Financial Data and Key Metrics Changes - Adjusted EPS for Q2 was $0.46, up 10% year-over-year, while GAAP EPS increased to $0.24 from $0.22 in the prior year [19] - Total revenue for Q2 was $295.9 million, flat year-over-year on both an organic and reported basis, with foreign currency exchange contributing a 2% tailwind [19][20] - Adjusted gross margin was 68.5%, down from 70.5% last year, driven by unfavorable product and customer mix [21] - Adjusted operating margin reached 31.1%, up 100 basis points year-over-year, reflecting productivity gains and cost management [21][22] Business Line Data and Key Metrics Changes - Protein Sciences segment reported sales of $215.1 million, with organic revenue declining 1% but benefiting from foreign exchange [23] - Diagnostics and spatial biology segment sales were $81.2 million, down 4% year-over-year, with organic growth of 3% after accounting for divestitures [25] - Core reagents and assays delivered low double-digit growth, while proteomic analytical tools grew upper single digits [15][24] Market Data and Key Metrics Changes - Revenue from large pharma customers increased low double digits for the fourth consecutive quarter, while emerging biotech declined mid-single digits [9][20] - U.S. academic business saw a modest decline, partially offset by stable growth in Europe, resulting in a low single-digit decline overall for this end market [10] - China experienced mid-single-digit growth, marking its third consecutive quarter of growth, supported by R&D investments [10][20] Company Strategy and Development Direction - The company focuses on four strategic growth verticals: cell therapy, proteomic analytical instrumentation, spatial biology, and precision diagnostic tools, which now represent 47% of total revenue [7] - The company is committed to maintaining a strong profitability profile while investing in strategic growth initiatives [6][18] - The upcoming fiscal year 2026 is significant as the company celebrates its 50th anniversary, with plans for various events [7] Management's Comments on Operating Environment and Future Outlook - Management noted that the operating environment is stabilizing but still challenging, with funding uncertainty affecting customer behavior in emerging biotech and U.S. academia [18] - There is optimism regarding the rebound in biotech funding and favorable U.S. appropriation bills, which are expected to support gradual improvement in end markets [18][19] - The company anticipates that headwinds from FDA Fast Track designations will moderate, allowing for improved growth in the future [26] Other Important Information - The company is actively pursuing M&A opportunities, with a focus on enhancing capabilities in cell therapy and proteomic analysis [81] - The acquisition of Wilson Wolf is on track, with expectations to complete it by the end of calendar year 2027 [13][81] Q&A Session Summary Question: Growth cadence and expectations for fiscal year 2026 - Management confirmed that underlying growth, excluding specific customer impacts, is expected to be mid-single digits for the year [30][32] Question: Drivers of gross margin trends - Management explained that gross margin pressures were due to unfavorable product mix and customer profiles, but improvements are expected in the latter half of the year [34][41] Question: Impact of AI on biotech demand - Management believes AI will enhance customer capabilities and drive demand for more complex materials, benefiting the company [42][45] Question: Biotech funding and timing of revenue impact - Management indicated that funding improvements typically show a six-month lag in revenue impact, with positive trends expected to continue [60][62] Question: Cell therapy customer impacts on GMP business - Management noted that the two large customers' Fast Track designations have created a temporary headwind, but underlying growth in the cell therapy business remains strong [64][66]

