What Happened?
Shares of biotech company 10x Genomics (NASDAQ: TXG) fell 4.7% in the afternoon session after the company announced weak preliminary results for its fourth quarter and full year 2025, which pointed to a significant drop in equipment sales.
For the full year, total revenue, excluding patent litigation settlements, was approximately $598.7 million, a 2% decrease from the prior year. The most concerning detail for investors was a steep 39% decline in instrument revenue for the year, indicating weak demand for the company's capital equipment. While sales of consumables rose by 3%, this modest gain was not enough to make up for the sharp fall in instrument sales. Adding to the negative sentiment, the company did not provide a financial forecast for 2026, leaving investors with uncertainty about its future performance.
The shares closed the day at $19.72, down 3.6% from previous close.
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What Is The Market Telling Us
10x Genomics’s shares are extremely volatile and have had 52 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 10 days ago when the stock gained 2.5% on the news that several analysts raised their price targets on the stock, pointing to a more optimistic outlook for the life sciences sector.
Barclays increased its price target on 10x Genomics to $22 from $17. The firm noted that recovering end markets and the tools space being under-owned created a good setup for outperformance. In a similar move, BofA raised its price target to $18 from $15, stating that headwinds were expected to fade and markets were set to normalize. Canaccord also lifted its price target to $20. This analyst activity reflected a broader renewed, though cautious, optimism across the biopharmaceutical industry heading into the year, with investment sentiment strengthening.
10x Genomics is up 18.7% since the beginning of the year, and at $19.72 per share, it is trading close to its 52-week high of $20.46 from January 2026. Investors who bought $1,000 worth of 10x Genomics’s shares 5 years ago would now be looking at an investment worth $117.60.
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