Azenta (NASDAQ: AZTA) saw its stock price plummet by 11.05% in pre-market trading on Tuesday following the release of its third-quarter fiscal 2025 results. The biotech company's performance fell short of market expectations, despite some positive indicators.

Azenta reported flat year-over-year revenue of $144 million for the quarter ended June 30, 2025, missing analysts' expectations of $149.40 million. The company's Sample Management segment experienced a 4% decline in revenue, offsetting the 4% growth in its Multiomics segment. Despite the revenue shortfall, Azenta's adjusted earnings per share (EPS) rose to $0.19, surpassing the consensus estimate of $0.13 and showing improvement from $0.14 in the same quarter last year.

While Azenta demonstrated some positive metrics, including an expansion of its adjusted EBITDA margin to 12.3% (up 260 basis points year-over-year) and a gross margin improvement to 47.1%, investors seemed focused on the revenue miss and the reported operating loss of $700,000. The company's reiteration of its full-year fiscal 2025 guidance, projecting organic revenue growth of 3% to 5%, failed to alleviate market concerns. The significant stock drop reflects investor disappointment with Azenta's top-line performance and suggests worries about the company's growth trajectory in a challenging market environment.