Azenta Reports 12% Revenue Growth to $161.2 Million in Q3 Fiscal 2026

Azenta, Inc. reported its financial results for the third quarter of fiscal year 2026, revealing a total revenue of $161.2 million, a 12% increase from $143.9 million in the same period last year. The growth was driven by strong performance in both the Sample Management Solutions (SMS) and Multiomics segments, with the SMS segment generating $88.3 million and the Multiomics segment contributing $72.9 million. For the nine months ended June 30, 2026, total revenue reached $454.6 million, up from $434.6 million in the prior year. Despite the revenue growth, the company reported an operating loss of $4.2 million for the quarter, compared to a loss of $1.9 million in the previous year, largely due to increased operating expenses and a significant goodwill impairment charge of $149.1 million recorded earlier in the fiscal year.

The company’s gross profit for the quarter was $72.4 million, resulting in a gross margin of 44.9%, slightly down from 46.2% in the prior year. The decrease in gross margin was attributed to lower fixed-cost absorption from reduced sales volumes in certain product lines, particularly in Automated Stores, and increased rework costs. Operating expenses rose to $76.5 million, up from $68.3 million a year earlier, primarily due to higher investments in research and development and sales and marketing activities. The net loss from continuing operations was $1.5 million for the quarter, compared to a loss of $0.3 million in the same period last year.

Strategically, Azenta completed the acquisition of UK Biocentre on March 4, 2026, for approximately $27.5 million, which is expected to enhance its capabilities in sample management and processing services in the UK and broader European market. The company also finalized the sale of its B Medical Systems business for $63 million on July 1, 2026, a move aimed at simplifying its portfolio and focusing on core operations. The sale included a $28 million cash payment and a $35 million vendor loan agreement.

Operationally, Azenta reported a total employee headcount of approximately 2,900 as of June 30, 2026, with sales operations extending to around 75 countries. The company noted that revenue generated outside the United States accounted for 43% of total sales during the quarter, reflecting a growing international presence. The company also reported a decrease in cash and cash equivalents to $189.7 million from $279.8 million at the end of the previous fiscal year, influenced by cash used in investing and financing activities, including share repurchases.

Looking ahead, Azenta anticipates continued revenue growth driven by its strategic investments and acquisitions, although it remains cautious about potential market fluctuations and operational challenges. The company is focused on enhancing its product offerings and operational efficiencies while managing its cost structure to improve profitability.