BIO

It has been about a month since the last earnings report for Bio-Rad Laboratories (BIO). Shares have added about 11.7% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Bio-Rad due for a pullback? Well, first let's take a quick look at the most recent earnings report in order to get a better handle on the recent drivers for Bio-Rad Laboratories, Inc. before we dive into how investors and analysts have reacted as of late. Bio-Rad Laboratories posted second-quarter 2026 adjusted earnings per share of $2.62, which surpassed the Zacks Consensus Estimate by 12%. The bottom line increased 0.4% from the prior-year quarter’s level. The company’s second-quarter GAAP earnings were $13.85 per share compared with $11.67 a year ago. Second-quarter revenues of $651 million missed the Zacks Consensus Estimate by 1%. The figure remained flat year over year (down 1.9% at constant exchange rate or CER). Bio-Rad expects non-GAAP, currency-neutral revenues to be in the range of a decline of approximately 3% to growth of approximately 0.5%. The company also expects a  non-GAAP operating margin of approximately 10% to 12%. Analysts were quiet during the last two month period as none of them issued any earnings estimate revisions. Currently, Bio-Rad has a subpar Growth Score of D, however its Momentum Score is doing a bit better with a C. Following the exact same course, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Bio-Rad has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Bio-Rad belongs to the Zacks Medical - Products industry. Another stock from the same industry, Neogen (NEOG), has gained 3.6% over the past month. More than a month has passed since the company reported results for the quarter ended May 2026. Neogen reported revenues of $225.3 million in the last reported quarter, representing a year-over-year change of -0.1%. EPS of $0.09 for the same period compares with $0.05 a year ago. Neogen is expected to post earnings of $0.05 per share for the current quarter, representing a year-over-year change of +25%. Over the last 30 days, the Zacks Consensus Estimate has changed +4.4%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Neogen. Also, the stock has a VGM Score of B. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report Neogen Corporation (NEOG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Tuesday, Aug. 4, 2026 at 5 p.m. ET Head of Investor Relations - Ruben Argueta Chief Executive Officer - Norman Schwartz President and Chief Operating Officer - Jonathan DiVincenzo Executive Vice President and Chief Financial Officer - Roop Lakkaraju Operator: Ladies and gentlemen, thank you for standing by. My name is Lisa, and I will be your conference operator today. At this time, I would like to welcome everyone to Bio-Rad's Second Quarter 2026 Results Conference Call and Webcast. I would now like to turn the conference over to Ruben Argueta, Bio-Rad's Head of Investor Relations. You may begin. Ruben Argueta: Thank you, operator. Good afternoon, everyone, and thank you for joining us. Today, we will review the financial results for the second quarter ended June 30, 2026, and provide an update on key business trends for Bio-Rad. With me on the call today are Norman Schwartz, our Chief Executive Officer; Jon DiVincenzo, President and Chief Operating Officer; and Roop Lakkaraju, Executive Vice President and Chief Financial Officer. Before we begin our review, I would like to remind everyone that we will be making forward-looking statements about management's goals, plans and expectations, our future financial performance and other matters. These statements are based on assumptions and expectations of future events that are subject to risks and uncertainties. Our actual results may differ materially from these plans, goals and expectations. You should not place undue reliance on these forward-looking statements, and I encourage you to review our filings with the SEC, where we discuss in detail the risk factors in our business. The company does not intend to update any forward-looking statements made during the call today. Finally, our remarks today will include references to non-GAAP financials, including net income and diluted earnings per share, which are financial measures that are not defined under generally accepted accounting principles. In addition to excluding certain atypical and nonrecurring items, our non-GAAP financial measures exclude changes in the equity value of our stake in Sartorius AG in order to provide investors with a better understanding of Bio-Rad's underlying operational performance. Investors should not -- investors should review the reconciliation of these non-GAAP measures to the comparable GAAP results contained in our earnings release. We have also posted a supplemental earnings presentation in the Investor Relations section of our website for your reference. With that, I will now turn the call over to our Chief Operating Officer, Jon DiVincenzo. Jonathan DiVincenzo: Thanks, Ruben. Good afternoon, everyone, and thank you for joining us. Total company revenue in the second quarter was approximately $651 million, essentially flat as reported and down 1.9% on a currency-neutral basis compared with the prior year. Sequentially, revenue was up 10%, reflecting improved performance as our teams overcame challenging end market dynamics in the first quarter. Clinical Diagnostics returned to modest currency-neutral growth, led by quality controls in our blood typing portfolio. In Life Science, results continue to be affected by softness in the academic research market. Excluding process chromatography, Life Science revenue was approximately flat on a currency-neutral basis, representing an improvement in the segment's underlying trend. Digital PCR was a particular area of strength, growing 6% in the quarter. In the academic and government market, demand remains below historical levels, particularly in Americas. NIH funding outlays have begun to increase year-over-year, but purchasing activity typically lags funding. The recent indicators are encouraging, but we need to see a more sustained pattern before concluding the market has entered a durable recovery. In biopharma, we are seeing early signs of stabilization, consistent with broader industry commentary. Improvement is most evident among later-stage and commercial scale biotech customers, where early-stage biotech companies remain more cautious as funding conditions have not yet fully normalized. Taken together, these indicators suggest the market is beginning a gradual recovery. Process chromatography, which represents less than 5% of Bio-Rad's total annual revenues, was sequentially up and declined year-over-year as expected. As a reminder, our current niche position in the polishing step of bioprocessing contributes to revenue concentration from a select number of commercial therapeutics and vaccines. For the remainder of the year, we expect the second half to mirror the first half. Turning to our regional performance. Americas remained soft, primarily due to continued pressure in the academic market. However, we saw improvement as we ended the quarter, and our teams are now cautiously optimistic as we enter the second half of the year. Asia Pacific, excluding China, grew 6% on a currency-neutral basis, with growth across most major product areas. China, which represents approximately 6% of Bio-Rad's total revenue, declined in the high teens, reflecting the timing of quality control orders and softer demand for life science instruments. For the remainder of the year, continued Life Science softness, coupled with order timing in clinical diagnostics are expected to create an approximate $4 million headwind. That impact is already incorporated into our full year guidance. We continue to adapt our business model to the changing market environment. Our in-China for-China manufacturing capability is operational, and we are now participating in a broader range of tenders. Over time, these actions should improve our competitive profile in the China market. EMEA returned to growth with Middle East revenue increasing 7% year-over-year. Channel partners began replenishing approximately $3 million in inventory during the quarter, although underlying customer demand has not yet stabilized. The continuing conflict in the region has driven higher fuel and transportation costs globally. We want to recognize our teams for navigating these challenges while continuing to support our customers and channel partners. Volatility in the region is expected to continue during the second half, which is reflected in our guidance. Moving beyond the Middle East, our digital PCR franchise continues to be an important strategic differentiator for Bio-Rad. Currency-neutral ddPCR revenue increased 6% year-over-year with instrument revenue growing more than 20%. The QX-700 continues to generate competitive wins and conversions from qPCR, supported by Bio-Rad's broad assay menu, industry-leading installed base and expanding body of scientific publications. Digital PCR consumables revenue was down slightly year-over-year, but increased sequentially. Consumables pull-through has not yet reached the level we ultimately expect. However, the strength in instrument sales is an encouraging indicator of customer demand and establishes a larger foundation for future recurring consumables revenue. We have also reached the first anniversary of our acquisition of Stilla Technologies. The expanded portfolio has accelerated revenue growth and is delivering margin performance ahead of our original expectations. The progress reinforces our approach to disciplined, focused M&A, acquiring differentiated commercial products that strengthen our portfolio, complement our existing capabilities and create durable value. Turning to our operational priorities. Since 2024, we have been working to make Bio-Rad a faster, more agile and efficient enterprise. Earlier this week, we announced the next phase of that work, including changes to our organizational structure, workforce and physical footprint. These actions are designed to reallocate resources toward the capabilities most important to our future. Cost savings are one outcome, but this is not simply a cost reduction program. We are reshaping the organization, strengthening critical capabilities, simplifying how work gets done and directing more of our resources towards innovation, customer needs and sustainable growth. Artificial intelligence is an important enabler of our transformation. Employees are using AI to accelerate analysis and decision-making, and we are seeing tangible results. For example, agentic AI enabled our product development teams to complete 12 months of software development in just 6 weeks. In another instance, our teams developed new cloud-based functionality in approximately one month, avoiding thousands of hours of conventional engineering work. In closing, the second quarter demonstrated meaningful sequential progress. Clinical diagnostics returned to growth, underlying Life Science trends improved and digital PCR delivered strong instrument performance. At the same time, we recognize that several end markets continue to evolve and that we must continue to improve how Bio-Rad operates. The organizational actions announced this week are the next step in an ongoing process to build a faster, leaner and more competitive company with resources and capabilities closely aligned to innovation, customer needs and growth. With that, I will turn the call over to Roop. Roop Lakkaraju: Thank you, Jon, and good afternoon. I'd like to start with a review of the second quarter 2026 results, then move to guidance. Overall, net sales for the second quarter of 2026 were approximately $651 million on a reported basis versus $652 million in Q2 of 2025. On a currency-neutral basis, this represents a 1.9% year-over-year decrease and was driven by lower sales in the Life Science segment. Life Science sales in the second quarter of 2026 were $252 million, a decrease of 4.1% compared to Q2 of 2025 on a reported basis and a 5.1% decrease on a currency-neutral basis. This was primarily driven by ongoing challenges in the academic research market and a tough process chromatography year-over-year comparison. Currency-neutral sales decreased in Americas and Asia Pacific, partially offset by increased sales in EMEA. Clinical Diagnostics sales in the second quarter of 2026 were approximately $399 million compared to $389 