Q2 2026 Bio-Techne Corp Earnings Call Transcript
Key Points
- Bio-Techne Corp (TECH) reported a sequential year-over-year organic revenue growth improvement in most product categories.
- The company achieved a 100 basis point year-over-year expansion in adjusted operating margins to 31.1%, reflecting disciplined productivity and cost management.
- Bio-Techne's strategic growth verticals, including cell therapy, proteomic analytical instrumentation, spatial biology, and precision diagnostic tools, now represent 47% of total revenue, up from 32% in fiscal 2020.
- The company delivered its third consecutive quarter of growth in China, supported by R&D investments from CDMO, CRO, and biotech customers.
- Bio-Techne's Diagnostics business delivered high single-digit growth, driven by balanced performance across clinical controls and molecular diagnostic kits.
- Bio-Techne experienced flat organic revenue growth for the quarter due to order timing impacts from two large cell therapy customers receiving FDA Fast Track Designations.
- The company's Protein Sciences segment declined 1% organically, with a significant drop in GMP reagent demand from cell therapy customers.
- Emerging biotech revenue declined mid-single digits, reflecting continued pressures from negative funding conditions.
- The US academic market saw a modest decline, partially offset by stable growth in Europe, resulting in a low single-digit decline overall.
- The company's gross margin declined to 68.5% from 70.5% last year, driven by unfavorable product and customer mix.
(Operator Instructions) Good morning, and welcome to the Bio-Techne Earnings Conference Call for the Second Quarter of Fiscal Year 2026. (Operator Instructions) I would now like to turn the call over to David Clair, Bio-Techne's Vice President, Investor Relations.
Good morning, and thank you for joining us. On the call with me this morning are Kim Kelderman, President and Chief Executive Officer; and Jim Hippel, Chief Financial Officer of Bio-Techne.
Before we begin, let me briefly cover our safe harbor statement. Some of the comments made during this conference call may be considered forward-looking statements, including beliefs and expectations about the company's future results. The company's 10-K for fiscal year 2025 identifies certain factors that could cause the company's actual results to differ materially from those projected in the forward-looking statements made during this call. The company does not undertake to update any forward-looking statements because of any new information or future
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