Azenta cuts FY26 outlook as organic revenue falls 3%

Overview

• Life sciences solutions firm's fiscal Q2 revenue rose 1% yr/yr; organic revenue declined 3%

• Adjusted EPS for fiscal Q2 fell to a loss of $0.04 from $0.01 a year ago

• Company cut FY26 outlook and extended long-range plan to 2029 amid weaker demand

Outlook

• Azenta sees FY26 revenue from continuing operations between $603 mln and $621 mln

• Company expects FY26 organic revenue to range from down 2% to up 1%

• Azenta extends long-range plan timeline to 2029 from 2028

Result Drivers

• WEAK DEMAND AND EXECUTION GAPS - Co said Q2 results fell short due to execution gaps and more cautious demand, especially in North America

• SOFTNESS IN CORE PRODUCTS - Organic revenue declined mainly due to lower revenue in Core Products, particularly Automated Stores and Cryogenic Systems

• GROSS MARGIN PRESSURE - Gross margin fell due to lower fixed-cost absorption from reduced volumes, Automated Stores rework costs, and higher inventory reserves

Company press release: ID:nPn2yfHQBa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the biotechnology & medical research peer group is "buy"

• Wall Street's median 12-month price target for Azenta Inc is $35.00, about 43.9% above its May 4 closing price of $24.33

• The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 45 three months ago

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