Azenta, Inc. (AZTA)
NASDAQ:AZTA
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Azenta
(NASDAQ:AZTA)
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Rating:56Neutral
Price Target:
$25.00
▼(-11.28% Downside)
Action:ReiteratedDate:05/06/26
AZTA scores slightly below average, led by a strong, low-leverage balance sheet and currently positive cash flow, but weighed down by ongoing losses and a lowered FY26 outlook with margin pressure. Technicals are neutral-to-weak longer term, and valuation is constrained by negative earnings and no dividend.
Positive Factors
Strong liquidity & low leverage
Azenta's minimal leverage and sizable liquidity provide durable financial flexibility to fund remediation, capex, and M&A while absorbing operational volatility. The strong cash position and no debt materially reduce solvency risk and enable management to execute strategic initiatives over the next several quarters without immediate financing pressure.
Negative Factors
Persistent unprofitability
Despite improving top-line momentum and healthy gross margins, Azenta remains loss-making with roughly -10% net margin. Ongoing operating losses constrain returns, limit internal funding for growth initiatives, and increase reliance on cash reserves or external capital if margin recovery stalls, prolonging the path to sustainable profitability.
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Positive Factors
Negative Factors
Strong liquidity & low leverage
Azenta's minimal leverage and sizable liquidity provide durable financial flexibility to fund remediation, capex, and M&A while absorbing operational volatility. The strong cash position and no debt materially reduce solvency risk and enable management to execute strategic initiatives over the next several quarters without immediate financing pressure.
Read all positive factors
Azenta (AZTA) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.12B
Dividend YieldN/A
Average Volume (3M)965.29K
Price to Earnings (P/E)―
Beta (1Y)1.06
Revenue Growth-8.36%
EPS Growth57.71%
CountryUS
Employees3,000
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-1.34
Shares Outstanding46,061,527
10 Day Avg. Volume770,217
30 Day Avg. Volume965,289
Financial Highlights & Ratios
PEG Ratio0.39
Price to Book (P/B)0.76
Price to Sales (P/S)2.21
P/FCF Ratio34.28
Enterprise Value/Market Cap0.60
Enterprise Value/Revenue1.12
Enterprise Value/Gross Profit2.48
Enterprise Value/Ebitda12.39
Forecast
1Y Price Target
$30.75Price Target Upside9.12% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.77
Revenue Forecast (FY)$624.07M
Azenta Business Overview & Revenue Model
Company Description
Azenta, Inc. provides life science sample exploration and management solutions for the life sciences market in North America, Europe, China, the Asia Pacific, and internationally. The company operates through two reportable segments, Life Sciences...
How the Company Makes Money
Azenta makes money primarily by selling life-sciences products and services used to store, manage, process, and analyze biological samples. A key revenue stream comes from its Sample Management Solutions activities, which include (1) selling autom...
Azenta Key Performance Indicators (KPIs)
Azenta Earnings Call Summary
Earnings Call Date:May 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Neutral
The call was mixed. Positive operational and recurring-revenue trends (strong biorepository growth, improved on-time delivery, faster RNA-Seq turnaround, solid cash position, and targeted cost savings) coexist with significant near-term challenges: organic revenue decline, notable margin compression, large goodwill impairments (~$149M), automated storage quality remediation and delayed large-capex orders, and a guidance reset lowering FY26 growth and profitability expectations. Management reiterated long-term conviction in strategic priorities and outlined actions (leadership changes, ABS deployment, cost reductions, M&A integration) to address execution gaps, but near-term results and uncertainty weighed on the quarter.Positive Updates
Recurring Revenue Strength — Biorepositories and Services
Sample repository/biorepository solutions (≈40% of SMS) delivered high single-digit growth and supported steady growth in product services, consumables and instruments, reinforcing a durable recurring revenue base that helped partially offset capital equipment softness.
Negative Updates
Organic Revenue Decline and Segment Divergence
Total reported Q2 revenue $145 million (up 1% reported) but down 3% organically (ex-UKBC and FX). Multiomics revenue $64M (flat reported, down ~2% organic) and SMS $81M (up 2% reported, down ~3% organic), reflecting softer demand for capital-intensive products and North America weakness.
Read all updates
Q2-2026 Updates
Positive
Negative
Recurring Revenue Strength — Biorepositories and Services
Sample repository/biorepository solutions (≈40% of SMS) delivered high single-digit growth and supported steady growth in product services, consumables and instruments, reinforcing a durable recurring revenue base that helped partially offset capital equipment softness.
