10x Genomics: Four Beats, Falling Revenue, Insiders Sell
10x Genomics delivered a fourth consecutive EPS beat, posting $0.0264 against a consensus of -$0.017, even as trailing revenue fell 12.7% to $620 million. The stock trades above the $49.54 analyst con
10x Genomics Beats for a Fourth Time as Revenue Falls
NEW YORK, August 19 —
10x Genomics, Inc. (TXG) has turned four consecutive earnings beats into a stock that has outrun its own analyst consensus target, now trading at $55.63 against a target of $49.54, even as trailing revenue fell 12.7% year-over-year. Every insider sold into that run: net open-market sales reached $4.17 million over 90 days, with zero purchases on the other side.
- Trailing-12-month revenue $620 million, down 12.7%; gross margin 70.1%; trailing free cash flow $180 million.
- Net insider selling $4.17 million over 90 days; directors sold in August at roughly double May prices.
Four Beats, One Shrinking Revenue Line
The streak warrants scrutiny. A 70.1% gross margin and $180 million in trailing free cash flow show real operational discipline across the Chromium single-cell, Visium spatial transcriptomics, and Xenium in situ platforms. But that efficiency is compressing onto a still-contracting top line: when a $620 million trailing revenue base keeps shrinking, consecutive beats look less like recovery and more like a company calibrated to outperform an expectations bar set in the basement.
The Selling Pattern
The timing of insider transactions sharpens the valuation question. CEO Serge Saxonov sold nearly 59,000 shares in May and June at prices between $24.44 and $36.16, collecting roughly $1.74 million. Net insider selling for the 90-day period reached $4.17 million against zero open-market purchases, with the directors' August sales occurring at roughly 2.3 times the CEO's May exit prices.
| Ticker | Mkt cap | Fwd P/E | 52-wk |
|---|---|---|---|
| TXG | $7.2B | 273.6x | +314.8% |
| TWST | $7.3B | n/a | +321.0% |
| BEAM | $2.7B | n/a | +65.4% |
| PACB | $354M | n/a | -12.3% |
| VCYT | $3.3B | 20.9x | +37.6% |
| GH | $21.5B | n/a | +173.4% |
What Changes the Picture
The bullish case holds that Atera demand has lifted guidance, the Lausanne Cancer Diagnostics collaboration signals expanding clinical applications, and the beat streak points to real operational discipline. At 273.6x forward earnings, against a trailing EPS still at -$0.57, the stock has priced recovery as near-certain; readers can stress-test those growth assumptions in the DCF calculator. Revenue inflection is the decisive test: growth in the next reported quarter validates the thesis, while continued contraction tests whether the margin and cash flow profile can hold a valuation above the $49.54 analyst consensus. Run the free TXG deep-dive → to track when the numbers move.
Basis Report is independent research for informational purposes. It is not investment advice and not a recommendation to buy or sell any security.
Frequently Asked Questions
Did 10x Genomics beat earnings estimates this quarter?
Yes. 10x Genomics posted EPS of $0.0264 against a consensus estimate of -$0.017, a 240% upside. It was the fourth consecutive quarterly beat, with the prior three ranging from 71% to 275% above consensus.
Why is 10x Genomics revenue declining?
Trailing 12-month revenue came in at $620 million, down 12.7% year-over-year. The article notes that consecutive beats on a still-contracting top line can reflect a company calibrated to outperform an expectations bar set in the basement rather than a business in genuine recovery.
Are 10x Genomics insiders buying or selling stock?
Net insider selling over the 90-day period reached $4.17 million against zero open-market purchases. CEO Serge Saxonov sold nearly 59,000 shares in May and June at prices between $24.44 and $36.16, while directors sold in August at prices near $57-58, roughly 2.3 times the CEO's exit prices.
What is the 10x Genomics analyst price target?
The consensus analyst price target is $49.54. At the time of the article, the stock was trading at $55.63, meaning it had already outrun its own analyst consensus despite falling revenue.
Is 10x Genomics stock overvalued at current prices?
At 273.6x forward earnings against a trailing EPS still at -$0.57, the stock has priced recovery as near-certain. The article identifies revenue inflection in the next reported quarter as the decisive test: growth validates the thesis, while continued contraction tests whether the margin and cash flow profile can sustain a valuation above the analyst consensus.
10x Genomics has beaten quarterly earnings estimates four consecutive times by margins ranging from 71% to 275%, lifting the stock to nearly $56 — but trailing revenue has declined 12.7% year-over-year, the stock now trades above the analyst consensus target, and insiders have sold more than $4 million of shares in 90 days, with directors cashing out at roughly double the prices where the CEO sold in May.