Life Sciences Tools & Services Stocks Q4 Overview: Comparing 10x Genomics (NASDAQ:TXG) With Its Competitors

Q4 Earnings Overview: Life Sciences Tools & Services Sector

As the fourth quarter earnings season concludes, we examine the financial results and major insights for companies in the life sciences tools and services industry, featuring 10x Genomics (NASDAQ:TXG) and its competitors.

Industry Landscape and Outlook

The life sciences tools and services sector underpins research and development, as well as commercialization efforts in biotechnology and pharmaceuticals, by supplying laboratory instruments, data analysis solutions, and clinical trial support. These businesses often enjoy steady income streams and robust profit margins due to their specialized offerings. The industry is poised for continued growth, fueled by innovations in genomics, the rise of personalized medicine, and the integration of artificial intelligence in drug discovery. Nevertheless, the sector faces ongoing risks, such as reliance on the R&D spending of major pharmaceutical firms and the unpredictability of smaller biotech companies. Looking forward, challenges may arise from uncertain research funding and increasing price sensitivity among customers.

Q4 Performance Highlights

Among the 21 life sciences tools and services companies we monitor, the group delivered a solid fourth quarter. Collectively, their revenues surpassed Wall Street expectations by 1.7%, and guidance for the upcoming quarter was generally in line with forecasts.

Despite these positive results, share prices in the sector have struggled, with an average decline of 9.4% since the most recent earnings announcements.

Spotlight: 10x Genomics (NASDAQ:TXG)

Established in 2012 by scientists aiming to push the boundaries of traditional biological research, 10x Genomics creates instruments, consumables, and software that empower researchers to study biological systems at the single-cell level and within spatial contexts.

For the quarter, 10x Genomics posted $166 million in revenue, matching last year’s performance and exceeding analyst projections by 4.3%. The company delivered a standout quarter, beating both earnings per share and revenue estimates.

Serge Saxonov, Co-founder and CEO of 10x Genomics, commented: “In 2025, our team executed with discipline through a challenging environment while continuing to strengthen the fundamentals of the business.”

10x Genomics achieved the largest outperformance relative to analyst expectations among its peers. Since releasing its results, the stock has surged 24.1% and is currently trading at $21.73.

Top Performer: Illumina (NASDAQ:ILMN)

Illumina has revolutionized genetic research by making it possible to sequence the human genome rapidly and affordably. The company develops and markets advanced DNA sequencing and microarray technologies, enabling scientists and clinicians to study genetic variation and function.

In the latest quarter, Illumina reported $1.16 billion in revenue, a 5% increase year-over-year, and outperformed analyst expectations by 3.2%. The company delivered an outstanding quarter, raising its full-year revenue outlook above consensus and surpassing organic revenue estimates.

Illumina Total Revenue

Illumina led its peer group with the largest increase to full-year guidance. Despite this strong performance, the market reacted negatively, with shares falling 3.8% since the earnings release. The stock is now priced at $128.57.

Underperformer: Fortrea (NASDAQ:FTRE)

Fortrea, which became independent from Labcorp in 2023, specializes in clinical research services, assisting pharmaceutical, biotech, and medical device companies in bringing new products to market through clinical trials and related support.

For the quarter, Fortrea reported $660.5 million in revenue, a 5.2% decline year-over-year, missing analyst estimates by 0.9%. The company’s full-year revenue guidance also fell short of expectations, and earnings per share missed projections by a significant margin.

Fortrea posted the weakest results relative to analyst forecasts and issued the most disappointing full-year outlook among its peers. The stock has dropped 3.9% since the report and is currently valued at $9.93.

IQVIA (NYSE:IQV)

IQVIA was formed in 2016 through the merger of Quintiles, a leader in clinical research, and IMS Health, a healthcare data analytics company. IQVIA offers clinical research, data analysis, and technology solutions to help pharmaceutical companies develop and commercialize new therapies.

In the fourth quarter, IQVIA generated $4.36 billion in revenue, up 10.3% from the previous year and surpassing analyst expectations by 2.9%. While the company exceeded revenue forecasts, it fell short of full-year earnings per share guidance.

Shares of IQVIA have declined 11.8% since the earnings announcement and are now trading at $178.54.

Waters Corporation (NYSE:WAT)

Founded in 1958, Waters Corporation has been at the forefront of laboratory analysis innovation for more than sixty years. The company manufactures analytical instruments, software, and consumables for liquid chromatography, mass spectrometry, and thermal analysis, serving scientific research and quality control needs.

Waters reported $932.4 million in revenue for the quarter, a steep 45.4% decrease year-over-year, but results were in line with analyst expectations. While the company’s revenue guidance for the next quarter exceeded forecasts, it missed earnings per share guidance by a wide margin.

Waters experienced the slowest revenue growth among its peer group. The stock has fallen 17.2% since the earnings release and is currently priced at $315.76.

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The StockStory analyst team, comprised of experienced professional investors, leverages quantitative methods and automation to deliver timely, high-quality market insights.