Why Is Avantor (AVTR) Down 13.6% Since Last Earnings Report?

A month has gone by since the last earnings report for Avantor, Inc. (AVTR). Shares have lost about 13.6% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Avantor due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

AVTR Q4 Earnings Beat Estimates, Revenues Down Y/Y

Avantor reported fourth-quarter 2025 adjusted earnings per share of 22 cents, down 18.5% from the year-ago quarter. However, the bottom line surpassed the Zacks Consensus Estimate by 4.8%.

GAAP earnings per share for the quarter was 8 cents, down from 73 cents per share in the prior-year quarter.

AVTR Revenue Details

Revenues grossed $1.66 billion in the reported quarter, down 1.4% year over year. The metric beat the Zacks Consensus Estimate by 3%.

Avantor's foreign currency translation had a positive impact of 3.1%, and M&A had a negative impact of 0.4%, resulting in a 4.1% sales decline on an organic basis.

Shares of this company plunged 13.6% till yesterday’s trading.

Avantor’s Segmental Analysis

The Laboratory Solutions segment’s net sales were $1.12 billion, reflecting a reported decrease of 0.9% year over year. Organic sales decreased 4.1% year over year in the reported quarter. This figure compares to our segmental projection of $1.05 billion.

Per management, the Laboratory Solutions segment delivered a mixed performance, with organic revenues declining 4% year over year while showing modest sequential improvement. Management noted that end-market activity remained stable but subdued, with the prolonged government shutdown weighing on demand, partially offset by an end-of-year budget flush that supported equipment and instrumentation sales. Within the segment, the channel business declined mid-single digits as strength in chemicals was more than offset by weakness in consumables and equipment & instrumentation, while services revenues fell low single digits and specialty was essentially flat, with proprietary chemicals posting low-single-digit growth.

Bioscience Production’s net sales were $547.5 million, reflecting a reported decrease of 2.4%, whereas organic sales decreased 4.1% year over year. This figure compares to our segmental projection of $557 million.

Per management, the Bioscience Production segment posted a 4% organic revenue decline in the fourth quarter while delivering mid-single-digit sequential growth. Bioprocessing revenue fell in the high single digits year over year, reflecting tough prior-year comps and ongoing backlog in process chemicals, though orders remained healthy with a book-to-bill above 1, excluding serum. Single-use assemblies grew low single digits, while controlled environment consumables were weaker than expected. Segment margins contracted year over year due to volume-driven fixed-cost deleverage, mix headwinds and incremental spending to improve operational performance.

AVTR’s Margin Analysis

In the quarter under review, Avantor’s gross profit declined 6.9% year over year to $523.9 million. The gross margin contracted 190 basis points (bps) to 31.5%. We had projected 34.3% of gross margin for the third quarter.

Selling, general and administrative expenses increased 5.7% year over year to $392.4 million.

Adjusted operating profit totaled $225.4 million, down 19.3% from the prior-year quarter’s level. The adjusted operating margin in the quarter contracted 310 bps to 13.5%.

Avantor’s Financial Position

Avantor exited the fourth quarter of 2025 with cash and cash equivalents of $365.4 million compared with $251.9 million at the third-quarter end. Total debt at the end of the fourth quarter of 2025 was $3.95 billion compared with $3.86 billion at the end of the third quarter.

Cumulative net cash provided by operating activities at the end of the fourth quarter of 2025 was $623.8 million compared with $840.8 million a year ago.

AVTR’s 2026 Guidance

Avantor has provided its outlook for the full-year 2026.

The company projects its organic revenues to witness growth of negative 2.5% to negative 0.5% with growth in the VWR distribution business expected to modestly outpace that of Bioscience and Medtech Products. While operational recovery in process chemicals and a strong order book provide some support, continued market pressures across the channel business are likely to weigh on overall performance, with VWR expected to exit 2026 on a relatively more stable footing despite ongoing competitive and demand-related headwinds.

Per management, Bioscience and Medtech Products is expected to underperform VWR in 2026, reflecting difficult year-over-year comparisons, particularly within the Research and Specialty Chemicals subsegment. Electronic Materials, serum and NuSil are cited as key areas facing tough comps, which are expected to constrain segment growth despite progress in process chemicals and operational improvements.

The company expects adjusted earnings per share to lie in the range of 77 cents to 83 cents. The Zacks Consensus Estimate is pegged at 89 cents.

How Have Estimates Been Moving Since Then?

It turns out, fresh estimates have trended downward during the past month.

The consensus estimate has shifted -18.53% due to these changes.

VGM Scores

Currently, Avantor has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Avantor has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months.

Performance of an Industry Player

Avantor is part of the Zacks Medical Services industry. Over the past month, Cencora (COR), a stock from the same industry, has gained 0.5%. The company reported its results for the quarter ended December 2025 more than a month ago.

Cencora reported revenues of $85.93 billion in the last reported quarter, representing a year-over-year change of +5.5%. EPS of $4.08 for the same period compares with $3.73 a year ago.

For the current quarter, Cencora is expected to post earnings of $4.81 per share, indicating a change of +8.8% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.5% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Cencora. Also, the stock has a VGM Score of F.

Just Released: Zacks Top 10 Stocks for 2026

Hurry – you can still get in early on our 10 top tickers for 2026. Handpicked by Zacks Director of Research Sheraz Mian, this portfolio has been stunningly and consistently successful.

From inception in 2012 through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.

Sheraz has combed through 4,400 companies covered by the Zacks Rank and handpicked the best 10 to buy and hold in 2026. You can still be among the first to see these just-released stocks with enormous potential.

See New Top 10 Stocks >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Avantor, Inc. (AVTR): Free Stock Analysis Report

Cencora, Inc. (COR): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research