Bio-Techne Misses Q1 Revenue Targets as Sales Slip 1.5%
Life sciences tools maker Bio-Techne (NASDAQ:TECH) reported first-quarter earnings for fiscal 2026 that missed Wall Street’s revenue estimates, as sales declined 1.5% year-over-year to $311.4 million. Adjusted earnings per share came in at $0.53, matching analyst consensus.
The Minneapolis-based company, which supplies specialized reagents, instruments, and services to researchers and diagnostic labs worldwide, has been navigating a mixed demand environment. CEO Kim Kelderman struck a cautiously optimistic tone, saying the team delivered “solid execution amid a mixed end-market environment.”
Still, the numbers tell a more complicated story. Over the past five years, Bio-Techne posted a compound annual revenue growth rate of 7.4%, respectable but below the healthcare sector’s top tier. More concerning, growth has slowed sharply in recent years: annualized revenue over the last two years was just 2.4%, and organic revenue—stripping out acquisitions and currency effects—averaged 2.5% growth over the same period.
“This is a company that rode the pandemic tailwind hard, but now it’s facing a hangover,” said Mark Delaney, a biotech analyst at Westwood Capital. “The revenue deceleration is real, and the margin compression is even more troubling. You can’t just blame the macro forever.”
Profitability, once a standout feature, is also under pressure. Bio-Techne’s adjusted operating margin averaged 33.5% over the last five years, but it has declined by 9.3 percentage points during that span. In Q1, the margin fell to 24.4%, down 10.5 points from a year ago, as expenses rose faster than revenue.
“I’ve been following this stock for years, and honestly, this quarter felt like watching a slow puncture,” said Rachel Torres, a portfolio manager at Beacon Equity Advisors. “The margins are eroding, growth is stalling, and the CEO’s ‘solid execution’ line sounds like corporate-speak for ‘we’re treading water.’”
On the earnings per share front, the picture is slightly brighter. Adjusted EPS declined to $0.53 from $0.56 a year ago, but that was in line with estimates. Analysts expect full-year EPS of $1.94, implying 8.9% growth over the next 12 months. Revenue is projected to grow 5.6% in the coming year, an improvement over recent trends, driven by new product launches and a potential recovery in biotech funding.
“The sell-side is betting on a rebound, but I’m not convinced,” said Dr. James Okonkwo, a former NIH researcher turned industry consultant. “The core issue is that Bio-Techne’s customers—academic labs and small biotechs—are still tightening budgets. Until we see a real uptick in research spending, these projections feel optimistic.”
Following the earnings release, Bio-Techne shares fell 2.8% to $55.12 in after-hours trading. The stock has declined roughly 15% over the past year, reflecting broader concerns about the life sciences tools sector.
For investors, the key question is whether Bio-Techne can reignite growth and stabilize margins. The company’s extensive catalog of biological products and strong brand recognition provide a foundation, but near-term headwinds remain. As one analyst put it, “This isn’t a broken company, but it’s in a rough patch. Patience will be tested.”