Azenta Reports Mixed Q1 Results, Authorizes $250M Share Repurchase, Finalizes B Medical Systems Sale

summarizeSummary

Azenta, Inc. reported mixed first-quarter fiscal 2026 results with declining non-GAAP EPS and Adjusted EBITDA, but reaffirmed full-year guidance and authorized a new $250 million share repurchase program. The company also finalized the definitive agreement for the sale of its B Medical Systems business.

check_boxKey Events

• Q1 Fiscal 2026 Financial Results

  Revenue was $149 million, up 1% year-over-year, though organic revenue declined 1%. Diluted EPS from continuing operations improved to ($0.11) from ($0.16) year-over-year, but Non-GAAP Diluted EPS decreased to $0.09 from $0.12. Adjusted EBITDA declined to $13 million from $16 million, and gross margin fell to 42.9%.

• New Share Repurchase Program Authorized

  The Board of Directors approved a new share repurchase program authorizing the repurchase of up to $250 million of common stock through December 31, 2028. No shares have been repurchased under this program as of the filing date.

• B Medical Systems Divestiture Finalized

  Azenta entered into a definitive Sale and Purchase Agreement on December 23, 2025, for the sale of its B Medical Systems business for $63 million, with the transaction expected to close on or before March 31, 2026.

• Fiscal 2026 Guidance Reaffirmed

  The company reiterated its full-year fiscal 2026 guidance, expecting total organic revenue growth in the range of 3% to 5% and Adjusted EBITDA margin expansion of approximately 300 basis points relative to fiscal 2025.

auto_awesomeAnalysis

Azenta, Inc. reported mixed financial results for the first quarter of fiscal 2026, with organic revenue declining and non-GAAP profitability metrics (EPS, Adjusted EBITDA, gross margin) showing year-over-year decreases. However, the company reaffirmed its full-year fiscal 2026 guidance, signaling confidence in a stronger second half. Additionally, the board authorized a substantial $250 million share repurchase program, representing a significant commitment to shareholder returns. The definitive agreement for the sale of the B Medical Systems business provides strategic clarity and is expected to close by March 31, 2026, further streamlining the company's focus.