million in Q2 of 2025, an increase of 2.6% on a reported basis and 8.3% on a currency-neutral basis. Regionally, growth in Americas was offset by revenue declines in the broader Asia Pacific region. Ex China, the Asia Pacific region grew 6% and EMEA was roughly flat as the Middle East region rebounded 7% growth. Turning to gross margin. Consolidated gross margin was 53.1% for the second quarter of 2026 compared to 53% in Q2 2025. On a non-GAAP basis, second quarter gross margin was 53.9% versus 53.7% in the year ago period. Non-GAAP gross margin improved sequentially from 53.1% in the first quarter due to favorable manufacturing absorption and partially offset by an unfavorable product mix and elevated logistics costs. SG&A expense for the second quarter of 2026 was $212 million or 32.6% of sales compared to $208 million or 31.9% in Q2 of 2025. Second quarter non-GAAP SG&A expense was $209 million versus $201 million in the year ago period. The increase in SG&A expense is primarily due to higher employee-related costs. Research and development expense on a GAAP and non-GAAP basis in the second quarter of 2026 was $61 million or 9.4% of sales compared to $61 million or 9.3% of sales in Q2 of 2025. Q2 operating income was approximately $73 million compared to approximately $77 million in Q2 of 2025. On a non-GAAP basis, second quarter operating margin was 12.5% compared to 13.6% in Q2 of 2025, and this represents a sequential improvement from 6.6% in the first quarter of 2026. Second quarter 2026 non-GAAP net income, which excludes the impact of the change in equity value of the Sartorius shares was $70 million or $2.62 diluted earnings per share versus $71 million or $2.61 diluted earnings per share for Q2 of 2025. For full details on the balance sheet, cash flow, tax and Sartorius valuation, please refer to our earnings presentation, press release and 10-Q filed today, all available on our Investor Relations website. During the second quarter of 2026, we repurchased approximately 110,000 shares through our buyback program at a total cost of approximately $32 million at an average price of $281.57. Moving on to our non-GAAP guidance for 2026. While we made progress in the second quarter on both revenue and margin, we are taking a measured view of the back half of 2026, given a few items that we are watching closely. First, we are encouraged by early signs of improvement in the academic and government end markets, but we want to see a more sustained pattern before treating it as a recovery. Second, we continue to actively manage the China dynamics discussed, which represent an estimated $4 million headwind for the remainder of the year. Third, our opportunity funnel remains healthy, though a tougher process chromatography comparison from the prior year will be a modest drag on third quarter growth. And fourth, in the Middle East, one of our previous higher growth markets, our local teams are actively working to keep product flowing to the region. Collectively, these actions add some near-term variability to both revenue and margin. Based on these considerations, we reaffirm the full year non-GAAP guidance framework. We continue to expect full year currency-neutral revenue growth to be between minus 3% and plus 0.5%. We expect the Life Science segment's currency-neutral growth to be between minus 3% and minus 1% and the Clinical Diagnostics segment's currency-neutral revenue growth to be between minus 3% and plus 1%. Sequentially, we expect third quarter revenue to be flat to Q2, which is our typical pattern. We model a sequential mid-single-digit revenue percentage ramp from Q3 to Q4, reflecting continued growth in Life Science from ddPCR as well as improvement in clinical diagnostics from quality controls and blood typing products. We continue to expect full year non-GAAP gross margin to be between 53% and 54%. The following dynamics influence our outlook. The Americas academic end market continues its gradual recovery. China Life Science continues to be soft and the Middle East continues to see intermittent volatility, which is globally impacting our freight and logistics. Our product mix has skewed more towards instrument revenue, which carries a lower margin profile than consumables. We have factored all of these variables into our gross margin guidance. In OpEx, we expect a modest sequential step-up in SG&A and R&D in Q3 to support investments in product innovation. Now I'd like to provide further color on the actions that Jon mentioned. The restructure within the functional OpEx areas involves headcount reductions, facility rationalization and adding critical skills in support of growth and innovation. This announced restructuring is already underway and expected to be substantially completed by the end of 2027. On an annualized basis, we expect to achieve $30 million to $35 million of net cost savings after reinvestment with most of this realized by the end of 2027. Due to the timing of the actions, we expect minimal savings in 2026. And in 2027, we estimate approximately 40 to 50 bps of operating margin expansion. We continue to evaluate opportunities to optimize our operating model and expect to share more in the future. We expect full year non-GAAP operating margin to be between 10% and 12%. We are reaffirming our 2026 full year free cash flow estimate to be in the range of approximately $290 million to $340 million. Finally, we will continue to be opportunistic with our share repurchases. And as of June 30, we have approximately $206 million available for additional buybacks under the current Board authorized program. I'll now turn the call over to Norman. Norman Schwartz: Thank you, Roop. So Jon and Roop have covered the quarter's mechanics well. So I wanted to spend some time on the key areas of focus for us. First, I wanted to talk about how our team is approaching the evolution of our business. We have organized around 2 distinct actions: improving execution and sharpening capital allocation. And I would emphasize the word organized. It's not been one action. It's been a series of deliberate steps building on each other over the past 2 years. And what you're now seeing are those pieces starting to come together. In 2024, we began our review of the broader portfolio and strategy. Then in '25, we took action to rationalize parts of our portfolio, pivoting towards higher return areas like digital PCR, and we've completed a restructuring program, which is reflected in our current cost structure. Our reprioritization has been paired with a deliberate push to improve product vitality, which has been foundational. What we're focused on this year is a performance culture, which includes clearer accountability, tighter operating rigor and better forecasting discipline. All of this is intended to accelerate revenue growth and improve profitability. On capital allocation, again, discipline has shaped how we're deploying capital. Our acquisition of Droplet Digital PCR company Stilla Technologies is a good example of the kind of transaction we want to keep doing, focused-growth and margin-accretive business that strengthens our portfolio. And also on capital allocation, just to reinforce the point on Sartorius, consistent with previous quarters, our view has not changed. We see it as a valuable asset that provides us with optionality and it is monetizable at the right time and price. So Jon and Roop spoke earlier about the restructuring program we announced this week. I do see this as a necessary part of our evolution as markets continue to move faster and demand more agility. The program is about shaping our workforce around the skills that we need to continue to be competitive in the longer term. And we do believe the capabilities we're building will underpin our path to robust growth and profitability. I do want to emphasize that this is not the end of our work. Bio-Rad's evolution is, of course, ongoing, and we'll keep acting deliberately and with urgency on the opportunities to see -- to strengthen the business and to create durable value for all stakeholders. So finally, before we take questions, let me just briefly address our engagement with Elliott Management. We have been in active, I would say, constructive dialogue, helping them to understand the journey that we are on. We believe that we are broadly aligned on the objectives including improving execution, sharpening capital allocation and closing the gap between Bio-Rad's value and its share price. And we do look forward to continuing those conversations. So maybe with that, operator, I think we'll now open up the line for questions. Operator: Your first question comes from Jack Meehan, Operon Research. Jack Meehan I had a few questions around the quarter and then I wanted to ask about the engagement at the end. The first is the digital PCR instrument growth over 20% in the quarter. How much -- was there anything onetime or stocking might not be the right word, but like anything onetime-ish that helped the results? Or was this the comp dynamic or something else going on in terms of market growth that you would flag? Jonathan DiVincenzo: Jack, Jon DiVincenzo here. It really is broad-based. We're very proud that right out of the gate, when we closed the acquisition at the end of June last year, we're well prepared to make the transition from our legacy portfolio to include these new systems from Stilla. We worked very quickly to move and qualify our catalog of assays onto that platform. In fact, we accomplished it ahead of time. And it was very motivational for our commercial team to have this broader portfolio and to go out and take some share from qPCR, have some competitive wins, and we saw wins across the board in all the geographies we operate in. So a lot of our business is in the academic market, which is not the strongest, but we still grew significantly in both academic and biopharma segments. Jack Meehan Great. And then on the engagement with Elliott, I appreciate the color on that. One question we get a lot, and I feel like where some of the uncertainty around the value of the Sartorius stake is if this is truly monetizable, how you treat the tax effect, if any, related to that. I was wondering if there was anything you could comment that if there were a monetizable event related to that, like what structures you might have considered and what structures you could put in place to minimize any tax leakage related to that? Roop Lakkaraju: Jack, it's Roop. I'll try and give some thought to that. In terms of the possible tax efficiency of monetizing it, it's going to depend upon the particular situation as to what creates the monetizable event, if you will. So that's one thing to keep in mind. The second thing to keep in mind, and so that's again a case by case. The second aspect is from a P&L standpoint, we do accrue the tax effect of the Sartorius shares today on our balance sheet. So there is a deferred tax liability there. Obviously, that's a P&L effect. The cash flow will still leave the company to pay for those taxes, but at least the P&L is taken into account. Jack Meehan Okay. And then the last one, and I'll go back in the queue is, I was just one thing that didn't come up was related to just succession planning as it pertains to CEO. Norman, I didn't know if there was anything more you could add in terms of what's in place in terms of a formalized CEO succession plan and time line related to that and whether you -- who's on the list in terms of internal versus external candidates? Norman Schwartz: Yes. So this is obviously kind of a standing responsibility of the Board at the end of the day, which is reviewed on an annual basis as part of its kind of regular kind of governance process. And I think when the time comes, I would expect the Board will run a process evaluating both internal and external candidates with the idea of obviously, mid-cap public company experience and the relevant qualifications to really to continue to drive the company. I think that will be grounded in all of that. Operator: Your next question comes from Tycho Peterson, Jefferies. Tycho Peterson: I think I'll start with the restructuring. You said restructuring add 40 to 50 basis points next year. I just want to make sure that's incremental and additive on top of underlying margin expansion. There was some confusion about that based on my inbounds. And then can you just talk about the pacing of these actions as we think about building from