#USA #Burlington, Massachusetts #Azenta #Fiscal 2026 #B Medical Systems

Azenta Reports First Quarter Results for Fiscal 2026

On February 4, 2026, Azenta, Inc. (NASDAQ: AZTA) announced its financial results for the first quarter ending December 31, 2025. This report highlights significant developments, including revenue streams, potential sales, and expected market trends; all crucial for stakeholders and investors.

Financial Overview

Azenta's revenue for the first fiscal quarter was reported at $149 million, demonstrating a slight increase of 1% compared to the same quarter in 2024. However, there was a decrease of 7% from the previous quarter. The organic revenue, which adjusts for foreign exchange effects, reflected a decline of 1% year-over-year, underscoring the challenges faced in specific market sectors.

Segment Performance

• - Sample Management Solutions: Revenue from this segment stood at $81 million, unchanged from last year but down 5% from the previous quarter, indicating stability despite overall market fluctuations.
• - Multiomics: This area reported revenue of $67 million, marking a 1% rise year-on-year but an 8% decrease from the previous quarter. This reflects the sector's volatility and the necessity for increased adaptation to market demands.

Earnings and Cost Management

Despite the revenue, the diluted earnings per share (EPS) from continuing operations ended up at a loss of $0.11, an improvement from the EPS of -$0.16 seen the previous year. The adjusted EBITDA from continuing operations was significantly impacted, dropping to $13 million, down by 39% from the previous year, resulting in an adjusted EBITDA margin of 8.5%.

Management attributed some challenges to gross margin compression, with the gross margin falling to 42.9%, primarily influenced by lower sales volumes and increased costs associated with certain projects. Operating costs were reduced by 8% looking year-on-year, contributing positively to the cash flow performance reported at $21 million for the quarter.

Discontinued Operations and Strategic Sales

A key highlight of the report was the treatment of B Medical Systems as a discontinued operation due to the company’s decision to sell the business. The total diluted EPS reflecting this sale ended up as a loss of $0.34. The sale of B Medical Systems is anticipated to close on or before March 31, 2026, with a projected sales price of $63 million to Thelema S.À R.L.

Future Outlook

Looking forward to fiscal 2026, Azenta reiterated its guidance for total organic revenue growth in the vicinity of 3% to 5%. Management remains optimistic about enhanced performance in the latter part of the fiscal year, attributing this confidence to ongoing operational initiatives and the strategic execution of the long-term plan put forth during the Investor Day. This plan is aimed at fostering sustainable growth and value creation through to 2028.

Conclusion

The financial overview of Azenta, Inc. for Q1 fiscal 2026 portrays a complex picture of progress amidst ongoing challenges. With a clear roadmap for the upcoming quarters and an intentional focus on core competencies and operational efficiency, the company is poised to navigate the dynamic landscape of the life sciences sector. Investors and stakeholders are encouraged to monitor these developments closely as the company adapts and evolves in an ever-changing market environment. For additional insights and a discussion of the results, management will host a conference call, streamed across platforms, providing investors an opportunity to engage with executive insights directly.