near‑term conditions remain measured, we continue to see a compelling long‑term market opportunity and believe the actions underway position Azenta for improved execution, greater consistency, and profitable long‑term value creation."
Second Quarter Fiscal 2026 Results - Continuing Operations
Revenue was $145 million, up 1% year over year. Organic revenue, which excludes a 3-percentage point impact from foreign exchange and a 1-percentage point from the acquisition of UK Biocentre Limited, declined 3% year over year, reflecting lower revenue in Multiomics and in Sample Management Solutions.
Sample Management Solutions revenue was $81 million, up 2% over year.
Organic revenue, which excludes the impact from foreign exchange and the contribution from the acquisition of UK Biocentre Limited, declined 3%, mainly driven by lower revenue in Core Products, particularly in Automated Stores and Cryogenic Systems, partially offset by higher revenue in Sample Repository Solutions, Product Services and Consumables and Instruments.
Multiomics revenue was $64 million, flat year over year.
Organic revenue, which excludes the impact from foreign exchange, was down 2% year over year, primarily driven by lower Sanger Sequencing revenue, partially offset by higher revenue in Next Generation Sequencing and Gene Synthesis.
Summary of GAAP Earnings Results - Continuing Operations
Operating loss was $165.8 million. Operating margin was (114.5%), down 102% year over year.
Gross margin was 42.8%, down 96 basis points year over year, driven by lower fixed-cost absorption from reduced volumes in North America, as well as costs related to Automated Stores rework, and an increase in inventory reserves recorded during the period.
Operating expenses in the quarter were $228 million, up 181% year-over-year, primarily driven by a non-cash goodwill impairment charge of $149 million. The increase also reflects higher research and development expenses, partially offset by lower selling, general and administrative expenses and lower restructuring charges.
Total other income included $4 million of net interest income and $4 million gain related to the non-cash settlement of a preexisting contractual relationship with UK Biocentre Limited, versus $4 million and $1 million, respectively, in the prior year period.
Diluted EPS from continuing operations was ($3.41) compared to ($0.43) in the second quarter of fiscal year 2025. Diluted EPS from discontinued operations was ($0.08), compared to ($0.61) a year ago. Total diluted EPS was ($3.49), compared to ($1.04) a year ago.
Summary of Non-GAAP Earnings Results - Continuing Operations
Adjusted operating loss was $7.0 million. Adjusted operating margin was (4.9%), a decrease of 300 basis points year over year.
Adjusted gross margin was 44.3%, down 110 basis points compared to the second quarter of fiscal 2025, driven by lower fixed-cost absorption from reduced volumes in North America, costs related to Automated Stores rework, and an increase in inventory reserves recorded during the period.
Adjusted operating expenses in the quarter were $71 million, up 5% year over year, driven by higher research and development costs and higher selling, general and administrative expenses.
Adjusted EBITDA was $7.8 million, and Adjusted EBITDA margin was 5.4%, a decrease of 320 basis points year over year.
Non-GAAP Diluted EPS was ($0.04), compared to $0.01 one year ago.
Cash and Liquidity as of March 31, 2026
The Company ended the quarter with a total balance of cash, cash equivalents, restricted cash and marketable securities of $565 million.
Operating cash flow was $12 million in the quarter. Capital expenditures were $7 million, and free cash flow (cash flow from operations less capital expenditures) was $5 million.
Share Repurchase Program Update
On December 8, 2025, our Board of Directors approved a share repurchase program authorizing the repurchase of up to $250 million of our common stock through December 31, 2028, or the 2025 Repurchase Program. Repurchases under the 2025 Repurchase Program may be made in the open market or through privately negotiated transactions (including under an accelerated share repurchase agreement), or by other means, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, subject to market and business conditions, legal requirements, and other factors. We are not obligated to acquire any particular amount of common stock under the 2025 Repurchase Program, and share repurchases may be commenced or suspended at any time at our discretion. As of the date of this press release , there have been no repurchases under the 2025 Repurchase Program.
