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.
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)
- Adjusted EPS: $0.07 vs analyst estimates of -$0.06 (significant beat)
- Adjusted EBITDA: $15.25 million
- 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: $2.67 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From 10x Genomics’s Q1 Earnings Call
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Patrick Donnelly (Citi): Asked about Atara’s early demand signals and how launch timing is impacting the broader portfolio. CEO Serge Saxonov said demand is “really strong,” with broad interest across customer types, and acknowledged that customers are delaying some spatial purchases but these effects are built into guidance.
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Matthew Larew (William Blair): Inquired about the scale and timeline of AI-driven demand. Saxonov responded that AI is now a pervasive driver across customer projects, fueling demand for 10x Genomics’ data-generation platforms and suggesting the total addressable market may expand significantly.
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Madeline Mollman (Wolfe Research): Questioned potential margin impacts from Atara and inflationary costs. CFO Adam Taich indicated margins may see slight pressure as Atara launches, but expects to maintain mid-60% gross margins for the year.
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Mason Carrico (Stephens): Requested detail on spatial instrument revenue decline and Atara placement expectations. Taich projected a step down in spatial sales in Q2 and Q3, with around 40 Atara units to be shipped, mostly in Q4, and production set to ramp through 2027.
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Analyst (Barclays): Asked about the risk of Atara cannibalizing Xenium and Visium platforms. Saxonov explained that Atara is designed to expand the market and address previously unmet needs, though some migration will occur over time; existing platforms are expected to remain in use for specific applications.
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 $21.01, down from $22.42 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).
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