Bruker (BRKR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $823.4M, up 2.7% year-over-year, but organic revenue declined 4.4% due to weaker academic, government, and industrial demand, tariffs, and currency headwinds; performance exceeded expectations.

• Non-GAAP EPS was $0.31, down from $0.47 in Q1 2025, impacted by FX headwinds and lower margins, but ahead of expectations; GAAP diluted EPS was $0.02.

• BSI segment bookings grew organically at a high single-digit percentage, with a book-to-bill ratio above 1.0x for the third consecutive quarter.

• AI-driven semiconductor metrology, SciY software, and security detection businesses delivered over 20% organic bookings growth.

• Innovation momentum with impactful new product launches in NMR, spatial biology, and clinical microbiology.

Financial highlights

• Q1 2026 reported revenue was $823.4M, up 2.7% year-over-year; organic revenue declined 4.4%.

• Non-GAAP gross margin was 50% (down 130 bps), GAAP gross margin was 46.1%; non-GAAP operating margin was 10.2% (down 250 bps); GAAP operating income was $10.2M.

• Net income attributable to shareholders was $3.5M, down from $17.4M in Q1 2025; non-GAAP net income was $47.0M.

• Free cash flow was $47.0M, up from $39.0M in Q1 2025; operating cash flow was $71.2M.

• Cash and cash equivalents at quarter-end were $133.4M, reflecting ~$180M in debt paydown; total debt was $1.7B.

Outlook and guidance

• FY2026 revenue guidance reaffirmed at $3.57B–$3.60B (4–5% growth), with organic growth of 1–2%.

• Non-GAAP EPS expected at $2.10–$2.15 (15–17% growth); CER EPS growth of 23–25% year-over-year.

• Non-GAAP operating margin expansion of 250–300 bps, driven by cost-saving actions; FX expected to be a 1.5% revenue tailwind but a headwind to OPM and EPS.

• Q2 2026 organic revenue growth expected in low to mid-single digits; significant margin and EPS improvement anticipated.

• Management targets $100–$140M in annualized cost savings by end of 2026.