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TECH Q2 Earnings & Revenues Beat Estimates, Operating Margin Up

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Key Takeaways

  • TECH posted Q2 adjusted EPS of 46 cents and revenues of $295.9M, beating consensus estimates.
  • Bio-Techne saw Protein Sciences grow 2% while Diagnostics and Spatial Biology sales fell 4% year over year.
  • TECH expanded operating margin 244 bps to 18.4% as operating profit rose to $54.5M.

Bio-Techne Corporation (TECH - Free Report) reported second-quarter fiscal 2026 adjusted earnings per share (EPS) of 46 cents, which surpassed the Zacks Consensus Estimate by 8.2%. The bottom line was up 9.5% on a year-over-year basis. 

The quarter's adjustments eliminated the impact of certain one-time items, including amortization of Wilson Wolf intangible assets, and restructuring and restructuring-related costs, among others.

GAAP EPS was 24 cents compared with 22 cents in the prior-year quarter.

TECH's Revenues in Detail

Bio-Techne registered net sales of $295.9 million, reflecting a marginal decline of 0.4% year over year on a reported basis. The figure remained flat on an organic basis. The top line surpassed the Zacks Consensus Estimate by 1.3%.

Segmental Analysis of TECH’s Q2 Revenues

The company reports under two business segments — Protein Sciences, and Diagnostics and Spatial Biology (formerly Diagnostics and Genomics).

Within Protein Sciences, Bio-Techne recorded revenues of $215.1 million, up 2% year over year (down 1% organically). In fiscal 2024, a business within this segment met the criteria as held-for-sale, excluded from its operating results.

Within Diagnostics and Spatial Biology, sales decreased 4% year over year to $81.2 million (up 3% organically) in the fiscal second quarter. Within this, the Exosome Diagnostics business met the held-for-sale criteria, excluded from its operating results.

Bio-Techne Corp Price, Consensus and EPS Surprise

TECH’s Q2 Margins

Bio-Techne’s gross profit fell 1.3% to $191.3 million. The gross margin contracted 63 basis points (bps) to 64.6% on a 1.4% rise in the cost of sales.

Selling, general and administrative expenses declined 6.4% to $113.7 million. Research and development expenses totaled $23.1 million, down 7.6% year over year. 

The company generated an operating profit of $54.5 million in the fiscal second quarter compared with the year-ago quarter’s figure of $47.4 million. The operating margin expanded 244 bps to 18.4% during the quarter. 

Bio-Techne’s Capital Structure

Bio-Techne exited the fiscal second quarter of 2026 with cash and equivalents of $172.9 million compared with $145 million at the end of the fiscal first quarter. Long-term debt obligations totaled $260 million compared with $300 million in the previous quarter. 

Cumulative net cash provided by operating activities was $110 million at the end of the fiscal second quarter compared with $148.2 million a year ago.

Our Take on Bio-Techne’s Results

Bio-Techne ended the reported quarter with better-than-expected results, wherein both earnings and revenues surpassed estimates. Quarterly revenue decline and gross margin contraction look discouraging. 

However, signs of stabilization in the U.S. academic market, improving performance in biotech, ongoing growth in Asia and continued strength among large pharmaceutical customers were evident. 

The expansion of operating margin bodes well. 

TECH's Zacks Rank and Key Picks

Bio-Techne currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader medical space are National Vision (EYE - Free Report) , Boston Scientific (BSX - Free Report) and Prestige Consumer Healthcare (PBH - Free Report) .

National Vision, currently carrying a Zacks Rank #2 (Buy), reported third-quarter 2025 adjusted EPS of 13 cents, which topped the Zacks Consensus Estimate by 8.3%. Revenues of $487.3 million beat the Zacks Consensus Estimate by 2.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

EYE’s earnings yield of 5.8% compares favorably with the industry’s 2.8% yield. The company beat on earnings in each of the trailing four quarters, with the average surprise being 2.75%.

Boston Scientific, carrying a Zacks Rank #2 at present, posted third-quarter 2025 adjusted EPS of 75 cents, which exceeded the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion surpassed the Zacks Consensus Estimate by 1.9%.

BSX has an earnings yield of 3.7% compared with the industry’s 2.3% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 7.4%.

Prestige Consumer Healthcare, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 EPS of $1.07, which surpassed the Zacks Consensus Estimate by 10.3%. Revenues of $274.1 million topped the Zacks Consensus Estimate by 6.9%.

PBH has an earnings yield of 7.1% compared with the industry’s 2.8% yield. The company’s earnings outperformed estimates in three of the trailing four quarters and missed in the other one, with the average surprise being 2.8%.

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