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TXG Q3 Earnings Call Highlights Atera Launch and Raised Outlook
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Key Takeaways
TXG raises 2026 revenue guidance to $625-$635M and expects about 50 Atera shipments by year-end.
TXG sees strong Atera demand, but manufacturing and installation capacity constrain near-term placements.
TXG expects Q4 gross margins in the low-to-mid-60% range as Atera shipments rise, pressuring 2027 margins.
10x Genomics, Inc. (TXG - Free Report) emphasized strong early demand for its Atera spatial biology platform, resilient consumables sales and expanding artificial intelligence applications during the third-quarter 2026 earnings call.
Management raised its annual revenue outlook and increased expected Atera shipments while acknowledging manufacturing constraints and near-term gross margin pressure. Executives also highlighted growing biopharma interest and opportunities to accelerate biological research through AI-enabled technologies.
The company reported a loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 29 cents. Revenues of $150.7 million beat the Zacks Consensus Estimate of $147.2 million.
Chief financial officer Adam Taich raised full-year 2026 revenue guidance to $625-$635 million from the previous range of $610-$630 million.
Excluding nonrecurring patent litigation-related revenues, the outlook represents 4-6% growth over 2025. Taich attributed the increase to better-than-expected spatial consumables demand and higher anticipated Atera shipments.
Management now expects to ship approximately 50 Atera instruments by year-end, compared with its previous expectation of approximately 40. The upward revision reflects progress in scaling production.
TXG Sees Strong Early Demand for Atera
CEO and Co-Founder Serge Saxonov highlighted the beginning of global commercial shipments of Atera, describing customer interest across academic institutions, medical centers and biopharmaceutical companies.
Nearly all of the world's 20 largest biopharma companies have purchased Atera instruments or services through Catalyst Research Services. More than 100 customers booked Catalyst projects during its first five months.
During questions from Canaccord Genuity, Saxonov identified manufacturing, installation and customer training capacity as the principal constraints on shipments. He indicated that approximately 50 quarterly placements represent a reasonable pace entering 2027.
10x Genomics’ Performance in Q3
Third-quarter revenues increased 1% year over year. The bottom line outperformed the year-ago quarter’s loss of 22 cents.
Gross margin improved to 75% from 67%, reflecting lower inventory write-downs and favorable product mix. Operating expenses decreased 3% to $129 million, while net loss narrowed to $19.4 million from $27.5 million.
TXG Highlights Resilience in Consumables Demand
Taich reported 5% growth in consumables revenues, supported by both Single Cell and Spatial products. Spatial consumables revenues increased 16%, driven primarily by Xenium.
Single Cell consumables revenues increased 1%, despite double-digit growth in reaction volumes. Saxonov explained that the transition toward lower-priced Flex Apex reactions continues to pressure revenue growth.
During questions from Jefferies, Taich emphasized continued spatial consumables momentum and the commencement of Atera consumables shipments in the fourth quarter. Management expects double-digit spatial consumables growth during that period.
10x Genomics Expands AI-Enabled Research Capabilities
Saxonov introduced Sentira, a cloud-based analysis platform combining NVIDIA-accelerated spatial processing with Anthropic's Claude-powered single-cell analysis.
The platform is designed to simplify complex biological data analysis and support researchers without extensive computational expertise.
Responding to Piper Sandler, Saxonov emphasized that Sentira's immediate commercial priority is improving customer workflows and supporting broader product adoption. Software monetization represents an additional longer-term opportunity.
TXG Addresses Margin Pressure and Commercial Execution
During questions from Citigroup, Taich indicated that fourth-quarter gross margin should decline to the low-to-mid-60% range as Atera instrument shipments increase.
He also expects the instrument-heavy deployment cycle to affect margins during 2027, although Atera's underlying instrument and consumables margins are superior to Xenium's.
Saxonov told JPMorgan that customer orders are not limiting Atera adoption. Management remains focused on expanding production capacity while ensuring successful installations and customer utilization.
10x Genomics Maintains Its Expansion Priorities
Management's overarching message centered on scaling Atera while sustaining consumables demand and broadening applications in AI-driven biological research.
The company ended September with approximately $575.7 million in cash, cash equivalents and marketable securities. Its priorities remain production expansion, customer adoption and disciplined spending as the new platform develops.
What TXG's Zacks Rank and Style Scores Indicate
TXG currently carries a Zacks Rank #2 (Buy), reflecting favorable near-term earnings estimate revision trends. Its Growth Score of A indicates attractive growth characteristics under the Zacks methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, the Value Score and Momentum Score of F indicate weak characteristics in those categories. The VGM Score of D reflects a less favorable combined profile, tempering the positive Rank signal. The Zacks Rank may change as analysts revise earnings estimates following the latest quarterly results.
