Core Viewpoint - Bio-Techne Corporation announced leadership changes, with Steve Crouse appointed as President of the Diagnostics and Spatial Biology Segment, effective March 1, 2026, succeeding Dr. Matt McManus, who will assist in the transition [1]. Leadership Changes - Dr. Matt McManus will transition from his role as President of the Diagnostics and Spatial Biology Segment on March 1, 2026, but will remain with the company temporarily to ensure a smooth transition [1]. - Steve Crouse, previously Senior Vice President of the Analytical Solutions Division, has over 20 years of experience in life sciences and has been instrumental in driving growth and launching innovative platforms at Bio-Techne [1]. Company Background - Bio-Techne Corporation (NASDAQ: TECH) is a global life sciences company that provides innovative tools and bioactive reagents for research and clinical diagnostics [1]. - The company generated over $1.2 billion in net sales in fiscal 2025 and employs approximately 3,100 people worldwide [1].

Core Insights - Bio-Techne reported second-quarter fiscal 2026 results that were largely in line with internal expectations, with organic revenue flat due to strength from large pharmaceutical customers offset by softness in emerging biotech and U.S. academia [4][6] - Adjusted EPS was $0.46, reflecting a 10% year-over-year increase, while GAAP EPS was $0.24, up from $0.22 a year earlier [1][4] - The company expects Q3 organic growth to mirror Q2, with specific headwinds from cell therapy timing and an OEM order shift [4][22] Financial Performance - Total revenue for the quarter was $295.9 million, flat year over year on both a reported and organic basis, with foreign exchange providing a 2% tailwind [6] - Adjusted operating margin expanded approximately 100 basis points to 31.1%, despite a decline in adjusted gross margin to 68.5% due to unfavorable product and customer mix [5][7] - Profitability improved, with adjusted EPS increasing to $0.46 and operating margin expansion expected to continue for the full fiscal year [5][16] Segment Performance - Protein Sciences reported sales of $215.1 million, up 2% year over year, but organic revenue declined 1% [8] - Diagnostics and Spatial Biology posted Q2 sales of $81.2 million, down 4% year over year, with organic growth of 3% after accounting for the Exosome Diagnostics divestiture [10][11] - The cell therapy business experienced a decline of over 30%, including a 50% drop in GMP reagents, due to a purchasing pause related to FDA Fast Track designations [9] Geographic Trends - China and broader APAC regions showed strong growth, with China growing mid-single digits and APAC approaching 20% [12] - The Americas experienced a decline in high single digits, though adjusting for cell therapy order timing, the region grew low single digits [13] - EMEA was flat compared to a strong prior year, with diagnostics strength offset by order timing dynamics [13] Market Dynamics - Large pharma revenue increased low double digits for the fourth consecutive quarter, while emerging biotech declined mid-single digits, indicating a split in market performance [14] - U.S. academic revenue reported a low single-digit decline overall, with some stability noted in Europe [14] - Management highlighted constructive developments in U.S. federal funding proposals, including a budget increase and maintained indirect funding rates [14] Future Outlook - The company anticipates Q3 organic growth to be consistent with Q2, with underlying trends expected to improve [15][16] - Management expects mid-single-digit underlying growth for the remainder of the business, with sequential improvement anticipated as revenue increases seasonally [16] - Strategic themes discussed included investments in cell therapy, proteomic analysis instruments, and spatial biology, positioning the company for gradual end-market improvement [19][18]

Core Insights - Bio-Techne Corporation reported flat net sales and organic revenue of $295.9 million for the second quarter of FY2026, with a favorable foreign currency impact of 2% and an unfavorable impact from non-recurring prior year revenue of 2% [6][8] - The company achieved a GAAP EPS of $0.24, up from $0.22 in the same quarter last year, and a 15% increase in GAAP operating income to $54.5 million [7][8] - Adjusted EPS rose to $0.46 from $0.42 year-over-year, with adjusted operating income increasing to $92.0 million, reflecting ongoing productivity and cost containment initiatives [8][9] Financial Performance - Revenue for the second quarter was $295.9 million, with reported and organic growth flat compared to the prior year [6][8] - GAAP operating margin improved to 18.4% from 16.0% in the same quarter last year, driven by profitability initiatives and the Exosome Diagnostics divestiture [7][9] - Adjusted operating margin increased to 31.1%, up 100 basis points from the prior year, indicating effective cost management [8][9] Segment Results - The Protein Sciences segment generated net sales of $215.1 million, a 2% increase from $211.6 million in the same quarter last year, although organic revenue decreased by 1% [11] - The Diagnostics and Spatial Biology segment reported net sales of $81.2 million, down 4% from $84.1 million, but organic revenue grew by 3% [12] - The operating margin for the Protein Sciences segment decreased to 39.3% from 41.2%, while the Diagnostics and Spatial Biology segment's operating margin increased to 10.4% from 3.9% [11][12] Company Overview - Bio-Techne Corporation is a global life sciences company providing innovative tools and bioactive reagents for research and clinical diagnostics, generating over $1.2 billion in net sales in fiscal 2025 [13] - The company has a diverse portfolio that supports high-growth applications in science and medicine, celebrating its 50th anniversary in 2026 [4][13]

Group 1 - Bio-Techne Corporation is the market leader in high-quality biological reagents used in the life science market [1] - The company specializes in manufacturing high-quality proteins, antibodies, and immunoassays [1] - Long-term growth in cell biology is expected to benefit the company [1]

Core Insights - Bio-Techne Corporation reported strong financial results for the third quarter ending March 31, 2025, with a net sales increase of 4% to $316.2 million and organic revenue growth of 6% compared to the prior year [6][8][23] - The company achieved an adjusted operating margin of 34.9%, up 190 basis points from the previous year, driven by profitability initiatives and volume leverage [4][9][30] - GAAP earnings per share (EPS) decreased to $0.14 from $0.31 in the same quarter last year, while adjusted EPS increased to $0.56 from $0.48 [7][9][28] Financial Performance - Net sales for the third quarter were $316.2 million, a 4% increase year-over-year, with organic revenue growth of 6% [6][8] - GAAP operating income decreased by 42% to $38.7 million, resulting in a GAAP operating margin of 12.2%, down from 22.1% in the prior year [7][30] - Adjusted operating income rose 11% to $110.3 million, with an adjusted operating margin of 34.9% compared to 33.0% in the prior year [9][30] Segment Performance - The Protein Sciences segment reported net sales of $227.7 million, a 6% increase from $214.6 million in the same quarter last year, with an organic revenue growth of 7% [11][30] - The Diagnostics and Spatial Biology segment achieved net sales of $89.2 million, a 2% increase from $87.5 million, with organic revenue growth of 2% [12][30] Non-GAAP Financial Measures - Adjusted EPS for the third quarter was $0.56, an increase from $0.48 in the same quarter last year [9][28] - Adjusted EBITDA for the quarter was $122.2 million, compared to $109.3 million in the prior year [31] - The non-GAAP adjusted tax rate was reported at 21.5%, consistent with the previous year [28][29]