Repligen beats Q4 estimates but 2026 guidance falls short
Gene therapy headwinds dampen outlook despite strong quarterly performance from bioprocessing equipment maker
Repligen Corporation reported stronger-than-expected fourth quarter results but disappointed investors with fiscal 2026 earnings guidance that fell short of analyst expectations, sending shares lower in pre-market trading.
The Waltham, Massachusetts-based bioprocessing equipment maker posted adjusted earnings per share of $0.49 for the fourth quarter of 2025, beating analyst consensus estimates of $0.44 by 11%. Revenue reached $198 million, representing an 18% year-over-year increase on a reported basis and 14% organic growth, exceeding the $192.9 million consensus estimate.
Despite the quarterly beat, Repligen's shares dipped 0.7% in pre-market trading on Tuesday as investors focused on the company's conservative outlook for 2026. The company projects adjusted earnings per share between $1.93 and $2.01 for the full year, with the midpoint of $1.97 falling approximately 5% below the analyst consensus of $2.07.
The FY2026 guidance includes total revenue of $810 million to $840 million, representing 10% to 14% growth. While the midpoint of $825 million slightly edges above some analyst expectations, the lower-than-expected earnings outlook reflects a "two-point headwind from gene therapy" that the company is incorporating into its forecasts.
"The initial 2026 guidance incorporates a two-point gene therapy headwind," analysts noted, reflecting challenges within a specific gene therapy platform that experienced difficulties in 2025. "Analysts interpret the company's 2026 guidance as a conservative stance by management, possibly reflecting caution regarding near-term capital expenditure trends in the bioprocessing sector."
For the full year 2025, Repligen generated revenue of $738 million, up 16% year-over-year on both reported and organic non-COVID bases. Adjusted earnings per share reached $1.71. The company ended the year with a strong balance sheet, reporting a current ratio of 10.44, indicating robust financial health.
Repligen's core product categories include filtration (accounting for 58% of 2024 revenue), chromatography (19%), proteins (12%), and process analytics (9%). The company has stated its goal of outpacing overall market growth by five percentage points and aims to become a "double-sized company by 2030."
Analyst sentiment remains broadly positive despite the guidance miss. Prior to earnings, Barclays and Wells Fargo both maintained "overweight" ratings with price targets of $200 and $190, respectively. The company currently carries a consensus rating of "Moderate Buy" with an average price target of $190.89, according to MarketBeat data.
Other firms including Evercore ISI Group, HSBC, and HC Wainwright & Co. have issued "outperform" or "buy" ratings in late 2025, though Jefferies Financial Group and Canaccord Genuity Group have maintained "hold" ratings with price objectives of $160 and $165.
The broader cell and gene therapy manufacturing market is projected for substantial growth, with estimates suggesting expansion from $7.94 billion in 2025 to over $40.86 billion by 2035. Despite near-term headwinds, industry analysts expect the gene therapy segment to see considerable expansion from 2026 through 2035 driven by increasing clinical trials and manufacturing improvements.
Repligen stock was trading at $135.22 on Tuesday afternoon, down 0.9% on the day. The shares have traded between $102.97 and $175.77 over the past 52 weeks, giving the company a market capitalization of approximately $7.6 billion.
The company's 2026 guidance includes adjusted operating margin expansion of 150 basis points at the midpoint, with gross margin projected between 53.6% and 54.1%. Adjusted EBITDA margin is expected to range from 20% to 20.5%.