Biotech company 10x Genomics (NASDAQ: TXG) reported Q2 CY2026 results exceeding 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 44.2% above analysts’ consensus estimates.

Is now the time to buy TXG? Find out in our full research report (it’s free for active Edge members).

StockStory’s Take

10x Genomics’ second quarter results came in above Wall Street’s expectations for both revenue and profitability, yet the market responded negatively. Management attributed the year-over-year revenue decline to lower instrument sales, particularly as customers moderated purchases of current spatial products in anticipation of the upcoming Atera platform. CEO Serge Saxonov emphasized the strong momentum in Chromium consumables and growing engagement across both academic and biopharma customers, while also noting that AI-driven demand is becoming a pervasive force across all customer segments.

Looking ahead, the company’s raised full-year revenue outlook is anchored by robust early demand for Atera, which management described as a “cornerstone platform” for spatial biology. Saxonov highlighted that manufacturing constraints, rather than demand, are the primary limit on Atera shipments this year. CFO Adam Taich explained that the bulk of Atera instrument placements and associated revenue will occur in the fourth quarter, setting the stage for further growth as production capacity expands and new product capabilities are rolled out.

Key Insights from Management’s Remarks

Management cited extraordinary early demand for Atera, strong Chromium consumables growth, and the increasing role of AI as key factors shaping the quarter and the company’s outlook.

• Atera launch momentum: The introduction of Atera generated strong customer interest across universities, medical centers, and biopharma, with orders quickly surpassing initial expectations—though shipments remain limited by manufacturing ramp-up rather than demand.

• Chromium consumables steady: Chromium single-cell consumables usage grew, driven by expanded adoption of Flex Apex for large, distributed studies. The rise in reaction volumes reflects broader applications, especially in biopharma and translational research.

• Spatial product transition: Demand for existing spatial platforms (Xenium and Visium) moderated as customers prepared to migrate to Atera, creating a temporary headwind for instrument sales. However, both platforms still registered sequential consumables growth.

• AI as a structural demand driver: Management emphasized that AI initiatives in both academia and biopharma increasingly require large-scale, high-quality biological data—boosting demand for 10x’s single-cell and spatial platforms. Saxonov described AI as a “major structural tailwind.”

• Multi-omics and proteomics expansion: The acquisition of Proteintech Genomics broadens the company’s multi-omics capabilities, enabling integration of protein analysis with RNA and spatial data. This positions 10x to address more complex biological research questions and strengthens the value proposition for Atera.

Drivers of Future Performance

Management expects the next quarters to be defined by the Atera rollout, continued AI-driven demand, and evolving customer adoption dynamics.

• Atera shipment ramp: The majority of Atera instrument placements and associated revenue are expected in the fourth quarter, with manufacturing output as the limiting factor rather than customer demand. Management plans to further scale production capacity to meet ongoing interest.

• AI and large-scale projects: The growing use of AI for biological modeling and drug discovery is expected to drive sustained demand for high-throughput single-cell and spatial technologies. Management believes this trend will increase both the volume and sophistication of future customer projects.

• Spatial market transition risks: While Atera is anticipated to expand and accelerate the spatial biology market, management acknowledged that the transition may temporarily cannibalize sales of existing platforms like Xenium and Visium. The ultimate goal is that Atera demand will more than offset any declines in other product lines.

Catalysts in Upcoming Quarters

Looking forward, our analyst team will closely monitor (1) the pace of Atera instrument placements and how quickly customers transition from existing spatial platforms, (2) the rate at which AI-driven projects translate into increased consumables usage and broader customer adoption, and (3) the impact of the Proteintech Genomics acquisition on multi-omics product development. Execution on expanding manufacturing capacity and successfully onboarding new Atera users will also be key signposts for sustained growth.

10x Genomics currently trades at $43.90, down from $45.60 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it’s free).

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