the 10% to 12% from this year? And any more kind of granularity you can provide on -- is this more SG&A-focused R&D? Just give us a little bit of a sense of where you think you might get the leverage. Roop Lakkaraju: Tycho, it's Roop. So it is incremental to -- from a margin expansion standpoint. So that's number one. The predominance of the actions, which are phased over time, and that's why we won't see the full realized savings until the end of 2027 is primarily in the OpEx areas. There is some facility aspects to it that also contribute to it, which also take time through -- between now and throughout 2027. Tycho Peterson: Okay. And then how are you thinking about, I guess, input costs in the meantime? You mentioned shipping materials costs. That was in kind of the context of the Middle East comments, I think. But just how are you thinking about input costs here? Roop Lakkaraju: Yes. I think, obviously, we're in the middle of '26, still, right? And so we've still got a planning process to go through in '27. As we think about it, we understand the need to drive margin expansion over time and especially towards kind of that mid-teens number that we've spoken about recently. So with that said, beyond these actions, things like the freight costs, logistics costs are current headwinds. We are taking actions to try and mitigate some of that, which we'll continue to do that could be opportunity for us to help support margin expansion. The other aspect is continued operational execution both from an absorption standpoint, but also from a procurement leverage standpoint over time that we'd be able to drive. And then as we continue to evaluate other efficiencies that we can drive, Jon spoke about AI and how that's enabling things, we think that there's opportunities potentially there as well. So this is -- the incremental actions from the restructuring are intended to be additive, but we're still thinking through additional ways to drive margin expansion beyond this restructuring action. Jonathan DiVincenzo: Yes. And Tycho, it's Jon. Maybe just to add to that a little bit, we're looking across the board in the P&L for cost reduction. So above the gross margin line, we're actively pursuing some product cost reductions. Also the new products coming online between now and the end of '27 will be of a higher margin overall. So we're driving in kind of improved cost structure in the product portfolio as well as managing the mix and then where we can, as Roop said, looking for ways to leverage our existing OpEx and grow the top line. Tycho Peterson: Okay. That's helpful. And then maybe pivoting to end markets. China, I'm curious, down mid-teens. Obviously, it's been a tough market that's known. Did something get worse here in the quarter? And how are you thinking about it for the remainder of the year? Jonathan DiVincenzo: Not from a reimbursement standpoint from a diagnostic standpoint. So it's just, I think, softness that we saw within the life science portfolio. We did start manufacturing product locally there, as we said, that helps us participate in some tenders that are mandating a certain percentage of the products are built in China. We'll expand that over time. But for us, it was more pressure in the academic market for life science instruments, softness and overall kind of status quo, if you will, for diagnostics. Roop Lakkaraju: And Tycho, maybe just one additional thing to add to Jon's, it's order timing of things like quality controls and some of our other products there on the diagnostics side. So a little bit of order timing there that we think comes through later in the year. Tycho Peterson: Okay. Last one, just the inventory restock, you said $3 million. I guess, is that drag completely over? Or how do you think about incremental catch-up on any restocking there? Roop Lakkaraju: Yes. We don't necessarily see it catching up through the year. We actually see the Middle East being somewhat consistent with Q2 levels. Obviously, there was that immediate restock that we expected to see from a safety stock replenishment standpoint, and that played out as we thought. The rest of the year in the Middle East and all of that is specific to the Middle East in terms of that restock, is relatively consistent quarter-to-quarter between Q2, Q3 and Q4. Operator: Your next question comes from Dan Leonard, RBC Capital Markets. Dan Leonard: I wanted to follow up on the organizational actions first, both on magnitude as well as timing. I think you said $30 million to $35 million in savings with a $90 million onetime cost number associated with that, so about a 3-year payback. Is that a conservative estimate? Or do you think that's the right number? Roop Lakkaraju: Those are the numbers, Dan. So that's right from a cost standpoint and kind of what we project right now. And one thing I want to reinforce here is that's a net cost savings. One of the things that we've commented on within the script is we are adding back certain capabilities that we feel are necessary to drive further innovation and growth on a longer-term basis. So yes, there's a restructuring action. However, there is incremental investments that we're making as part of this, which nets the savings down to that sort of $30 million to $35 million on an annualized basis. Dan Leonard: Got it. Understood. And then from a timing perspective, the 18 months to accomplish the restructuring, is that linear? What's -- like what are the pushes and pulls on that time line? Roop Lakkaraju: Yes. I mean there's various things, right? Some of this is facilities related and therefore, it takes some incremental effort around the facility. That's the most significant driver in terms of it being over time, if you will. And so as that -- as we manage those facilities -- those facilities exit, that could kind of move a little bit ahead or a little bit further behind, but we anticipate getting it all done by the end of '27 at the latest. Dan Leonard: Okay. And then my final clarification. As you mentioned, you're lapping now the acquisition of Stilla. How -- presumably, that means the comps get tougher in digital PCR. How are you thinking about the durable growth rate then in that category as you lap against instrument placements from prior years? Roop Lakkaraju: Yes. I guess there's a couple of different things. We actually still feel very confident on the long-term growth prospects of ddPCR. If you think about it, yes, the comps become a little bit tougher, especially considering the success of the recent quarters. But we think that there's more opportunity in the marketplace from an instrument placement standpoint. The other aspect of it, if you will, is, as we've indicated, the consumable pull-through takes 6 to 12 months and it's kind of still a soft academic market. So we would anticipate consumable pull-through to start adding or being additive to our overall ddPCR growth rate. With all that said, we still see near-term mid-single-digit kind of growth rate from a ddPCR standpoint. And over time, we think success really looks like if we can take that to a high single-digit kind of range, if you will. Jonathan DiVincenzo: Yes, Dan, one way I'd like to think about it is that acquisition accelerated some of our product development efforts. So first of all, the products that we acquired and put on the marketplace were similar to things that we had a couple of years out. And so we've pulled forward some things. So the growth will be driven by the current portfolio we have and some strength there in taking share by expanding the marketplace and competitive wins, but also products that we have in our pipeline to come in the next few years. So we're very, very confident that, that product line will be a leader for us. Operator: Your next question is from Daniel Grosslight, Citi. Daniel Grosslight: This is [ Albert Hu ] on for Daniel. If I'm not mistaken, I didn't catch this in the prepared remarks, but have you guys quantified the process [ chrome ] decline for the quarter? And then can you just share some confidence about getting to, let's say, low single-digit growth again in '27 and maybe mid- to high single-digit growth in the long term. I guess, can you speak to like the visibility, the actions you're taking and the confidence to get there, please? Roop Lakkaraju: Yes. Albert, so this is Roop. Maybe I'll start. In terms of visibility, we've got good visibility with our end customers and seeing what their forecasts look like. Our commercial teams work actively with them, as do our business group teams. In terms of -- you're right, the year-over-year comp is a little bit tough because as we -- if you remember, in Q2 and Q3 of last year, process chromatography was very strong, above kind of usual run rates that we've seen on a quarterly basis as customers moved orders around between the year and later in the year into earlier quarter like Q2 and then Q3 as well. So we're going to see that difficult comp again in Q3. With all that said, we do think that because of the strength of our customers in the clinical phases, and obviously, over time, those need to translate to commercial success. But between the success we have with the customers we have in commercial phase and those that we see advancing through the clinical phases, it gives us confidence in looking at a kind of low to mid-single-digit near-term growth rate from a process chromatography standpoint and then ultimately trying to drive towards high single digits, which is more similar to the markets. But with all that said, we are in this niche area of polishing phase, if you will. And so we don't support the broader bioprocessing market. And I think as we've always said, we will see lumpiness on a quarter-to-quarter basis as a result of where we play and our customer concentration. Daniel Grosslight: Got it. Okay. And maybe moving to China. Obviously, we've seen some ever-changing dynamics here, especially on the diagnostic landscape. So what can we kind of expect going forward here? What should we be watching besides Bio's diabetes asset just because it seems like it's an ever-changing dynamic, things can come up. So how is Bio thinking about at the moment? Appreciate that. Jonathan DiVincenzo: Albert, this is Jon DiVincenzo. Thanks for joining today. Obviously, for several years now, the China government has been trying to bring health care to more and more of its population and at the same time, control the costs and they've taken a number of actions there. I think that majority of the actions they've taken, we've absorbed. We had one or two areas that affected us, most did not. But moving forward, we expect that they're going to continue to try to control the costs and bring the health care to more and more of their population. I think that's the reality of it. We think there's probably one more maybe change in reimbursement, but we're monitoring now some of the developments there with our China team. Daniel Grosslight: Got it. Okay. And last one for me. Just on the ddPCR growth, I think you previously mentioned earlier in the call that maybe it's still like a mid-single-digit grower this year in the near term, but eventually, that can get into high single digits. Is that strictly through pull-through? Or how are you guys thinking about getting from mid-single to high single after placing -- after having very strong instrument placements in the recent quarters? Norman Schwartz: Yes. So first of all, it is about instrument placements, but then it's about the pull-through on reagents. But it's just the expanding use of the technology in general and the value that it's bringing to science. I think that's probably going to be -- continue to be a pretty good driver for us. And as people also pivot from qPCR to ddPCR with applications, kind of another avenue for us. So those are probably the principal ones. And you can also think about, as you move ahead with the technology diagnostic applications. So number of directions to go in. Operator: We will now take a follow-up from Jack Meehan, Operon Research. Jack Meehan I want to ask about one of the topics du jour during the season, which is tariff dynamics. I was wondering if you were anticipating any meaningful refunds or payments back to customers. Roop Lakkaraju: Yes. Jack, this is Roop. So from a tariff standpoint, we've obviously applied for refunds. Obviously, there is this appeals process that's ongoing from a government standpoint. I think as that gets settled