Advanced Enzyme Q1 2026 earnings miss estimates, shares slide

Advanced Enzyme Technologies reported weaker-than-expected first-quarter results for fiscal 2026 on Thursday, citing higher operating expenses and softer demand across key markets.

The biotech firm posted revenue of $124.3 million for the three months ended June 30, down 4% from the same period last year and below the $131.5 million consensus estimate compiled by Refinitiv. Net profit fell to $18.7 million, a 12% decline year-over-year and below the $21.2 million forecast.

Operating costs rose 8% to $92.1 million, driven by increased R&D spending and supply chain expenses. Gross margin contracted to 25.1% from 28.4% in Q1 2025, reflecting pricing pressure and higher input costs.

Shares of Advanced Enzyme fell 5.2% to $14.85 in after-hours trading, extending losses from the prior session. The stock has declined 11% over the past month amid broader sector weakness in biotechnology.

Management noted that while demand for industrial enzymes remained stable, softer growth in the diagnostics segment weighed on overall performance. The company reaffirmed its full-year guidance for revenue of $520 million to $540 million and net profit of $85 million to $95 million, pending further macroeconomic clarity.

Analysts at Jefferies maintained a hold rating on the stock, citing valuation concerns despite the company’s long-term pipeline potential in bioprocessing and diagnostics.