Azenta Reports Fourth Quarter and Full Year Results for Fiscal 2026, Ended September 30, 2026
Azenta, Inc. (AZTA) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Azenta Reports Fourth Quarter and Full Year Results for Fiscal 2026, Ended September 30, 2026. • Q4'26 reported revenue growth of 5% year over year and 2% on an organic basis • FY'26 reported revenue growth of 5% year over year and 2% on an organic basis • FY'27 repo
How this was made
The 30-second read
Why it matters
The disclosed loss and modest guidance are likely to depress the stock in the short term, though restructuring actions may improve future profitability.
Market read
First‑hand earnings and guidance release for a mid‑cap biotech services firm; primary driver of short‑term price movement.
What to watch
Restructuring charges and one‑time goodwill impairment may have inflated the loss; underlying cash generation could improve.
Azenta Q4 FY2026 revenue rose 5% to $167 million with organic growth of 2%. FY2026 GAAP results were a net loss after a $149 million goodwill impairment. FY2027 revenue guidance is $648 to $660 million.
Q4 revenue grew 5% (2% organic) and Q4 adjusted diluted EPS rose to $0.28 from $0.21. Against that, Q4 GAAP diluted EPS from continuing operations fell to $0.14 from $1.12 (prior year included a $46.96 million tax adjustment), FY2026 GAAP continuing operations loss was $(3.50) per diluted share, FY adjusted EBITDA fell 12%, and Multiomics organic revenue declined 1% in Q4.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue from continuing operations, Q4 FY2026GAAP | $167M | – | 5% |
| Organic revenue growth, Q4 FY2026 (year over year)other | 2% | – | – |
| Sample Management Solutions revenue, Q4 FY2026GAAP | $94M | – | 9% |
| Sample Management Solutions organic revenue, Q4 FY2026other | $90M | – | 4% |
| Multiomics revenue, Q4 FY2026GAAP | $73M | – | 0% |
| Multiomics organic revenue, Q4 FY2026other | $73M | – | (1)% |
| Diluted EPS from continuing operations, Q4 FY2026GAAP | $0.14 | – | (88)% |
| Total diluted EPS, Q4 FY2026GAAP | $0.16 | – | (86)% |
| Diluted EPS from discontinued operations, Q4 FY2026GAAP | $0.02 | – | – |
| Net income from continuing operations, Q4 FY2026GAAP | $6M | – | (89)% |
| Total net income, Q4 FY2026 (statement of operations)GAAP | $6.79M | – | – |
| Adjusted diluted EPS from continuing operations, Q4 FY2026non-GAAP | $0.28 | – | 33% |
| Adjusted EBITDA from continuing operations, Q4 FY2026non-GAAP | $19M | – | (7)% |
| Adjusted EBITDA from continuing operations, Q4 FY2026 (statement of reconciliation)non-GAAP | $19.36M | – | – |
| Adjusted EBITDA margin from continuing operations, Q4 FY2026non-GAAP | 11.6% | – | decrease of 140 basis points |
| Operating income from continuing operations, Q4 FY2026GAAP | $2.51M | – | – |
| Operating margin from continuing operations, Q4 FY2026GAAP | 1.5% | – | increase of 30 basis points |
| Gross margin, Q4 FY2026GAAP | 46.0% | – | increase of 60 basis points |
| Adjusted gross margin, Q4 FY2026non-GAAP | 47.2% | – | increase of 50 basis points |
| Adjusted gross margin, Sample Management Solutions, Q4 FY2026non-GAAP | 48.9% | – | – |
| Adjusted gross margin, Multiomics, Q4 FY2026non-GAAP | 45.1% | – | – |
| Total operating expenses, Q4 FY2026GAAP | $74.36M | – | 6% |
| Research and development expenses, Q4 FY2026GAAP | $10.44M | – | – |
| Selling, general and administrative expenses, Q4 FY2026GAAP | $61.86M | – | – |
| Restructuring charges, Q4 FY2026GAAP | $2.06M | – | – |
| Adjusted operating expenses, Q4 FY2026non-GAAP | $67M | – | 3% |
| Adjusted operating income, Q4 FY2026non-GAAP | $11.5M | – | – |
| Adjusted operating income, Q4 FY2026 (reconciliation)non-GAAP | $11.53M | – | – |
| Adjusted operating margin, Q4 FY2026non-GAAP | 6.9% | – | increase of 120 basis points |
| Interest income, net, Q4 FY2026GAAP | $4.52M | – | – |
| Income tax expense (benefit), Q4 FY2026GAAP | $1.68M | – | – |
| Operating cash flow, Q4 FY2026other | $22M | – | – |
