Burry-backed scientific instrument maker Bruker jumps on 1Q earnings

In late April, Michael Burry, founder of Scion Asset Management and the inspiration for the movie The Big Short, disclosed his purchase of preferred shares in laboratory equipment maker Bruker. On Wednesday, the company released its first-quarter results, marking the first real test of that investment, and the market wanted to understand whether the business was capable of restoring operating margins and rebuilding its order book. The reaction has been positive: after the earnings release, Bruker shares have jumped more than 10%, the numbers strengthening expectations for a recovery in the company’s business in the second half of this year.

Bruker’s results came in ahead of expectations, although the overall picture remains mixed. Revenue in the first quarter rose 2.7% year over year to $823.4 million, though excluding FX fluctuations and acquisitions, revenue declined 4.4%. Adjusted earnings per share beat expectations at $0.31 versus a consensus forecast of $0.23 per share. At the same time, the adjusted operating margin narrowed to 10.2% from 12.7% a year earlier. Overall, the earnings are better viewed as a signal of stabilization and improving momentum rather than confirmation of a full turnaround in the business.

However, the most positive part of the report was not the current financial performance, but the order trends and reaffirmation of the company’s 2026 guidance. Bruker maintained its revenue guidance at $3.57-3.60 billion, implying growth of 4-5% year over year, alongside organic growth of 1-2%. The guidance for adjusted earnings per share also remained unchanged at $2.10-2.15, corresponding to growth of 15-17%. The management identified the cost cuts as the key driver of the expected second-half improvement, eyeing an adjusted operating margin expansion of 300-350 basis points. The company also expects easing FX and tariff pressure beginning in the second quarter to provide additional support.

Bruker CFO Gerald Herman said during the earnings call that the company now expects approximately $140 million in annualized cost savings versus the previously announced $100-120 million range. According to Herman, the bulk of the benefit from the optimization program should begin to materialize starting in the second quarter and through the second half of the year.

Bruker CEO Frank Laukien said first-quarter organic orders growth in the company’s core Bruker Scientific Instruments segment – which includes scientific instruments and solutions for biotechnology and semiconductor applications – rose at a high-single-digit rate excluding FX effects. The book-to-bill ratio has remained above 1 for the third consecutive quarter, Laukien noted.

Responding to a question from Guggenheim analyst Subbu Nambi on whether the Middle East conflict could support defense-related demand, Laukien said demand is already benefiting from efforts by several European countries to strengthen threat-detection capabilities so as “not to become the next Ukraine.” According to the management, that business has effectively doubled over the last two to three years and become a meaningful growth driver, although Bruker is not yet incorporating a material contribution into its 2026 guidance because large contracts would likely translate into revenue only in 2027-2028.

On the day of the earnings release, Bruker common shares (BRKR) rose to $42.30 per share, gaining 11.3%, and continued trading above $43 per share the following day. However, in early trading on Friday, the stock was down roughly 2%. The preferred shares (BRKRP) have gained about 11%.

At present, nine Wall Street analysts rate Bruker common shares a “buy,” five “hold,” and one “sell.” The average target price stands at $48.86 per share, implying upside of roughly 12%.

The common shares remain a more direct bet on a recovery in Bruker’s earnings, while the preferred shares purchased by Burry offer a dividend yield above 6% annually and are subject to mandatory conversion on September 1, 2028.