Brooks Automation reported a surprising Q3 2025 earnings beat with $0.19 per share—nearly 50% above analyst estimates—but revenue fell short at $144 million, triggering a 15% stock plunge to $32.41. While profitability improved (adjusted EBITDA margin rose 260 basis points to 12.3%), weak demand from pharmaceutical clients, particularly in gene synthesis and equipment investments, drove organic revenue down 2%. Management emphasized delayed—not canceled—orders, projecting a stronger Q4 pipeline with $160 million in expected sales.
Operational Resilience Amid Challenges
Cost-cutting measures boosted gross margins by 170 basis points to 47.1%, and liquidity remained robust at $565 million with zero debt. The Next Generation Sequencing segment grew double-digits, and sample storage performed well, offsetting declines in automated systems. Despite maintaining full-year guidance (3–5% organic growth, 300-basis-point margin expansion), analysts revised price targets downward, citing near-term headwinds. The stock has lost 44% over the past year, reflecting market skepticism amid uneven recovery.
