Azenta (BA3) Q4 2026 Earnings Report

The call was predominantly positive. Management highlighted improved second-half execution, stronger bookings, recurring-revenue growth, solid liquidity, restructuring savings, new Multiomics capabilities, and fiscal 2027 guidance for 3% to 5% organic growth, 200 to 250 basis points of adjusted EBITDA margin expansion, and approximately 25% free-cash-flow improvement. These positives outweighed ongoing challenges from Automated Stores, Sanger sequencing, quality remediation, lower fiscal 2026 free cash flow, and near-term dilution and investment requirements for the Elegen and SynPlexity transactions.

For fiscal 2027, Azenta expects total reported revenue in the range of approximately $648 million to $660 million, representing organic growth of approximately 3% to 5% year-over-year; Sample Management Solutions is expected to deliver mid-single-digit organic growth and Multiomics low-single-digit organic growth, with modest price realization, while Automated Stores is expected to return to modest growth and Sanger sequencing remains a headwind in 2027, but much smaller compared to 2026. Adjusted EBITDA margin is expected to expand by approximately 200 to 250 basis points year-over-year, including approximately 100 basis points of expected dilution associated with the Elegen agreement and SynPlexity acquisition, and full year free cash flow is expected to improve by approximately 25% relative to fiscal 2026. For the first quarter, Azenta expects organic revenue growth of approximately 3% to 4%, adjusted EBITDA margin expansion of approximately 100 basis points to 150 basis points versus first quarter 2026, and free cash flow to be negative; restructuring actions are expected to generate approximately $11 million of annualized savings once substantially complete, which is expected around the end of the second fiscal quarter of 2027, incremental to the approximately $7 million of annualized savings associated with actions initiated earlier in fiscal 2026.