out, we will then have some conclusion on it from a tariff standpoint and hope to be able to see some tariffs running through the P&L at that time. Jonathan DiVincenzo: Yes. Jack, we did not charge a surcharge -- so there's nothing going back to our customers at this point in time. Jack Meehan Got it. Okay. And then back on ddPCR, one of your flagship diagnostic partners, Geneoscopy, got Medicare final coverage in the quarter. I was wondering if there was anything you could share about whether there could be any step-up in contribution to sales from them this year or next year, how you're thinking about that as an opportunity for the ddPCR business? We're excited about the partnership and the application of the technology. They have a strong partnership with Labcorp as well. We haven't modeled anything to our plans yet. We're kind of waiting for kind of final confirmation from them as we kind of end 2026 and then plan for 2027. But so far, we've let the development happen between Geneoscopy and the marketplace. But we're bullish overall. We just haven't put anything to our plans yet. Jack Meehan Okay. And then last phasing question, maybe for Roop. In Life Sciences, you did, call it, down [ 4.5% ] constant currency in the first half of the year. So to get to down [ 1% to 3% ] for the year, it calls for kind of a nice improvement in the second half. Can you talk about what is stepping up from a business perspective from phasing? Roop Lakkaraju: Yes. I mean it's broad-based actually in terms of what steps up as we go through the rest of the year, Jack. We see digital PCR, ddPCR specifically and some of the applied markets associated with ddPCR as growth contributors, but really, it is broad-based across life science. Jonathan DiVincenzo: It includes partnerships that we have that the business is going strongly in some of the applied markets as well as diagnostic applications for some of our gene expression portfolio and maybe in the fourth quarter, a little easier comp with process [ chrome. ] Operator: At this time, there are no further questions. I'd like to hand the conference back to Mr. Ruben Argueta for any additional or closing remarks. Ruben Argueta: Thank you for joining us today. Looking ahead, we'll be attending 2 investor events in September, the Wells Fargo Healthcare Conference and Bernstein's Healthcare Forum. We appreciate your interest in Bio-Rad and hope to connect with many of you there. Operator: Ladies and gentlemen, that does conclude today's call. Thank you for joining, and you may now disconnect your lines. Goodbye. Before you buy stock in Bio-Rad Laboratories, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Bio-Rad Laboratories wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $411,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,335,252!* Now, it’s worth noting Stock Advisor’s total average return is 965% — a market-crushing outperformance compared to 215% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 11, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Bio-Rad (BIO) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Discussions with FDA advance toward expected marketing authorization for GraftAssureDx FDA completes current portion of substantive review in a timely manner Favorable Medicare reimbursement policy issued in July significantly increases GraftAssureDx surveillance testing opportunity Strong head-to-head data drive kitted customer interest NASHVILLE, Tenn., Aug. 10, 2026 (GLOBE NEWSWIRE) -- Insight Molecular Diagnostics Inc., iMDx, (Nasdaq: IMDX), today published the following letter to shareholders in conjunction with its first quarter results: Fellow shareholders, We continue to be encouraged by progress toward our most important priority, which is to attain regulatory authorization of GraftAssureDx. In late July, the FDA completed the current phase of its substantive review of GraftAssureDx in a timely manner. The agency requested additional information from us, which is typical in a regulatory authorization process such as this. We view ourselves as being in the later stages of the review process, and after a thorough dialogue with the agency, we are encouraged to be working with a clear, well-defined set of remaining items. This welcome milestone comes after three years of rigorous kitted product development. We also have been pleased regarding the agency’s swift engagement and its ability to deliver timely feedback throughout. We have had productive dialogue with the agency since submitting GraftAssureDx for regulatory review in late March, and we expect that to continue. We would characterize our dialogue with the FDA as routine and within the realm of our expectations. Our submission was, to our knowledge, the first-ever kitted dd-cfDNA assay to be submitted for FDA authorization. As a reminder, we are not building this product alone. Our GraftAssure assay runs on a digital PCR instrument made by Bio-Rad Laboratories (NYSE:BIO), which has invested in our company. Bio-Rad commented: "Our collaboration with iMDx on GraftAssureDx reflects the kind of innovative thinking we look for in a partner. Droplet Digital™ PCR is well suited to the demands of transplant monitoring, where precise and reproducible measurement matters, and GraftAssureDx brings that capability into the clinical laboratory setting. We are proud to partner with iMDx on this program and remain confident in the path forward and positive impact to patient lives." –Jonathan Seaton, SVP Corporate Business Development, Bio-Rad Laboratories We also have expanded dialogue with several additional players in the diagnostics industry. We now believe that most major U.S. reference labs are interested in adopting in-house dd-cfDNA testing, with their interest bolstered by reimbursement clarity from Medicare and the release of favorable head-to-head data regarding our assay, both of which are described in more detail below. High-volume labs that are performing other routine transplant tests are considering the addition of a reimbursed dd-cfDNA test. We believe they may see our test as a natural product line extension for their other transplant test offerings, and as a great way to serve their existing transplant center and nephrology clinic customers nationwide. We believe that these labs value the ability to deliver all the testing needed for a patient in one patient visit for blood draws, and even potentially via one report for clinicians. Contextual overview for investors: iMDx aims to deliver proven, more affordable, faster tests that can be run in-house at local transplant center laboratories. We have designed the GraftAssureDx molecular test to be sold as a test kit so that transplant center laboratories can run tests locally. By running tests locally, laboratories can deliver critical test results to the physicians of transplant patients much more quickly than can be done with the currently available send-out tests. Our company is now seeking FDA marketing authorization to sell these kits in the U.S. If GraftAssure technology becomes available commercially as a test kit, it may be an industry-transforming event for transplanted organ rejection monitoring. Over time, iMDx sees three potential paradigm shifts in transplanted organ health monitoring: Bringing testing closer to the patient: The first is a shift in the location of where donor-derived cell-free DNA (dd-cfDNA) testing is performed – migrating out of a send-out service model and into hospital-based laboratories that can deliver results locally. iMDx seeks to demonstrate that in-house testing is better for patients and physicians. (As a reminder, dd-cfDNA is an established biomarker for assessing the health of a transplanted organ through a simple blood draw.) Expanding the clinical role of dd-cfDNA: The second shift is the growing potential for dd-cfDNA testing, powered by digital PCR technology, to support earlier detection of allograft injury, longitudinal monitoring of transplant health, and assessment of response to emerging anti-rejection therapies. Advancing from rule-out testing to comprehensive decision support: The third shift is the expansion of dd-cfDNA testing from mainly being used to rule out patients’ need for confirmatory biopsy testing, to also being used proactively to predict whether a patient may be progressing toward organ rejection. This important shift is enabled by GraftAssure’s ability to measure both dd-cfDNA percentage and absolute, true concentrations as copies per milliliter of plasma. Other highlights since our May 2026 update: Reimbursement and market access A favorable Medicare local coverage decision (LCD) was issued by MolDX that expands the reimbursement framework for dd-cfDNA testing by covering surveillance testing at an increased frequency compared to a draft policy released last year. This includes doubling testing rates in the second and third years post-kidney transplant to four tests per year and allowing for a frequency per year thereafter according to peer-reviewed literature and societal guidelines. The new Medicare policy also cites iMDx-affiliated research. (July 16 release) Medicare (MolDX) confirmed iMDx’s reimbursement coverage for treatment-response monitoring. We believe clinicians intend to increasingly use dd-cfDNA testing to guide ongoing anti-rejection drug therapy. MolDX has confirmed that testing under this rationale is reimbursed. (July 23 release) Clinical evidence and peer-reviewed publications A new multicenter study conducted across eight transplant centers in Germany and Austria, published in Kidney International, adds to the growing evidence that donor-derived cell-free DNA (dd-cfDNA) can do more than rule out biopsy. The retrospective study evaluated 70 kidney transplant recipients treated with Johnson & Johnson’s daratumumab (DARZALEX®) for microvascular inflammation (MVI) and antibody-mediated rejection (AMR), using our GraftAssure test to monitor therapeutic efficacy. Daratumumab treatment was associated with stabilization of kidney function, with dd-cfDNA and albuminuria levels declining early in treatment. We believe this reinforces dd-cfDNA's expanding role in actively guiding and monitoring rejection treatment. The American Journal of Transplantation published data on iMDx's new GraftAssure Combination Model (CM)-Score. Results demonstrated that our test roughly doubled positive predictive value (81% vs. a 54% published benchmark) versus single-metric dd-cfDNA measurement in kidney transplant patients, while retaining a high negative predictive value (91%). The company has launched its GALACTIC registry to build on these findings. (June 11 release) Clinical Chemistry (the journal of the Association for Diagnostics & Laboratory Medicine) published the first head-to-head comparison of GraftAssure's digital PCR-based technology against a leading NGS-based competitor assay, showing 99.2% agreement across a wide range of dd-cfDNA results under real-world clinical conditions. GraftAssure demonstrated superior analytical sensitivity and a lower limit of quantification. (June 16 release) The Lancet Regional Health – Europe published an extension of the 2024 New England Journal of Medicine felzartamab study, showing GraftAssure-guided dd-cfDNA monitoring enabled roughly two-thirds drug-sparing versus fixed dosing while maintaining treatment efficacy and safety — pointing to a market-expansion use case for GraftAssure beyond rejection detection and biopsy rule-out testing. (July 23 release) Chief Science Officer Prof. Dr. Ekkehard Schuetz, co-inventor of the underlying dd-cfDNA technology, published his 200th scientific paper. He is ranked in the top 2.5% of researchers worldwide by H-index (58) and top 2% within laboratory diagnostics. (June 29 release) Commercial and scientific community engagement iMDx showcased its GraftAssure technology, hosted a key opinion leader reception, and presented third-party head-to-head data at the American Transplant Congress in Boston, from June 20–24. (June 9 release) iMDx partnered with the American Society of Transplant Surgeons (ASTS) to name the recipients of a $100,000, company-funded health-economics research grant (Drs. Kenneth Andreoni of Thomas Jefferson University and Kenneth Chavin of Temple Health) to study the economics of in-house versus send-out dd-cfDNA testing. This research is intended to support GraftAssureDx commercialization planning. (June 22 release) Upcoming KOL call on August 17th to