Azenta's stock price plummeted 13.17% during intraday trading on Wednesday, following the release of its fiscal first-quarter 2026 earnings results.

The life sciences solutions provider reported non-GAAP earnings of $0.09 per share, missing analyst estimates of $0.14 by 34.78% and representing a 25% decrease from the $0.12 per share earned in the same period last year. While quarterly sales of $148.642 million slightly exceeded expectations of $147.163 million, the significant earnings shortfall and declining profitability metrics drove investor selling.

Company management cited gross margin challenges, including lost cost leverage from lower sales volumes in certain portfolio areas and costs related to rework on several Automated Stores projects. Adjusted EBITDA declined 21% year-over-year to $13 million, with the corresponding margin contracting 230 basis points to 8.5%. Despite reiterating its full-year organic revenue growth guidance of 3% to 5%, the earnings miss and margin pressures overshadowed the modest revenue beat.