| Capital expenditures, Q4 FY2026other | $10M | – | – |
| Free cash flow, Q4 FY2026non-GAAP | $12M | – | – |
| Revenue from continuing operations, FY2026GAAP | $622M | – | 5% |
| Organic revenue growth, FY2026 (year over year)other | 2% | – | – |
| Sample Management Solutions revenue, FY2026GAAP | $344M | – | 6% |
| Sample Management Solutions organic revenue, FY2026other | $331M | – | 2% |
| Multiomics revenue, FY2026GAAP | $277M | – | 3% |
| Multiomics organic revenue, FY2026other | $273M | – | 1% |
| Diluted EPS from continuing operations, FY2026GAAP | $(3.50) | – | NM |
| Total diluted EPS, FY2026GAAP | $(3.70) | – | NM |
| Diluted EPS from discontinued operations, FY2026GAAP | $(0.20) | – | – |
| Net loss from continuing operations, FY2026GAAP | −$158M | – | NM |
| Net loss, FY2026 (statement of operations)GAAP | −$167.0M | – | – |
| Adjusted diluted EPS from continuing operations, FY2026non-GAAP | $0.48 | – | (6)% |
| Adjusted EBITDA from continuing operations, FY2026non-GAAP | $58M | – | (12)% |
| Adjusted EBITDA from continuing operations, FY2026 (reconciliation)non-GAAP | $58.30M | – | – |
| Adjusted EBITDA margin from continuing operations, FY2026non-GAAP | 9.4% | – | decrease of 180 basis points |
| Operating loss from continuing operations, FY2026GAAP | −$174.7M | – | – |
| Operating margin from continuing operations, FY2026GAAP | (28.1)% | – | – |
| Gross margin, FY2026GAAP | 44.2% | – | decrease of 130 basis points |
| Adjusted gross margin, FY2026non-GAAP | 45.5% | – | decrease of 130 basis points |
| Adjusted gross margin, Sample Management Solutions, FY2026non-GAAP | 47.0% | – | – |
| Adjusted gross margin, Multiomics, FY2026non-GAAP | 43.8% | – | – |
| Operating expenses, FY2026GAAP | $450M | – | 51% |
| Total operating expenses, FY2026 (statement of operations)GAAP | $449.7M | – | – |
| Impairment of goodwill and intangible assets, FY2026GAAP | $149.1M | – | – |
| Adjusted operating expenses, FY2026non-GAAP | $273M | – | 4% |
| Adjusted operating income, FY2026non-GAAP | $9.8M | – | – |
| Adjusted operating income, FY2026 (reconciliation)non-GAAP | $9.76M | – | – |
| Adjusted operating margin, FY2026non-GAAP | 1.6% | – | decrease of 110 basis points |
| Interest income, net, FY2026GAAP | $18M | – | – |
| Operating cash flow, FY2026other | $57.51M | – | – |
| Capital expenditures, FY2026other | −$30.08M | – | – |
| Free cash flow, FY2026non-GAAP | $27M | – | – |
| Total assets, September 30, 2026GAAP | $1.71B | – | – |
| Total stockholders' equity, September 30, 2026GAAP | $1.40B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Sample Management Solutions, Q4 FY2026Organic revenue was up 4%, mainly driven by higher revenue in Sample Repository Services and Consumables and Instruments, partially offset by lower revenue in Automated Stores. The company notes that the UK Biocentre acquisition contributed to the reported growth. | $94M | – | 9% |
| Multiomics, Q4 FY2026Organic revenue was down 1%, primarily driven by lower Sanger Sequencing and Next Generation Sequencing revenue, partially offset by growth in Gene Synthesis. | $73M | – | 0% |
| Sample Management Solutions, FY2026Organic revenue was up 2%, mainly driven by higher revenue in Sample Repository Services and Consumables and Instruments, partially offset by lower revenue in Automated Stores and Cryogenic Systems. | $344M | – | 6% |
| Multiomics, FY2026Organic revenue was up 1%, primarily driven by higher revenue in Next Generation Sequencing and Gene Synthesis, partially offset by lower Sanger Sequencing revenue. | $277M | – | 3% |
Fiscal 2027 (year ending September 30, 2027) outlook
- RevenueReported revenue from continuing operations of approximately $648 to $660 million
- NoteTotal organic revenue growth of approximately 3% to 5% relative to fiscal 2026
- NoteOrganic revenue for Sample Management Solutions expected to grow mid-single-digits
- NoteOrganic revenue for Multiomics expected to grow low-single-digits
