Azenta annual revenue grows as impairment weighs on continuing operations
US life sciences services company Azenta increased fiscal 2026 revenue while continuing operations recorded an annual loss. A noncash goodwill impairment weighed on the result as operating expenses rose. Fourth-quarter revenue increased 5 per cent, supported by sample management services. Management forecast higher revenue for fiscal 2027 and an expansion in its adjusted operating earnings margin.
Economics & Markets··Morning
Impairment outweighs annual sales growth
US life sciences services provider Azenta reported higher sales for the fiscal year ended September 30, alongside a loss from continuing operations. The results announced on November 10 put annual revenue at 622 million dollars, up 5 per cent. The final quarter also brought a 5 per cent revenue increase. That quarter generated about 167 million dollars in sales, extending the company’s annual growth into the closing months of the fiscal year.[1], [2]
Annual operating expenses reached 450 million dollars after a 51 per cent increase. Azenta attributed most of that increase to a 149 million dollar goodwill impairment, a charge that did not require a cash payment. The annual operating loss was 174.7 million dollars. Continuing operations recorded a diluted loss of 3.50 dollars per share, compared with a profit of 0.53 dollars in the preceding year.[1]
Sample management leads the revenue increase
Sample Management Solutions, Azenta’s sample management services business, generated annual revenue of 344 million dollars, an increase of 6 per cent. Multiomics contributed 277 million dollars, up 3 per cent. After excluding currency changes and the UK Biocentre acquisition, company-wide organic growth was 2 per cent. The corresponding organic growth rates for the two operating businesses were 2 per cent and 1 per cent, respectively.[1]
In the final quarter, sample management revenue rose 9 per cent to 94 million dollars, while Multiomics revenue stayed at 73 million dollars. Quarterly operating income was 2.5 million dollars. Diluted earnings from continuing operations fell from 1.12 dollars to 0.14 dollars per share. On the company’s adjusted basis, quarterly diluted earnings rose from 0.21 dollars to 0.28 dollars per share.[1]
Management projects higher revenue for the next fiscal year
Azenta ended the year with 506 million dollars in cash, cash equivalents, restricted cash and marketable securities. Operating activities generated 22 million dollars during the last quarter, when capital expenditure totaled 10 million dollars. For fiscal 2027, management projected revenue between 648 million dollars and 660 million dollars, with organic growth of 3 per cent to 5 per cent. It also projected an improvement of about 200 to 250 basis points in the adjusted earnings margin before interest, taxes, depreciation and amortization.[1]
