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TECH Stock Falls on Q3 Earnings & Revenue Miss, Operating Margin Up
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Key Takeaways
Bio-Techne reported Q3 EPS of 53 cents, missing estimates and falling 5.4% year over year.
TECH posted $311.4M in sales, down 1.5%, though still beating consensus estimates.
Bio-Techne's operating margin rose 1200 bps to 24.2%, driven by lower expenses.
Bio-Techne Corporation (TECH - Free Report) reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of 53 cents, which missed the Zacks Consensus Estimate by 2.8%. The bottom line was down 5.4% 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 32 cents compared with 14 cents in the prior-year quarter.
TECH's Revenues in Detail
Bio-Techne registered net sales of $311.4 million, reflecting a decline of 1.5% year over year on a reported basis. The figure was down 2% on an organic basis. The top line missed the Zacks Consensus Estimate by 2.4%.
Following the announcement, shares of Bio-Techne declined 1.2% in pre-market trading yesterday, reflecting investor reaction to the company’s quarterly sales and earnings decline.
Segmental Analysis of TECH’s Q3 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 $226.2 million, down 1% year over year (down 4% 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 $85.6 million (up 3% organically) in the fiscal third quarter. Within this, the Exosome Diagnostics business met the held-for-sale criteria, excluded from its operating results.
TECH’s Q3 Margins
Bio-Techne’s gross profit fell 2.9% to $208.3 million. The gross margin contracted 97 basis points (bps) to 66.9% on a 1.5% rise in the cost of sales.
Selling, general and administrative expenses declined 27.7% to $109.3 million. Research and development expenses totaled $23.4 million, down 4.6% year over year.
The company generated an operating profit of $75.5 million in the fiscal third quarter compared with the year-ago quarter’s figure of $38.7 million. The operating margin expanded 1200 bps to 24.2% during the quarter.
Bio-Techne exited the fiscal third quarter of 2026 with cash and equivalents of $209.8 million compared with $172.9 million at the end of the fiscal second quarter. Long-term debt obligations totaled $200 million compared with $260 million in the previous quarter.
Cumulative net cash provided by operating activities was $196.7 million compared with $189.3 million a year ago.
Our Take on Bio-Techne’s Results
Bio-Techne ended the reported quarter with lower-than-expected results, wherein both earnings and revenues missed estimates. Also, quarterly revenue decline and gross margin contraction look discouraging.
Large pharma delivered the sixth consecutive quarter of double-digit growth, which was offset by a continued lag in spending by emerging biotech. U.S. academic markets stabilized with low-single digit growth. Growth vectors performed well, with mid-single digit growth in Proteomic Analysis instruments, mid-teens growth in Spatial Biology, and nearly 50% growth in GMP proteins excluding fast track customers.
The expansion of operating margin bodes well.
TECH's Zacks Rank and Key Picks
Bio-Techne currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Intuitive Surgical (ISRG - Free Report) and Phibro Animal Health (PAHC - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $1.28, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an earnings yield of 4.7% compared to the industry’s negative yield of 1.4%. The company’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.79%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a first-quarter 2026 adjusted EPS of $2.50, which exceeded the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% in contrast to the industry’s negative yield of 0.9%. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of 87 cents, which outpaced the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.
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TECH Stock Falls on Q3 Earnings & Revenue Miss, Operating Margin Up
Key Takeaways
Bio-Techne Corporation (TECH - Free Report) reported third-quarter fiscal 2026 adjusted earnings per share (EPS) of 53 cents, which missed the Zacks Consensus Estimate by 2.8%. The bottom line was down 5.4% 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 32 cents compared with 14 cents in the prior-year quarter.
TECH's Revenues in Detail
Bio-Techne registered net sales of $311.4 million, reflecting a decline of 1.5% year over year on a reported basis. The figure was down 2% on an organic basis. The top line missed the Zacks Consensus Estimate by 2.4%.
Following the announcement, shares of Bio-Techne declined 1.2% in pre-market trading yesterday, reflecting investor reaction to the company’s quarterly sales and earnings decline.
Segmental Analysis of TECH’s Q3 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 $226.2 million, down 1% year over year (down 4% 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 $85.6 million (up 3% organically) in the fiscal third quarter. Within this, the Exosome Diagnostics business met the held-for-sale criteria, excluded from its operating results.
TECH’s Q3 Margins
Bio-Techne’s gross profit fell 2.9% to $208.3 million. The gross margin contracted 97 basis points (bps) to 66.9% on a 1.5% rise in the cost of sales.
Selling, general and administrative expenses declined 27.7% to $109.3 million. Research and development expenses totaled $23.4 million, down 4.6% year over year.
The company generated an operating profit of $75.5 million in the fiscal third quarter compared with the year-ago quarter’s figure of $38.7 million. The operating margin expanded 1200 bps to 24.2% during the quarter.
Bio-Techne Corp Price, Consensus and EPS Surprise
Bio-Techne Corp price-consensus-eps-surprise-chart | Bio-Techne Corp Quote
Bio-Techne’s Capital Structure
Bio-Techne exited the fiscal third quarter of 2026 with cash and equivalents of $209.8 million compared with $172.9 million at the end of the fiscal second quarter. Long-term debt obligations totaled $200 million compared with $260 million in the previous quarter.
Cumulative net cash provided by operating activities was $196.7 million compared with $189.3 million a year ago.
Our Take on Bio-Techne’s Results
Bio-Techne ended the reported quarter with lower-than-expected results, wherein both earnings and revenues missed estimates. Also, quarterly revenue decline and gross margin contraction look discouraging.
Large pharma delivered the sixth consecutive quarter of double-digit growth, which was offset by a continued lag in spending by emerging biotech. U.S. academic markets stabilized with low-single digit growth. Growth vectors performed well, with mid-single digit growth in Proteomic Analysis instruments, mid-teens growth in Spatial Biology, and nearly 50% growth in GMP proteins excluding fast track customers.
The expansion of operating margin bodes well.
TECH's Zacks Rank and Key Picks
Bio-Techne currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Intuitive Surgical (ISRG - Free Report) and Phibro Animal Health (PAHC - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $1.28, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an earnings yield of 4.7% compared to the industry’s negative yield of 1.4%. The company’s earnings beat estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.79%.
Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a first-quarter 2026 adjusted EPS of $2.50, which exceeded the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion topped the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% in contrast to the industry’s negative yield of 0.9%. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of 87 cents, which outpaced the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.