10x Genomics Q2 Earnings Call Highlights
Key Points
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- Atera demand is strong ahead of launch: Booked orders by the end of Q2 exceeded the approximately 40 systems 10x Genomics expects to ship in 2026, with production capacity—not demand—currently limiting shipments. Most deliveries are expected in Q4.
- Revenue growth was mixed: Q2 revenue rose 3% year over year to $149.4 million excluding settlement revenue, as consumables increased 7% while instrument revenue fell 47% amid customer caution ahead of Atera’s launch.
- The company raised its 2026 outlook: 10x Genomics now expects revenue of $610 million to $630 million, supported by first-half performance and anticipated Atera sales, while continuing to invest in multi-omics, AI-enabled biology and oncology partnerships.
10x Genomics (NASDAQ:TXG) reported second-quarter revenue of $151 million, including $1.6 million in license and royalty revenue tied to its settlement with Takara. Excluding non-recurring settlement revenue in both periods, revenue was $149.4 million, up 3% from a year earlier.
Chief Executive Officer and Co-founder Serge Saxonov said the quarter was marked by customer response to Atera, the company’s newly launched spatial biology platform. While Atera shipments have not yet begun, Saxonov said early orders have been “strikingly” strong and that booked orders by the end of the second quarter had already exceeded the company’s expected full-year shipment volume of approximately 40 systems.
Atera Demand Builds Ahead of Fourth-Quarter Shipments
10x Genomics maintained its expectation to ship about 40 Atera instruments during 2026, with most shipments weighted toward the fourth quarter. Chief Financial Officer Adam Taich said the constraint is production capacity rather than demand as the company ramps manufacturing for the launch.
“The demand has been extraordinary and that’s not the constraint here,” Saxonov said during the question-and-answer session. “The constraint is actually shifting the manufacturing capacity to ship the units in the second half of the year.”
Atera is designed to provide spatial whole-transcriptome profiling with single-cell sensitivity at scale. The company said customer interest has come from universities, academic medical centers and biopharmaceutical companies pursuing work in oncology, neuroscience, autoimmune and inflammatory disease, cardiometabolic conditions, kidney biology and transplant research.
Management also cited demand for its Catalyst Research Services program, through which customers can submit samples for processing on Atera at 10x Genomics’ laboratory. The company expects sample processing to begin alongside commercial availability of the platform.
Saxonov said Atera’s maximum annual consumable utilization could range from roughly $1.5 million to $3 million, depending on assay mix, or about twice that of Xenium. However, management said it was too early to provide detailed estimates because instruments have not yet been installed in customer labs.
Consumables Growth Offset by Instrument Declines
Total consumables revenue increased 7% year over year, with growth in both single-cell and spatial products. Single-cell consumables revenue rose 3%, supported by double-digit growth in reaction volumes, while spatial consumables revenue increased 16%.
Xenium remained the primary contributor to spatial consumables growth, though both Xenium and Visium consumables grew sequentially during the quarter, according to Taich.
Instrument revenue, however, declined 47%, including a 46% decrease in Chromium instrument revenue and a 48% decline in spatial instrument revenue. Taich attributed the reductions primarily to lower unit sales. He said customers have moderated purchases of current spatial products while awaiting Atera.
The company expects those transition dynamics to persist into the third quarter. Management forecast a modest sequential decline in total revenue from the second quarter, followed by a substantial increase in the fourth quarter as Atera shipments begin contributing more meaningfully to revenue.
Taich said Atera instrument sales alone are expected to account for the large majority of the implied sequential increase from the third to fourth quarter at the midpoint of the company’s full-year outlook. Atera consumables and typical seasonal fourth-quarter strength across the rest of the business are expected to contribute as well.
Full-Year Outlook Raised
10x Genomics raised its 2026 revenue outlook to a range of $610 million to $630 million. Excluding non-recurring patent-litigation settlement revenue in 2026 and 2025, the outlook represents annual growth of 2% to 5%.
The higher outlook reflects first-half performance and the $1.6 million in settlement revenue recognized in the second quarter, Taich said. Management’s guidance assumes that current macroeconomic conditions remain broadly unchanged, including a still-tenuous environment for academic customers.
By region, excluding non-recurring license and royalty revenue, Americas revenue rose 6% and EMEA revenue increased 15%. APAC revenue fell 19%, partly because the prior-year period included about $4 million in China purchasing that had been pulled forward ahead of potential tariff changes.
Gross margin rose to 74% from 72% a year earlier. The company said lower manufacturing costs, including $2.6 million of tariff refunds, and lower inventory write-downs contributed to the increase. Excluding non-recurring settlement revenue in both periods, gross margin improved to 74% from 67%.
Operating expenses were $132.1 million, compared with $95 million in the prior-year quarter. The periods included patent-litigation settlement gains of $3.4 million in 2026 and $40.7 million in 2025; excluding those gains, operating expenses were approximately flat year over year. The company ended the quarter with $552 million in cash equivalents and marketable securities, up $12 million sequentially.
Multi-Omics and AI Remain Strategic Focuses
The company highlighted continued momentum for Flex Apex, its single-cell assay for large-scale perturbation studies. Saxonov said Flex Apex has seen particularly strong adoption among biopharmaceutical customers conducting target-identification work and expects the product to represent a larger share of reactions in the second half of the year.
10x Genomics also introduced a GEM-X version of its Multiome product during the prior quarter, aimed at measuring epigenetics and gene expression from the same cell. During the second quarter, the company acquired Proteintech Genomics, which management said adds protein measurement technologies and expands its multi-omics offering.
Saxonov described artificial intelligence as a structural demand tailwind, arguing that AI models for biology require high-resolution data from single-cell and spatial technologies. He said AI is becoming an increasingly common component of significant biological data-generation projects, although the company did not quantify AI-related revenue.
The company also announced partnerships with Cleveland Clinic and Lausanne University Hospital to identify therapy-response biomarkers across multiple oncology indications, part of its longer-term effort to build clinical evidence in oncology and autoimmunity.
About 10x Genomics (NASDAQ:TXG)
10x Genomics, Inc is a biotechnology company specializing in advanced genomic analysis solutions that enable researchers to explore biology at unprecedented resolution. The company develops and manufactures integrated hardware, consumables and software products for single-cell sequencing and spatial genomics. Its flagship Chromium product line supports applications in single-cell RNA sequencing, immune profiling and genome assembly, while the Visium and Xenium platforms offer spatial transcriptomics and in situ analysis, respectively.
Founded in 2012 and headquartered in Pleasanton, California, 10x Genomics serves a global customer base that includes academic institutions, pharmaceutical and biotechnology companies, and government research organizations.
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