Azenta's Fourth-Quarter Organic Growth Slows to 2%

The Tip Desk · November 12, 2026 · 5 min read

Continuing-operations revenue was $167 million, up 5% year over year, as the company guided fiscal 2027 reported revenue to $648 million to $660 million.

Azenta, Inc. (AZTA) reported fourth-quarter continuing-operations revenue of $167 million, up 5% from a year earlier, after 12% growth in the third quarter and a 1% increase in the second. Organic revenue, which excludes a nominal foreign-exchange impact and a 3-percentage-point contribution from the acquisition of UK Biocentre Limited, rose 2%, down from 9% in the June quarter after a 3% organic decline in the March quarter.

The life sciences solutions provider said the organic increase reflected growth in Sample Management Solutions, partially offset by an organic revenue decline in Multiomics. Sample Management Solutions revenue was $94 million, up 9% year over year, after 14% growth in the third quarter. Organic revenue in the segment was up 4%, mainly from higher revenue in Sample Repository Services and Consumables and Instruments, partially offset by lower revenue in Automated Stores. Multiomics revenue was $73 million, flat year over year, after a 10% increase in the third quarter. Organic Multiomics revenue was down 1%, primarily from lower Sanger Sequencing and Next Generation Sequencing revenue, partially offset by growth in Gene Synthesis.

GAAP operating income from continuing operations was $2.5 million, or a 1.5% operating margin, up 30 basis points from a year earlier, after an operating loss margin of (2.6%) in the third quarter. Gross margin was 46.0%, up 60 basis points, which the company attributed primarily to improved operating leverage, favorable mix and ongoing cost initiatives, partially offset by unfavorable fixed-cost absorption on lower sales volumes in certain areas of the portfolio and quality remediation and rework in Automated Stores. Adjusted operating income was $11.5 million, or a 6.9% adjusted operating margin, up 120 basis points. Adjusted EBITDA from continuing operations was $19 million, down 7% from $21 million a year earlier, with adjusted EBITDA margin of 11.6%, down 140 basis points. Adjusted diluted EPS from continuing operations was $0.28, up 33% from $0.21 a year earlier. Diluted EPS from continuing operations was $0.14, compared with $1.12 a year earlier. Total diluted EPS was $0.16.

For the full year ended September 30, 2026, continuing-operations revenue was $622 million, up 5%, with organic growth of 2%. Sample Management Solutions revenue was $344 million, up 6%, with organic growth of 2%. Multiomics revenue was $277 million, up 3%, with organic growth of 1%. Adjusted EBITDA from continuing operations was $58 million, down 12% from $66 million, with adjusted EBITDA margin of 9.4%, down 180 basis points. Adjusted diluted EPS from continuing operations was $0.48.

GAAP operating loss from continuing operations was $174.7 million, with operating margin of (28.1%), compared with (4.5%) in fiscal 2025, including a $149 million non-cash goodwill impairment. Full-year gross margin from continuing operations was 44.2%, down 130 basis points, which the company attributed primarily to unfavorable fixed-cost absorption, quality remediation and rework in Automated Stores, and higher excess and obsolete inventory reserves, partially offset by operating leverage and cost initiatives. Diluted EPS from continuing operations was ($3.50), compared with $0.53 a year earlier. Total diluted EPS was ($3.70).

The company completed the sale of B Medical Systems on July 1, 2026, and received full repayment of the $35 million vendor loan, together with accrued interest, on September 3, 2026. B Medical Systems is reported as discontinued operations, with its historical results reflected in total diluted EPS. Cash, cash equivalents, restricted cash and marketable securities totaled $506 million at year-end. Operating cash flow was $22 million in the quarter and $58 million for the full year; free cash flow was $12 million in the quarter and $27 million for the full year. The company repurchased 4.4 million shares for $118.2 million during the year, leaving $131.8 million available under the 2025 Repurchase Program.

Azenta expects fiscal 2027 reported revenue from continuing operations to range from $648 million to $660 million, with organic revenue growth of 3% to 5% and adjusted EBITDA margin expansion of approximately 200 to 250 basis points year over year, inclusive of expected 100-basis-point dilution from the Elegen agreements and SynPlexity acquisition. Organic revenue for Sample Management Solutions is expected to grow mid-single-digits and Multiomics low-single-digits. Free cash flow is expected to improve approximately 25% relative to fiscal 2026. The high end of the revenue outlook includes potential contributions from Elegen and SynPlexity; the company said fiscal 2027 is expected to be primarily a year of integration, scale-up and commercialization of those capabilities. First-quarter fiscal 2027 organic revenue growth is expected to range approximately 3% to 4% relative to the first quarter of fiscal 2026, with adjusted EBITDA margin expansion of approximately 100 to 150 basis points.

On October 28, 2026, Azenta entered Elegen agreements with expected aggregate capital deployment of approximately $32.0 million to $71.0 million and acquired SynPlexity for a base purchase price of $15.0 million in cash plus contingent consideration of up to $10.0 million. Interim President and Chief Executive Officer Dr. Martin Madaus said the company closed fiscal 2026 with improving momentum, delivering stronger performance in the second half, and that fiscal 2027 is about consistent execution and accelerating performance.