View the Zacks #1 Rank List
Image: Bigstock
TXG Q3 Earnings Call Highlights Atera Launch and Raised Outlook
Key Takeaways
10x Genomics, Inc. (TXG - Free Report) emphasized strong early demand for its Atera spatial biology platform, resilient consumables sales and expanding artificial intelligence applications during the third-quarter 2026 earnings call.
Management raised its annual revenue outlook and increased expected Atera shipments while acknowledging manufacturing constraints and near-term gross margin pressure. Executives also highlighted growing biopharma interest and opportunities to accelerate biological research through AI-enabled technologies.
The company reported a loss of 15 cents per share, narrower than the Zacks Consensus Estimate of a loss of 29 cents. Revenues of $150.7 million beat the Zacks Consensus Estimate of $147.2 million.
10x Genomics Price, Consensus and EPS Surprise
10x Genomics price-consensus-eps-surprise-chart | 10x Genomics Quote
10x Genomics Raises 2026 Revenue Outlook
Chief financial officer Adam Taich raised full-year 2026 revenue guidance to $625-$635 million from the previous range of $610-$630 million.
Excluding nonrecurring patent litigation-related revenues, the outlook represents 4-6% growth over 2025. Taich attributed the increase to better-than-expected spatial consumables demand and higher anticipated Atera shipments.
Management now expects to ship approximately 50 Atera instruments by year-end, compared with its previous expectation of approximately 40. The upward revision reflects progress in scaling production.
TXG Sees Strong Early Demand for Atera
CEO and Co-Founder Serge Saxonov highlighted the beginning of global commercial shipments of Atera, describing customer interest across academic institutions, medical centers and biopharmaceutical companies.
Nearly all of the world's 20 largest biopharma companies have purchased Atera instruments or services through Catalyst Research Services. More than 100 customers booked Catalyst projects during its first five months.
During questions from Canaccord Genuity, Saxonov identified manufacturing, installation and customer training capacity as the principal constraints on shipments. He indicated that approximately 50 quarterly placements represent a reasonable pace entering 2027.
10x Genomics’ Performance in Q3
Third-quarter revenues increased 1% year over year. The bottom line outperformed the year-ago quarter’s loss of 22 cents.
Gross margin improved to 75% from 67%, reflecting lower inventory write-downs and favorable product mix. Operating expenses decreased 3% to $129 million, while net loss narrowed to $19.4 million from $27.5 million.
TXG Highlights Resilience in Consumables Demand
Taich reported 5% growth in consumables revenues, supported by both Single Cell and Spatial products. Spatial consumables revenues increased 16%, driven primarily by Xenium.
Single Cell consumables revenues increased 1%, despite double-digit growth in reaction volumes. Saxonov explained that the transition toward lower-priced Flex Apex reactions continues to pressure revenue growth.
During questions from Jefferies, Taich emphasized continued spatial consumables momentum and the commencement of Atera consumables shipments in the fourth quarter. Management expects double-digit spatial consumables growth during that period.
10x Genomics Expands AI-Enabled Research Capabilities
Saxonov introduced Sentira, a cloud-based analysis platform combining NVIDIA-accelerated spatial processing with Anthropic's Claude-powered single-cell analysis.
The platform is designed to simplify complex biological data analysis and support researchers without extensive computational expertise.
Responding to Piper Sandler, Saxonov emphasized that Sentira's immediate commercial priority is improving customer workflows and supporting broader product adoption. Software monetization represents an additional longer-term opportunity.
TXG Addresses Margin Pressure and Commercial Execution
During questions from Citigroup, Taich indicated that fourth-quarter gross margin should decline to the low-to-mid-60% range as Atera instrument shipments increase.
He also expects the instrument-heavy deployment cycle to affect margins during 2027, although Atera's underlying instrument and consumables margins are superior to Xenium's.
Saxonov told JPMorgan that customer orders are not limiting Atera adoption. Management remains focused on expanding production capacity while ensuring successful installations and customer utilization.
10x Genomics Maintains Its Expansion Priorities
Management's overarching message centered on scaling Atera while sustaining consumables demand and broadening applications in AI-driven biological research.
The company ended September with approximately $575.7 million in cash, cash equivalents and marketable securities. Its priorities remain production expansion, customer adoption and disciplined spending as the new platform develops.
What TXG's Zacks Rank and Style Scores Indicate
TXG currently carries a Zacks Rank #2 (Buy), reflecting favorable near-term earnings estimate revision trends. Its Growth Score of A indicates attractive growth characteristics under the Zacks methodology. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
However, the Value Score and Momentum Score of F indicate weak characteristics in those categories. The VGM Score of D reflects a less favorable combined profile, tempering the positive Rank signal. The Zacks Rank may change as analysts revise earnings estimates following the latest quarterly results.