Azenta Turns a Corner: Multiomics Revamp and Recurring Revenue Drive a Beat-and-Raise
After a year of quality issues and a commercial reset, Azenta's Q3 2026 shows broad-based organic growth, a raised outlook, and a portfolio now weighted toward recurring revenue.
AZTA · Earnings Call · 2026-08-05
A much-needed inflection
Azenta (AZTA) delivered a decisive step forward in its fiscal Q3 2026 earnings call, reporting revenue of $161 million, up 12% reported and 9% organically, ahead of expectations. CEO John Marotta opened with a tone of cautious optimism: “Revenue exceeded our outlook, profitability improved sequentially and Multiomics delivered year-over-year growth.” — John P. Marotta, CEO · 2026-08-05 Crucially, the company raised its full-year guidance, now expecting organic revenue to be flat to up 1% and adjusted EBITDA of $59–$62 million, up from prior guidance. The market has responded enthusiastically—over the last 90 days the stock is up 68.4% (from company tape), reflecting a sharp rebound from the earlier drawdown. The quarter's strength was broad-based, with both segments contributing. CFO Lawrence Lin noted: “Growth was broad-based across the portfolio with both segments delivering organic year-over-year increases, including 8% growth in Multiomics and 9% growth in Sample Management Solutions.” — Lawrence Lin, CFO or Head of Finance · 2026-08-05 This marks a significant contrast to the prior year, when the company was wrestling with operational issues and a commercial gap in North America.Multiomics: new leadership and structural actions
The Multiomics business—the centerpiece of Azenta's transformation—showed tangible improvement, particularly in North America. John Marotta explained: “So in Multiomics specifically, NGS, we saw higher activity benefiting specifically from the catch-up of projects delayed earlier in the year, including some certain NIH-funded work.” — John P. Marotta, CEO · 2026-08-05 The improvement is partly cyclical, but the company is also executing structural changes—most notably a footprint rationalization aimed at simplifying its lab network and concentrating on high-value workflows. A new regional leader for Multiomics North America has been appointed to strengthen commercial execution. This is a clear departure from the problems flagged in the prior quarter. In the May 2026 call, Marotta admitted: “We had key sales leaders and sales reps that are no longer in the company that created a bit of a commercial gap.” — Lawrence Lin, Chief Financial Officer · 2026-05-06 The hiring of a seasoned industry executive and the ongoing organizational reset suggest the company is addressing the root causes rather than deferring them.Recurring revenue and capital allocation
A key narrative shift is the growing share of recurring revenue businesses—biorepositories and C&I—which now represent more than half of total revenue. This provides a more durable base, especially as capital equipment orders remain lumpy. Marotta stated:The company also completed the divestiture of B Medical Systems, which had been a drag on margins, and repurchased $50 million of shares, signaling confidence. Management remains disciplined on M&A, with a healthy funnel but a clear insistence on value creation. Multiomics North America is the region most closely watched; the improvement there, though still modest, is an encouraging sign that the quality remediation activities and commercial reinvestments are starting to pay off.While the work remains in the early stages, our objective is clear: build a more focused, efficient and scalable Multiomics business capable of delivering sustainable results with a market-leading position.