QDEL

QuidelOrtho’s second quarter results were met with a negative market reaction, reflecting investor concern over significant challenges in key markets. While management pointed to solid demand in North America and strong commercial execution in regions like Japan and Latin America, CEO Brian J. Blaser cited a “softer respiratory environment” and pronounced weakness in China as primary factors impacting performance. The company’s leadership was notably cautious, highlighting that China revenue fell sharply due to uncertainty around new in-vitro diagnostics (IVD) pricing guidelines, and that respiratory testing demand has softened compared to the prior year. Is now the time to buy QDEL? Find out in our full research report (it’s free). Revenue: $630.9 million vs analyst estimates of $618.1 million (2.8% year-on-year growth, 2.1% beat) Adjusted EPS: $0.13 vs analyst estimates of -$0.05 (significant beat) Adjusted EBITDA: $129.3 million vs analyst estimates of $109.3 million (20.5% margin, 18.3% beat) The company dropped its revenue guidance for the full year to $2.56 billion at the midpoint from $2.73 billion, a 6.1% decrease Management lowered its full-year Adjusted EPS guidance to $0.78 at the midpoint, a 59.2% decrease EBITDA guidance for the full year is $550 million at the midpoint, below analyst estimates of $616 million Operating Margin: -3.5%, up from -29.4% in the same quarter last year Constant Currency Revenue rose 1.9% year on year (-2.4% in the same quarter last year) Market Capitalization: $1.02 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Jack Meehan (Oppenheimer) asked about proactive steps to improve balance-sheet leverage. CFO Micah Young described plans to improve working capital, reduce inventory, and optimize instrument investments to support deleveraging. Jack Meehan (Oppenheimer) referenced media speculation about a potential point-of-care business sale. CEO Brian J. Blaser declined to comment on rumors but emphasized that the board regularly evaluates portfolio opportunities to maximize shareholder value. Jack Meehan (Oppenheimer) sought clarity on the lower respiratory forecast. Blaser explained the shift to a more conservative baseline, citing weaker U.S. positivity rates and Southern Hemisphere data as drivers of the cautious outlook. William Bonello (Craig-Hallum Capital Group) asked about risk-mitigation strategies given underperformance in China and respiratory segments. Blaser pointed to the underlying strength and predictability of the labs and immunohematology businesses and ongoing aggressive cost initiatives. William Bonello (Craig-Hallum Capital Group) queried how the company plans to buffer the impact of challenged business lines. Blaser highlighted aggressive mitigation efforts and further steps to reinforce cost structure throughout the year. Going forward, our analyst team will be monitoring (1) the pace of adoption and customer utilization of the Neulixa platform as it launches into the respiratory season, (2) further developments and finalization of the IVD pricing guidelines in China and how customers adjust purchasing patterns in response, and (3) the company’s progress on operational improvements, particularly around cash conversion and leverage reduction. Execution on these fronts will be critical for assessing the path to sustainable growth. QuidelOrtho currently trades at $14.62, down from $16.32 just before the earnings. At this price, is it a buy or sell? See for yourself in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Image source: The Motley Fool. Thursday, Aug. 6, 2026 at 5:00 p.m. ET Vice President of Investor Relations - Juliet C. Cunningham President and Chief Executive Officer - Brian J. Blaser Chief Financial Officer - Micah Young Operator: Welcome to the Second Quarter 2026 Financial Results Conference Call and Webcast. At this time, all participant lines are in listen-only mode. For those of you participating in the conference call, there will be an opportunity for your questions at the end of the prepared remarks. Please note this conference call is being recorded. An audio replay of the conference call will be available on the company's website shortly after this call. I would now like to turn the conference over to Juliet C. Cunningham, Vice President of Investor Relations. Please go ahead. Juliet C. Cunningham: Good afternoon, everyone, and thanks for joining us today. With me are Brian J. Blaser, President and Chief Executive Officer, and Micah Young, Chief Financial Officer. This conference call is being simultaneously webcast on the Investor Relations page of our website. To assist in the presentation, we also posted supplemental information on our Investor Relations page that will be referenced throughout this call. This conference call and supplemental information contain forward-looking statements, which are made as of today, August 6, 2026. We assume no obligation to update any forward-looking statement except as required by law. Statements that are not strictly historical, including the company's expectations, plans, financial guidance, future performance, and prospects, are forward-looking statements that are subject to certain risks, uncertainties, assumptions, and other