- NoteAdjusted EBITDA margin expansion of 200 to 250 basis points year over year, inclusive of expected dilution of approximately 100 basis points from the Elegen agreements and SynPlexity acquisition
- NoteFree cash flow expected to improve approximately 25% relative to fiscal 2026
- NoteThe high end of the revenue outlook includes potential contributions from Elegen and SynPlexity; fiscal 2027 is expected to be primarily a year of integration, scale-up and commercialization of these capabilities
- NoteFirst quarter fiscal 2027: total organic revenue growth of approximately 3% to 4% relative to first quarter fiscal 2026
- NoteFirst quarter fiscal 2027: adjusted EBITDA margin expected to expand by approximately 100 to 150 basis points relative to first quarter fiscal 2026
- NoteThe company does not provide GAAP guidance for the non-GAAP measures it guides to, citing inability to provide a quantitative reconciliation without unreasonable effort
Capital returns
- During fiscal 2026 the company repurchased 4.4 million shares of common stock for $118.2 million (excluding fees, commissions, and excise tax) in open market repurchases under the 2025 Repurchase Program
- Cash flow statement shows share repurchases of $(118,286) thousand for fiscal 2026 and no share repurchases printed for fiscal 2025
- As of September 30, 2026, $131.8 million remained available for future repurchases under the 2025 Repurchase Program
- The 2025 Repurchase Program was approved by the Board on December 8, 2025, authorizing up to $250 million through December 31, 2028
- No dividend payments are reported in the documents
What drove it
- Company explanation for Q4 gross margin increase: improved operating leverage, favorable mix and the benefits of ongoing cost initiatives, partially offset by unfavorable fixed-cost absorption from lower sales volumes in certain areas and quality remediation and rework activities in Automated Stores
- Company explanation for Q4 operating expense increase: higher research and development expenses, higher selling, general and administrative expenses and higher restructuring charges, partially offset by a reversal of stock-based compensation expense related to the former CEO's unvested awards
- Company explanation for FY2026 operating expense increase: a non-cash goodwill impairment charge of $149 million, plus higher research and development expenses, partially offset by lower selling, general and administrative expenses including the stock-based compensation reversal
- Company explanation for FY2026 gross margin decline: unfavorable fixed-cost absorption, costs of quality remediation and rework in Automated Stores, and an increase in excess and obsolete inventory reserves, partially offset by improved operating leverage and cost initiatives
- Goodwill impairment of $149,083 thousand was recognized in the second quarter of fiscal 2026, including $112.4 million for the Multiomics reporting unit and $36.6 million for the Sample Management Solutions reporting unit
- Total other income in FY2026 included $4 million related to the non-cash settlement of a preexisting contractual relationship with UK Biocentre Limited
- Q4 Multiomics organic decline was attributed to lower Sanger Sequencing and Next Generation Sequencing revenue, partly offset by Gene Synthesis growth
Concerns
- FY2026 GAAP operating loss of $(174,699) thousand and GAAP diluted EPS from continuing operations of $(3.50), driven by the $149 million goodwill impairment
- Full-year adjusted EBITDA fell 12% to $58 million and adjusted EBITDA margin declined 180 basis points to 9.4%
- Full-year adjusted diluted EPS of $0.48 compared with $0.51 a year earlier
- Multiomics organic revenue declined 1% in Q4 FY2026 and grew only 1% for the full year
- Gross margin declined 130 basis points for FY2026 to 44.2%, with the company citing quality remediation and rework in Automated Stores and higher excess and obsolete inventory reserves
