Azenta, Inc. (NASDAQ:AZTA) posted first-quarter results on Wednesday that missed profit expectations, overshadowing slightly better-than-anticipated revenue and sending the stock sharply lower in early trading.
Shares of the life sciences solutions group dropped 6.26% in pre-market trade following the announcement.
For the quarter ended December 31, 2025, Azenta reported adjusted earnings per share of $0.09, falling short of the $0.14 analysts had been expecting. Revenue totaled $148.64 million, narrowly beating consensus forecasts of $146.94 million and marking a 1% increase year on year.
On an organic basis, which strips out foreign exchange effects, revenue declined 1% compared with the same period last year. Profitability was pressured, with adjusted gross margin sliding to 44.1%, down 360 basis points from a year earlier. The company attributed the margin compression mainly to weaker cost leverage from lower volumes and additional expenses tied to rework on several Automated Stores projects.
“We delivered revenue performance consistent with our expectations. We also generated strong free cash flow in the quarter, reflecting our continued focus on operational discipline and working capital management,” said John Marotta, President and CEO. “Further, we saw challenges on the gross margin line, and our turnaround continues, and in any turnaround, it is never a straight line.”
By division, Sample Management Solutions revenue was unchanged year on year at $81 million, while the Multiomics business posted a modest 1% increase to $67 million. Adjusted EBITDA reached $13 million, corresponding to an 8.5% margin, down 230 basis points from the prior year.
Despite the weaker earnings performance, Azenta reiterated its full-year fiscal 2026 outlook. The company continues to expect organic revenue growth of 3% to 5% and an improvement in adjusted EBITDA margin of roughly 300 basis points versus fiscal 2025.
Azenta also unveiled a new $250 million share buyback authorization running through December 2028, although no repurchases had been made as of the earnings release.