Bio-Techne Organic Sales Rebound After March Decline

The Tip Desk · November 7, 2026 · 3 min read

Organic revenue rose 7% in the quarter ended September 30, 2026, reversing a 2% organic decline three months earlier.

Bio-Techne Corporation (TECH), a developer of biotechnology reagents, instruments and services, reported consolidated net sales of $299.7 million for the quarter ended September 30, 2026, up 5% from the year-ago quarter.

The life-sciences company said organic revenue increased 7%, reversing a 2% organic decline in the quarter ended March 31, 2026. Foreign currency had an immaterial impact, and businesses held for sale contributed an unfavorable 2% to reported growth.

Protein Sciences, the larger of the two reportable segments, accounted for most of the rebound. Segment net sales were $219.7 million, up 9% from a year earlier, after a 1% year-over-year decline in the March quarter. Organic growth in Protein Sciences was 9%, with foreign currency immaterial.

Diagnostics and Spatial Biology net sales were $80.2 million, up 1% from a year earlier, after a 4% year-over-year decline in the March quarter. Organic growth in that segment was 1%.

GAAP gross margin was 65.6%, matching the year-ago quarter. Adjusted gross margin, which excludes intangible amortization, stock-based compensation, restructuring costs and held-for-sale businesses, was 69.3%.

Selling, general and administrative expenses rose 15% to $133.7 million. Research and development expenses increased 9% to $26.3 million.

GAAP net earnings before taxes were $34.7 million. Non-GAAP adjusted net earnings were $70.1 million, or $0.44 a share. Acquisition-related expenses and other were $17.9 million.

The GAAP effective tax rate was 18.4%. The company said the change from the year-ago rate of 20.4% was driven by the mix of net income and the timing of discrete items. Excluding discrete items, it expects the consolidated income tax rate for the remainder of fiscal 2027 to range from 23% to 27%.

Protein Sciences operating margin was 37.9%. Diagnostics and Spatial Biology operating margin was 7.4%.

Cash and cash equivalents were $350.0 million as of September 30, 2026. The company generated $73.1 million from operating activities in the first quarter of fiscal 2027, compared with $27.6 million a year earlier, which it attributed primarily to the timing of cash payments on operating assets and liabilities. Capital expenditures were $5.9 million; remaining fiscal 2027 capital spending is expected at about $28 million. Cash dividends paid were $12.6 million.

On September 23, 2026, shareholders approved a merger with Merck KGaA of Darmstadt, Germany, under which a Merck subsidiary would merge with and into Bio-Techne, leaving the company a wholly owned subsidiary. The deal is expected to close by late 2026 or early 2027, subject to customary closing conditions.

Management said it expects to meet cash and working-capital needs for operations, facility expansion, capital additions and dividends through available cash, operating cash flow and remaining credit on its revolving line of credit. The second option payment on the Wilson Wolf forward contract of approximately $1 billion plus potential contingent consideration is forecast to occur between fiscal 2027 and fiscal 2028; as of September 30, 2026, the acceleration milestones had not been met.