Bio-Techne Q4 FY2026 earnings: Organic revenue grows 3% as adjusted EPS slips

Bio-Techne (NASDAQ: TECH) reported Q4 FY2026 revenue of $321.2 million, up 1% year over year, while GAAP diluted EPS improved to $0.35 from a loss of $0.11 in the quarter ended June 30, 2026. Organic revenue grew 3%, but adjusted EPS edged down to $0.52 as unfavorable product mix offset some of the benefits from profitability initiatives and portfolio changes. The pending acquisition by Merck KGaA also remains central to the company’s outlook.

Core financial results

The gap between reported and organic growth reflected a two-percentage-point drag from nonrecurring prior-year revenue associated with a business held for sale. Foreign exchange did not have a material quarterly impact. For the full fiscal year, reported and organic revenue were flat, making the fourth quarter an improvement from the year’s overall growth rate.

GAAP earnings recovered sharply because the prior-year quarter included an $84.2 million impairment of assets held for sale. On an adjusted basis, operating income increased modestly, adjusted EBITDA was nearly unchanged, and EPS declined by one cent.

Bio-Techne’s adjusted measures exclude items including acquired-intangible amortization, stock-based compensation, restructuring costs, acquisition-related expenses and specified held-for-sale effects.

Business and segment performance

The two operating segments showed different underlying trends. Protein Sciences delivered modest growth but faced margin pressure, while Diagnostics and Spatial Biology recorded faster organic growth and substantial margin expansion despite flat reported revenue.

Protein Sciences’ margin contracted by 1.6 percentage points because of unfavorable volume and product mix. The segment remained the company’s largest revenue contributor, making its margin trend important to consolidated profitability.

Diagnostics and Spatial Biology’s reported revenue was held back by an eight-percentage-point effect from a business held for sale. Its 5.2-point margin expansion reflected the Exosome Diagnostics divestiture, favorable volume growth and ongoing profitability initiatives.

The GAAP rebound overstates the change in underlying earnings

Bio-Techne’s move from a GAAP operating loss to a $74.3 million operating profit was meaningful, but most of the year-over-year comparison was shaped by the prior-year impairment. The company recorded no comparable held-for-sale impairment in Q4 FY2026, versus $84.2 million in the preceding-year quarter.

Adjusted results showed a much steadier business. Adjusted net earnings were nearly unchanged at $82.4 million, adjusted EBITDA increased by only $0.4 million, and adjusted EPS slipped by one cent. Adjusted gross margin also fell 0.8 percentage points due to unfavorable product mix, although profitability initiatives and the Exosome Diagnostics divestiture helped adjusted operating margin rise slightly.

Cash flow and balance sheet

The release provided cash-flow data only for the full fiscal year, not the fourth quarter. FY2026 operating cash flow increased modestly, while lower capital expenditures lifted estimated free cash flow. Cash rose and long-term debt declined at the June 30 year-end.

Bio-Techne used $146.0 million for net debt reduction during FY2026. It also spent $41.7 million on share repurchases and $49.9 million on dividends over the full year.

Merck acquisition and management’s view

Bio-Techne entered into an agreement on June 25, 2026, to be acquired by Merck KGaA, Darmstadt, Germany, for $73 per share in cash. The transaction represents an enterprise value of approximately $11.3 billion.

CEO Kim Kelderman described the quarter as an improvement in performance and execution and said the company continued to make progress toward completing the acquisition. Because of the announced transaction, Bio-Techne is no longer holding quarterly investor conference calls.

Recent insider transactions

The supplied insider dataset reports 314,741 shares acquired across 13 purchase transactions and 8,612 shares sold across two transactions during the previous six months, resulting in net purchases of 306,129 shares. The latest valid records were primarily derivative-security exercises at $47.60 per share; these transactions should be viewed according to their stated type rather than interpreted as standalone signals about management’s outlook.

Risks investors need to monitor

• Protein Sciences margin pressure: Unfavorable volume and product mix reduced the segment’s operating margin and also weighed on consolidated adjusted gross margin.
• Limited adjusted earnings growth: Organic revenue increased 3%, but adjusted net earnings and EBITDA were nearly flat and adjusted EPS declined slightly.
• Portfolio changes complicate comparisons: Held-for-sale and divestiture effects created a sizable gap between reported and organic growth, particularly in Diagnostics and Spatial Biology.
• The acquisition remains pending: Progress toward completing the Merck KGaA transaction is now the principal corporate event, while the end of quarterly conference calls reduces regular management commentary.

Summary

Bio-Techne ended FY2026 with improved quarterly organic growth and a sharp GAAP earnings recovery, though the latter largely reflected the absence of a prior-year impairment. Underlying profitability was more stable than the headline GAAP results suggest: Diagnostics and Spatial Biology improved materially, but Protein Sciences mix pressure kept adjusted earnings growth limited. Investors now need to monitor segment margins and progress toward completion of the Merck KGaA acquisition.