TECH · Q1 2026 Earnings

Cautious

Bio-Techne

Reported November 5, 2025

30-second summary

Bio-Techne delivered the "flat start" management telegraphed in August, but the revenue print came in slightly below it: Q1 FY2026 organic revenue declined 1% (vs. the implied flat-to-low-single-digit setup). The margin story ran the other direction — adj. operating margin of 29.9% was up 90bps YoY vs. 29.0% in the prior-year Q1, beating the "flat Q1" guide setup, even as it compressed sequentially from Q4 FY2025's 32.0%. Management held the FY2026 low-single-digit growth posture intact while flagging a 400bps cell therapy headwind in Q2 against a 90% prior-year comp — meaning the back-half ramp now has to do more work, not less. The stabilization language ("encouraging signs" in US academic, "early signs of accelerating growth" in Spatial Biology) is the tell that management wants the Street to bridge to.

Headline numbers

EPS

Q1 FY2026

$0.42

Revenue

Q1 FY2026

$0.29B

-1.0% YoY

Gross margin

Q1 FY2026

65.6%

Free cash flow

Q1 FY2026

$0.02B

Operating margin

Q1 FY2026

16.6%

Key financials

Q1 FY2026

Metric	Q1 FY2026	YoY	Q4 FY2025	QoQ
Revenue	$0.29B	-1.0%	$0.32B	-9.6%
EPS	$0.42	—	$0.53	-20.8%
Gross margin	65.6%	—	62.7%	+290bps
Operating margin	16.6%	—	-7.5%	+2410bps
Free cash flow	$0.02B	—	—	—

Guidance

Bio-Techne reported Q1 FY2026 results in-line with prior guidance of a flat start to the year, with organic revenue decline of -1% and adjusted operating margin flat, setting stage for announced ramp to 200 bps margin expansion by year-end.

Guidance is issued for the full year only, refreshed each quarter. Prior and new below are the same FY updated this quarter.

Actuals vs prior guidance

Metric	Period	Prior guide	Actual	Δ	Result
Organic Revenue Growth	Q1 FY2026	low single digits (implied by FY26 guidance starting flat in Q1)	-1.0%	in-line with guidance of low single digit range	Met
Adjusted Operating Margin	Q1 FY2026	flat year-over-year in Q1, ramping to ~200 bps higher by Q4	29.9%	in-line with 'starting flat' Q1 guidance	Met

Segment KPIs

Q1 FY2026

Segment	Q1 FY2026	YoY
Protein Sciences	$0.202B	-1.0%
Diagnostics and Spatial Biology	$0.08B	-4.0%
Protein Sciences Organic Revenue Growth	-3.0%	—
Diagnostics and Spatial Biology Organic Revenue Growth	3.0%	—

Other KPIs

Q1 FY2026

Segment	Q1 FY2026
Adjusted Operating Margin	29.9%
Protein Sciences Operating Margin	38.4%
Diagnostics and Spatial Biology Operating Margin	11.2%
Organic Revenue Growth	-1.0%
Adjusted EBITDA	$95.9 million
Adjusted Gross Margin	70.2%

Management tone

The "until headwinds subside" language from Q4 FY2025 is being replaced with "early signs of stabilization." Last quarter Hippel explicitly anchored to "until the current headwinds across our end markets begin to subside." This quarter the framing pivots forward: management cites "encouraging signs of stabilization in our US academic end market" and "early signs of accelerating growth" in Spatial Biology. The signal is a tonal lift, but it is not yet backed by a numerical guide — which itself is conspicuous given the FY-only cadence.

Cell therapy was reframed from a growth pillar to a comp problem. Q&A made clear the GMP protein business is in a defined air pocket: 200bps Q1 headwind on a 60% prior-year comp, 400bps Q2 headwind on a 90% comp, with 700 customers in pipeline (85 in clinical phases, 16 Phase II, 5 Phase III). Management's read — that this is timing, not loss — depends on FY2027 commercial-phase revenue arriving as fast-track customers transition. The narrative shift is from "secular growth driver" to "trough quarter ahead, recovery visible."

Margin conviction strengthened, not weakened. Adj. op margin of 29.9% expanded 90bps YoY and beat management's own flat-Q1 framing — Hippel said the team took "additional productivity actions to counter" the GMP protein headwind, preparing for the Q2 pressure point. The company reiterated at-least-100bps FY2026 expansion, and the Q1 beat reduces (rather than increases) the H2 burden on the margin walk.

Q&A highlights

Dan Leonard · UBS

How long will the GMP protein air pocket persist, and what are growth expectations for GMP proteins given prior 30%+ growth?

Management indicated Q1 saw 200 basis points headwind on top of 60% prior-year growth; Q2 will see 400 basis points headwind on 90% prior-year growth. Pipeline at 700 customers with 85 in clinical phases (16 Phase II, 5 Phase III). Headwinds will fade in second half. Still targeting low single-digit growth for fiscal 2026.

Q1 cell therapy headwind: 200 basis pointsQ2 cell therapy headwind: 400 basis pointsPrior year Q2 cell therapy growth: 90% organic700 total cell therapy customers

Matt LaRue · William Blair

Given 400 bps Q2 headwind from cell therapy but maintaining low single-digit full-year guidance, what underlying core growth is expected, and how is biotech funding recovery timing expected to flow through?

Management indicated underlying business (ex-two customers) would show ~3% growth in Q2 vs 1% in Q1. Biotech funding has improved with strong October activity, lower interest rates, M&A uptick, and licensing deals. Rather than typical 2-3 quarter lag, management expects faster translation because infrastructure already in place and funding will flow to program acceleration rather than brick-and-mortar buildout.