highlight heart transplant testing: As we continue to plan for commercializing a kitted version of GraftAssure for kidney transplant testing, the next organ of focus for GraftAssure’s application is heart transplant testing. To that end, we will be hosting a virtual key opinion leader (KOL) event to discuss in-house heart transplanted organ rejection testing on Monday, August 17, 2026, at 10:00 a.m. ET. The event will feature Dr. Max Jacob Liebo, M.D., Associate Professor and Program Director, Advanced Heart Failure and Transplant Cardiology Fellowship at Loyola University Medical Center. The call will also feature brief remarks from CEO Josh Riggs and iMDx Vice President of Medical Affairs Dr. Nick Ioannou, whose extensive experience includes previously serving as a medical science liaison for organ health and genetics at Natera. We will be issuing a separate press release with further information. Thank you for your interest in iMDx and we look forward to updating you as we transition into commercialization. Sincerely,iMDx Management Second Quarter 2026 financial overview In Q2 2026, our revenues were approximately $239,000. We reported gross profit of $157,000 in Q2 2026, representing a 65.7% gross margin. In Q2 2026, operating expenses of $11.6 million included a non-cash loss of $2.3 million from a change in the fair value of our contingent consideration, as well as $661,000 in non-cash stock-based compensation expenses, and $641,000 in non-cash depreciation and amortization expenses. The contingent consideration relates to acquisition accounting and certain earn-out arrangements related to our prior acquisitions, under which payments become due only as we achieve certain milestones or generate revenue. It is remeasured each period based on assumptions including the expected timing and amount of future revenue, probability of achieving certain earnout milestones, and discount rates. Our Q2 2026 net loss was $11.3 million, or $0.31 net loss per share. Our Q2 2026 per share results reflect 36.8 million weighted average shares outstanding and include the effects of 4.1 million unexercised pre-funded warrant shares that were issued in April 2024, February 2025, and February 2026 to a certain investor. Our cash, cash equivalents, and restricted cash balance at the end of the second quarter was $18.7 million. Our Q2 2026 outgoing cash flow from operations (net cash used in operating activities) of $9.3 million, combined with capital expenditures of about $779,000, resulted in outgoing free cash flow of approximately $10 million. While core operating expenses declined in the second quarter, outgoing cash flow widened due to working capital timing, including our annual bonus payment and vendor payments. We expect outgoing free cash flow to narrow in the back half of the year. As noted in our May update, in 2026, we expect to continue to be thoughtful about capital allocation, hiring, and expense growth. Webcast and Conference Call Information Live Zoom Call and Webcast on August 10, 2026, at 2:00 PM PT / 5:00 PM ET. Those interested may access the live Zoom call by registering here: iMDx Q2 2026 Earnings Webinar A replay of the Zoom call will be available on the Company's website shortly after the call. iMDx Transplant Products and Product Candidates in Development iMDx’s flagship transplant testing technology quantifies a molecular biomarker known as donor-derived cell-free DNA (dd-cfDNA). The Company’s scientists in Germany and the U.S. have played a critical role over the past decade in developing the science that helped establish dd-cfDNA as a trusted biomarker of transplant rejection. iMDx is commercializing this technology using a market-disruptive business strategy. Under the GraftAssure™ brand, iMDx’s transplant diagnostics include the following: GraftAssureCore – The company’s laboratory-developed test (LDT), currently reimbursed by CMS and performed at iMDx’s CLIA-certified laboratory in Franklin, Tennessee. GraftAssureIQ – A research-use-only (RUO) kit intended and labeled for non-clinical applications. GraftAssureDx – The in vitro diagnostic (IVD) kit currently under FDA review for use in clinical decision-making. About Insight Molecular Diagnostics, Inc. Insight Molecular Diagnostics is a pioneering diagnostics technology company whose mission is to democratize access to novel molecular diagnostic testing to improve patient outcomes. Investors may visit https://investors.imdxinc.com/ for more information. GraftAssureCore™, GraftAssureIQ™, GraftAssureDx™, GraftAssure™, DetermaIO™, and DetermaCNI™ are trademarks of Insight Molecular Diagnostics Inc. Forward-Looking Statements Any statements that are not historical fact (including, but not limited to, statements that contain words such as “will,” “believes,” “plans,” “anticipates,” “expects,” “estimates,” “may,” and similar expressions) are forward-looking statements. These statements include those pertaining to, among other things, the company’s efforts to commercialize its GraftAssure technology, discussions with the FDA and expected FDA marketing authorization to sell GraftAssureDx, the belief that most major U.S. reference labs are interested in adopting in-house dd-cfDNA testing, interest from industry participants and investors, the company’s plans to deliver proven, more affordable and faster tests that can be run in-house at local transplant center laboratories, anticipated paradigm shifts in transplanted organ health monitoring, the belief that clinicians tend to increasingly use dd-cfDNA testing to guide ongoing anti-rejection drug therapy, potential use cases for GraftAssure beyond rejection detection and biopsy rule-out testing, the company’s upcoming KOL call to highlight heart transplant testing, transplant and other product candidates in development, and other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management. Forward-looking statements involve risks and uncertainties, including, without limitation, risks inherent in the development and/or commercialization of diagnostic tests or products, uncertainty in the results of clinical trials or regulatory approvals, the capacity of Insight Molecular Diagnostics’ third-party supplied blood sample analytic system to provide consistent and precise analytic results on a commercial scale, potential interruptions to supply chains, the need and ability to obtain future capital, maintenance of intellectual property rights in all applicable jurisdictions, obligations to third parties with respect to licensed or acquired technology and products, the need to obtain third party reimbursement for patients’ use of any diagnostic tests Insight Molecular Diagnostics or its subsidiaries commercialize in applicable jurisdictions, and risks inherent in strategic transactions such as the potential failure to realize anticipated benefits, legal, regulatory or political changes in the applicable jurisdictions, accounting and quality controls, potential greater than estimated allocations of resources to develop and commercialize technologies, or potential failure to maintain any laboratory accreditation or certification. Actual results may differ materially from the results anticipated in these forward-looking statements and accordingly such statements should be evaluated together with the many uncertainties that affect the business of Insight Molecular Diagnostics, particularly those mentioned in the “Risk Factors” and other cautionary statements found in Insight Molecular Diagnostics’ Securities and Exchange Commission (SEC) filings, which are available from the SEC’s website. You are cautioned not to place undue reliance on forward-looking statements, which speak only as of the date on which they were made. Insight Molecular Diagnostics undertakes no obligation to update such statements to reflect events that occur or circumstances that exist after the date on which they were made, except as required by law. FDA CAUTION: This press release concerns certain products that are under clinical investigation, and which have not yet been cleared or authorized for marketing by the U.S. Food and Drug Administration. These products are currently limited by federal law to investigational use, and no representation is made as to the safety or effectiveness of these products for the purposes for which they are being investigated. Investor Contact: Douglas FarrellLifeSci Advisors LLC [email protected] Financial Tables Follow In addition to financial results determined in accordance with U.S. generally accepted accounting principles (“GAAP”), this press release also includes non-GAAP financial measures (as defined under SEC Regulation G). We believe that disclosing the adjusted amounts is helpful in assessing our ongoing performance, providing insight into the Company’s core operating performance by excluding certain non-cash and other non-operating items that may obscure the underlying trends in the business. These non-GAAP financial measures, when viewed in a reconciliation to respective GAAP financial measures, provide an additional way of viewing the Company’s results of operations and factors and trends affecting the Company’s business. These non-GAAP financial measures should be considered as a supplement to, and not as a substitute for, or superior to, the respective financial results presented in accordance with GAAP. The following is a reconciliation of the non-GAAP financial measures to the most directly comparable GAAP measure:

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Bio-Rad Laboratories (BIO) drew investor attention after reporting second quarter 2026 results alongside fresh guidance. Sales held at US$651 million year over year, while net income and earnings per share from continuing operations increased. The company now expects third quarter 2026 revenue to be flat compared with the second quarter, which it describes as a typical pattern. Management guidance also points to a mid single digit sequential revenue ramp into the fourth quarter, tied to Life Science ddPCR and clinical diagnostics quality controls and blood typing products. See our latest analysis for Bio-Rad Laboratories. Bio-Rad Laboratories' recent guidance appears to have coincided with stronger momentum in the stock, with a 30 day share price return of 19.03% and a 90 day share price return of 44.58%, while the 5 year total shareholder return is still down 54.71%. This suggests a sharp recent reassessment following a weaker longer term experience. If you are looking beyond Bio-Rad to other areas where technology and healthcare intersect, this could be a useful moment to scan for fresh ideas through our healthcare focused screener of 43 healthcare AI stocks After a sharp rebound in Bio-Rad Laboratories shares, but with a still weak 5 year record, the balance between recovery potential and renewed downside risk has shifted. Does the current valuation still leave enough reward on the table for buyers? Bio-Rad Laboratories last closed at $352.47 compared with a widely followed fair value estimate of $293. The gap between those two figures is what the current narrative is trying to explain. Read the complete narrative. Want to see why this valuation leans on modest growth but a rich earnings multiple? The narrative blends slower expansion, margin rebuild, and a higher future P/E to reach its number. Result: Fair Value of $293 (OVERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, there are still clear pressure points for Bio-Rad Laboratories, including softer instrument demand and ongoing reimbursement and policy changes in key markets such as China. Find out about the key risks to this Bio-Rad Laboratories narrative. The mix of cautious guidance and recent share price strength makes sentiment around Bio-Rad Laboratories finely balanced. It may be helpful to review the underlying data yourself and move quickly if you want to shape your own view based on the 1 important warning sign Do not stop with Bio-Rad Laboratories. Use this moment to broaden your watchlist with fresh stock ideas that could better match your goals and risk comfort. Target potential value opportunities by scanning companies that screen as 52 high quality undervalued stocks for stronger fundamentals at prices that may still look reasonable. Prioritise resilience by checking out 83 resilient stocks with low risk scores so you focus on businesses with sturdier risk profiles when markets feel less predictable. Explore possibilities by hunting through a screener containing 21 high quality undiscovered gems that highlights quality stocks many investors may still be overlooking. