Bio-Techne's Q4 2025: Navigating Contradictions in NIH Funding, China Growth, and Revenue Outlook

NIH funding uncertainty impact on growth outlook, China market growth dynamics, revenue growth outlook, and academic revenue exposure are the key contradictions discussed in Bio-Techne Corporation's latest 2025Q4 earnings call.



Organic Revenue Growth:
- Bio-Techne reported 3% organic revenue growth in Q4 2025, driven by a 5% organic revenue growth for the fiscal year 2025.
- Growth was fueled by the robust demand for automated proteomic analytical instrumentation and cell therapy solutions among large pharmaceutical customers.

Impact of Product Launches:
- Key product launches, including Leo and ProPak, contributed to a 4% growth for the Protein Sciences segment in Q4.
- The introductions of these products strengthened Bio-Techne's position in the market, supporting growth in key applications like GMP reagents and cell therapy workflow solutions.

Divestiture and Operating Margin Expansion:
- Bio-Techne announced the divestiture of its Exosome Diagnostics business, resulting in an immediate improvement in operating margin.
- The divestiture is expected to deliver a 100 basis points expansion in adjusted operating margin for fiscal year 2026, contributing to the company's profitability.

Geographic Performance and Uncertainty:
- China delivered a low double-digit growth in Q4, driven by demand ahead of anticipated tariff impacts.
- Uncertainty in academic funding and pharma tariffs impacted end-market performance, particularly in academia, which declined low single digits in Q4.

Future Outlook and Market Conditions:
- Bio-Techne expects low single-digit organic growth until clarity is achieved on NIH funding and pharmaceutical tariffs.
- The company remains optimistic about long-term growth potential once current uncertainties are resolved, driven by secular trends in life sciences and diagnostics.