Updated Fiscal 2026 Guidance, Continuing Operations
The Company now expects total reported revenue from continuing operations to range between approximately $603 to $621 million for the fiscal year ending September 30, 2026.
Total organic revenue, which excludes the impact of foreign exchange and the contribution from the acquisition of UK Biocentre Limited, is now expected to range between down approximately 2% to up 1% relative to fiscal 2025, compared to prior guidance of 3% to 5% growth.
Organic revenue for Sample Management Solutions is now expected to grow approximately low-single-digits, versus prior expectations of mid-single-digit growth.
Organic revenue for Multiomics is now expected to decline approximately mid-single-digits, versus prior expectations of low-single-digit growth.
Adjusted EBITDA margin is now expected to decline in a range of approximately 125 basis points to flat relative to fiscal 2025, compared to prior expectations of approximately 300 basis points expansion. This outlook excludes an expected dilution of approximately 35 basis points from the UK Biocentre acquisition.
Free Cash flow (cash flow from operations less capital expenditures) is now expected to improve approximately 10% to 15% year-over-year, compared to prior expectations of approximately 30% improvement.
Long-Range Plan Update
In connection with the revised 2026 outlook, the Company is extending the timeline of its long-range plan by one year, from 2028 to 2029. The Company continues to believe in the strength of its market opportunities, strategic priorities, and long-term value creation framework.
Sale of B Medical Systems
On December 23, 2025, we entered into a definitive Sale and Purchase Agreement with Thelema S.À R.L. for the sale of B Medical Systems business, for a purchase price of $63 million. As previously disclosed, the transaction was expected to close on or before March 31, 2026, subject to the satisfaction of customary closing conditions, including the buyer securing required financing. On March 27, 2026, the Company was informed by Thelema that it has not yet secured the financing required to complete the transaction and, as a result, the transaction did not close by March 31, 2026. Thelema has indicated that it requires additional time to complete its financing arrangements. The transaction remains subject to the satisfaction of all closing conditions, including the buyer securing the required financing, and there can be no assurance that the transaction will be completed on a revised timeline or at all. The parties have not amended or terminated the agreement as of the date of this press release.
Azenta does not provide forward-looking guidance on a GAAP basis for the measures on which it provides forward-looking non-GAAP guidance as the Company is unable to provide a quantitative reconciliation of forward-looking non-GAAP measures to the most directly comparable forward-looking GAAP measure, without unreasonable effort, because of the inherent difficulty in accurately forecasting the occurrence and financial impact of the various adjusting items necessary for such reconciliations that have not yet occurred, are dependent on various factors, are out of the company's control, or cannot be reasonably predicted. Such adjustments include, but are not limited to, transformation costs, restructuring charges, costs related to acquisitions and divestitures costs, governance-related matters, goodwill and intangible impairments, stock-based compensation, and other gains and charges that are not representative of the normal operations of the business.
Conference Call and WebcastAzenta management will webcast its second quarter fiscal 2026 earnings conference call on May 06, 2026 at 8:30 a.m. Eastern Time. During the call, Company management will respond to questions concerning, but not limited to, the Company's financial performance, business conditions and industry outlook. Management's responses could contain information that has not been previously disclosed.
The call will be broadcast live over the Internet and, together with presentation materials and supplemental information referenced on the call, will be hosted at the Investor Relations section of Azenta's website at https://investors.azenta.com/events. The supplemental information is being posted at the time of this earnings release, and the presentation materials will be posted ahead of the earnings call. A replay of the webcast will be archived on the website for convenient on-demand access.
Regulation G, Use of Non-GAAP financial MeasuresThe Company supplements its GAAP financial measures with certain non-GAAP financial measures to provide investors a better perspective on the results of business operations, which the Company believes is more comparable to the similar analyses provided by its peers. These measures are not presented in accordance with, nor are they a substitute for, U.S. generally accepted accounting principles, or GAAP. These measures should always be considered in conjunction with appropriate GAAP measures. A reconciliation of non-GAAP measures to the most nearly comparable GAAP measures is included at the end of this release following the consolidated balance sheets and statements of operations. Certain amounts in the tables that supplement the consolidated financial statements may not sum due to rounding. All percentages are calculated using unrounded amounts.
