Bruker — Third Quarter 2026 Earnings Summary

Financial Performance:

• Q3 2026 revenue was $874.0 million, a 1.6% year-over-year increase from $860.5 million in Q3 2025; organic revenue growth was 0.7%.
• Q3 2026 non-GAAP diluted EPS was $0.56, up 24.4% year-over-year from $0.45; GAAP diluted loss per share was $(0.81) compared to $(0.41) in the prior year.
• Q3 2026 non-GAAP operating income was $142.6 million, up from $105.9 million in Q3 2025, resulting in a non-GAAP operating margin of 16.3% compared to 12.3%.
• Q3 2026 GAAP operating loss was $(91.0) million, impacted by a $174.5 million non-cash goodwill impairment charge; GAAP operating loss in Q3 2025 was $(51.8) million.
• For the first nine months of 2026, revenue was $2.54 billion, up 3.1% year-over-year; organic revenue decreased 0.3%.
• First nine months 2026 non-GAAP operating margin improved to 13.6% from 11.4% in the prior year; non-GAAP diluted EPS was $1.36 compared to $1.23.
• First nine months 2026 GAAP operating loss was $(146.1) million, compared to $(8.1) million in the prior year.
• Net cash provided by operating activities for Q3 2026 was $118.2 million, compared to $(33.2) million in Q3 2025; for the first nine months, it was $112.0 million versus $(95.7) million.
• Non-GAAP free cash flow for Q3 2026 was $96.7 million, compared to $(54.1) million in the prior year; for the first nine months, it was $37.5 million versus $(163.9) million.
• As of September 30, 2026, total assets were $5.83 billion; total debt (current and long-term) was $1.71 billion.
• Deferred revenue and customer advances (current portion) were $428.8 million as of September 30, 2026, down from $441.3 million at December 31, 2025.

Guidance and Future Outlook:

• Reconfirmed FY2026 revenue guidance of $3.52 to $3.56 billion, representing 2.5% to 3.5% year-over-year reported growth.
• FY2026 organic revenue growth is expected to be 1% to 2%; M&A revenue growth is approximately 1.5%; CER growth is 2.5% to 3.5%.
• Foreign currency translation is expected to be neutral to revenue for FY2026, a change from a previously expected tailwind of 0.5%.
• Reconfirmed FY2026 non-GAAP EPS guidance of $2.10 to $2.15, representing a 15% to 17% year-over-year increase.
• Management expects revenue growth acceleration, continued margin expansion, and double-digit EPS growth in FY2027.
• Management anticipates strengthening demand in most end markets and specifically in the US academic market.

Business Segments and Product Lines:

• Bruker Scientific Instruments (BSI) revenue was $793.9 million in Q3 2026, up 0.8% year-over-year; organic revenue decreased 0.4%.
• BSI book-to-bill was greater than one for the fifth consecutive quarter; BSI organic bookings and backlog were up mid-single digits year-to-date.
• Bruker Energy & Supercon Technologies (BEST) revenue was $82.1 million in Q3 2026, up 11.2% year-over-year with 11.8% organic growth.
• BEST revenue for the first nine months of 2026 was $223.1 million, up 11.9% year-over-year with 8.3% organic growth.
• Segment revenue for Q3 2026: BSI BIOS $397.2 million, BSI BMID $133.6 million, BSI Nano $263.1 million, and BEST $82.1 million.
• Effective July 1, 2026, the company reorganized reportable segments into BSI BIOS, BSI BMID, BSI Nano, and BEST.
• Key growth drivers identified include infectious disease diagnostics, deep-tech, and semiconductor metrology.

Market and Competitive Landscape:

• Management noted strengthening demand in most end markets, including the US academic market.
• The company operates in post-genomic drug discovery, disease biology, proteoforms, glycobiology, and spatial biology.
• The company supports AI frontier models through its scientific instruments and data capabilities.

Risks and Challenges:

• Significant GAAP losses were driven by non-cash goodwill impairment charges ($174.5 million in Q3 2026; $309.4 million in the first nine months).
• Forward-looking statements cite risks including global economic conditions, supply chain challenges, inflationary pressures, and geopolitical instability.
• Specific geopolitical risks include the conflict in Ukraine, tensions in the Middle East, and US-China trade policy changes.
• Risks also include foreign currency fluctuations, interest rate volatility, and the integration of acquired businesses.
• The company notes uncertainty in providing GAAP reconciliations for forward-looking non-GAAP measures due to unpredictable restructuring and acquisition-related items.

Management Commentary and Tone:

• CEO Frank H. Laukien described the quarter as achieving "very significant margin expansion and non-GAAP EPS growth" driven by cost discipline.
• Management expressed confidence in "growth acceleration" for FY2027 based on positive booking trends and backlog growth.
• The tone emphasized the foundational role of Bruker's insights in drug development and AI models.

Other Key Points:

• The company incurred $57.0 million in cash paid for acquisitions in Q3 2026 and $73.0 million in the first nine months.
• Dividends paid to shareholders were $18.7 million in Q3 2026 and $55.8 million in the first nine months.
• Series A Mandatory Convertible Preferred Stock dividends were $11.0 million in Q3 2026 and $32.8 million in the first nine months.
• The company hosts an earnings call on November 4, 2026, at 8:30 am EST.
• Cash and cash equivalents decreased to $119.7 million as of September 30, 2026, from $298.8 million at December 31, 2025.
• Inventory levels increased to $1.10 billion as of September 30, 2026, from $1.09 billion at December 31, 2025.