We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AVTR Q1 adjusted EPS of 17 cents beat estimates despite a 26% year-over-year decline.
Avantor posted $1.58B in revenues, flat year over year but above the consensus estimate.
AVTR margins shrank due to lower volumes, pricing pressure and higher freight costs.
Avantor, Inc. (AVTR - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 17 cents, down 26.1% from the year-ago quarter. However, the bottom line surpassed the Zacks Consensus Estimate by 6.3%.
GAAP EPS for the quarter was 6 cents, down from 9 cents per share in the prior-year quarter.
AVTR's Revenue Details
Revenues grossed $1.58 billion in the reported quarter, flat year over year. The metric beat the Zacks Consensus Estimate by 2.1%.
Avantor's foreign currency translation had a positive impact of 4.1%, resulting in a 4.1% sales decline on an organic basis.
Avantor’s Segmental Analysis
Laboratory Solutions (VWR Distribution & Services)
Net sales in the Laboratory Solutions segment totaled $1.15 billion in the first quarter, down 5% organically year over year. The decline was primarily driven by lower volumes amid continued softness in end markets, particularly in Europe, along with a modest impact from adverse winter weather in the United States. This figure compares to our segmental projection of $1.05 billion.
Despite the year-over-year decline, management indicated that the segment is stabilizing, with performance largely in line with expectations. The VWR e-commerce platform showed encouraging trends, with improvements in traffic, conversion and revenue following recent digital upgrades and the relaunch of vwr.com. However, margins were pressured by lower volumes, pricing dynamics and higher freight costs. The company expects growth to improve gradually through 2026, with a return to positive organic growth in the second half.
Bioscience Production (Bioscience & Medtech Products - BMP)
The Bioscience Production segment reported net sales of $431 million, reflecting a 2% organic decline year over year. The performance exceeded management expectations, supported by strong execution in process chemicals and NuSil. This figure compares to our segmental projection of $557 million.
Within the segment, process chemicals delivered double-digit organic growth, driven by improved operations and strong order trends. However, fluid handling and NuSil declined double digits due to tough prior-year comparisons, while research and specialty chemicals saw a slight decline. Management noted that normalization of customer ordering patterns in certain businesses acted as a mid-single-digit headwind to growth in the quarter.
Operationally, the segment showed signs of improvement, with reduced back orders and a strong book-to-bill ratio of above 1.1x, indicating healthy demand. Margins declined year over year due to lower volumes, unfavorable mix and inventory-related headwinds. Management expects growth to hit its lowest point in the second quarter and improve in the second half of 2026.
In the quarter under review, Avantor’s gross profit declined 6.4% year over year to $500.7 million. The gross margin contracted 210 basis points (bps) to 31.7%. We had projected 34.3% of gross margin for the third quarter.
Selling, general and administrative expenses increased 3.5% year over year to $401.2 million.
Adjusted operating profit totaled $190.6 million, down 21.5% from the prior-year quarter’s level. The adjusted operating margin in the quarter contracted 330 bps to 12.1%.
Avantor’s Financial Position
Avantor exited the first quarter of 2026 with cash and cash equivalents of $279.3 million compared with $365.4 million at the end of the fourth quarter of 2025. Total debt at the end of the first quarter of 2026 was $3.82 billion compared with $3.95 billion at the end of the fourth quarter of 2025.
Net cash provided by operating activities at the end of the first quarter of 2026 was $58.7 million compared with $109.3 million a year ago.
AVTR’s 2026 Guidance
Avantor reaffirmed the fiscal 2026 financial guidance it provided during its fourth-quarter 2025 earnings call.
Per the guidance, the company projects its organic revenues to witness growth of negative 2.5% to negative 0.5%, with growth in the VWR distribution business expected to modestly outpace that of Bioscience and Medtech Products. The company expects adjusted EPS to lie in the range of 77 cents to 83 cents. The Zacks Consensus Estimate is pegged at 79 cents.
Our Take
Avantor exited the first quarter of 2026 with better-than-expected results, wherein earnings and revenues both beat their respective estimates. However, a decline in the bottom line does not bode well for the stock.
Management commentary pointed to improving underlying momentum, particularly within the Bioscience & Medtech Products segment. Growth in process chemicals remained a key bright spot, supported by strong order trends and a book-to-bill ratio above 1.1x, signaling healthy demand visibility. The company also highlighted a robust demand funnel and sequential acceleration in order intake, reinforcing confidence in a return to growth in the second half of 2026. However, near-term revenue realization continues to be influenced by challenging prior-year comparisons tied to normalization of customer ordering patterns in areas such as NuSil, serum and electronic materials.