Read all positive updates
Company Guidance
Azenta updated fiscal 2026 guidance to reported revenue of approximately $603 million to $621 million (including UK Biocentre) and organic revenue of down ~2% to up 1% year‑over‑year, with adjusted EBITDA margin expected to be down ~125 basis points to flat versus prior year; free cash flow is now expected to improve ~10%–15% year‑over‑year (vs prior ~30% expectation). For cadence the company expects Q3 organic revenue to grow low single digits and Q4 organic revenue to decline low single digits (Q4 2025 was a tough comp), while adjusted EBITDA margins should improve sequentially into the low‑double‑digit range in Q3 and step up further in Q4. Recent Q2 results underpinning the reset were: revenue $145 million (reported +1%, organic -3%), gross margin 44.3% (down 110 bps), adjusted EBITDA $7.8 million (5.4% of revenue, down 320 bps), non‑GAAP EPS loss $0.04, free cash flow (including B Medical) $5 million, cash and equivalents $565 million, capex ~$7 million, and Q2 charges including $112.4 million and $36.6 million goodwill impairments (Multiomics and SMS), a $6 million noncash loss on assets held for sale, ~ $2 million of store rework quality costs, and an expected completion of remaining store remediation by end of Q3; management also pushed the long‑range plan out one year to 2029 while keeping targets unchanged.Azenta Financial Statement Overview
Summary
Income Statement
44
Neutral
Balance Sheet
86
Very Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Sep 2025 | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 595.19M | 593.82M | 573.45M | 665.07M | 555.50M | 513.70M |
| Gross Profit | 269.63M | 270.28M | 254.62M | 233.26M | 230.62M | 214.51M |
| EBITDA | 53.93M | 54.07M | 71.62M | 55.15M | 48.35M | 9.94M |
| Net Income | -57.82M | -55.76M | -164.90M | -14.26M | -428.96M | 110.75M |
Balance Sheet | ||||||
| Total Assets | 2.07B | 2.06B | 2.10B | 2.89B | 3.72B | 1.82B |
| Cash, Cash Equivalents and Short-Term Investments | 412.05M | 340.92M | 462.09M | 1.02B | 1.57B | 227.51M |
| Total Debt | 108.92M | 111.17M | 70.68M | 60.44M | 49.23M | 94.77M |
| Total Liabilities | 359.60M | 330.70M | 331.07M | 351.22M | 352.74M | 494.18M |
| Stockholders Equity | 1.71B | 1.73B | 1.77B | 2.53B | 3.36B | 1.33B |
Cash Flow | ||||||
| Free Cash Flow | 30.93M | 38.32M | 12.35M | -33.60M | -543.48M | 97.05M |
| Operating Cash Flow | 63.23M | 72.18M | 49.74M | 5.83M | -466.05M | 149.86M |
| Investing Cash Flow | -130.78M | -90.46M | 224.74M | 431.38M | 1.47B | -146.35M |
| Financing Cash Flow | -7.10M | -9.59M | -659.21M | -840.46M | -62.76M | -25.91M |
Azenta Technical Analysis
Neutral
28.18
Price Trends
24.49
Positive
30.50
Negative
30.72
Negative
Market Momentum
0.04
Negative
59.11
Neutral
84.52
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For AZTA, the sentiment is Neutral. The current price of 28.18 is above the 20-day moving average (MA) of 22.18, above the 50-day MA of 24.49, and below the 200-day MA of 30.72, indicating a neutral trend. The MACD of 0.04 indicates Negative momentum. The RSI at 59.11 is Neutral, neither overbought nor oversold. The STOCH value of 84.52 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for AZTA.
Azenta Risk Analysis
Azenta disclosed 35 risk factors in its most recent earnings report. Azenta reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Azenta Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
64 Neutral | $1.03B | 81.66 | -3.40% | ― | -15.11% | -24.07% | |
62 Neutral | $1.46B | 270.11 | -2.43% | ― | 14.88% | 74.68% | |
56 Neutral | $1.12B | -24.75 | -3.39% | ― | -8.36% | 57.71% | |
52 Neutral | $1.35B | -15.97 | -23.24% | ― | -23.72% | -296.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
46 Neutral | $845.58M | -3.80 | -46.45% | ― | -1.74% | 44.97% | |
46 Neutral | $174.04M | -31.27 | -178.57% | ― | 19.01% | -282.10% |
* Healthcare Sector Average
AZTA
Azenta
18.38
-6.88
-27.24%
ATRC
Atricure
29.39
-0.92
-3.04%
QDEL
QuidelOrtho
10.96
-14.89
-57.60%
STAA
Staar Surgical
27.75
8.31
42.75%
BLFS
BioLife Solutions
21.75
0.41
1.92%
SMTI
Sanara MedTech
19.15
-12.69
-39.86%
Azenta Corporate Events
Business Operations and StrategyExecutive/Board Changes
Azenta Reshapes Multiomics Leadership and Executive Compensation
Positive
Apr 7, 2026
On April 6, 2026, Azenta implemented a leadership change in its Multiomics business, with Ginger Zhou stepping down as president and continuing as an adviser through November 2026 under a consulting agreement, while William “Trey” E. M...
Business Operations and StrategyM&A Transactions
Azenta Faces Delay in B Medical Systems Divestiture
Negative
Apr 2, 2026
Azenta, Inc. disclosed that a planned sale of the entire issued share capital of its subsidiary B Medical Systems S.À R.L. to Thelema S.À R.L., initially expected to close on or before March 31, 2026, did not close as scheduled because T...
Business Operations and StrategyM&A Transactions
Azenta Acquires UK Biocentre to Expand European Biorepository
Positive
Mar 4, 2026
On March 4, 2026, Azenta announced that its subsidiary Azenta UK Ltd had completed the acquisition of UK Biocentre Limited, a UK-based provider of sample management, storage and high-throughput processing services, for total consideration of GBP 2...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.