BIO-TECHNE (TECH)·Q2 2026 Earnings Summary
Bio-Techne Beats on Both Lines as Large Pharma Momentum Continues; Shares Jump 5%
February 4, 2026 · by Fintool AI Agent
Bio-Techne Corporation (NASDAQ: TECH) reported Q2 FY2026 results that exceeded Street expectations, delivering adjusted EPS of $0.46 (+10% YoY) vs. the $0.43 consensus (+5.8% beat) on revenue of $295.9M vs. $290.5M expected (+1.9% beat). Shares rose 5.2% in after-hours trading to $67.98, reflecting investor relief after quarters of muted organic growth.
The life sciences tools company posted flat organic revenue growth year-over-year, but this was "largely in line with expectations" per CEO Kim Kelderman and masked underlying improvement in key end markets. Notably, Bio-Techne delivered its fourth consecutive quarter of low double-digit growth in large pharma and third straight quarter of growth in China, with APAC ex-China approaching 20% growth—both critical indicators that the biotech funding environment is stabilizing.
Did Bio-Techne Beat Earnings?
Yes. Bio-Techne beat on both lines:
*Values retrieved from S&P Global
Despite flat organic revenue (and +4% organic growth excluding cell therapy timing), the EPS beat was driven by:
- Margin expansion (+100 bps YoY on adjusted operating margin) from ongoing productivity initiatives
- Exosome Diagnostics divestiture benefits flowing through
- Cost containment execution across the organization
Ask Fintool AI AgentHow Did the Stock React?
TECH shares responded positively to the beat, particularly given the challenging biotech funding environment that has pressured the sector:
The stock has recovered significantly from its 52-week low of $46.01, now trading 47% above that level. The after-hours jump suggests investors are gaining confidence that the biotech funding environment is inflecting.
What Did Management Say About End Markets?
CEO Kim Kelderman provided granular commentary on end-market trends that institutional investors will find valuable:
"Continued strength from our large pharma customers was offset by a soft, yet improving biotech end market and a soft but stable U.S. academic end market... These end market dynamics, combined with solid execution across the organization, drove sequential year-over-year organic revenue growth improvement in most of our product categories." — CEO Kim Kelderman
End-Market Performance:
Geographic Performance:
The large pharma momentum is particularly significant as it represents Bio-Techne's biggest end market and provides visibility into broader research spending trends.
Ask Fintool AI AgentWhat Changed From Last Quarter?
Comparing Q2 FY2026 to Q1 FY2026:
Sequential improvement in both revenue and EPS suggests the company is benefiting from seasonal strength and continued execution on profitability initiatives.
What Did Management Guide?
CFO Jim Hipple provided specific forward expectations during the Q&A:
Cell Therapy Headwind Trajectory:
Management quantified the impact from two large cell therapy customers with FDA Fast Track designations:
"The momentum of business is very encouraging right now. Not giving any fiscal year 2027 guidance obviously at this point, but the underlying base business growth—as the final headwinds from these customers go away at the start of our fiscal year 2027."
Q4 Tailwinds:
- 3% sequential tailwind from easier comps (cell therapy + academic + biotech)
- Underlying business momentum building: 1% in Q1 → 3% in Q2 → mid-single digits in Q3 expected
Segment Performance
Protein Sciences (73% of Revenue)
The core Protein Sciences segment saw margin pressure from unfavorable product mix (instruments vs. reagents), partially offset by productivity initiatives. Excluding the two largest cell therapy customers, organic growth was +4%.
Key drivers within Protein Sciences:
- Core reagents & assays: Low double-digit growth
- ProteinSimple instruments: Upper single-digit growth
- Cell therapy (ex-Fast Track customers): GMP reagents +30%
Diagnostics & Spatial Biology (27% of Revenue)
The segment showed dramatic margin improvement (+650 bps) driven by the Exosome Diagnostics divestiture and productivity initiatives.
Key drivers:
- Diagnostics products: High single-digit growth
- RNAscope (spatial): Low single-digit growth; diagnostic applications +20%
- COMET bookings: Nearly 40% growth for second consecutive quarter
Key Segment Details from Transcript:
Cell Therapy: GMP reagents declined 50% due to the two Fast Track customers, but excluding them, GMP reagents grew nearly 30% . The underlying customer base of 700+ customers (85 in clinical studies, 6 in Phase 3) remains healthy.
