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Azenta Announces Third Quarter Results for FY 2026

Azenta, Inc. (Nasdaq: AZTA), renowned for its life sciences solutions, shared its financial results for the third quarter ending June 30, 2026. Despite the challenging market conditions, the company achieved impressive growth, boosting its revenue and overall financial performance.

Key Financial Highlights

In the latest quarter, Azenta reported:

• - Revenue from Continuing Operations: $161 million, representing a 12% increase year-over-year.
• - Organic Revenue Growth: Faced with a 1% impact from foreign exchange effects and a 3% contribution from the acquisition of UK Biocentre Limited, organic growth remained strong at 9%.
• - Sample Management Solutions: Revenue reached $88 million, a remarkable 14% year-over-year increase.
• - Multiomics: This segment also saw a positive trend, with revenue increasing 10% to $73 million compared to the previous year.

Earnings Per Share and Margins

For the third quarter, Azenta reported a diluted EPS from continuing operations of

• - ($0.03) compared to ($0.01) in Q3 of fiscal year 2025. Notably, the total diluted EPS improved significantly to $0.05, up from ($1.05) year-over-year.

Non-GAAP diluted EPS during this period was reported at $0.16, slightly down from $0.17 a year prior, indicating a stable operational performance despite fluctuations in the financial landscape.

Operational Insights

The company experienced an operating loss of $4.2 million, reflecting a decrease in the operating margin, which rolled back to (2.6%). Gross margins were recorded at 44.9%, a minor dip from prior year results primarily driven by unfavorable fixed cost absorption linked to lesser sales volumes in specific portfolio areas, alongside costs incurred in quality remediation related to automated stores.

Operating expenses rose to $77 million, attributed to increased research and development investments and higher administrative expenses, which were offset partially by reduced restructuring costs.

Cash Flow and Liquidity

By the end of the quarter, Azenta had a robust liquidity position with cash and equivalents totalling $529 million. The operating cash flow was marginal at $1 million, and free cash flow logged a negative $5 million after accounting for capital expenditures of $7 million.

Share Repurchase Program

As of June 30, 2026, under the board-approved share repurchase initiative instituted in December 2025, Azenta repurchased 2.3 million shares for $50 million at a rate aligned with market conditions.

Looking Ahead

In light of the changing market dynamics, for Q4 of fiscal 2026, the company anticipates organic revenue will see a modest decline in the low single digits compared to the previous year. Adjusted EBITDA is projected to range between $20 million to $23 million. For the entire fiscal year, Azenta now expects to report a revenue range between $613 million to $618 million.

Conclusion

With its focus on executing strategic initiatives and continuously adapting to the evolving market environment, Azenta's Q3 results reflect not just strong financial growth but also the commitment to enhancing its operational efficiencies, reaffirming its leadership position in the life sciences sector.