10x Genomics Q2 2026 Earnings Call Summary

1Key Financial Results and Metrics

Revenue: $151 million for Q2 2026, with $149.4 million when excluding non-recurring license and royalty revenue, reflecting a 3% year-over-year growth.

Consumables Revenue: Up 7%, with single-cell consumables growing 3% and spatial consumables increasing by 16%.

Instrument Revenue: Declined by 47%, with Chromium instruments down 46% and spatial instruments down 48%, primarily due to lower unit sales.

Gross Margin: Increased to 74% from 72% in the prior year, driven by lower manufacturing costs and tariff refunds.

Operating Expenses: Increased to $132.1 million from $95 million year-over-year, largely due to gains from patent litigation settlements in both periods.

Cash Position: Ended the quarter with $552 million in cash and marketable securities, up $105 million year-over-year.

2Strategic Updates and Business Highlights

Atera Launch: Strong customer response with early order flow exceeding expectations. Atera is positioned as a transformative platform for spatial biology, integrating multiple capabilities.

Acquisition: Acquired Proteintech Genomics to enhance proteomics capabilities, complementing existing multi-omics offerings.

Customer Engagement: Atera is attracting interest from diverse sectors, including biopharma and academic institutions, with applications across various disease areas.

AI Integration: AI is increasingly influencing demand for 10x Genomics products, with many projects incorporating AI for biological data analysis.

3Forward Guidance and Outlook

2026 Revenue Guidance: Raised to a range of $610 million to $630 million, representing 2%-5% growth over 2025 when excluding non-recurring revenue.

Atera Instrument Sales: Expecting to ship approximately 40 units in 2026, with demand significantly exceeding this number, although shipment capacity remains a constraint.

Q3 Expectations: Anticipating a modest sequential revenue decline in Q3 due to transition dynamics as customers prepare for Atera, with a significant revenue increase expected in Q4 as Atera shipments ramp up.

4Bad News, Challenges, or Points of Concern

Instrument Revenue Decline: Significant drop in instrument revenue due to lower unit sales and customers moderating purchases in anticipation of Atera.

Market Conditions: Academic funding remains tenuous, with delays in grant approvals affecting purchasing activity. The company does not expect significant improvements in the academic market in the near term.

Manufacturing Constraints: While demand for Atera is high, the company faces challenges in scaling manufacturing capacity to meet this demand.

5Notable Q&A Insights

Atera Demand: The extraordinary demand for Atera is not constrained by customer interest but by manufacturing capacity.

Q3 Revenue Dynamics: The anticipated decline in Q3 revenue aligns with previous guidance and reflects a transition period as customers prepare for Atera.

AI's Role: AI is becoming a major driver of demand across customer segments, with many projects now considering AI in their research designs.

Market Segmentation: Atera is expected to expand the total addressable market for spatial biology, with strong early interest from a variety of customer types and applications.

Sales Strategy: A dedicated sales team for Atera is in place, leveraging existing resources to drive sales without needing special incentives for customers. Overall, 10x Genomics is navigating a period of transition with strong demand for its new Atera platform while facing challenges in instrument sales and market conditions. The company remains optimistic about future growth driven by innovations and strategic initiatives.