Bio-Techne (TECH) Q3 2026 earnings summary

Executive summary

• Q3 FY2026 revenue declined 2% year-over-year to $311.4M, with organic revenue also down 2%, mainly due to order timing and biotech softness, partially offset by strong large pharma and improving U.S. academic trends.

• Excluding cell therapy and OEM order timing, underlying organic revenue growth was 2%.

• Large pharma delivered its sixth consecutive quarter of double-digit growth; China achieved positive organic growth for the fourth straight quarter; U.S. academic markets stabilized.

• Adjusted operating margin improved 310 basis points sequentially to 34.2%; GAAP operating income rose to $75.5M from $38.7M year-over-year.

• Strategic brand alignment reduced portfolio brands from 10 to 3, streamlining customer engagement.

Financial highlights

• Q3 revenue was $311.4M, down 2% year-over-year on both organic and reported basis.

• Adjusted EPS was $0.53 (down $0.03 YoY); GAAP EPS was $0.32 (up from $0.14 YoY).

• Adjusted gross margin was 70.4%, down 120 bps YoY but up 190 bps sequentially.

• Adjusted SG&A was 28.7% of revenue; R&D expense was 7.5%.

• Operating cash flow was $86.7M for the quarter and $196.7M for the nine months ended March 31, 2026; $12.5M returned to shareholders via dividends.

Outlook and guidance

• Q4 organic growth expected to be approximately flat; excluding cell therapy headwinds, low single-digit underlying growth anticipated.

• Biotech recovery expected to materialize in fiscal 2027 as funding translates into spending.

• Margin expansion of ~100 bps targeted for Q4 YoY.

• Mid-single-digit growth expected for FY2027 if market normalization continues.

• Gross margins expected to remain sensitive to product mix changes.