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BIO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Sequential revenue growth of 10% reflects recovery from Q1 challenges, though year-over-year performance remains pressured by academic research softness and biopharma caution. Digital PCR (ddPCR) serves as a key strategic differentiator, with instrument revenue growing over 20% driven by competitive wins and the successful integration of Stilla Technologies. Clinical Diagnostics returned to growth led by quality controls and blood typing, while Life Science trends improved excluding the expected decline in process chromatography. Management is utilizing agentic AI to significantly accelerate software development cycles, reducing 12 months of work to 6 weeks in some instances. The 'in-China for-China' manufacturing strategy is now operational, allowing the company to participate in local tenders and adapt to evolving regulatory and reimbursement landscapes. Performance attribution for the quarter includes a rebound in the Middle East and Asia Pacific (ex-China), partially offset by continued pressure in the Americas academic market. Full-year currency-neutral revenue guidance is reaffirmed at -3% to +0.5%, assuming a gradual recovery in academic markets and a mid-single-digit sequential ramp in Q4. A new multi-year restructuring program targets $30 million to $35 million in net annual savings by 2027, with 40 to 50 basis points of margin expansion expected next year. Management maintains a 'measured view' of the second half, citing a $4 million headwind in China and volatility in the Middle East impacting global freight costs. Consumable pull-through for ddPCR is expected to lag instrument sales by 6 to 12 months, establishing a foundation for future recurring revenue growth. Process chromatography is expected to face a difficult year-over-year comparison in Q3 due to high prior-year run rates, with a return to growth projected for Q4. The announced restructuring involves headcount reductions and facility rationalization to reallocate resources toward innovation and high-growth capabilities. The Sartorius AG stake remains a 'valuable and monetizable' asset, providing optionality, though no immediate timeline for divestment was provided. Ongoing conflict in the Middle East has driven higher fuel and transportation costs, which are factored into the current margin guidance of 53% to 54%. Constructive dialogue with Elliott Management continues, with both parties reportedly aligned on improving execution and closing the share price value gap. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth was broad-based across academic and biopharma segments, aided by the rapid qualification of assays on the newly acquired Stilla platform. Management expects near-term mid-single-digit growth for the category, potentially reaching high single digits as consumable pull-through accelerates. Tax efficiency will depend on the specific structure of a future monetizable event. The company already accrues the tax effect of the shares as a deferred tax liability on the balance sheet to reflect the P&L impact. Succession is a standing Board responsibility reviewed annually. The Board intends to evaluate both internal and external candidates with public company experience when the time comes for a transition. The $30 million to $35 million savings figure is net of reinvestments into new capabilities for innovation. The 18-month timeline for completion is primarily driven by the complexity of facility exits and rationalization.

Interested in Bio-Rad Laboratories, Inc.? Here are five stocks we like better. Second-quarter revenue was essentially flat at approximately $651 million, while currency-neutral sales declined 1.9% as academic research weakness pressured the Life Science segment. Clinical Diagnostics returned to modest currency-neutral growth, and revenue improved 10% sequentially. Digital PCR was a bright spot, with currency-neutral revenue up 6% and instrument sales rising more than 20%; however, consumables growth has not yet fully followed instrument placements. China sales fell in the high teens, creating an expected $4 million second-half headwind. Bio-Rad reaffirmed its 2026 guidance for currency-neutral revenue growth ranging from negative 3% to positive 0.5%. A restructuring program expected to be substantially completed by 2027 should generate $30 million to $35 million in annualized net savings, though it will involve roughly $90 million in one-time costs. The Top 3 Medical Devices Stocks to Buy Now Bio-Rad Laboratories (NYSE:BIO) reported second-quarter revenue of approximately $651 million, essentially flat from $652 million a year earlier on a reported basis and down 1.9% on a currency-neutral basis, as continued softness in academic research markets weighed on its Life Science segment. President and Chief Operating Officer Jon DiVincenzo said revenue increased 10% sequentially as the company improved from a challenging first quarter. Clinical Diagnostics returned to modest currency-neutral growth, led by quality controls and blood-typing products, while Life Science trends improved excluding process chromatography. → SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control “The second quarter demonstrated meaningful sequential progress,” DiVincenzo said, citing clinical diagnostics growth, improving underlying Life Science trends and strong digital PCR instrument performance. He added that several end markets remain in transition and that the company continues to adjust its operations to improve agility and competitiveness. Life Science sales were $252 million, declining 4.1% year over year on a reported basis and 5.1% on a currency-neutral basis. The decline reflected ongoing weakness in academic research and a difficult comparison in process chromatography, according to Chief Financial Officer Roop K. Lakkaraju. → Why Rare Earth Processing Could Be the Real 2027 Opportunity Clinical Diagnostics sales rose to approximately $399 million from $389 million a year earlier, an increase of 2.6% reported and 0.3% currency-neutral. Growth in the Americas was offset by lower sales in the broader Asia-Pacific region. Demand from academic and government customers remained below historical levels, particularly in the Americas. DiVincenzo said National Institutes of Health funding outlays have begun rising year over year, though purchasing activity generally trails funding. The company said it needs to see a more sustained pattern before characterizing the environment as a durable recovery. → TSMC Insiders Are Buying the Pullback—But Is the Signal as Bullish as It Looks? Bio-Rad also reported early signs of stabilization among biopharma customers, particularly later-stage and commercial-scale biotechnology companies. Early-stage biotech customers remain more cautious because funding conditions have not fully normalized, management said. Process chromatography, which represents less than 5% of annual company revenue, increased sequentially but declined from the prior year as expected. Management said the business has customer concentration because of its niche role in the polishing phase of bioprocessing, which can create quarterly variability. Americas results remained soft because of academic-market pressure, although Bio-Rad said conditions improved toward the end of the quarter. Asia-Pacific sales excluding China rose 6% currency-neutral, supported by growth across most major product lines. China, which represents about 6% of total revenue, declined in the high teens. The decline reflected the timing of quality-control orders and softer Life Science instrument demand. Management expects China conditions to create an approximately $4 million headwind in the second half, an impact already included in full-year guidance. The company said its in-China, for-China manufacturing capability is now operational, allowing it to participate in a broader range of local tenders. In the Middle East, revenue increased 7% year over year, while channel partners replenished about $3 million of inventory during the quarter. Bio-Rad said underlying customer demand in the region has not yet stabilized, and it expects volatility to continue amid elevated global fuel and transportation costs. Digital PCR revenue increased 6% currency-neutral, with instrument revenue rising more than 20%. DiVincenzo said growth was broad-based across geographies and included customer conversions from qPCR. Digital PCR consumables revenue declined slightly year over year but rose sequentially. Management said consumables pull-through has yet to reach its expected level, but it believes recent instrument placements create a larger base for future recurring revenue. Bio-Rad said its Stilla Technologies acquisition, completed a year ago, accelerated digital PCR growth and has generated margins ahead of its original expectations. The company sees near-term digital PCR growth in the mid-single digits, with a longer-term opportunity to reach high-single-digit growth. Consolidated gross margin was 53.1%, compared with 53.0% a year earlier. Non-GAAP gross margin rose sequentially to 53.9% from 53.1% in the first quarter, aided by manufacturing absorption but partly offset by product mix and elevated logistics costs. Second-quarter operating income was approximately $73 million, compared with approximately $77 million a year earlier. Non-GAAP operating margin was 12.5%, down from 13.6% in the prior-year quarter but up from 6.6% in the first quarter. Non-GAAP net income was $70 million, or $2.62 per diluted share, excluding the change in equity value of the company’s Sartorius stake, compared with $71 million, or $2.61 per share, a year earlier. Bio-Rad repurchased about 110,000 shares for approximately $32 million during the quarter, at an average price of $281.57. As of June 30, it had approximately $206 million remaining under its board-authorized repurchase program. The company also announced a restructuring involving workforce reductions, facility rationalization and additions of skills intended to support innovation and growth. The program is expected to be substantially completed by the end of 2027 and generate $30 million to $35 million of annualized net cost savings after reinvestment. Management said the effort is expected to involve approximately $90 million in one-time costs and deliver roughly 40 to 50 basis points of operating-margin expansion in 2027, with minimal savings expected in 2026. Bio-Rad reaffirmed its 2026 non-GAAP outlook, forecasting currency-neutral revenue growth of negative 3% to positive 0.5%. It expects Life Science currency-neutral growth of negative 3% to negative 1% and Clinical Diagnostics growth of negative 3% to positive 1%. The company expects third-quarter revenue to be roughly flat sequentially, followed by a mid-single-digit percentage revenue increase from the third to fourth quarter. Bio-Rad maintained guidance for non-GAAP gross margin of 53% to 54%, non-GAAP operating margin of 10% to 12%, and free cash flow of approximately $290 million to $340 million. Chief Executive Officer Norman Schwartz said Bio-Rad remains focused on improving execution and sharpening capital allocation. He also said the company has been in “active” and “constructive” discussions with Elliott Management and believes the parties are broadly aligned on improving execution, capital allocation and narrowing the gap between Bio-Rad’s value and its share price. Bio-Rad Laboratories, Inc is a global provider of life science research and clinical diagnostic products. The company operates through two primary business segments: Life Science and Clinical Diagnostics. Within the Life Science segment, Bio-Rad offers instruments, reagents and consumables for protein analysis, cell biology, gene expression and other molecular biology applications. The Clinical Diagnostics segment supplies quality control products, blood-typing reagents and instruments, and molecular diagnostic assays used in blood screening, infectious disease testing and routine clinical laboratories. Founded in 1952 by David and Alice Schwartz and headquartered in Hercules, California, Bio-Rad has grown its footprint across the Americas, Europe, Asia-Pacific and other regions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Bio-Rad Laboratories Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

