Bio-Techne’s full-year GAAP operating income surged 146% during fiscal 2026, even as adjusted operating income increased only 1%, highlighting the substantial impact that impairment charges, litigation items and asset recoveries had on the life sciences company’s year-over-year reported results.
GAAP operating income increased to $251.9 million from $102.3 million, while GAAP operating margin expanded to 20.7% from 8.4%. GAAP diluted EPS increased to $1.16 from $0.46.
The underlying adjusted results were considerably steadier. Adjusted operating income increased 1% to $386.1 million from $383.6 million, while adjusted EPS edged up to $1.93 from $1.92.
Bio-Techne said the GAAP comparison benefited from a non-recurring impairment charge and arbitration award recorded in fiscal 2025, along with a recovery of assets held for sale during fiscal 2026. Adjusted profitability benefited from ongoing profitability initiatives and the divestiture of Exosome Diagnostics.
Full-year sales were essentially unchanged at approximately $1.2 billion, with organic revenue also flat. Foreign currency contributed approximately two percentage points to growth, while a business held for sale reduced reported growth by approximately two percentage points.
Fourth-quarter results showed a similar divergence. Q4 revenue increased 1% to $321.2 million, while organic revenue increased 3%. GAAP operating income reached $74.3 million compared with a $23.9 million operating loss a year earlier, and GAAP operating margin improved to 23.1% from negative 7.5%.
Adjusted Q4 operating income, however, increased only modestly to $103.4 million from $101.3 million. Adjusted operating margin improved to 32.2% from 32%, while adjusted EPS declined slightly to $0.52 from $0.53.
Performance varied considerably between Bio-Techne’s two segments. Protein Sciences Q4 revenue increased 2% to $231.2 million, with organic growth of 1%, while operating margin fell to 42% from 43.6% because of unfavorable volume and product mix. Full-year Protein Sciences sales increased 1% to $874.6 million.
Diagnostics and Spatial Biology showed a stronger underlying improvement. Q4 reported sales were essentially flat at $90.1 million, but organic revenue increased 8%. Segment operating margin increased to 11.2% from 6%, helped by the Exosome Diagnostics divestiture, favorable volume growth and profitability initiatives.
For the full year, Diagnostics and Spatial Biology revenue declined 3% to $336.4 million, although organic revenue increased 4%. Operating margin reached 11.2% compared with 6.2% in fiscal 2025.
The results come as Bio-Techne works toward completing its acquisition by Merck KGaA, Darmstadt, Germany. The companies agreed in June to a transaction valued at approximately $11.3 billion in enterprise value, with Bio-Techne shareholders set to receive $73 per share in cash. Bio-Techne is no longer holding quarterly investor conference calls because of the pending deal.
KEY QUOTES:
“Bio-Techne ended fiscal 2026 with improved performance and solid execution across the business, reflecting the value our differentiated solutions bring across biopharma, research and diagnostic workflows.”
“We continue to make progress toward completing Bio-Techne’s acquisition by Merck KGaA, Darmstadt, Germany, and look forward to the opportunities this transaction is expected to create for our customers and employees.”
Kim Kelderman, President And Chief Executive Officer Of Bio-Techne
