Snapshot
Repligen Corp reported $194M of revenue in Q1 2026, up 14.8% year over year, with diluted EPS of $0.15 and an operating margin of 8.2%.
- Revenue
- $194M
- YoY growth
- +14.8%
- Diluted EPS
- $0.15
- Operating margin
- 8.2%
What management said
- •On this call, we will cover business highlights and financial performance for the three month period ended March 31st, 2026, and we'll provide financial guidance for the full year 2026.
- •During this call, we are providing non-GAAP financial results and guidance unless otherwise noted.
- •Great execution once again by our team enabled us to deliver 15% reported revenue growth or 11% organic and 160 basis points of adjusted operating margin expansion.
- •Mid-teens top-line growth, coupled with disciplined cost management, resulted in margins outperforming expectations.
- •This OEM relationship advances our strategy in the country where we are seeing significant growth again.
- •We did see encouraging signs in the first quarter and remain convinced the capital equipment tap will open.
- •We delivered $194 million of first quarter revenue, driven by healthy demand across our broad portfolio and all geographies.
- •Analytics led the way with 50%+ growth, but all of our franchises grew nicely again in the first quarter.
- •Consumables, including proteins, grew double digits, which was coupled with solid capital equipment growth, and services remained a standout with 30%+ growth.
- •Capital equipment demand benefited from strength in analytics, mixers, and easier comps.
- •We also saw growth across our diversified customer base and all geographies.
- •Order trends were solid in the first quarter with a significant pickup in March and included some conversion of our robust capital equipment funnel.
What went well
- •Delivered $194 million of first quarter revenue, up 15% reported and 11% organic, with 160 basis points of adjusted operating margin expansion as mid-teens top-line growth combined with disciplined cost management.
- •Process Analytics led the way with over 50% growth (40% organic), historically the weakest seasonal quarter, while services remained a standout with 30%+ growth.
- •China revenue nearly doubled year-over-year, the best revenue quarter in the country in over two years, driven by strength in mixers and a recovering local-demand funnel.
- •Emerging biotech grew 20%+ for the fourth quarter in a row, and the high-probability opportunity funnel reached its highest level ever, significantly above a year ago.
- •Adjusted EPS of $0.48 was up 23% year-over-year, gross margin expanded 180 basis points to 55.5%, and adjusted operating income rose 28%.
What went wrong
- •New modalities were dilutive to growth given the previously discussed gene therapy headwind.
- •ATF expectations for 2026 were moderated because two commercial-drug customers are temporarily managing down inventory on drugs that have used ATF for a few years.
- •Capital equipment growth in Q1 benefited from an easy comp, and customer decision-making on larger CapEx remains slow with the 'tap' not yet fully open.
- •Emerging biotech activity, while growing, still remains below historical levels (roughly 8%-9% of sales versus a historical ~10%), so management is hesitant to call it a sustained trend.
Guidance changes
| Metric | Period | Previous | Current | Change |
|---|---|---|---|---|
| Revenue | FY2026 | $810M-$840M | $803M-$833M (9%-13% reported and organic) | |
| Organic revenue growth | FY2026 | 9%-13% | 9%-13% (reiterated) | |
| Adjusted gross margin expansion | FY2026 | approximately 125 bps | 110-160 bps | |
| Adjusted operating income | FY2026 | $122M-$130M | $124M-$132M (160-200 bps margin expansion) | |
| Adjusted diluted EPS | FY2026 | $1.93-$2.01 | $1.97-$2.05 (up $0.04 at both ends) | |
| Adjusted effective tax rate | FY2026 | 22%-23% | 22%-23% (unchanged) |
Performance breakdown
| Metric | YoY change | Reason |
|---|---|---|
| Total revenue | +15% reported / +11% organic | Healthy demand across the broad portfolio and all geographies; FX added 3 points and two months of inorganic upstream analytics contribution. |
| Analytics | +50%+ | Strength in downstream analytics and the SoloVPE PLUS upgrade cycle; aided capital equipment demand. |
| Services | +30%+ | High attachment rate of service to analytical equipment and dedicated investment in the service business. |
| Adjusted gross margin | +180 bps to 55.5% | Volume leverage, pricing execution, favorable product mix from analytics and accretive filtration products, plus cost-absorption timing that will normalize over the year. |
| Adjusted operating margin | +160 bps to 15.4% | Mid-teens top-line growth coupled with disciplined cost management; 200 bps excluding M&A and FX. |
| Adjusted EPS | +23% to $0.48 | Higher adjusted operating income, partially offset by slightly lower interest income on declining rates. |
Earnings call themes & trends
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Transformation office / margin | Committed to margin expansion balanced with growth investments toward 30% adjusted EBITDA by 2030 | Launched a transformation office to accelerate Fit for Growth and margin; estimated at least 1 point of annualized margin benefit by end of 2027, on top of normal run rate | |
| China | Optimistic China returns to growth in 2026 off a low base | China nearly doubled in Q1; signed a multi-phase OEM partnership for local manufacturing beginning in 2027 to reclaim the market | |
| Portfolio optimization | Working to optimize fluid management and product-line margins | Divested the non-core, loss-making Polymem operation in France on March 30 for nominal proceeds (~$7M of 2025 revenue removed from guidance) | |
| Capital equipment / orders | Muted demand for equipment outside specific drivers; awaiting RFP responses | Solid order trends with a significant March pickup; began winning RFPs, with conversion of the robust capital equipment funnel |
Q&A summary
Within the strong Q1 op margin, what was incidental (mix, cost timing) versus a structural reprioritization, and how should the transformation office's ~1 point benefit be modeled?
Drivers were volume leverage, price, and strong mix from analytics and certain filtration product lines, plus a cost-absorption timing element that unwinds through the year. Q2 will be lower than Q1, Q3 may step down slightly, and Q4 steps back up; full-year mix is neutral. The transformation office's ~1 point of annualized margin should be thought of as run rate by end of 2027 with full benefits in 2028, on top of the normal run rate and helping de-weight the back-end loading toward the 30% EBITDA 2030 goal.
Where was the March equipment pickup most notable, and have you heard back on the RFPs you were waiting on?
Capital equipment grew year-over-year on an easy comp, driven mostly by analytics and mixers, including a nice pickup in mixer demand in China. After a slower start through mid-February, ordering accelerated in the second half of the quarter, particularly on capital equipment. The company began winning some RFPs answered late last year, encouraging because it previously did not have a seat at the table.
China nearly doubled off a low base. How much was the OEM partnership versus order timing versus genuine demand, and the composition?
The OEM partnership has no impact yet since it was just signed; partners are expected up and running toward the beginning of next year, transferring filtration consumables first. The growth was driven by genuine local China demand coming back (mixers, filters, consumables) with a very strong funnel, and the partnership sends a strong signal that Repligen is reclaiming the China market.
With a one-point organic beat in Q1 and similar Q2 expected but the low end of the full-year guide unchanged, how much reflects a moderated ATF view in the second half?
Starting at the midpoint means no second-half acceleration is needed to hit the midpoint. Landing at the low end would imply market softening they are not seeing. ATF was moderated for 2026 due to two commercial-drug customers temporarily managing inventory; this is transitory, and ATF is expected to be a real tailwind from 2027 onward as those drugs grow and customers implement ATF across more products.
How quickly do you turn the equipment order book today across the portfolio?
Turnaround varies: analytics can turn in a couple of weeks; stainless-steel mixers below three months and single-use mixers slightly more; ATF systems often three months or less without customization; downstream catalog systems around three months and custom five to six months. The bigger variable is customer site preparedness, especially for onshoring projects, which may push revenue recognition into mid-to-second-half 2027.