factors. Actual results may vary materially from those expressed or implied by these forward-looking statements. Please refer to our SEC filings for a description of potential risks. In addition, today's call includes discussion of certain non-GAAP financial measures. Tables reconciling these non-GAAP measures to their most directly comparable GAAP measures are available in our earnings release and supplemental information on the Investor Relations page of our website. Lastly, unless stated otherwise, all year-over-year revenue growth rates given on today's call are on a constant-currency basis. Now I would like to turn the call over to our CEO, Brian J. Blaser. Brian J. Blaser: Thanks, Juliet, and good afternoon, everyone. Before I get into our second-quarter results, I would like to welcome Micah Young, our new Chief Financial Officer. Micah brings extensive experience from the medical technology industry and a strong track record of financial and operational leadership. We are excited to have him on the team and look forward to the contributions he will make as we continue executing our strategy and creating long-term value for our shareholders. Let me begin with the central takeaway from our second quarter. We are navigating significant headwinds in China and a softer respiratory environment, but the underlying performance of our business remains strong. Total revenue in the quarter increased 2%. Excluding China, revenue grew 6%, reflecting broad-based strength across our core franchises and regions. Labs revenue outside of China grew 9%, immunohematology revenue outside of China increased 5%, and Triage expanded by 9%. These results demonstrate the underlying strength of customer demand and solid commercial execution across our portfolio. Our geographic revenue performance in the quarter was strong and broad-based. North America, our largest region, grew by 6%, with strong contributions from labs and our Triage point-of-care business. JPAC revenue grew 10%, driven by strong performance in Japan and India. Latin America grew 8%, with notable strength in Brazil and Central America. Adjusted EBITDA increased 21% to $129 million, while EBITDA margin expanded 310 basis points to 20% of revenue. This level of margin expansion during our seasonally weakest quarter of the year demonstrates that our operational improvement initiatives are delivering tangible results. We are driving better productivity throughout the organization, exercising disciplined expense management, and focusing our resources on the highest-return opportunities. We also continue to invest in innovation and growth opportunities that will strengthen our competitive position and expand our addressable markets over time. One of the most significant of these opportunities is the commercialization of the Lex point-of-care molecular platform, now branded as Neulixa. Since completing the Lex acquisition in April, we have made substantial progress. Our teams have moved quickly to advance manufacturing scale-up, supply-chain readiness, and commercial launch capabilities. I am pleased with the progress to date, and we remain on track against these objectives. Early customer engagement has been very encouraging. We believe Neulixa addresses an important need in the market by combining molecular accuracy and rapid turnaround time with a simple, efficient workflow at the point of care. Just as importantly, Neulixa is more than a single product launch. It provides a scalable platform for future menu expansion and allows us to leverage our established commercial infrastructure, broad customer relationships, and deep expertise in point-of-care diagnostics. Based on our current plans, we expect customer placements and test utilization to gain steady momentum as we progress into the respiratory season later this year. Our objective is to enter the 2027–2028 respiratory season with a growing installed base, a productive commercial engine, and a strong foundation for continued expansion. Turning back to the results for the quarter, the notable performance exception was China, where revenue declined 23% year over year. Uncertainty related to the proposed IVD pricing guidelines has impacted buying behavior as customers reduce their inventories pending the issuance of the final nationwide guidelines. The second draft of the IVD pricing guidelines, which was released for comment in late June, differs meaningfully from the preliminary draft issued in March. The second draft of the guidelines eliminates methodology and use-case differentiation and includes a broader range of products. The scope has changed, with the pilot implementation increasing from 3 to 6 provinces. And while the guidelines and their implementation timelines are not yet final, we believe the uncertainty regarding the guidelines is already impacting customer behavior. When we reviewed market performance data that became available after quarter-end, we observed customers adjusting their purchasing and inventory levels more quickly and significantly than we had anticipated. We are working closely with our team, customers, and distribution partners in China to adapt our commercial and operating plans. Our near-term actions are focused on protecting our installed