Q2 organic growth ex-two cell therapy customers: ~3%Q1 organic growth ex-two cell therapy customers: 1%Recent biotech funding growth: 6% sequential increase Q1 to OctoberOctober 2025: strongest funding month of calendar year

Puneet Soda · Lear Inc. Partners

When will GMP protein business recover given clinical trial timing challenges? Also, on academic side, how do declining grant numbers and multi-year funding pressure impact 2026+ outlook? Does company still expect outperformance vs. peers like Avantor?

Management confirmed clinical starts remain relatively flat and steady with new trials starting and existing trials expanding offsetting exits. Sees improved quality in pipeline as only truly viable therapies now funded. For academic: sees stabilization with U.S. showing improvement, Europe mid-single digit growth. Grant concentration favors company's research areas. Affirms belief in continued outperformance vs. peers due to protein simple strength, spatial biology momentum, and cell therapy acceleration in FY27.

Cell therapy clinical starts: flat and steadyCell therapy customer count: 700 totalPhase II programs: 16Phase III programs: 5

Patrick Donnelly · Citi

What was Wilson-Wolf's Q1 performance and momentum? Could any milestones be achieved early to accelerate the acquisition timeline beyond end of calendar 2027?

Wilson-Wolf had flat Q1 due to biotech funding headwinds but 12-month trailing revenue shows low to mid-teens growth. Management feels business well-positioned to accelerate. On early acquisition triggers, management indicated CEO John Wilson still believes he can meet EBITDA targets but current market conditions make it tougher. Deal valued at 4.4x 12-month trailing revenues regardless.

Wilson-Wolf Q1 performance: flat quarterWilson-Wolf 12-month trailing growth: low to mid-teensOwnership stake: 20%Expected acquisition completion: end of calendar 2027 or potentially sooner

Daniel Marowitz · Evercore ISI

Clarify whether Phase III orders for the two fast-track cell therapy customers were already placed and revenue recognized, and now company is waiting for commercial phase? Also, what drove promotional activity in protein sciences and should it continue?

Management confirmed fast-track designation came after Phase II results; customers ordered materials in advance to complete Phase III trials without lot changes. Commercial validation and production line validation materials expected in future. Promotional activity was focused on supporting academic and biotech customers through tough market conditions to maintain funnel and project participation, intended to help relative performance.

Fast-track designation: received during Phase IIPhase III materials: already ordered in prior yearCommercial materials: yet to comePromotional strategy: supporting customers in constrained markets to build funnel

Answers to last quarter's watch list

Whether Q1 FY2026 organic growth holds at or above the prior-quarter print — It did not. Organic growth came in at -1%. Management explained the gap entirely via the 200bps cell therapy GMP protein headwind plus general softness, and pointed to ~1% ex-two-customer organic growth. Status: Resolved negatively

Diagnostics & Spatial Biology return to growth — Organic growth re-accelerated to +3%, validating the order-timing thesis. Reported revenue still declined 4% YoY due to the exosome divestiture (7% headwind). Spatial Biology specifically was called out as "stabilizing while showing early signs of accelerating growth." Status: Resolved positively

Any update to NIH exposure framing — Management characterized the US academic market as showing "encouraging signs of stabilization" and noted bipartisan support for a flat NIH budget, but did not provide an updated NIH exposure recalculation or bridge to the prior "low single-digit" framing. The disclosure framework was not refined. Status: Continue monitoring

Adj. operating margin trajectory vs. the guided Q1-flat / Q4 +200bps ramp — Q1 adj. op margin of 29.9% expanded 90bps YoY, beating the flat-Q1 framing. The FY2026 +100bps walk is firmly in play and the Q1 outperformance reduces the H2 burden, though Q2's 400bps cell therapy headwind remains the swing factor. Status: Continue monitoring (tracking favorably)

Capital deployment post-exosome divestiture — No tuck-in M&A was announced this quarter. The only M&A-adjacent commentary related to the existing Wilson-Wolf acquisition timeline (calendar 2027 target unchanged). Status: Continue monitoring

What to watch into next quarter

Whether Q2 organic revenue declines hold at the implied "~1% minus 400bps headwind" trajectory — i.e. ex-cell-therapy organic at ~+3% as management guided. A Q2 print below -2% reported organic would suggest the ex-customer bridge is itself eroding and the H2 mid-single-digit math becomes unworkable.

Whether Protein Sciences adj. operating margin holds at or above the 38.4% Q1 level — segment margin was already 39.4% a year ago and the company still delivered +90bps consolidated margin expansion this quarter. A further YoY step-down here would put pressure on the FY2026 +100bps consolidated walk.

Confirmation that biotech funding recovery is translating to orders — management cited October 2025 as the strongest funding month of the calendar year (+6% sequential). Watch whether Q2 reagent and instrument orders inflect, or whether the funding signal stays detached from purchase behavior.

Spatial Biology revenue disclosure — management said the segment is "showing early signs of accelerating growth." Watch for a specific organic growth print on Spatial Biology (vs. the combined D&SB +3% number) — anything below +5% would suggest the "accelerating" language is more hope than data.

Whether numerical FY2026 guidance gets introduced at Q2 — management is currently anchoring to qualitative low-single-digits. Reverting to a numerical range would signal restored visibility; staying qualitative through Q2 would suggest the macro fog persists.

Sources

Bio-Techne Q1 FY2026 press release, filed 2025-11-05 (SEC EDGAR, tech-20251030xex99d1.htm)
Bio-Techne Q1 FY2026 earnings call Q&A (CEO Kim Kelderman, CFO Jim Hippel; analyst exchanges with UBS, William Blair, Lear Inc. Partners, Citi, Stiefel, TD Cowen)

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