- Full-year free cash flow of $27 million is the base for the guided approximately 25% improvement in fiscal 2027
- Cash and marketable securities declined to $506 million, and cash and cash equivalents fell from $279,783 thousand to $193,798 thousand
- Elegen agreements carry fixed license payments of $23.0 million, with aggregate capital deployment expected between approximately $32.0 million and $71.0 million, and the SynPlexity acquisition includes contingent consideration of up to $10.0 million
What to watch
- Delivery of fiscal 2027 revenue of $648 to $660 million and organic growth of 3% to 5%, including whether Multiomics returns to growth
- Adjusted EBITDA margin expansion of 200 to 250 basis points after approximately 100 basis points of dilution from Elegen and SynPlexity
- Free cash flow improvement of approximately 25% versus fiscal 2026
- Resolution of quality remediation and rework activities in Automated Stores and recovery of fixed-cost absorption
- Integration and accounting for SynPlexity, where the initial accounting for the business combination is described as incomplete
- Whether the Elegen license conversion option is exercised between 12 and 18 months after execution for $25.0 million
- Pace of the remaining $131.8 million under the 2025 Repurchase Program
- Q1 fiscal 2027 organic revenue growth of approximately 3% to 4% and adjusted EBITDA margin expansion of approximately 100 to 150 basis points
Balance sheet and cash flow
- Total cash, cash equivalents, restricted cash and marketable securities of $506 million as of September 30, 2026
- Cash and cash equivalents of $193,798 thousand at September 30, 2026 versus $279,783 thousand at September 30, 2025
- Short-term marketable securities of $138,886 thousand versus $61,137 thousand; long-term marketable securities of $169,200 thousand versus $201,585 thousand
- Goodwill of $546,259 thousand at September 30, 2026 versus $702,395 thousand at September 30, 2025, following the goodwill impairment charge
- Net cash provided by operating activities of $57,506 thousand in fiscal 2026 versus $72,181 thousand in fiscal 2025
- Purchases of property, plant and equipment of $(30,079) thousand in fiscal 2026 versus $(33,857) thousand in fiscal 2025
- Acquisition of UK Biocentre, net of cash acquired, of $(11,150) thousand in fiscal 2026
- Proceeds from the sale of B Medical Systems business, net of cash transferred, of $54,503 thousand in fiscal 2026
- The company received full repayment of the $35 million vendor loan, together with accrued interest, on September 3, 2026
- Total liabilities of $311,162 thousand at September 30, 2026 versus $332,596 thousand at September 30, 2025
- No borrowings or total debt balance are printed in the documents
Analysis
Azenta closed fiscal 2026 with Q4 revenue of $167 million, up 5% year over year, and organic revenue up 2%. Sample Management Solutions grew 9% reported and 4% organic in the quarter, led by Sample Repository Services and Consumables and Instruments, while Multiomics was flat reported and down 1% organic, with lower Sanger and Next Generation Sequencing revenue partly offset by Gene Synthesis. For the full year, revenue reached $622 million, up 5% reported and 2% organic, with Sample Management Solutions up 6% and Multiomics up 3%.
Profitability presents two readings. In Q4, GAAP gross margin was 46.0%, up 60 basis points, and adjusted gross margin was 47.2%, up 50 basis points. Adjusted diluted EPS from continuing operations rose to $0.28 from $0.21, while GAAP diluted EPS from continuing operations fell to $0.14 from $1.12, a comparison that includes a prior-year $46.96 million tax adjustment excluded from non-GAAP results. For the full year, the $149 million goodwill impairment produced an operating loss of $(174,699) thousand and a GAAP continuing operations loss of $(3.50) per diluted share. Adjusted EBITDA for the year was $58 million, down 12%, with the margin at 9.4%, down 180 basis points, and adjusted diluted EPS was $0.48 against $0.51.
