Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at 10x Genomics (NASDAQ: TXG) and the best and worst performers in the life sciences tools & services industry.
The life sciences tools and services sector supports biotech and pharmaceutical R&D and commercialization by providing lab equipment, data analytics, and clinical trial services. These companies benefit from recurring revenue and high margins on specialized products. Looking ahead, the sector is supported by tailwinds like advancements in genomics, personalized medicine, and the use of AI in drug discovery. However, the persistent challenge is dependence on the R&D budgets of large pharmaceutical companies and the volatility of smaller biotech firms. Future headwinds include uncertain research funding and pricing pressures from cost-conscious customers.
The 21 life sciences tools & services stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.6% while next quarter’s revenue guidance was 0.5% above.
Luckily, life sciences tools & services stocks have performed well with share prices up 14.8% on average since the latest earnings results.
10x Genomics (NASDAQ: TXG)
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.
10x Genomics reported revenues of $151 million, down 12.6% year on year. This print exceeded analysts’ expectations by 3.1%. Overall, it was an exceptional quarter for the company with a beat of analysts’ EPS estimates and full-year revenue guidance slightly topping analysts’ expectations.
"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.
10x Genomics delivered the slowest revenue growth in the group. Interestingly, the stock is up 73.8% since reporting and currently trades at $79.26.
Is now the time to buy 10x Genomics? Access our full analysis of the earnings results here, it’s free.
Best Q2: Azenta (NASDAQ: AZTA)
Serving as the guardian of some of medicine's most valuable materials, Azenta (NASDAQ: AZTA) provides biological sample management, storage, and genomic services that help pharmaceutical and biotechnology companies preserve and analyze critical research materials.
Azenta reported revenues of $161.2 million, up 12% year on year, outperforming analysts’ expectations by 8%. The business had an incredible quarter with a beat of analysts’ EPS estimates.
The market seems happy with the results as the stock is up 12% since reporting. It currently trades at $33.74.
Is now the time to buy Azenta? Access our full analysis of the earnings results here, it’s free.
Weakest Q2: PacBio (NASDAQ: PACB)
Pioneering what scientists call "HiFi long-read sequencing," recognized as Nature Methods' method of the year for 2022, Pacific Biosciences (NASDAQ: PACB) develops advanced DNA sequencing systems that enable scientists and researchers to analyze genomes with unprecedented accuracy and completeness.
PacBio reported revenues of $39.01 million, down 1.9% year on year, falling short of analysts’ expectations by 2.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EPS estimates.
PacBio delivered the weakest performance against analyst estimates among its peers. Interestingly, the stock is up 5% since the results and currently trades at $1.37.
Read our full analysis of PacBio’s results here.
Sotera Health Company (NASDAQ: SHC)
With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use.
Sotera Health Company reported revenues of $321.4 million, up 9.2% year on year. This number beat analysts’ expectations by 3.8%. Overall, it was a very strong quarter as it also produced an impressive beat of analysts’ organic revenue and EPS estimates.
The stock is up 3.1% since reporting and currently trades at $18.54.
Read our full, actionable report on Sotera Health Company here, it’s free.
IQVIA (NYSE: IQV)
Created from the 2016 merger of Quintiles (a clinical research organization) and IMS Health (a healthcare data specialist), IQVIA (NYSE: IQV) provides clinical research services, data analytics, and technology solutions to help pharmaceutical companies develop and market medications more effectively.
IQVIA reported revenues of $4.37 billion, up 8.7% year on year. This result surpassed analysts’ expectations by 1.5%. Overall, it was a satisfactory quarter as it also logged full-year revenue guidance slightly topping analysts’ expectations.
The stock is up 25.9% since reporting and currently trades at $268.43.
Read our full, actionable report on IQVIA here, it’s free.
Market Update
Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership.
Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products.
By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals.
Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.