Financial Data and Key Metrics Changes - Adjusted EPS for Q2 was $0.46, up 10% year-over-year, with GAAP EPS at $0.24, up from $0.22 in the prior year [19][20] - Total revenue for Q2 was $295.9 million, flat year-over-year on both an organic and reported basis, with foreign currency exchange contributing a 2% tailwind [20][22] - Adjusted gross margin was 68.5%, down from 70.5% last year, while adjusted operating margin reached 31.1%, up 100 basis points year-over-year [22][24] Business Line Data and Key Metrics Changes - Protein Sciences segment reported sales of $215.1 million, with organic revenue declining 1%, but excluding cell therapy timing impacts, organic growth was 4% [24][25] - Diagnostics and spatial biology segment sales were $81.2 million, down 4% year-over-year, with 3% organic growth after accounting for divestiture impacts [26] - Core reagent and assay portfolio delivered low double-digit growth for the quarter, while proteomic analytical tools grew upper single digits [15][25] Market Data and Key Metrics Changes - Revenue from large pharma customers increased low double digits for the fourth consecutive quarter, while emerging biotech declined mid-single digits [9][21] - U.S. academic business saw a modest decline, partially offset by stable growth in Europe, resulting in a low single-digit decline overall for this end market [10][21] - China grew mid-single digits, marking its third consecutive quarter of growth, supported by R&D investments from CDMO, CRO, and biotech customers [10][21] Company Strategy and Development Direction - Company focuses on four strategically important growth verticals: cell therapy, proteomic analytical instrumentation, spatial biology, and precision diagnostic tools, which now represent 47% of total revenue [6][19] - The company aims to balance growth investments with operational efficiency, targeting 100 basis points of operating margin expansion for the full fiscal year [29] - Continued emphasis on innovation and product introductions to drive growth in key markets, particularly in organoids and multiomics [80][84] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the stabilization of end markets, particularly in biotech funding and U.S. academic budgets, which are expected to improve gradually [18][27] - The company anticipates that the headwinds from FDA Fast Track designations for two major customers will moderate, allowing for a return to normalized growth [27][68] - Overall sentiment remains positive regarding the company's competitive position and the potential for growth in the upcoming fiscal year [19][68] Other Important Information - The company is actively pursuing M&A opportunities to enhance its portfolio, particularly in novel antibodies and cell therapy [84] - The acquisition of Wilson Wolf is on track, with expectations to complete it by the end of calendar year 2027 [12][84] - The company launched Cultrex Synthetic Hydrogel to support organoid development, aligning with trends towards reducing animal model usage [80] Q&A Session Summary Question: Growth cadence and expectations for fiscal year 2026 - Management confirmed expectations for mid-single-digit growth in fiscal year 2026, excluding specific customer impacts [31][32] Question: Drivers of gross margin changes - Management explained that gross margin decline was due to unfavorable product mix and customer profiles, with expectations for gradual improvement [34][36] Question: Impact of AI on biotech demand - Management believes AI will enhance customer capabilities and drive demand for more complex materials, benefiting the company [44][45] Question: Biotech funding and timing of revenue impact - Management indicated a typical 6-month lag for funding improvements to reflect in revenue, with positive trends observed in funding and M&A activity [62][63] Question: Cell therapy customer impacts on GMP business - Management noted that the two major customers' Fast Track designations have created temporary headwinds, but growth is expected to normalize post-2027 [66][68]

分组1 - Techne reported quarterly earnings of $0.46 per share, exceeding the Zacks Consensus Estimate of $0.43 per share, and showing an increase from $0.42 per share a year ago, resulting in an earnings surprise of +8.24% [1] - The company achieved revenues of $295.88 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 1.32%, although this represents a slight decline from year-ago revenues of $297.03 million [2] - Techne has outperformed the S&P 500, with shares increasing by approximately 9.9% since the beginning of the year compared to the S&P 500's gain of 1.1% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is $0.57 on revenues of $323.36 million, and for the current fiscal year, it is $1.98 on revenues of $1.23 billion [7] - The Medical - Biomedical and Genetics industry, to which Techne belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8]

Core Insights - Bio-Techne exceeded analysts' expectations for second-quarter revenue and profit, driven by strong demand for its products utilized in drug development [1] Company Performance - The company reported better-than-expected financial results for the second quarter, indicating robust operational performance [1] Market Demand - There is a significant demand for Bio-Techne's products in the drug development sector, which has positively impacted its financial outcomes [1]