Cash generation and capital allocation were modest. Operating cash flow was $57,506 thousand for fiscal 2026 against $72,181 thousand a year earlier, capital expenditures were $(30,079) thousand, and free cash flow was $27 million on the company's non-GAAP definition. Cash and marketable securities totaled $506 million. The company repurchased 4.4 million shares for $118.2 million during the year and $131.8 million remains under the $250 million program. Total assets fell to $1,708,383 thousand and stockholders' equity to $1,397,221 thousand, largely reflecting the goodwill write-down. The B Medical Systems sale closed on July 1, 2026, and the $35 million vendor loan was repaid in full on September 3, 2026.
The fiscal 2027 outlook calls for reported revenue of $648 to $660 million, organic growth of 3% to 5%, Sample Management Solutions organic growth in the mid-single digits, Multiomics organic growth in the low single digits, adjusted EBITDA margin expansion of 200 to 250 basis points, and free cash flow up approximately 25%. The company states that the high end of the revenue range includes potential contributions from Elegen and SynPlexity, and that the margin guide is net of approximately 100 basis points of dilution from those agreements. Azenta also committed to fixed Elegen license payments of $23.0 million and aggregate capital deployment of approximately $32.0 million to $71.0 million, and paid $15.0 million in cash for SynPlexity with up to $10.0 million contingent consideration.
The items that deserve attention are the gap between GAAP and adjusted results, the Multiomics organic decline, the Automated Stores quality remediation the company cites in gross margin, and the sizing of free cash flow against the new strategic commitments. The fiscal 2027 guide requires margin expansion while absorbing the Elegen and SynPlexity costs, and its success depends on the execution the CEO describes as the year's priority.
Management, verbatim
We closed fiscal 2026 with improving momentum, delivering stronger performance in the second half of the year.
Dr. Martin Madaus, Interim President and Chief Executive Officer
Fiscal 2027 is about consistent execution and accelerating performance.
Dr. Martin Madaus, Interim President and Chief Executive Officer
Not in the filing
stated, not guessed- Prior-year and prior-quarter figures for the goodwill impairment line (the prior-year column prints a dash)
- Prior-year figure for fiscal 2026 free cash flow
- Prior-year figure for Q4 operating cash flow, capital expenditures and free cash flow
- Prior-year figures in millions for Q4 adjusted operating expenses and adjusted operating income in the summary table
- Prior-year adjusted operating margin for Q4 and fiscal 2026 (only changes are printed)
- Prior-year and percentage change for fiscal 2026 operating loss and operating margin changes beyond the printed margins
- Percentage change for Q4 and full-year R&D and SG&A lines
- Total debt or borrowings balance, if any
- Dividend information (none printed)
- GAAP guidance for fiscal 2027 (not provided by the company)
- Gross margin, operating expense and tax rate guidance for fiscal 2027
- Adjusted EBITDA margin guidance expressed as a level (only expansion in basis points is printed)
- Consensus estimates, analyst expectations and share price reaction (not in the documents)
- Previous outlook, so no comparison to prior guidance is possible
- Initial accounting for the SynPlexity business combination (described as incomplete)
- Q1 fiscal 2026 and Q1 fiscal 2027 absolute revenue or margin levels (only growth and expansion ranges are printed)
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Azenta (NASDAQ:AZTA) filed an 8‑K reporting its FY2026 financials and FY27 outlook, including revenue guidance and EBITDA margin expectations.
Ticker impact
Azenta disclosed Q4 FY2026 results with a loss and FY27 revenue guidance of $648‑$660 M, plus expected EBITDA margin expansion.
likely pressure as the market prices in weaker earnings and modest growth outlook
Losses and flat EPS combined with only modest revenue growth guidance typically trigger a sell‑off in the near term.
Market effects
Signals slower growth for the life‑science services sector, potentially weighing peers with similar business models.
Limited to U.S. biotech and lab‑service stocks; no broad regional effect.
Minimal global impact beyond sector‑specific sentiment.
Counterpoint
If the market overreacts to the loss, the modest guidance could be a floor for upside on a turnaround narrative.
Key entities
- CompanyAzenta, Inc.
Life‑science services provider reporting earnings and guidance.