On execution, management emphasized that its “Revival” initiative is already driving tangible improvements across operations and commercial discipline. Early benefits are visible in better operational stability, reduced back orders and stronger customer engagement. The company has also moved swiftly to strengthen leadership, refreshing roughly 25% of its senior team and adding key roles to enhance accountability and execution. At the same time, operational initiatives such as lean-driven process improvements, automation projects and a more structured capital allocation framework are being deployed to improve productivity, reduce costs and enhance throughput.
While these actions are beginning to yield results, near-term headwinds persist. Margins remain under pressure from volume deleverage, mix and external factors such as inflation in freight and raw materials, partly linked to geopolitical developments. Nevertheless, management remains confident that improved execution, stabilizing trends in VWR and strong order momentum in BMP will position Avantor for sequential improvement, with both segments expected to return to growth in the back half of 2026.
Avantor’s Zacks Rank and Stocks to Consider
AVTR currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space that are expected to report earnings soon are DexCom, Inc. (DXCM - Free Report) , Encompass Health Corporation (EHC - Free Report) and The Cooper Companies, Inc. (COO - Free Report) .
The Zacks Consensus Estimate for DexCom’s first-quarter 2026 adjusted EPS is currently pegged at 47 cents. The consensus estimate for revenues is pegged at $1.18 billion. DXCM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DexCom has an estimated long-term growth rate of 20.6%. DXCM’s earnings yield of 4.1% compares favorably with the industry’s negative yield.
Encompass Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter 2026 adjusted EPS is currently pegged at $1.51. The same for revenues is pegged at $1.57 billion.
Encompass Health has an estimated long-term growth rate of 8.8%. EHC’s earnings yield of 5.9% compares favorably with the industry’s 5.6%.
Cooper Companies currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2026 adjusted EPS is currently pegged at $1.10. The same for its revenues is pegged at $1.05 billion.
Cooper Companies has an estimated long-term growth rate of 8.4%. COO’s earnings yield of 7.2% compares favorably with the industry’s 6.1%.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Bigstock
Avantor Q1 Earnings & Revenues Beat Estimates, Margins Decline
Key Takeaways
Avantor, Inc. (AVTR - Free Report) reported first-quarter 2026 adjusted earnings per share (EPS) of 17 cents, down 26.1% from the year-ago quarter. However, the bottom line surpassed the Zacks Consensus Estimate by 6.3%.
GAAP EPS for the quarter was 6 cents, down from 9 cents per share in the prior-year quarter.
AVTR's Revenue Details
Revenues grossed $1.58 billion in the reported quarter, flat year over year. The metric beat the Zacks Consensus Estimate by 2.1%.
Avantor's foreign currency translation had a positive impact of 4.1%, resulting in a 4.1% sales decline on an organic basis.
Avantor’s Segmental Analysis
Laboratory Solutions (VWR Distribution & Services)
Net sales in the Laboratory Solutions segment totaled $1.15 billion in the first quarter, down 5% organically year over year. The decline was primarily driven by lower volumes amid continued softness in end markets, particularly in Europe, along with a modest impact from adverse winter weather in the United States. This figure compares to our segmental projection of $1.05 billion.
Despite the year-over-year decline, management indicated that the segment is stabilizing, with performance largely in line with expectations. The VWR e-commerce platform showed encouraging trends, with improvements in traffic, conversion and revenue following recent digital upgrades and the relaunch of vwr.com. However, margins were pressured by lower volumes, pricing dynamics and higher freight costs. The company expects growth to improve gradually through 2026, with a return to positive organic growth in the second half.
Bioscience Production (Bioscience & Medtech Products - BMP)
The Bioscience Production segment reported net sales of $431 million, reflecting a 2% organic decline year over year. The performance exceeded management expectations, supported by strong execution in process chemicals and NuSil. This figure compares to our segmental projection of $557 million.
Within the segment, process chemicals delivered double-digit organic growth, driven by improved operations and strong order trends. However, fluid handling and NuSil declined double digits due to tough prior-year comparisons, while research and specialty chemicals saw a slight decline. Management noted that normalization of customer ordering patterns in certain businesses acted as a mid-single-digit headwind to growth in the quarter.
Operationally, the segment showed signs of improvement, with reduced back orders and a strong book-to-bill ratio of above 1.1x, indicating healthy demand. Margins declined year over year due to lower volumes, unfavorable mix and inventory-related headwinds. Management expects growth to hit its lowest point in the second quarter and improve in the second half of 2026.
