Bio‑Techne reported first‑quarter fiscal 2026 revenue of $286.6 million, a 1 % decline from $289.5 million in the same period a year earlier. The company’s adjusted earnings per share of $0.42 matched the consensus estimate of $0.42, while GAAP EPS of $0.24 fell short of the $0.26 estimate. Adjusted operating income rose to $84.2 million, giving an adjusted operating margin of 29.9 %, up from 29.0 % a year ago.
Revenue fell short of the consensus range of $289.3 million to $292.0 million because demand in the biotech sector softened, particularly in the diagnostics and spatial biology segment. The Diagnostics and Spatial Biology division posted $79.5 million in sales, a 4 % decline, driven by a 5.1 % drop in operating margin in the prior year and a shift toward lower‑margin products. The Protein Sciences division also saw a 1 % decline to $202.2 million, with its operating margin slipping from 39.4 % to 38.4 % as the mix tilted toward lower‑margin core assays.
The adjusted EPS beat was largely a result of disciplined cost management and an improved product mix. Operating margin expansion to 29.9 % from 29.0 % reflects higher pricing power in the Protein Sciences segment and the successful execution of cost‑control initiatives across the organization. GAAP EPS missed estimates because the company incurred a one‑time charge related to the divestiture of its Exosome Diagnostics business, which reduced earnings but is expected to improve long‑term profitability.
Segment analysis shows that while both major divisions experienced revenue declines, the Diagnostics and Spatial Biology unit improved its operating margin to 11.2 % from 5.1 % a year earlier, indicating stronger pricing and cost discipline in that area. Protein Sciences maintained a high margin of 38.4 %, but the slight decline in sales highlights ongoing softness in the academic market, a trend the company attributes to funding headwinds for emerging biotech firms.
Management emphasized that the company remains confident in its long‑term growth strategy. CEO Kim Kelderman noted stabilization in the U.S. academic market and continued strength from large pharmaceutical customers, while acknowledging that funding headwinds persist for emerging biotech companies. The company also highlighted early signs of accelerating growth in its Spatial Biology pillar and the positive impact of Fast Track designations for several cell‑therapy customers, which are expected to improve order timing in the medium term.
Investors reacted negatively to the results, with the primary concern being the revenue miss and the 1 % year‑over‑year decline. The market’s focus on the revenue shortfall underscores the importance of top‑line growth in the biotech sector, even as the company demonstrates margin resilience and a solid earnings beat.
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