Revenue and Sales Performance - Second quarter revenue was $295.9 million, with reported and organic growth flat compared to the prior year[7]. - The Protein Sciences segment reported net sales of $215.1 million, a 2% increase from $211.6 million in the same quarter last year[12]. - The Diagnostics and Spatial Biology segment's net sales were $81.2 million, a decrease of 4% from $84.1 million year-over-year[13]. - Total consolidated net sales for the quarter were $295,877 thousand, slightly down from $297,031 thousand in the previous year, indicating a decrease of 0.4%[27]. - The Protein Sciences segment revenue for the quarter was $215,084 thousand, a slight increase from $211,551 thousand in the previous year, showing a growth of 1.2%[34]. - The Diagnostics and Spatial Biology segment revenue for the quarter was $81,180 thousand, down from $84,135 thousand in the same quarter of 2024, representing a decline of 3.5%[34]. Earnings and Profitability - GAAP earnings per share (EPS) increased to $0.24 from $0.22 year-over-year, while adjusted EPS rose to $0.46 from $0.42[9][10]. - Adjusted operating margin improved to 31.1%, an increase of 100 basis points compared to the prior year period[7]. - GAAP operating income increased 15% to $54.5 million compared to $47.4 million in the same quarter last year[9]. - Adjusted EBITDA for the quarter was $103,415 thousand, compared to $96,111 thousand in the same quarter of 2024, reflecting an increase of 7.4%[27]. - Non-GAAP adjusted net earnings for the quarter were $72,114 thousand, compared to $68,127 thousand in the same quarter of 2024, an increase of 4.4%[32]. - Earnings per share - diluted - Adjusted for the quarter was $0.46, up from $0.42 in the same quarter of 2024, indicating a growth of 9.5%[32]. Tax and Financial Position - The GAAP effective tax rate for the quarter was 25.2%, an increase from 18.6% in the same quarter of 2024[30]. - Total assets as of December 31, 2025, were $2,522,699 thousand, a decrease from $2,557,868 thousand as of June 30, 2025[38]. - Net earnings for the quarter ended December 31, 2025, were $38,009 thousand, an increase from $34,890 thousand in the same quarter of 2024, representing a growth of 6.4%[25]. - Net earnings for the six months ended December 31, 2025, increased to $76,194 million from $68,490 million in 2024, representing a growth of approximately 10.5%[40]. Cash Flow and Investments - Net cash provided by operating activities decreased to $109,996 million from $148,235 million, a decline of about 25.6%[40]. - Cash and cash equivalents at the end of the period were $172,879 million, compared to $177,549 million at the end of the previous period, reflecting a decrease of approximately 2.8%[40]. - The company reported a net cash used in investing activities of $5,316 million, a significant improvement from $26,716 million in the previous period[40]. - Cash dividends paid were $24,914 million, slightly down from $25,424 million, indicating a stable dividend policy[40]. - The effect of exchange rate changes on cash and cash equivalents resulted in a decrease of $797 million, highlighting currency impact on financial results[40]. Strategic Initiatives and Company Outlook - The company generated over $1.2 billion in net sales in fiscal 2025, with approximately 3,100 employees worldwide[14]. - The company celebrates its 50th anniversary in 2026, emphasizing its commitment to innovation and growth[4]. - Ongoing productivity and cost containment initiatives contributed to the improved operating margins across segments[10]. - The company’s non-GAAP financial measures aim to provide greater transparency and facilitate period-to-period comparisons of operational results[41]. - The adjusted operating margin excludes acquisition-related expenses and restructuring costs, which are not reflective of normal operating costs[44]. - The company’s investment in Spear Bio was recorded as a $15,000 million expense in the previous period, indicating strategic investment activities[40].

MINNEAPOLIS, Feb. 4, 2026 /PRNewswire/ -- Bio-Techne Corporation (NASDAQ: TECH) today reported its financial results for the second quarter ending December 31, 2025. Second Quarter FY2026 Highlights "I am pleased with the Bio-Techne team's continued execution in a stabilizing operating environment," said Kim Kelderman, President and Chief Executive Officer of Bio-Techne. "For the fourth consecutive quarter we delivered double-digit growth in our biggest end market, large pharma. That momentum, together with ...

Core Insights - Bio-Techne Corporation has launched Cultrex™ Synthetic Hydrogel, a synthetic extracellular matrix designed to enhance 3D stem cell and organoid research by reducing lot-to-lot variability and supporting reproducible workflows [1][3] Product Overview - Cultrex Synthetic Hydrogel supports 3D organoid models for applications such as drug screening, toxicology, and personalized medicine, minimizing reliance on animal-derived matrices and facilitating the use of new approach methodologies (NAMs) [2] - The hydrogel's controlled composition ensures consistency and traceability, aligning with regulatory requirements and enhancing preclinical research outcomes [3] Market Positioning - The launch of Cultrex Synthetic Hydrogel reflects the evolving needs of researchers transitioning from discovery to translational workflows, providing a scalable and reproducible option without compromising performance [4] - Bio-Techne's portfolio now includes a range of solutions for stem cell and organoid culture, offering flexibility to meet various experimental and regulatory needs [4] Company Background - Bio-Techne Corporation generated over $1.2 billion in net sales in fiscal 2025 and employs approximately 3,100 people globally, providing innovative tools and reagents for research and clinical diagnostics [6]