Wilson Wolf (20% Owned): Delivered 20% organic revenue growth in Q2 and upper teens on a trailing twelve-month basis. Management noted Wilson Wolf has 70%+ EBITDA margins and will be fully acquired by end of calendar 2027.
ProteinSimple Instruments: Instrument sales grew upper single digits despite challenging CapEx environment. The next-generation Leo automated western blot system "exceeded expectations" with strong adoption.
COMET (Spatial Biology): Nearly 40% growth in bookings for the second consecutive quarter. Current consumable pull-through is ~$45K per instrument per year, with management targeting $90K as multiomics capabilities expand.
Organoids: A ~$50 million run rate business addressing a $1.4 billion market growing at mid-teens. Recently launched Cultrex Synthetic Hydrogel, an animal-free matrix for organoid culture.
Capital Allocation & Balance Sheet
Notable capital actions:
- Debt reduction: Paid down $40M sequentially in Q2
- Dividends: Returned $12.5M to shareholders via dividends
- Operating cash flow: $82.4M in Q2 (strong, on par with prior year)
- CapEx: $5.9M net
M&A remains top priority for capital allocation per management. Wilson Wolf acquisition (currently 20% owned) will complete by end of calendar 2027 with 70%+ EBITDA margins.
Q&A Highlights
On Biotech Funding Lag: Management expects the strong Q4 2025 biotech funding to translate to orders with a ~6-month lag, meaning improvement should be visible in calendar Q2 2026.
"Typically, the delay of the funding coming trickling through in life science tools is 6 months. There's quite some underutilized infrastructure in place, so we are anticipating the bell curve to sit at 6 months, 2 quarters plus, minus 1." — CEO Kim Kelderman
On AI Impact: When asked about AI's impact on demand, Kelderman was constructive:
"Overall, we do believe that AI is a great enabler, not only for our customers, also for us. Our customers will use AI to better understand and to better drive their programs forward. Highly likely, AI will help them to be more specific in what kind of materials they want. And highly likely, the molecules and ingredients that they will want to use are going to be more complex... We believe that these trends will therefore play into our cards, into the strength that we have built as a company, and overall are going to be a tailwind."
On China Recovery: China grew mid-single digits for the third consecutive quarter, driven by:
- Approval of China's fifteenth five-year funding plan (life science a high priority)
- Successful exits from local biotech companies (M&A and licensing)
- Improving CDMO and CRO activity
On Gross Margin Pressure: CFO Jim Hipple explained the sequential gross margin decline was driven by unfavorable mix (instruments vs. reagents, OEM customer mix), but expects "gradual improvement in the back half of the year."
50th Anniversary & Strategic Positioning
Management highlighted that Bio-Techne celebrates its 50th anniversary in 2026, with several events planned including ringing the Nasdaq closing bell on February 25th:
"Over the past 5 decades, we have built one of the most durable and differentiated portfolios in life science tools, addressing high growth, high-value applications aligned with global healthcare megatrends." — CEO Kim Kelderman
Strategic Growth Verticals: The company's four strategically important growth verticals (cell therapy, proteomic analytical instrumentation, spatial biology, and precision diagnostic tools) now represent 47% of total revenue, up from 32% in fiscal 2020, delivering an upper teens CAGR over the past 5 years.
What to Watch Going Forward
- FY2027 Reset: Cell therapy headwinds fully lap out in Q1 FY2027, setting up for normalized growth
- Biotech funding translation: Strong Q4 2025 funding should translate to orders in calendar Q2 2026 (~6-month lag)
- Wilson Wolf integration: Full acquisition by end of CY2027; 70%+ EBITDA margins immediately accretive
- COMET pull-through expansion: Management targeting $90K/instrument (from $45K today) as multiomics adoption grows
- NIH budget resolution: House and Senate bills include ~1% NIH increase with maintained indirect funding rates
Ask Fintool AI AgentHistorical Performance
Bio-Techne has beat EPS estimates in 7 of the last 8 quarters, demonstrating consistent execution despite challenging end-market conditions.
Related Links: