Bruker (BRKR) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 2.7% year-over-year to $823.4 million, exceeding expectations despite macro, tariff, and FX headwinds, though organic revenue declined 4.4%.

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

• BSI segment bookings grew high single digits organically, 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.

• Cost-saving initiatives are driving margin improvements, with further expansion planned and annualized savings targeted at $140 million.

Financial highlights

• Q1 2026 reported revenue: $823.4 million (+2.7% YoY); organic revenue declined 4.4% YoY.

• Non-GAAP gross margin: 50% (down 130 bps YoY); non-GAAP operating margin: 10.2% (down 250 bps YoY).

• Non-GAAP diluted EPS: $0.31 (vs. $0.47 in Q1 2025), ahead of expectations.

• Operating cash flow: $71.2 million; free cash flow: $47 million (+$8 million YoY).

• Net leverage ratio reduced to 2.9x after $180 million debt paydown; cash and equivalents at $133.4 million.

Outlook and guidance

• FY 2026 revenue guidance reaffirmed at $3.57–$3.60 billion (+4–5% YoY); organic growth 1–2%.

• Non-GAAP EPS guidance: $2.10–$2.15 (+15–17% YoY); CER EPS growth 23–25%.

• Non-GAAP operating margin expansion of 250–300 bps expected, driven by cost savings.

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

• FX expected to be a 1.5% revenue tailwind but a headwind to operating margin and EPS.