Bio-Techne's Q3 2025 Earnings Call: Unpacking Contradictions on Tariffs, Academic Revenue, and Segment Growth
Earnings DecryptWednesday, May 7, 2025 7:22 pm ET
2min read
Impact of tariffs on pharma customer spending, academic market performance and uncertainty, diagnostics and spatial biology segment growth, tariff exposure and impact, and academic revenue and government funding uncertainty are the key contradictions discussed in Bio-Techne's latest 2025Q3 earnings call.
Revenue Growth and Profitability:
- reported revenue of $316.2 million for Q3, with a 6% organic increase year-over-year.
- The growth was driven by strong performance in pharma and core products, despite macroeconomic uncertainties.
Pharma Segment Performance:
- The pharma segment experienced low double-digit growth in Q3, contributing significantly to overall revenue growth.
- This improvement was attributed to pharma companies returning to historical growth rates after realigning their R&D pipelines.
Impact of NIH Funding Uncertainty:
- The US academic market faced flat growth in Q3 due to NIH funding uncertainties, impacting purchase decisions.
- The potential 15% cap on NIH indirect cost reimbursement rates is creating uncertainty among academic customers.
Tariff Mitigation and Strategic Initiatives:
- Bio-Techne's strategic focus on regional production and supply chain optimization is expected to mitigate tariff impacts effectively.
- The company's global operational footprint allows it to quickly adapt to tariff changes by leveraging existing production capacities.
Revenue Growth and Profitability:
- reported revenue of $316.2 million for Q3, with a 6% organic increase year-over-year.
- The growth was driven by strong performance in pharma and core products, despite macroeconomic uncertainties.
Pharma Segment Performance:
- The pharma segment experienced low double-digit growth in Q3, contributing significantly to overall revenue growth.
- This improvement was attributed to pharma companies returning to historical growth rates after realigning their R&D pipelines.
Impact of NIH Funding Uncertainty:
- The US academic market faced flat growth in Q3 due to NIH funding uncertainties, impacting purchase decisions.
- The potential 15% cap on NIH indirect cost reimbursement rates is creating uncertainty among academic customers.
Tariff Mitigation and Strategic Initiatives:
- Bio-Techne's strategic focus on regional production and supply chain optimization is expected to mitigate tariff impacts effectively.
- The company's global operational footprint allows it to quickly adapt to tariff changes by leveraging existing production capacities.
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