Biotech company 10x Genomics (NASDAQ: TXG) reported revenue ahead of Wall Street’s expectations in Q3 2026, with sales up 1.1% year on year to $150.7 million. The company’s full-year revenue guidance of $630 million at the midpoint came in 1.5% above analysts’ estimates. Its GAAP loss of $0.15 per share was 43.4% above analysts’ consensus estimates.

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StockStory’s take

10x Genomics' latest quarter saw ongoing momentum in its consumables business and the commercial launch of its new spatial biology platform, Atera. Management highlighted strong demand for both single-cell and spatial technologies, but also noted a significant decline in instrument sales as customers delayed purchases in anticipation of Atera. CEO Serge Saxonov pointed to "extraordinary customer demand and momentum" for the new platform, while CFO Adam Taich cited "strong reaction growth" in single-cell consumables as a key driver of overall performance. The company also attributed improved operating margins to lower inventory write-downs and expense management.

Looking forward, management is focused on ramping production and installations of Atera, which they expect to be the company’s largest product launch to date. Saxonov stressed that the current bottleneck is production and customer onboarding, not demand, and projected ongoing growth in spatial consumables as Atera placements increase. The company also emphasized the importance of supporting customers as they use Atera for AI model training and advanced biological research, with Saxonov stating, "We are at the beginning of an exponential trend in the scale of AI-driven data generation."

Key insights from management’s remarks

Management attributed third quarter performance to strong demand for consumables and the successful launch of the Atera platform, while also noting a strategic shift in customer purchasing behavior ahead of new product availability.

• Atera platform launch: The commercial launch of Atera, a whole-transcriptome spatial profiling instrument, marked a central development, with management reporting robust order flow from both academic centers and biopharma clients. Early feedback from installations has been positive, with customers especially interested in whole-transcriptome workflows for large-scale AI model training.
• Consumables resilience: Despite weaker instrument sales, consumables revenue grew as customers increased reaction volumes, particularly in single-cell and spatial applications. Management cited double-digit growth in reaction volumes and strong uptake of Flex Apex, a key product in the single-cell portfolio.
• Shift in purchasing patterns: Customers delayed purchases of existing spatial instruments (like Xenium and Visium) in anticipation of Atera, leading to a notable decline in instrument revenue. Management emphasized this was expected and that demand for Atera is strong enough to offset this transition over time.
• Catalyst Research Services traction: The internal service lab saw over 100 customer bookings within five months of launch, serving a broad mix of applications and acting as an onramp for future instrument purchases, especially among biopharma customers evaluating Atera.
• AI and data scale as growth drivers: Management framed the company’s suite of technologies as increasingly essential for large-scale biological data generation projects, with biopharma and government clients focusing on AI model development and population-scale studies. This trend is expected to underpin demand for both instruments and consumables.

Drivers of future performance

10x Genomics' guidance is driven by the ramp in Atera shipments, expanding spatial consumables adoption, and a focus on supporting AI-driven biology at scale.

• Atera production ramp: Management expects the primary constraint on growth to be manufacturing and installation capacity, not demand. CFO Adam Taich indicated a target of 50 Atera placements per quarter going forward, with ongoing investment in scaling production and customer training.
• Spatial consumables growth: The company anticipates continued double-digit growth in spatial consumables, boosted by Atera adoption and ongoing strength in the established Xenium product line. Management is monitoring the transition from legacy platforms and expects overall consumables momentum to accelerate as more Atera systems become operational.
• AI and multiomics adoption: Management believes increasing demand for large-scale biological datasets to train AI models will support sustained growth. Projects from biopharma and government clients are expected to drive higher utilization of both single-cell and spatial technologies, while new capabilities like multiomic workflows and cloud-based analysis (Sentira) are positioned to capture additional revenue streams.

Catalysts in upcoming quarters

Looking ahead, our analyst team will focus on (1) the speed and scale of Atera instrument installations and corresponding consumables pull-through, (2) evidence of sustained or accelerating growth in spatial and single-cell consumables as AI-driven projects ramp, and (3) the financial impact of production scaling and gross margin recovery following the initial Atera rollout. Developments in clinical partnerships and adoption of new cloud-based analysis tools will also be important markers of progress.

10x Genomics currently trades at $53.99, down from $58.06 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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