Bruker Corp. raised its full-year outlook at the Bank of America Global Healthcare Conference on Tuesday, pointing to an improving revenue mix and cost-savings measures that management says will push operating margins significantly wider.
The company now expects fourth-quarter revenue to exceed EUR 1 billion, roughly in line with the prior-year quarter but built on a more profitable product slate. Bruker also signaled that it will deliver at least 250 basis points of operating margin expansion for fiscal year 2026, with an additional minimum of 100 basis points targeted for fiscal 2027 as it works toward a long-run operating margin near 20%.
Management highlighted that cost reductions already implemented in fiscal 2026 are generating EUR 140 million to EUR 160 million in annualized savings. A separate restructuring of the company's nuclear magnetic resonance (NMR) business is expected to yield roughly EUR 20 million in additional annualized savings.
An important structural shift is underway in Bruker's revenue composition. The aftermarket and recurring-revenue segment — which includes service contracts and consumables — now accounts for about 40% of total revenue, up from roughly 25% nine years ago. The company reiterated a longer-term aspiration to reach a 50-50 split between instrument sales and aftermarket revenue.
Product momentum is supporting the upgraded trajectory. The timsOmni platform, introduced in 2025, along with other recent launches including timsMetabo, CosMx, Trevo, and the Fourier 80 benchtop NMR system, are helping broaden the order book across the company's life sciences and applied markets divisions.
Geographic and segment-level figures painted a broadly positive picture. Orders from China rose more than 20% in the second quarter, and diagnostics posted high single-digit order growth. Within semi-conductor solutions, the semi-metrology business — which represents approximately 9% of total revenue — recorded order growth of more than 15% in the second quarter. The U.S. academic and government research market, accounting for roughly 8% of revenue, is expected to benefit from anticipated congressional funding releases at the end of September 2026, according to management comments during the Q&A session.
Bruker also noted it is spending approximately 11% of revenue on research and development, a level it said supports the continued introduction of next-generation platforms such as the recently launched Xenium system from its NanoString acquisition.
