AZTA · Azenta, Inc.

Azenta's Q2 FY2026 results disappointed with revenue at $145 million, a mere 1% YoY increase driven by foreign exchange and the UK Biocentre acquisition, while organic revenue declined 3% amid cautious North American demand. Sample Management Solutions held steady at $81 million (up 2% reported, down 3% organic), buoyed by growth in Sample Repository Solutions, Product Services, Consumables and Instruments, offsetting weakness in Core Products like Automated Stores and Cryogenic Systems. Multiomics revenue was flat at $64 million (organic down 2%), with declines in Sanger Sequencing offset by gains in Next Generation Sequencing and Gene Synthesis. GAAP results were hammered by a $149 million non-cash goodwill impairment, leading to an operating loss of $165.8 million and diluted EPS of ($3.41) from continuing operations. Adjusted metrics showed strain with EBITDA at $8 million (5.4% margin, down 320 bps YoY) due to lower volume absorption, Automated Stores rework costs, and inventory reserves. Management cited execution gaps and demand softness, prompting a Multiomics transformation via commercial strengthening, footprint optimization, and Azenta Business System implementation, with bolstered leadership for accountability. FY2026 guidance was sharply lowered: revenue to $603-621 million (organic -2% to +1% vs prior 3-5% growth), Sample Management low-single-digit organic growth (vs mid-single), Multiomics mid-single-digit decline (vs low-single growth), and Adjusted EBITDA margin -125 bps to flat (vs +300 bps expansion). Free cash flow outlook improved to +10-15% YoY. Long-range plan shifted to 2029, maintaining strategic confidence. B Medical Systems divestiture stalled on buyer financing, with $63 million deal in limbo. Cash position remains solid at $565 million, supporting the new $250 million buyback authorization (unused). CEO Marotta emphasized operational discipline for long-term value amid measured near-term conditions.