Azenta (AZTA) Stock Forecast & Price Target

Azenta Inc. has demonstrated a promising financial trajectory, with an adjusted EBITDA margin of 13.0%, representing a year-over-year increase of 230 basis points, exceeding consensus expectations. The company anticipates an additional improvement in gross margin by approximately 200 basis points, alongside operating expense leverage contributing about 100 basis points to their profitability. With a focus on revenue growth driven by both the Multiomics and Sample Management Solutions segments, along with the addition of commercial representatives to bolster sales efforts, Azenta is positioned for sustained earnings growth and margin enhancement in the coming years.

Azenta Inc. has encountered a decrease in its adjusted gross margin, down 20 basis points year-over-year to 46.7%, primarily due to the softer gross margin from its Multiomics segment, missing consensus expectations. The company’s revenue outlook appears bleak, with management projecting a potential decline of 1-2% year-over-year for F1Q26 driven by subdued customer budgets and external factors such as the U.S. government shutdown impacting multiple segments. Additionally, revenue estimates for FY26 and FY27 have been revised downward, indicating weaker anticipated growth amidst heightened competition in Multiomics and stagnation in Sample Management Solutions.