10-Q · May 6, 2026
Bio-Techne Corporation (TECH) reported Q3 FY2026 results characterized by a revenue miss and modest EPS beat. Revenue was $311.4 million, reflecting a 2% decline year-over-year, while diluted EPS was $0.53, exceeding…
Earnings analysis · 10-K
TECH earnings analysis
Filed August 24, 2026 · Our reading of the company's report
The latest report
Bio-Techne delivered a sharp reported earnings recovery in fiscal 2026, but revenue was essentially flat at $1.215 billion and adjusted earnings declined 1% as product mix and pricing pressures offset growth. Protein…
Read full summary
Bio-Techne delivered a sharp reported earnings recovery in fiscal 2026, but revenue was essentially flat at $1.215 billion and adjusted earnings declined 1% as product mix and pricing pressures offset growth. Protein Sciences remains the principal earnings engine, while Diagnostics and Spatial Biology generated 4% organic growth but reported revenue declined because of the held-for-sale business and Exosome Diagnostics divestiture. The Merck agreement provides a defined $73.00-per-share cash consideration, but approval and closing conditions, the approximately $1.0 billion Wilson Wolf obligation, and ongoing margin pressure keep the overall outlook neutral.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.16
What stood out
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Broad life-science portfolio and positioning
Bio-Techne describes a strategy built around a deep product portfolio and application expertise, selling reagents, instruments and services used in life-science research, diagnostics, drug discovery, and cell and gene therapy. Protein Sciences is described as a leading developer and manufacturer of biological reagents, while Diagnostics and Spatial Biology includes automated spatial-biology and molecular-diagnostics solutions.
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Reported profitability rebounded
Operating performance rebounded sharply after fiscal 2025 exceptional charges: operating income rose to $251.9 million from $102.3 million, and diluted EPS increased to $1.16 from $0.46. The filing attributes much of the earnings increase to the absence of the prior year's impairment and arbitration award.
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Strong operating cash generation
Cash generation remained solid, with operating cash flow of $292.1 million in fiscal 2026 versus $287.6 million in fiscal 2025 and $299.0 million in fiscal 2024. Capital additions declined to $28.9 million from $31.0 million and $62.9 million, respectively.
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Protein Sciences drives earnings
Protein Sciences remains the core business at $874.6 million of revenue and $359.4 million of segment operating income, versus $336.4 million of revenue and $37.7 million of segment operating income for Diagnostics and Spatial Biology.
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Merck transaction provides cash exit
The company entered into a merger agreement with Merck KGaA on June 25, 2026, under which shareholders would receive $73.00 in cash per share. The transaction is expected to close by late 2026 or early 2027, subject to shareholder, antitrust and investment-screening approvals.
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Debt reduction and shareholder returns
Capital allocation included $49.9 million of dividends and $41.7 million of share repurchases in fiscal 2026. Debt repayments of $146.0 million reduced borrowings under the revolving facility to $200.0 million, leaving $800.0 million of available capacity.
What to watch
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Merger approval and closing risk
The pending Merck transaction is subject to approval by holders of a majority of voting power, required antitrust and investment-screening approvals, and the absence of an injunction or burdensome condition. The company could owe Merck a termination fee of approximately $230.5 million in specified circumstances, while Merck could owe Bio-Techne approximately $576.1 million in certain regulatory-failure scenarios.
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Large Wilson Wolf funding obligation
Bio-Techne is obligated to acquire the remaining 80.1% of Wilson Wolf on December 31, 2027 after the first forward-contract milestone was triggered. The second option payment is forecast at approximately $1.0 billion plus potential contingent consideration, creating a substantial future funding requirement.
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Mix and pricing pressure persist
Underlying profitability weakened despite the reported earnings rebound: adjusted net earnings decreased 1% to $303.3 million in fiscal 2026, and adjusted gross margin fell to 69.6% from 70.4% due primarily to unfavorable product mix and pricing pressures. Reported segment gross margins also declined to 75.0% in Protein Sciences and 55.2% in Diagnostics and Spatial Biology.
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Meaningful foreign-exchange exposure
Approximately 33% of fiscal 2026 consolidated sales were in foreign currencies, including 17% in euros and 5% in Chinese yuan. A hypothetical 10% appreciation of the U.S. dollar against the principal currencies would reduce translated foreign-subsidiary earnings by $1.2 million and create additional transaction losses of $4.5 million.
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Restructuring execution and costs
The company began additional restructuring early in the fourth quarter to streamline brand architecture and realign functions, and expects to incur related costs through fiscal 2027. Fiscal 2026 restructuring and restructuring-related costs totaled $4.2 million for these new actions, in addition to $8.9 million from prior actions.
Management's outlook
The 10-K provides no quantitative fiscal 2027 revenue or EPS guidance; annual outlook was deferred to the earnings press release or call.
Earlier filings 4
10-Q · February 4, 2026
Bio-Techne Corporation reported flat net sales of $295.9 million for Q2 2026, slightly beating revenue expectations by 1.6%. The company delivered adjusted EPS of $0.46, surpassing estimates by 15%. Notable segment…
10-Q · November 5, 2025
Bio-Techne's Q1 2026 report shows a 1% decline in revenue from the prior year, reflecting challenges in its Protein Sciences segment. However, gross margin improved to 65.6%, contributing to an adjusted EPS of $0.42,…
10-K · August 22, 2025
Bio-Techne Corporation's FY2025 10-K report reveals a strategic focus on innovation and acquisition, particularly with the acquisition of Lunaphore, driving overall revenue growth of 5% to $1.22 billion. However, the…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.