TECH Q4 Earnings Meet Estimates, Revenues Surpass, Stock Rises

GAAP EPS was 35 cents compared to a loss of 11 cents in the prior-year quarter.

For the full year, adjusted EPS of $1.93 increased 0.5% from the fiscal 2025 adjusted figure and surpassed the consensus mark by 1%.

TECH's Revenues in Detail

In the fiscal fourth quarter, net sales came in at $321.2 million, up 1% year over year on a reported basis and 3% on an organic basis. The figure surpassed the Zacks Consensus Estimate by 1.26%. 

Full-year revenues were $1.22 billion, remaining flat from fiscal 2025 on both a reported and organic basis. Foreign currency had a favorable impact of 2%, while a business held for sale had an unfavorable impact of 2%. The metric came 0.8% above the consensus mark.

Following the announcement, TECH shares edged up 0.1% to close yesterday’s session at $72.23.

Segmental Analysis of TECH's Q4 Revenues

Within Protein Sciences, Bio-Techne recorded revenues of $231.2 million, up 2% year over year from $226.5 million. Organic revenues increased 1%, while foreign currency had a favorable impact of 1%.

Within Diagnostics and Spatial Biology, revenues were $90.1 million, roughly flat from $89.7 million in the prior-year quarter. Organic revenues increased 8%, while the held-for-sale business had an unfavorable impact of 8%.

TECH’s Q4 Margins

Bio-Techne’s gross profit increased 6.3% year over year to $211.4 million. The gross margin expanded 310 basis points (bps) to 65.8% as the cost of sales declined 7.1% to $109.8 million. Adjusted gross margin, however, contracted 80 basis points (bps) to 69.2%.

Selling, general and administrative expenses declined 42.4% to $113.2 million. Research and development expenses totaled $23.9 million, down 8.0% year over year. Total operating expenses fell 38.4% to $137.1 million from $222.7 million in the prior-year quarter.

The company generated operating income of $74.3 million in the fiscal fourth quarter compared to an operating loss of $23.9 million in the year-ago quarter.

Bio-Techne’s Capital Structure

Bio-Techne exited fiscal 2026 with cash and equivalents of $264.7 million compared with $162.2 million at the end of fiscal 2025. Long-term debt obligations totaled $200 million compared with $346 million at the end of the prior fiscal year.

Cumulative net cash provided by operating activities was $292.1 million at the end of fiscal 2026 compared with $287.6 million a year ago.

Bio-Techne’s Merck Deal Remains in Focus

On June 25, 2026, Bio-Techne entered into an agreement to be acquired by Merck KGaA, Darmstadt, Germany, for $73 per share in cash, representing a total enterprise value of approximately $11.3 billion.

Management said it continues to make progress toward completing the transaction and expects the combination to create opportunities for the company’s customers and employees. In light of the announced deal, Bio-Techne is no longer holding investor conference calls for quarterly results.

Our Take on Bio-Techne’s Results

Bio-Techne exited the fourth quarter of fiscal 2026 with in-line earnings, while revenues surpassed estimates. Protein Sciences posted modest growth, supported by underlying organic gains, though unfavorable volume and product mix pressured segment profitability. Diagnostics and Spatial Biology delivered stronger organic growth and improved profitability, helped by favorable volume trends, ongoing profitability initiatives and the Exosome Diagnostics divestiture. Meanwhile, the contraction in adjusted gross margin during the quarter is discouraging.

TECH’s Zacks Rank & Key Picks

Bio-Techne currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks from the broader medical space are Labcorp Holdings LH, Quest Diagnostics DGX and Medpace MEDP.

Labcorp, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $4.99, which surpassed the Zacks Consensus Estimate by 4.18%. Revenues of $3.73 billion beat the Zacks Consensus Estimate by 0.36%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

LH has an earnings yield of 5.9% compared with the industry’s 4.1% yield. The company's earnings beat estimates in each of the trailing four quarters, the average surprise being 3.09%.

Quest Diagnostics, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $3.12, exceeding the Zacks Consensus Estimate by 11%. Revenues of $3.04 billion topped the Zacks Consensus Estimate by 2.1%.

DGX has an earnings yield of 4.7%, almost in line with the industry’s yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.77%.

Medpace, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 4.17%. Revenues of $707.3 million outperformed the consensus mark by 1.12%.

MEDP has a historical five-year earnings growth rate of 30.5% compared with the industry’s 5.6% growth. In the trailing four quarters, the company delivered an average earnings beat of 10.16%.

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