Avantor, Inc. Price, Consensus and EPS Surprise
Avantor, Inc. price-consensus-eps-surprise-chart | Avantor, Inc. Quote
AVTR’s Margin Analysis
In the quarter under review, Avantor’s gross profit declined 6.4% year over year to $500.7 million. The gross margin contracted 210 basis points (bps) to 31.7%. We had projected 34.3% of gross margin for the third quarter.
Selling, general and administrative expenses increased 3.5% year over year to $401.2 million.
Adjusted operating profit totaled $190.6 million, down 21.5% from the prior-year quarter’s level. The adjusted operating margin in the quarter contracted 330 bps to 12.1%.
Avantor’s Financial Position
Avantor exited the first quarter of 2026 with cash and cash equivalents of $279.3 million compared with $365.4 million at the end of the fourth quarter of 2025. Total debt at the end of the first quarter of 2026 was $3.82 billion compared with $3.95 billion at the end of the fourth quarter of 2025.
Net cash provided by operating activities at the end of the first quarter of 2026 was $58.7 million compared with $109.3 million a year ago.
AVTR’s 2026 Guidance
Avantor reaffirmed the fiscal 2026 financial guidance it provided during its fourth-quarter 2025 earnings call.
Per the guidance, the company projects its organic revenues to witness growth of negative 2.5% to negative 0.5%, with growth in the VWR distribution business expected to modestly outpace that of Bioscience and Medtech Products. The company expects adjusted EPS to lie in the range of 77 cents to 83 cents. The Zacks Consensus Estimate is pegged at 79 cents.
Our Take
Avantor exited the first quarter of 2026 with better-than-expected results, wherein earnings and revenues both beat their respective estimates. However, a decline in the bottom line does not bode well for the stock.
Management commentary pointed to improving underlying momentum, particularly within the Bioscience & Medtech Products segment. Growth in process chemicals remained a key bright spot, supported by strong order trends and a book-to-bill ratio above 1.1x, signaling healthy demand visibility. The company also highlighted a robust demand funnel and sequential acceleration in order intake, reinforcing confidence in a return to growth in the second half of 2026. However, near-term revenue realization continues to be influenced by challenging prior-year comparisons tied to normalization of customer ordering patterns in areas such as NuSil, serum and electronic materials.
On execution, management emphasized that its “Revival” initiative is already driving tangible improvements across operations and commercial discipline. Early benefits are visible in better operational stability, reduced back orders and stronger customer engagement. The company has also moved swiftly to strengthen leadership, refreshing roughly 25% of its senior team and adding key roles to enhance accountability and execution. At the same time, operational initiatives such as lean-driven process improvements, automation projects and a more structured capital allocation framework are being deployed to improve productivity, reduce costs and enhance throughput.
While these actions are beginning to yield results, near-term headwinds persist. Margins remain under pressure from volume deleverage, mix and external factors such as inflation in freight and raw materials, partly linked to geopolitical developments. Nevertheless, management remains confident that improved execution, stabilizing trends in VWR and strong order momentum in BMP will position Avantor for sequential improvement, with both segments expected to return to growth in the back half of 2026.
Avantor’s Zacks Rank and Stocks to Consider
AVTR currently carries a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space that are expected to report earnings soon are DexCom, Inc. (DXCM - Free Report) , Encompass Health Corporation (EHC - Free Report) and The Cooper Companies, Inc. (COO - Free Report) .
The Zacks Consensus Estimate for DexCom’s first-quarter 2026 adjusted EPS is currently pegged at 47 cents. The consensus estimate for revenues is pegged at $1.18 billion. DXCM currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
DexCom has an estimated long-term growth rate of 20.6%. DXCM’s earnings yield of 4.1% compares favorably with the industry’s negative yield.
Encompass Health currently has a Zacks Rank #2. The Zacks Consensus Estimate for its first-quarter 2026 adjusted EPS is currently pegged at $1.51. The same for revenues is pegged at $1.57 billion.
Encompass Health has an estimated long-term growth rate of 8.8%. EHC’s earnings yield of 5.9% compares favorably with the industry’s 5.6%.
Cooper Companies currently carries a Zacks Rank #2. The Zacks Consensus Estimate for its second-quarter fiscal 2026 adjusted EPS is currently pegged at $1.10. The same for its revenues is pegged at $1.05 billion.
Cooper Companies has an estimated long-term growth rate of 8.4%. COO’s earnings yield of 7.2% compares favorably with the industry’s 6.1%.