What Happened?
Shares of life sciences company Azenta (NASDAQ:AZTA) jumped 14.9% in the afternoon session after it reported third-quarter 2025 results that featured better-than-expected revenue and profitability.
The company's revenue grew 5.5% year on year to $159.2 million, surpassing Wall Street's forecasts. Profitability also showed positive signs, with adjusted EBITDA beating expectations and the operating margin improving to 1.2% from a negative 2% in the same quarter last year. While the results were not perfect, as adjusted earnings per share of $0.19 was only in line with consensus and free cash flow was negative, investors appeared to focus on the top-line growth and margin expansion. This suggests optimism that the company's operational performance is on an upward trend.
The shares closed the day at $34.88, up 16.3% from previous close.
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What Is The Market Telling Us
Azenta’s shares are very volatile and have had 28 moves greater than 5% over the last year. But moves this big are rare even for Azenta and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 4 months ago when the stock dropped 16.3% on the news that the company announced mixed third-quarter financial results, where a failure to meet revenue targets overshadowed a profit beat.
The company disclosed revenue of approximately $144 million, which fell short of analyst projections. This result was flat compared to the same period last year and reflected a 2% organic decline. The shortfall stemmed from weakness in its Sample Management Solutions division, where revenue dropped by 4%. In contrast, Azenta posted adjusted earnings per share of $0.19, which exceeded expectations. Despite the disappointing sales figures, the company maintained its financial guidance for the full fiscal year, but investors focused on the revenue miss.
Azenta is down 30.4% since the beginning of the year, and at $34.83 per share, it is trading 36.4% below its 52-week high of $54.75 from January 2025. Investors who bought $1,000 worth of Azenta’s shares 5 years ago would now be looking at an investment worth $508.02.
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