**Key Takeaways:**
- **Headwind Warning**: Q2 organic growth will face 400 bps headwind from 2 large cell therapy customers, but FY26 low single-digit guidance maintained.
- **Margin Strength**: 90 bps operating margin expansion in Q1 (29.9%) despite revenue decline, driven by cost control and productivity.
- **China Growth Engine**: 2q growth streak in spatial biology (+low single digits) and ProteinSimple (+mid-single digits), led by China.
- **Biotech Recovery Signs**: Q1 biotech funding +6% MoM, M&A/licensing up. Expect 2-3q lag to revenue.
- **Sustainability Progress**: 40% reduction in Scope 1/2 emissions vs. FY25, 100% renewable energy at Minneapolis site.

**【CEO Summary Section】**
- Q1 organic revenue declined 1% due to clinical stage timing in cell therapy and biotech funding softness, offset by mid-single-digit growth in China and ProteinSimple instruments.
- Adjusted operating margin expanded 90 bps to 29.9%, driven by productivity and cost management.
- Cell therapy headwind from 2 large customers (FDA Fast Track designees) will peak in Q2 (-400 bps YoY) before moderating in H2.
- Encouraging signs of stabilization in biotech funding (M&A, licensing trends) and U.S. academic markets.

**【CFO Financial Commentary】**
- Q1 revenue $286.6M (-1% YoY), adjusted EPS $0.42 (flat YoY). GAAP EPS $0.24 (+14% YoY).
- Excluding cell therapy timing, organic growth +1%. North America down mid-single digits, EMEA/Asia low single-digit growth.
- Adjusted gross margin 70.2% (+60 bps YoY), SG&A 32.1% (flat YoY), R&D 8.2% (flat YoY).
- Operating margin 29.9% (+90 bps YoY), driven by Exosome divestiture and productivity.
- Q2 outlook: organic growth consistent with Q1, despite +400 bps cell therapy headwind.

**【Q&A Highlights】**
- **Cell Therapy Timing**: 2 customers progressing Phase III trials, reducing reagent purchases. Headwind to peak Q2 (-400 bps) before moderating. 2027+ growth outlook unchanged.
- **Biotech Recovery**: Q1 funding +6% MoM, M&A/licensing activity up. Expect 2-3q lag to revenue.
- **China Momentum**: 2q growth streak in spatial biology and ProteinSimple, driven by CRO/CDMO activity.
- **Margin Resilience**: 90 bps margin expansion in Q1 despite headwinds. On track for +100 bps FY26.
- **Segment Performance**: Protein Sciences (-1% YoY), Diagnostics/Spatial (+3% YoY ex Exosome).

Bio-Techne Corporation (TECH) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

TECH

TECH fundamentals

You can ask Aime