This article first appeared on GuruFocus. Total Revenue: Approximately $651 million in Q2 2026, essentially flat as reported and down 1.9% on a currency-neutral basis year-over-year. Life Science Revenue: $252 million, a decrease of 4.1% on a reported basis and 5.1% on a currency-neutral basis compared to Q2 2025. Clinical Diagnostics Revenue: Approximately $399 million, an increase of 2.6% on a reported basis and 0.3% on a currency-neutral basis year-over-year. Digital PCR Revenue: Currency-neutral revenue increased 6% year-over-year, with instrument revenue growing more than 20%. Gross Margin: Consolidated gross margin was 53.1% for Q2 2026, compared to 53% in Q2 2025; non-GAAP gross margin was 53.9% versus 53.7% in the prior year period. Operating Income: Q2 operating income was approximately $73 million, compared to approximately $77 million in Q2 2025. Non-GAAP Operating Margin: 12.5% in Q2 2026, compared to 13.6% in Q2 2025. Non-GAAP Net Income: $70 million, or $2.62 diluted earnings per share, versus $71 million or $2.61 diluted earnings per share in Q2 2025. SG&A Expense: $212 million, or 32.6% of sales, compared to $208 million or 31.9% in Q2 2025; non-GAAP SG&A was $209 million versus $201 million in the prior year. R&D Expense: $61 million, or 9.4% of sales, on both GAAP and non-GAAP basis, consistent with Q2 2025. Share Repurchases: Repurchased approximately 110,000 shares at a total cost of approximately $32 million at an average price of $21.57 during Q2 2026. Warning! GuruFocus has detected 8 Warning Signs with BIO. Is BIO fairly valued? Test your thesis with our free DCF calculator. Release Date: August 04, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Clinical Diagnostics returned to modest currency-neutral growth, driven by quality controls and blood typing portfolio. Digital PCR (DDPCR) revenue grew 6% year-over-year, with instrument revenue up more than 20%, indicating strong customer demand and competitive wins. The Stella Technologies acquisition has accelerated revenue growth and delivered margin performance ahead of expectations. The company is executing a restructuring program expected to deliver $30-35 million in annualized net cost savings by end of 2027, with 40-50 bps operating margin expansion in 2027. Early signs of stabilization in the biopharma market and improving academic/government end markets, with NIH funding outlays increasing year-over-year. Total company revenue declined 1.9% on a currency-neutral basis, with Life Science segment down 5.1% due to softness in academic research. China revenue declined in the high teens, with an estimated $4 million headwind for the remainder of 2026. Process chromatography continues to face tough year-over-year comparisons and revenue concentration risks, with a modest drag expected on Q3 growth. Middle East volatility persists, driving higher fuel and transportation costs globally, with no expected catch-up in inventory restocking. Non-GAAP operating margin declined to 12.5% from 13.6% year-over-year, with SG&A expenses rising due to higher employee-related costs. Q: Can you provide more detail on the strong digital PCR instrument growth of over 20% in the quarter? Was there anything one-time in nature, or is this a reflection of market share gains? A: Jonathan DiVincenzo (President and COO) stated the growth was broad-based and not due to one-time factors. The successful integration of the Stella Technologies acquisition, completed ahead of schedule, allowed the commercial team to offer a broader portfolio and capture competitive wins, converting customers from qPCR to dPCR. Growth was seen across all geographies and in both academic and biopharma segments, despite a soft academic market. Q: Regarding the announced restructuring, is the expected 40 to 50 basis points of operating margin expansion in 2027 incremental to underlying margin expansion? Can you provide more granularity on where the savings will come from? A: Roop Lakkaraju (CFO) confirmed the 40-50 bps expansion is incremental. The savings, which are net of reinvestment, will primarily come from OpEx areas (SG&A and R&D) and facility rationalization. The actions are phased over time, with most savings realized by the end of 2027. Jonathan DiVincenzo added that the company is also pursuing product cost reductions and launching higher-margin new products to improve the cost structure. Q: Can you elaborate on the engagement with Elliott Management and the potential tax implications of monetizing the Sartorius stake? A: Norman Schwartz (CEO) stated that the dialogue with Elliott Management is constructive and that they are broadly aligned on objectives like improving execution and capital allocation. Roop Lakkaraju (CFO) explained that the tax efficiency of any monetization event would depend on the specific structure of the transaction. He noted that the company already accrues a deferred tax liability for the Sartorius shares on its balance sheet, which accounts for the P&L impact, though cash taxes would still be due. Q: What is driving the decline in China, and how should we think about the market for the remainder of the year? A: Jonathan DiVincenzo (COO) attributed the decline to softness in the life science portfolio, particularly in the academic market for instruments, and order timing in clinical diagnostics. The company is adapting by manufacturing products locally in China to participate in tenders that require a certain percentage of locally built products. Roop Lakkaraju (CFO) added that the company expects an approximate $4 million headwind for the rest of the year, which is already incorporated into guidance. Q: Can you provide more color on the process chromatography business? What is the visibility for a return to growth? A: Roop Lakkaraju (CFO) acknowledged that the year-over-year comp is tough due to strong Q2 and Q3 2025 results. However, the company has good visibility with end customers and is confident in a low to mid-single-digit near-term growth rate, driven by strength in commercial-phase customers and those advancing through clinical phases. The long-term goal is to drive towards high single-digit growth, though the niche polishing position will continue to cause lumpiness. Q: Is the $3 million inventory restock in the Middle East complete, and how should we model the region for the rest of the year? A: An unidentified company representative stated that the immediate restock is complete and the company does not expect a further catch-up. The Middle East is expected to be relatively consistent quarter-to-quarter between Q2, Q3, and Q4, with the continuing conflict and volatility factored into guidance. Q: Can you provide more detail on the timing of the restructuring and the $30 million to $35 million in net cost savings? A: An unidentified company representative confirmed the savings are net of reinvestment in critical capabilities. The timeline is primarily driven by facility-related actions, which take longer to execute. The company anticipates completing the restructuring by the end of 2027, with minimal savings expected in 2026. Q: How are you thinking about the durable growth rate for digital PCR as you lap the Stella acquisition and face tougher comps? A: An unidentified company representative stated confidence in the long-term growth prospects, driven by continued instrument placement opportunities and consumable pull-through, which typically takes 6-12 months. The near-term growth rate is expected to be mid-single-digit, with the potential to reach high single-digits over time as the consumable base builds and new products come to market. Q: Are you anticipating any meaningful tariff refunds or payments back to customers? A: Roop Lakkaraju (CFO) stated the company has applied for refunds and is awaiting the outcome of the government's appeal process. An unidentified company representative clarified that Bio-Rad did not charge a surcharge, so there is nothing to return to customers at this point. Q: Can you provide an update on the partnership with Genoscopy and the potential contribution from their recent Medicare coverage? A: An unidentified company representative expressed excitement about the partnership and the technology's application but noted that no contribution has been modeled into plans yet. The company is waiting for final confirmation from Genoscopy as they plan for 2027, but remains bullish on the overall opportunity. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

HERCULES, Calif., August 04, 2026--(BUSINESS WIRE)--Bio-Rad Laboratories, Inc. (NYSE: BIO and BIO.B), a global leader in life science research and clinical diagnostics products, today announced financial results for the second quarter ended June 30, 2026. Norman Schwartz, Bio-Rad’s Chairman and Chief Executive Officer, stated: "Second-quarter reported revenue was flat year-over-year, with growth in Clinical Diagnostics offset by continued softness in Life Science. Despite Life Science headwinds, our digital PCR instrument revenue grew more than 20%. EMEA returned to growth, aided by Middle East channel restocking amid continued volatility in the region. During the quarter, we generated $99 million in operating cash flow, and repurchased approximately $32 million of shares. We are reaffirming our full-year outlook, and remain focused on the discipline we believe will drive growth, durable margin expansion, and long-term shareholder value creation." Financial Results Highlights The non-GAAP financial measures shown in the table above and discussed below exclude certain items detailed later in this press release under the heading "Use of Non-GAAP Reporting". A reconciliation between historical GAAP operating results and non-GAAP operating results is provided following the financial statements that are part of this press release. Second-Quarter 2026 Results Second-quarter 2026 total net sales were $651.0 million compared to $651.6 million reported for the second quarter of 2025, essentially flat. On a currency-neutral basis, sales decreased 1.9 percent compared to the same period in 2025, driven by lower sales in Life Science segment. Life Science segment net sales for the second quarter were $252.0 million, a decrease of 4.1 percent compared to the same period in 2025. On a currency-neutral basis, Life Science segment sales decreased 5.1 percent compared to the same period in 2025. The currency-neutral year-over-year sales decrease was primarily driven by ongoing challenges in the academic research market. Clinical Diagnostics segment net sales for the second quarter were $399.0 million, an increase of 2.6 percent compared to the same period in 2025. On a currency-neutral basis, Clinical Diagnostics segment sales increased 0.3 percent compared to the same period in 2025. The currency-neutral year-over-year sales increase was primarily driven by growth in quality systems, diabetes and blood typing products, partially offset by lower sales of infectious disease products. During the second quarter of 2026, the Company recognized a change in the fair market value of its investment in Sartorius AG, which substantially contributed to a net income of $371.4 million, or $13.85 per share, on a diluted basis, compared to a net income of $317.8 million, or $11.67 per share, on a diluted basis, reported for the same period in 2025. The effective tax rate for the second quarter of 2026 was 31.5 percent, compared to 23.2 percent for the same period in 2025. The effective tax rate reported in these periods was primarily affected by the change in fair market value of our equity securities, shifts in the geographical mix of earnings and enactment of new tax legislation during the period. The non-GAAP effective tax rate for the second quarter of 2026 was 18.3 percent, compared to 22.7 percent for the same period in 2025. The lower rate in 2026 was driven by geographical mix of earnings. Full-Year 2026 Financial Outlook For the full-year 2026, the Company continues to expect non-GAAP, currency-neutral revenue to be in the range of a decline of approximately 3.0 percent to growth of approximately 0.5 percent, and an estimated non-GAAP operating margin of approximately 10.0 to 12.0 percent. Conference Call and Webcast Management will discuss the Company’s second quarter 2026 results and financial outlook in a conference call scheduled for 2:00 PM Pacific Time (5:00 PM Eastern Time) on August 4, 2026. To