Azenta (AZTA) Stock Forecast & Price Target

Azenta Inc. has demonstrated a robust financial performance, achieving an adjusted EBITDA margin of 13.0%, which reflects a year-over-year increase of 230 basis points and surpasses consensus expectations. The company's gross margin is anticipated to improve by approximately 200 basis points, bolstered by operational leverage that is expected to contribute an additional 100 basis points. Furthermore, Azenta's growth prospects are further enhanced by potential revenue increases from both the Multiomics and Sample Management Solutions segments, alongside the strategic addition of commercial representatives aimed at accelerating growth in future fiscal periods.

Azenta Inc. reported an adjusted gross margin of 46.7%, which was a decline of 20 basis points year-over-year and fell short of consensus expectations, primarily due to challenges in the Multiomics segment, despite operational efficiencies in the Sample Management Solutions. Revenue from Sample Management Solutions (SMS) was $86 million, just below the consensus estimate of $87 million and signifying flat organic growth, while management forecasts a 1-2% year-over-year revenue decline for the upcoming quarter due to constrained customer budgets and the impact of the U.S. government shutdown. Additionally, the company's revenue projections for FY26 and FY27 have been revised downwards, reflecting a cautious outlook grounded in anticipated lower revenue growth and potential margin contraction amidst increasing competition in Multiomics and slower traction in SMS.