"Safe Harbor Statement" under Section 21E of the Securities Exchange Act of 1934Some statements in this release are forward-looking statements made under Section 21E of the Securities Exchange Act of 1934. These statements are neither promises nor guarantees but involve risks and uncertainties, both known and unknown, that could cause Azenta's actual financial and business results to differ materially from those expressed or implied by such statements. They are based on the facts and assumptions known to management at the time they are made. Forward looking statements include, but are not limited to, statements regarding the Company's guidance and outlook for fiscal year 2026, including revenue, organic revenue growth, earnings, Adjusted EBITDA margin and free cash flow expectations; expectations regarding the timing, execution and benefits of operational, commercial and organizational transformation initiatives; anticipated productivity improvements and cost actions; expectations regarding demand trends and end market conditions; statements regarding the Company's long range plan and multi-year financial targets, including the extension of the long range plan timeline to 2029.
Factors that could cause actual results to differ materially from those expressed or implied by forward looking statements include, but are not limited to: the Company's ability to execute on and realize the expected benefits from its transformation and operational improvement initiatives; changes in customer demand, purchasing behavior or funding conditions in the markets the Company serves; macroeconomic, geopolitical or regulatory developments; the impact of foreign currency fluctuations; the Company's ability to effectively manage costs, improve productivity and achieve anticipated margin improvements; supply chain disruptions; competitive dynamics; the ability of customers to meet payment obligations; uncertainty regarding the timing or completion of the B Medical Systems divestiture; and other risks and uncertainties described in the Company's filings with the Securities and Exchange Commission, including but not limited to its Annual Report on Form 10 K, Quarterly Reports on Form 10 Q and Current Reports on Form 8 K. Because forward looking statements relate to future events and are based on current expectations, they are inherently subject to significant uncertainties, particularly with respect to projections and assumptions extending over multiple years. As a result, actual outcomes may differ materially from those projected.
Azenta expressly disclaims any obligation or undertaking to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About Azenta Life Sciences Azenta, Inc. (NASDAQ:AZTA) is a leading provider of life sciences solutions worldwide, enabling life science organizations around the world to bring impactful breakthroughs and therapies to market faster. Azenta provides a full suite of reliable cold-chain sample management solutions and multiomics services across areas such as drug development, clinical research and advanced cell therapies for the industry's top pharmaceutical, biotech, academic and healthcare institutions globally. Our global team delivers and supports these products and services through our industry-leading brands, including GENEWIZ, FluidX, Ziath, 4titude, Limfinity, Freezer Pro, and Barkey.
Azenta is headquartered in Burlington, Massachusetts, with operations in North America, Europe, and Asia. For more information, please visit www.azenta.com.
AZENTA INVESTOR CONTACTS:
Yvonne PerronVice President, Financial Planning & Analysis and Investor Relations[email protected]
Maria Isabel CuartasManager Investor Relations[email protected]
AZENTA, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per share data)
Three Months Ended
March 31,
Six Months Ended
March 31,
2026
2025
2026
2025
Revenue
Products
$ 37,642
$ 41,955
$ 78,726
$ 85,782
Services
107,153
101,383
214,711
204,992
Total revenue
144,795
143,338
293,437
290,774
Cost of revenue
Products
22,122
24,994
46,871
49,035
Services
60,638
55,561