participate, dial (800) 715-9871 within the U.S., or (+1) (646) 307-1963 from outside the U.S., and provide access code: 9562470. A live webcast of the conference call will also be available in the "Investor Relations" section of the Company’s website under "Events & Presentations" at investors.bio-rad.com. A replay of the webcast will be available for up to a year. BIO-RAD is a trademark of Bio-Rad Laboratories, Inc. About Bio-Rad Bio-Rad Laboratories, Inc. (NYSE: BIO and BIO.B) is a leader in developing, manufacturing, and marketing a broad range of products for the life science research and clinical diagnostics markets. Based in Hercules, California, Bio-Rad operates a global network of research, development, manufacturing, and sales operations with approximately 7,400 employees and $2.6 billion in revenues in 2025. Our customers include universities, research institutions, hospitals, and biopharmaceutical companies, as well as clinical, food safety and environmental quality laboratories. Together, we develop innovative, high-quality products that advance science and save lives. To learn more, visit bio-rad.com Forward-Looking Statements This release may be deemed to contain certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements include, without limitation, statements we make regarding estimated future financial performance or results; remaining focused on the discipline we believe will drive growth, durable margin expansion, and long-term shareholder value creation; and for the full-year 2026: currently continuing to expect non-GAAP, currency-neutral revenue to be in the range of a decline of approximately 3.0 percent to growth of approximately 0.5 percent, and an estimated non-GAAP operating margin of approximately 10.0 to 12.0 percent. Forward-looking statements generally can be identified by the use of forward-looking terminology such as, "expect," "estimate," "continue," "remain," "believe," "anticipate," "target," "will," "project," "assume," "plan," "may," "intend," or similar expressions or the negative of those terms or expressions, although not all forward-looking statements contain these words. Such statements involve risks and uncertainties, which could cause actual results to vary materially from those expressed in or indicated by the forward-looking statements. These risks and uncertainties include risks relating to our international operations; global economic and geopolitical conditions; tariffs or other trade barriers; reductions in government funding or capital spending of our customers; the uncertain pace of the biopharma sector’s recovery; international legal and regulatory risks; our ability to develop and market new or improved products; our ability to compete effectively; foreign currency exchange fluctuations; our ability to integrate acquired companies, products or technologies into our company successfully; supply chain issues; product quality and liability issues; changes in the healthcare industry; and natural disasters and other catastrophic events beyond our control. For further information regarding the Company's risks and uncertainties, please refer to the "Risk Factors" and "Management’s Discussion and Analysis of Financial Condition and Results of Operations" in the Company's public reports filed with the Securities and Exchange Commission (the "SEC"), including the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, and its Quarterly Report on Form 10-Q for the quarter ended June 30, 2026 to be filed with the SEC. The Company cautions you not to place undue reliance on forward-looking statements, which reflect an analysis only and speak only as of the date hereof. Bio-Rad Laboratories, Inc. disclaims any obligation to update these forward-looking statements. Use of Non-GAAP Reporting This press release includes GAAP financial measures as well as non-GAAP financial measures, which are not meant to be considered in isolation or as a substitute for comparable GAAP measures. We present certain non-GAAP financial measures to evaluate business performance, guide operating decisions, support forecasting and planning, and determine compensation. These measures exclude items outside normal operations, those difficult to forecast, isolated gains and losses not expected to recur predictably, related tax provisions or benefits, and significant discrete tax events. We believe these disclosures provide useful supplemental information that, while not a substitute for GAAP, enhance transparency, assist in evaluating operating results and future prospects in the same manner as management, and facilitate comparisons across periods and with peer companies. Explanations of Non-GAAP Adjustments Amortization of purchased intangible assets: we do not acquire businesses and assets on a predictable cycle. The amount of purchase price allocated to purchased intangible assets and the terms of amortization can vary significantly and are unique to each acquisition. We believe that excluding amortization of purchased intangible assets allows the users of our financial statements to better review and understand the historic and current results of our operations. Acquisition-related amounts: we incur expenses or benefits with respect to certain items associated with our acquisitions, including professional fees for assistance with the transaction; valuation costs, integration costs, changes in the fair value of contingent consideration, and gains and losses on the settlement of pre-existing relationships with the acquired entity. We exclude such acquisition-related amounts because they have no direct correlation to the operation of our on-going business. Restructuring charges: we incur costs associated with our restructuring actions, including termination benefits related to reductions in employee headcount and the closure or exit of facilities. We exclude the costs associated with these unique restructuring actions in order to provide comparability of our on-going operations with prior and future periods. Impairment charges: we incur non-cash expenses associated primarily with impairment of long-lived assets including, but not limited to, goodwill, intangible assets and property, plant and equipment. By excluding these impairment charges, we believe this assists investors with evaluating our cash spending and analyzing our core operating performance period-over-period. Gains and losses from change in fair market value of equity securities and loan receivable, and gains and losses on equity-method investments: Our net income (loss) is impacted by gains and losses from change in fair market value of equity securities and loan receivable, and gain and losses associated with our equity-method investments included in Other income, net. These gains and losses arise from unforeseen circumstances and/or often occur outside of the ordinary course of our on-going business. By excluding these gains and losses, we believe this assists investors in evaluating our core operating performance period-over-period. Significant litigation amounts and legal costs: we may incur charges or benefits, in connection with litigation and other contingencies and legal costs unrelated to our core operations. We exclude these litigation amounts, when significant, as well as legal costs associated with significant legal matters, because we do not believe they are reflective of our on-going business and operating results. European Union’s IVDR: we incur incremental costs to comply with the European Union’s In Vitro Diagnostics Regulation ("IVDR") for previously approved products. Product portfolio rationalization related costs: we may incur charges associated with our product portfolio rationalization actions, including inventory write-downs, impairment of long-lived assets and accruals for contract termination or other exit-related costs. By excluding these one-time costs we believe this assists investors in evaluating our core operating performance period-over-period. Income tax expense: we estimate the tax effect of the excluded items identified above to determine a non-GAAP annual effective tax rate applied to the pretax amount in order to calculate the non-GAAP provision for income taxes. We also adjust for items for which the nature and/or tax jurisdiction requires the application of a specific tax rate or treatment. From time to time in the future, there may be other items excluded if we believe that doing so is consistent with the goal of providing useful information to investors and management. Other Key Metrics Free Cash Flow: we report free cash flow, which is operating cash flow excluding net capital expenditures, to provide a view of the continuing operations’ ability to generate cash for acquisitions and other investing and financing activities. The Company also uses this measure as an indication of the strength of the Company. Free cash flow is not a measure of cash available for discretionary expenditures since we have certain non-discretionary obligations such as debt service that are not deducted from the measure. Currency-Neutral Revenue: we report percentage sales growth/decline in currency-neutral amounts by calculating translated prior period sales in each local currency using the current period’s monthly average foreign exchange rates for that currency and comparing that to current period sales. 2026 Financial Outlook Forecasted non-GAAP operating margin excludes 89 basis points related to amortization of purchased intangibles. Forecasted non-GAAP operating margin does not reflect future gains and charges that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance, such as foreign currency fluctuations, future gains or losses associated with certain legal matters, acquisitions and restructuring activities. We do not provide a reconciliation of our non-GAAP financial expectations to expectations for the most comparable GAAP measure because the amount and timing of many future charges that impact these measures (such as amortization of future acquisition-related intangible assets, future acquisition-related expenses and benefits, future restructuring charges, future asset impairment charges, future valuation changes of equity-owned securities, future gains and losses on equity-method investments, future legal charges or benefits or future product portfolio rationalization related costs), which could be material, are variable, uncertain, or out of our control and therefore cannot be reasonably predicted without unreasonable effort, if at all. View source version on businesswire.com: https://www.businesswire.com/news/home/20260804057406/en/ Contacts Investor Contact: Ruben Argueta, Investor [email protected] Media Contact: Anna Gralinska, Corporate [email protected]

Bio-Rad Laboratories (BIO) came out with quarterly earnings of $2.62 per share, beating the Zacks Consensus Estimate of $2.34 per share. This compares to earnings of $2.61 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +11.97%. A quarter ago, it was expected that this maker of instruments used in biomedical research would post earnings of $2.77 per share when it actually produced earnings of $1.89, delivering a surprise of -31.77%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Bio-Rad, which belongs to the Zacks Medical - Products industry, posted revenues of $651 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.97%. This compares to year-ago revenues of $651.6 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Bio-Rad shares have added about 10.5% since the beginning of the year versus the S&P 500's gain of 11%. While Bio-Rad has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Bio-Rad was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.61 on $661.87 million in revenues for the coming quarter and $9.14 on $2.58 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Products is currently in the bottom 37% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, ICU Medical (ICUI), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6. This medical device maker is expected to post quarterly earnings of $1.91 per share in its upcoming report, which represents a year-over-year change of -9.1%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. ICU Medical's revenues are expected to be $535.43 million, down 1.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Bio-Rad Laboratories, Inc. (BIO) : Free Stock Analysis Report ICU Medical, Inc. (ICUI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research