Biotech company 10x Genomics (NASDAQ: TXG) reported Q2 CY2026 results topping the market’s revenue expectations, but sales fell by 12.6% year on year to $151 million. The company’s full-year revenue guidance of $620 million at the midpoint came in 1% above analysts’ estimates. Its GAAP loss of $0.14 per share was 43.3% above analysts’ consensus estimates.
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10x Genomics (TXG) Q2 CY2026 Highlights:
- Revenue: $151 million vs analyst estimates of $146.5 million (12.6% year-on-year decline, 3.1% beat)
- EPS (GAAP): -$0.14 vs analyst estimates of -$0.25 (43.3% beat)
- The company lifted its revenue guidance for the full year to $620 million at the midpoint from $612.5 million, a 1.2% increase
- Operating Margin: -12.9%, down from 17.4% in the same quarter last year
- Market Capitalization: $6.03 billion
"The story of the quarter was the extraordinary customer response to Atera. We are highly encouraged by the engagement across the research ecosystem and the very strong early order flow," said Serge Saxonov, Co-founder and CEO of 10x Genomics.
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
A company’s long-term sales performance is one signal of its overall quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Over the last five years, 10x Genomics grew its sales at a decent 8.7% compounded annual growth rate. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. 10x Genomics’s recent performance marks a sharp pivot from its five-year trend as its revenue has shown annualized declines of 1.2% over the last two years. 
We can better understand the company’s revenue dynamics by analyzing its most important segment, Consumables. Over the last two years, 10x Genomics’s Consumables revenue (recurring orders) averaged 10.3% 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 12.6% year on year to $151 million but beat Wall Street’s estimates by 3.1%.
Looking ahead, sell-side analysts expect revenue to grow 3.6% over the next 12 months. Although this projection suggests its newer products and services will fuel better top-line performance, it is still below the sector average.
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Adjusted Operating Margin
10x Genomics’s high expenses have contributed to an average adjusted operating margin of negative 4.3% 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 1.9 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 13.4 percentage points on a two-year basis.
In Q2, 10x Genomics generated a negative 12.5% adjusted operating margin.
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 34% annually over the last five years. The next few quarters will be critical for assessing its long-term profitability.
In Q2, 10x Genomics reported EPS of negative $0.14, down from $0.28 in the same quarter last year. Despite falling year on year, this print easily cleared analysts’ estimates. Over the next 12 months, Wall Street expects 10x Genomics to perform poorly. Analysts forecast its full-year EPS will tumble from negative $0.59 to negative $0.78.
Key Takeaways from 10x Genomics’s Q2 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. Zooming out, we think this was a solid print. The market seemed to be hoping for more, and the stock traded down 3.4% to $44.05 immediately after reporting.
Should you buy the stock or not? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here (it’s free).
