Azenta, Inc. (AZTA) faced a significant decline in 2025, with its stock dropping over 30% due to persistent sales weaknesses and fundamental business challenges. Despite achieving earnings per share (EPS) of $0.21 for its fiscal fourth quarter and slightly exceeding sales estimates at $156.67 million, revenue fell from $170 million during the same quarter last year. The company’s struggles have contributed to diminished investor confidence and selling pressure.
Azenta has encountered difficulties in maintaining annual revenues above $500 million and has warned of ongoing macroeconomic uncertainties, particularly impacting capital spending among biotech and gene therapy firms. Its EPS estimates for fiscal 2026 and 2027 have declined by over 10% in the past two months, while the stock remains relatively expensive at $34 per share, representing a forward P/E multiple of 46X compared to the S&P 500’s 26X.
Given these conditions, Azenta holds a Zacks Rank of #5 (Strong Sell) and is seen as a stock to avoid heading into 2026, unless it demonstrates sustained revenue growth and operational improvements.
