Bio-Techne Corporation TECH reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of 53 cents, which missed the Zacks Consensus Estimate by 2.8%. The bottom line was down 5.4% on a year-over-year basis.
The quarter's adjustments eliminated the impact of certain one-time items, including amortization of Wilson Wolf intangible assets, and restructuring and restructuring-related costs, among others.
GAAP EPS was 32 cents compared with 14 cents in the prior-year quarter.
TECH's Revenues in Detail
Bio-Techne registered net sales of $311.4 million, reflecting a decline of 1.5% year over year on a reported basis. The figure was down 2% on an organic basis. The top line missed the Zacks Consensus Estimate by 2.4%.
Following the announcement, shares of Bio-Techne declined 1.2% in pre-market trading yesterday, reflecting investor reaction to the company’s quarterly sales and earnings decline.
Segmental Analysis of TECH’s Q3 Revenues
The company reports under two business segments — Protein Sciences, and Diagnostics and Spatial Biology (formerly Diagnostics and Genomics).
Within Protein Sciences, Bio-Techne recorded revenues of $226.2 million, down 1% year over year (down 4% organically). In fiscal 2024, a business within this segment met the criteria as held-for-sale, excluded from its operating results.
Within Diagnostics and Spatial Biology, sales decreased 4% year over year to $85.6 million (up 3% organically) in the fiscal third quarter. Within this, the Exosome Diagnostics business met the held-for-sale criteria, excluded from its operating results.
TECH’s Q3 Margins
Bio-Techne’s gross profit fell 2.9% to $208.3 million. The gross margin contracted 97 basis points (bps) to 66.9% on a 1.5% rise in the cost of sales.
Selling, general and administrative expenses declined 27.7% to $109.3 million. Research and development expenses totaled $23.4 million, down 4.6% year over year.
The company generated an operating profit of $75.5 million in the fiscal third quarter compared with the year-ago quarter’s figure of $38.7 million. The operating margin expanded 1200 bps to 24.2% during the quarter.
Bio-Techne Corp Price, Consensus and EPS Surprise
Bio-Techne Corp price-consensus-eps-surprise-chart | Bio-Techne Corp Quote
Bio-Techne’s Capital Structure
Bio-Techne exited the fiscal third quarter of 2026 with cash and equivalents of $209.8 million compared with $172.9 million at the end of the fiscal second quarter. Long-term debt obligations totaled $200 million compared with $260 million in the previous quarter.
Cumulative net cash provided by operating activities was $196.7 million compared with $189.3 million a year ago.
Our Take on Bio-Techne’s Results
Bio-Techne ended the reported quarter with lower-than-expected results, wherein both earnings and revenues missed estimates. Also, quarterly revenue decline and gross margin contraction look discouraging.
Large pharma delivered the sixth consecutive quarter of double-digit growth, which was offset by a continued lag in spending by emerging biotech. U.S. academic markets stabilized with low-single digit growth. Growth vectors performed well, with mid-single digit growth in Proteomic Analysis instruments, mid-teens growth in Spatial Biology, and nearly 50% growth in GMP proteins excluding fast track customers.
The expansion of operating margin bodes well.
TECH's Zacks Rank and Key Picks
Bio-Techne currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Globus Medical GMED, Intuitive Surgical ISRG and Phibro Animal Health PAHC.
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $1.28, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an earnings yield of 4.7% compared to the industry’s negative yield of 1.4%. The company’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.79%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a first-quarter 2026 adjusted EPS of $2.50, which exceeded the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% in contrast to the industry’s negative yield of 0.9%. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of 87 cents, which outpaced the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
