Bruker (BKD) Q3 2026 Earnings Report

The call was predominantly positive. Bruker reported significant margin expansion, 24.4% non-GAAP EPS growth, improved free cash flow, debt reduction, sustained bookings above one, strong China and semiconductor metrology bookings, and reaffirmed full-year guidance. These positives were partly offset by modest organic revenue growth, BSI revenue pressure from semiconductor pushouts, weakness in selected academic and government and industrial markets, a $175 million Spatial Biology goodwill impairment, and a GAAP loss. Management expressed increased confidence in the fourth quarter and meaningful growth and margin improvement in 2027.

For fiscal year 2026, Bruker expects reported revenue of $3.52 billion-$3.56 billion, representing reported growth of 2.5%-3.5%, organic revenue growth of 1%-2%, contribution from acquisition to approximately 1.5%, currency to be approximately neutral, non-GAAP operating margin expansion of 250-300 basis points, and non-GAAP EPS of $2.10-$2.15, up 15%-17%; for the fourth quarter, it expects organic revenue to grow in the lower mid-single digits percentage year over year, with meaningful sequential and year-over-year increases in operating margin and EPS, a likely $1 billion in revenue quarter, and operating margin stepping up to the high teens, while for fiscal year 2027 it is committed to double-digit EPS growth, is seeking greater than 100 basis points of further operating margin expansion, and expects organic growth at least to the lower mid-single digits; BMID is expected to be a high single-digit growth area long term, and Bruker targets reducing its tax rate by at least 50 basis points on a year-over-year basis in 2027.