Azenta Stock Earnings Reports

Q1 FY2026 highlights: Total revenue was $149M (flat reported, -1% organic) with a 2% FX headwind. Management reaffirmed full-year guidance of 3%–5% organic revenue growth and ~300 basis points of adjusted EBITDA margin expansion. Q1 adjusted EBITDA margin was 8.5% (down ~230 bps year-over-year); non-GAAP EPS was $0.09. Gross margin pressure in Q1 was driven by underutilized North American lab capacity and higher rework costs on automated storage (“stores”) projects; management expects remediation of those quality issues to be completed by the end of Q2 with a full-year P&L impact estimated at $3M–$5M. Segment dynamics: Multiomics saw strength in next-generation sequencing and gene synthesis (China showed 26% organic growth) but weakness in Sanger sequencing and North America volumes; Sample Management Solutions grew in biorepositories but was offset by softness in automated stores and cryo. Operational priorities remain deployment of the Azenta Business System (ABS) / Kaizen for productivity, regionalization of gene synthesis, scaling biorepositories, and disciplined capital allocation. Balance sheet and capital returns: cash and equivalents of $571M, no debt, $6M capex in Q1, sale of B Medical Systems expected to close by 3/31/2026 (treated as discontinued ops), and a $250M share repurchase authorization. Management views 2026 as a transitional year with an expected H2 acceleration as capital spending, approvals, and their growth investments ramp up.