Core Viewpoint - Investors are evaluating CSL Limited Sponsored ADR (CSLLY) and Techne (TECH) to determine which stock offers better value for investment at the current time [1] Group 1: Zacks Rank and Earnings Outlook - CSLLY has a Zacks Rank of 2 (Buy), indicating a positive earnings estimate revision trend, while TECH has a Zacks Rank of 4 (Sell), suggesting a less favorable outlook [3] - The improving earnings outlook for CSLLY positions it as a more attractive option for value investors [7] Group 2: Valuation Metrics - CSLLY has a forward P/E ratio of 18.08, significantly lower than TECH's forward P/E of 32.34, indicating that CSLLY may be undervalued [5] - The PEG ratio for CSLLY is 1.77, while TECH's PEG ratio is 3.72, further suggesting that CSLLY offers better value considering expected earnings growth [5] - CSLLY's P/B ratio is 2.88 compared to TECH's P/B of 5.07, reinforcing the notion that CSLLY is more attractively priced relative to its book value [6] - Based on these valuation metrics, CSLLY holds a Value grade of B, while TECH has a Value grade of D, indicating a stronger value proposition for CSLLY [6]

Core Viewpoint - Bio-Techne Corporation (TECH) is expected to release its second-quarter fiscal 2026 results on February 4, with adjusted earnings per share (EPS) anticipated at 43 cents, reflecting a 2.4% increase from the previous year, while revenues are projected at $292 million, indicating a 1.7% decrease year-over-year [1][2]. Group 1: Earnings Performance - In the last reported quarter, Bio-Techne posted adjusted EPS of 42 cents, matching the Zacks Consensus Estimate, with the company beating earnings in three of the last four quarters and matching once, averaging a surprise of 6.58% [1]. - Estimates for earnings have remained constant at 43 cents over the past 30 days, indicating stability in expectations leading up to the announcement [3]. Group 2: Revenue Estimates - The Zacks Consensus Estimate for revenues is set at $292 million, which represents a decrease of 1.7% from the year-ago figure [2]. - The consensus estimate for the Spatial Biology segment's revenues is pegged at $81.6 million, down 3% from the previous year [15]. Group 3: Factors Influencing Performance - Ongoing macro uncertainties, including tariffs and potential NIH budget cuts, may add to customer uncertainty and temporarily slow growth momentum in the second quarter of fiscal 2026 [4]. - The timing related to cell therapy programs negatively impacted sales in the previous quarter, and this trend is expected to continue [5]. - The core portfolio of research-use-only proteomic agents, featuring over 6,000 proteins and 400,000 antibody types, is likely to support global customers in advancing therapeutics for precision diagnostics [6]. Group 4: Segment Developments - The protein analytical instrumentation business is expected to maintain strong momentum, with the ProteinSimple solution resuming double-digit growth [7]. - Demand for the next-generation high-throughput instrument, Leo, appears to be strong, contributing positively to quarterly results [8]. - Major developments include a licensing agreement with Monod Bio for exclusive rights to a subset of AI-designed bispecific binding proteins and a strategic distribution partnership with Sphere Bio for ultrasensitive immunoassays targeting Alzheimer's biomarkers [10]. Group 5: Challenges and Growth Areas - The Spatial Biology segment may face revenue declines due to the divestiture of the Exosome Diagnostics business, despite growth in the RNAscope product suite [12]. - The segment is likely to encounter headwinds from NIH funding uncertainties and a weaker biotech funding environment [13]. - The company has launched several new products and partnerships aimed at enhancing its offerings in spatial biology and diagnostics, which may contribute to top-line performance [14].

Core Insights - Bio-Techne Corporation has launched Simple Plex Ultra-Sensitive Assays on the Ella automated benchtop platform, enhancing capabilities for neurodegenerative disease research [1][4]. Group 1: Product Launch and Features - The new assays provide step-change improvements in analytical sensitivity and reliable quantification of biomarkers such as NFL, GFAP, pTau 217, and Amyloid (aa1-42) [2][4]. - The Ella platform allows for femtogram-level detection, enabling precise quantification of low-abundance biomarkers that are often undetectable by conventional methods [4][5]. - The automated workflow of Ella reduces manual steps and variability, achieving an overall runtime of under three hours for assay results [4][7]. Group 2: Research Impact and Adoption - The assays facilitate the detection of subtle biological changes, accelerating insights into disease onset, progression, and treatment response [3][4]. - Ella has been cited in over 200 peer-reviewed publications focused on neurology, demonstrating its widespread adoption in translational and clinical research [3][5]. - Bio-Techne's immunoassay leadership is strengthened by combining ultrasensitive assays with automated instrumentation, improving reproducibility and data quality [5]. Group 3: Company Overview - Bio-Techne generated over $1.2 billion in net sales in fiscal 2025 and employs approximately 3,100 people globally [6]. - The company provides innovative tools and bioactive reagents for research and clinical diagnostics, with a broad portfolio that drives breakthroughs in neuroscience research and precision medicine [6][5].