Biotech company 10x Genomics (NASDAQ:TXG) announced better-than-expected revenue 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.
Is now the time to buy TXG? Find out in our full research report (it’s free for active Edge members).
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: $2.89 billion
StockStory’s Take
10x Genomics' first quarter results were met with a negative market reaction, despite exceeding Wall Street’s revenue and earnings expectations. Management credited continued momentum in single cell and spatial consumable volumes, particularly from newer product lines like FLEX Apex and Xenium. CEO Serge Saxonov emphasized that the recent Atara launch was a pivotal development, describing it as a response to longstanding customer demands for scalable, high-resolution spatial biology tools. The company noted that, while the macro environment for capital equipment remains constrained, preorders and customer interest for Atara were strong, even as some customers delayed purchases of existing spatial instruments in anticipation of the new platform’s arrival.
Looking forward, management’s guidance is shaped by expectations for double-digit growth in single cell and spatial consumables, alongside a careful rollout of Atara production. CFO Adam Taich cautioned that second and third quarter revenues are likely to decline sequentially, as customers await Atara shipments, with most initial placements expected in the fourth quarter. Saxonov highlighted AI-driven research and large translational studies as key future growth drivers, stating, “AI is poised to fundamentally reshape how science is done, and large-scale, high-quality biological data sits at the center of that transformation.”
Key Insights from Management’s Remarks
Management attributed Q1 performance to robust consumable growth, early Atara demand, and continued traction with key translational and AI-focused partnerships.
-
Consumables growth momentum: Both single cell and spatial consumables delivered double-digit growth, with FLEX Apex and Xenium leading their respective categories. Management noted that these newer products, with their accessible pricing and improved workflows, are unlocking additional demand and broadening the customer base.
-
Atara launch drives anticipation: The introduction of Atara represents a major step-change, enabling spatial whole transcriptome analysis with single cell sensitivity at scale. Saxonov called it “the most significant product introduction in our history,” and reported strong preorder activity and broad-based customer enthusiasm. However, this anticipation led some customers to postpone purchases of older spatial instruments, impacting near-term spatial revenue.
-
AI partnerships accelerating: The company’s collaborations with organizations such as the Chan Zuckerberg Initiative, Arc Institute, and Biooptimus reflect rising interest from customers building large AI models of biology. Saxonov explained that demand for high-quality, large-scale biological data is increasing as AI becomes a structural tailwind for the business.
-
Translational research expansion: 10x Genomics highlighted growing use of its platforms in clinical and translational research, particularly for identifying biomarkers and supporting large clinical cohorts. Both FLEX Apex and Xenium are enabling studies in oncology and autoimmune disease, with Atara expected to further advance these projects.
-
Disciplined cost management: Operating expenses declined year-over-year due to lower legal and personnel costs, while gross margin improved, driven by reduced warranty and inventory write-downs. Taich emphasized that cost control remains a focus, allowing continued investment in new product development and supporting the company’s innovation pipeline.
Drivers of Future Performance
10x Genomics expects upcoming performance to be shaped by Atara’s market adoption, shifting consumable dynamics, and AI-driven research demand, with margin pressures from product mix changes.
-
Atara launch timing and impact: Management expects a sequential revenue decline in Q2 and Q3, as customers delay spatial purchases in anticipation of Atara, with most revenue contribution from the new platform beginning in Q4. Initial Atara shipments will be limited by production capacity, and management anticipates continued demand ramping into 2027.
-
AI and translational research growth: The company is seeing rising demand for its platforms as research customers pursue large-scale AI model development and translational studies. Partnerships with leading institutions are expected to drive multi-year, high-volume projects, supporting both single cell and spatial platform growth.
-
Margin pressures and cost management: Gross margins are expected to remain in the mid-60% range for the year, but Atara’s initial instrument sales will carry lower margins compared to consumables, causing some pressure in Q4. Management plans to keep operating expenses flat year-over-year while maintaining flexibility to invest in R&D and commercial initiatives.
Catalysts in Upcoming Quarters
In future quarters, the StockStory team will be monitoring (1) the pace of Atara adoption and its impact on existing spatial instrument and consumable sales, (2) the scale and renewal of AI-focused and translational research partnerships, and (3) gross margin trends as the product mix shifts with Atara’s ramp. Execution on Atara’s production ramp and customer integration will be key signposts for the company’s trajectory.
10x Genomics currently trades at $21.50, down from $22.42 just before the earnings. At this price, is it a buy or sell? The answer lies in our full research report (it’s free).
High Quality Stocks for All Market Conditions
ONE MORE THING: Top 5 Growth Stocks. The biggest stock winners almost always had one thing in common before they ran. Revenue growing like crazy. Meta. CrowdStrike. Broadcom. Our AI flagged all three. They returned 315%, 314%, and 455%, respectively.
Find out which 5 stocks it's flagging for this month - FREE. Get Our Top 5 Growth Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today.