120,825
110,137
Total cost of revenue
82,760
80,555
167,696
159,172
Gross profit
62,035
62,783
125,741
131,602
Operating expenses
Research and development
9,433
7,602
18,622
14,715
Selling, general and administrative
67,887
69,795
128,498
139,771
Impairment of goodwill and intangible assets
149,083
—
149,083
—
Restructuring charges
1,422
3,580
2,565
4,011
Total operating expenses
227,825
80,977
298,768
158,497
Operating loss
(165,790)
(18,194)
(173,027)
(26,895)
Other income
Interest income, net
4,387
4,489
9,485
8,787
Other income, net
4,059
1,158
4,138
2,362
Loss from continuing operations before income taxes
(157,344)
(12,547)
(159,404)
(15,746)
Income tax (benefit) expense
(323)
7,243
2,807
11,117
Loss from continuing operations
(157,021)
(19,790)
(162,211)
(26,863)
Loss from discontinued operations, net of tax
(3,777)
(27,871)
(14,019)
(31,790)
Net loss
$ (160,798)
$ (47,661)
$ (176,230)
$ (58,653)
Basic net loss per share:
Loss from continuing operations
$ (3.41)
$ (0.43)
$ (3.53)
$ (0.59)
Loss from discontinued operations, net of tax
$ (0.08)
$ (0.61)
$ (0.30)
$ (0.70)
Basic net loss per share
$ (3.49)
$ (1.04)
$ (3.83)
$ (1.29)
Diluted net loss per share:
Loss from continuing operations
$ (3.41)
$ (0.43)
$ (3.53)
$ (0.59)
Loss from discontinued operations, net of tax
$ (0.08)
$ (0.61)
$ (0.30)
$ (0.70)
Diluted net loss per share
$ (3.49)
$ (1.04)
$ (3.83)
$ (1.29)
Weighted average shares used in computing net loss per share:
Basic
46,063
45,732
45,995
45,658
Diluted
46,063
45,732
45,995
45,658
AZENTA, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited)
(In thousands, except share and per share data)
March 31,
September 30,
Assets
Current assets
Cash and cash equivalents
$ 234,033
$ 279,783
Short-term marketable securities
146,484
61,137
Accounts receivable, net of allowance for expected credit losses ($4,481and $4,649, respectively)
131,318
142,181
Inventories
78,510
74,956
Short-term restricted cash
2,410
2,359
Refundable income taxes
6,838
9,728
Prepaid expenses and other current assets
50,214
64,660
Current assets held for sale
77,178
73,535
Total current assets
726,985
708,339
Property, plant and equipment, net
171,832
153,954
Long-term marketable securities
177,831
201,585
Long-term deferred tax assets
501
726
Operating lease right-of-use assets
59,451
54,048
Goodwill
552,396
702,395
Intangible assets, net
92,107
101,814
Long-term income taxes receivable
45,600
45,600
Other assets
8,814
6,115
Noncurrent assets held for sale
68,372
85,006
Total assets
$ 1,903,889
$ 2,059,582
Liabilities and stockholders' equity
Current liabilities
Accounts payable
$ 33,136
$ 37,722
Deferred revenue
39,013
31,569
Derivative liability
29,615
33,420
Accrued warranty and retrofit costs
4,157
4,713
Accrued compensation and benefits
29,146
35,799
Accrued customer deposits
36,217
26,499
Accrued income taxes payable
8,753
9,416
Accrued expenses and other current liabilities
45,739
30,268
Current liabilities held for sale
31,416
28,268
Total current liabilities
257,192
237,674
Long-term deferred tax liabilities
15,747
18,245
Long-term operating lease liabilities
55,711
51,244
Other long-term liabilities
10,892
11,142
Noncurrent liabilities held for sale
9,670
14,291
Total liabilities
349,212
332,596
Stockholders' equity
Preferred stock, $0.01 par value - 1,000,000 shares authorized, no shares issued or outstanding
—
—
Common stock, $0.01 par value - 125,000,000 shares authorized, 59,553,293 shares issued and 46,091,424 shares outstanding at March 31, 2026; 59,320,848 shares issued and 45,858,979 shares outstanding at September 30, 2025
596
594
Additional paid-in capital
538,782
529,605
Accumulated other comprehensive loss
(27,471)
(22,213)
Treasury stock, at cost - 13,461,869 shares at March 31, 2026 and September 30, 2025
(200,956)
(200,956)
Retained earnings
1,243,726
1,419,956
Total stockholders' equity
1,554,677
1,726,986
Total liabilities and stockholders' equity
$ 1,903,889
$ 2,059,582
AZENTA, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(In thousands)
Six Months Ended March 31,
2026
2025
Cash ...
