Biotech company 10x Genomics (NASDAQ: TXG) reported revenue ahead of Wall Street’s expectations in Q1 CY2026, but sales fell by 2.6% year on year to $150.8 million. The company expects the full year’s revenue to be around $612.5 million, close to analysts’ estimates. Its GAAP loss of $0.10 per share was 65.5% above analysts’ consensus estimates.
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10x Genomics (TXG) Q1 CY2026 Highlights:
- Revenue: $150.8 million vs analyst estimates of $146.6 million (2.6% year-on-year decline, 2.9% beat)
- EPS (GAAP): -$0.10 vs analyst estimates of -$0.29 (65.5% beat)
- Adjusted Operating Income: $5.60 million vs analyst estimates of -$40.86 million (3.7% margin, significant beat)
- The company reconfirmed its revenue guidance for the full year of $612.5 million at the midpoint
- Operating Margin: -11.3%, up from -25.4% in the same quarter last year
- Market Capitalization: $2.93 billion
Company Overview
Founded in 2012 by scientists seeking to overcome limitations in traditional biological research methods, 10x Genomics (NASDAQ: TXG) develops instruments, consumables, and software that enable researchers to analyze biological systems at single-cell resolution and spatial context.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Over the last five years, 10x Genomics grew its sales at a solid 13.9% compounded annual growth rate. Its growth beat the average healthcare company and shows its offerings resonate with customers.
Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. 10x Genomics’s recent performance shows its demand has slowed as its annualized revenue growth of 1.1% over the last two years was below its five-year trend. We’re wary when companies in the sector see decelerations in revenue growth, as it could signal changing consumer tastes aided by low switching costs. 
10x Genomics also breaks out the revenue for its most important segment, Consumables. Over the last two years, 10x Genomics’s Consumables revenue (recurring orders) averaged 11% year-on-year growth. This segment has outperformed its total sales during the same period, lifting the company’s performance. 
This quarter, 10x Genomics’s revenue fell by 2.6% year on year to $150.8 million but beat Wall Street’s estimates by 2.9%.
Looking ahead, sell-side analysts expect revenue to decline by 2.9% over the next 12 months, a deceleration versus the last two years. This projection is underwhelming and suggests its products and services will see some demand headwinds.
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Adjusted Operating Margin
Although 10x Genomics was profitable this quarter from an operational perspective, it’s generally struggled over a longer time period. Its expensive cost structure has contributed to an average adjusted operating margin of negative 3.1% over the last five years. Unprofitable healthcare companies require extra attention because they could get caught swimming naked when the tide goes out. It’s hard to trust that the business can endure a full cycle.
On the plus side, 10x Genomics’s adjusted operating margin rose by 5.2 percentage points over the last five years, as its sales growth gave it operating leverage. This performance was mostly driven by its recent improvements as the company’s margin has increased by 27.9 percentage points on a two-year basis.
In Q1, 10x Genomics generated an adjusted operating margin profit margin of 3.7%, up 9 percentage points year on year. This increase was a welcome development, especially since its revenue fell, showing it was more efficient because it scaled down its expenses.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Although 10x Genomics’s full-year earnings are still negative, it reduced its losses and improved its EPS by 49.2% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability.
In Q1, 10x Genomics reported EPS of negative $0.10, up from negative $0.28 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects 10x Genomics to perform poorly. Analysts forecast its full-year EPS of negative $0.17 will tumble to negative $0.90.
Key Takeaways from 10x Genomics’s Q1 Results
It was good to see 10x Genomics beat analysts’ EPS expectations this quarter. We were also glad its revenue outperformed Wall Street’s estimates. Overall, we think this was a solid quarter with some key areas of upside. The market seemed to be hoping for more, and the stock traded down 5.4% to $21.20 immediately after reporting.
Big picture, is 10x Genomics a buy here and now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