base, maintaining customer engagement during the transition period, and aligning commercial resources with the evolving reimbursement environment. While we remain confident in our ability to manage through these changes, the timing, extent, and pace of implementation continue to create uncertainty around near-term demand. The respiratory market also remained softer as we moved into the summer season. Test positivity rates are down markedly compared with 2025. The timing and severity of respiratory seasons are inherently difficult to predict, and while historical patterns would indicate we are due for a stronger 2026–2027 flu season, early indicators are pointing to a below-average season ahead. Rather than assume a typical uptick in ILI visits, we are assuming the first-half softness continues and have modeled our second-half respiratory revenues accordingly. Given the collective impacts of China and our respiratory-season forecast, we are revising our full-year guidance for revenue, adjusted EBITDA, adjusted EBITDA margin, and adjusted EPS. We are taking a measured approach to our guidance in view of these factors. We also made the decision to withdraw free-cash-flow guidance until we have greater clarity of the combined working-capital implications of these developments. This is a prudent response to the information available to us today. It does not change our confidence in the strength of our core business. And importantly, withdrawing free-cash-flow guidance does not change our commitment to improving cash performance. Improving our cost structure, strengthening cash flow, and reducing leverage remain top priorities for the company. The revised outlook reflects the impact of ongoing market pressures in China and a prudent approach to respiratory-season assumptions in the second half. At the same time, our second-quarter and first-half results outside of China demonstrate the underlying strength of our business, the durability of our customer relationships, and the benefits of our diversified portfolio. Our focus remains on executing with discipline, responding appropriately to current conditions, and positioning QuidelOrtho for stronger, more sustainable performance over the long term. So with that, I will turn the call over to Micah. Micah Young: Thank you, Brian, and good afternoon, everyone. Since this is my first earnings call as CFO, I want to start with the perspective I have developed over the past several weeks. I have been reviewing our operations, financial performance, capital structure, and cash generation profile with a fresh lens. QuidelOrtho has a highly attractive global diagnostics franchise, a large installed base, and leading market positions. At the same time, I see clear opportunities to improve execution and strengthen cash conversion. From that perspective, let me turn to our second-quarter results. Total revenue for the quarter was $631 million, representing 2% growth on a constant-currency basis. While the headline growth rate was affected by continued weakness in China, the underlying second-quarter performance of the business was stronger than the consolidated result would suggest. While China is an important market for QuidelOrtho, our broader global business continued to perform well during the quarter. Revenue outside of China, which represents nearly 90% of total company revenue, increased 6% year over year in Q2. That performance reflects healthy demand across our core end markets, strong customer retention, and continued commercial execution across our diagnostics portfolio, even as the consolidated result was pressured by China. As Brian mentioned, China remained a significant headwind during the quarter, with revenue declining 23% year over year. The market continues to experience uncertainty related to health care policy changes, pricing dynamics, and customer purchasing patterns. While we do not expect market conditions in China to improve in the near term, our teams remain focused on supporting customers, preserving our installed base, and positioning the business to compete effectively as the market adjusts. Taken together, the strength of our business outside of China highlights the value of our diversified global footprint, even as the China and respiratory headwinds require a more cautious full-year outlook. Turning to profitability, Q2 adjusted gross margin was 44.4%, down 130 basis points year over year. Unfavorable geographic mix associated with lower China volumes negatively impacted our results in the quarter. Non-GAAP SG&A and R&D operating expenses combined increased 2% to $219 million. As a percentage of revenue, operating expenses improved 40 basis points year over year. Adjusted EBITDA was $129 million, and adjusted earnings per share was $0.13 for the quarter. Turning to the balance sheet and cash flow, we ended the quarter with $123 million in cash and $250 million in borrowings outstanding under our revolving credit facility. Operating cash flow for the quarter was negative $111 million, and free cash flow was negative $136 million. Second-quarter free cash flow included a $25 million payment to Grifols associated with the termination of the joint business arrangement. The remaining payments of $25 million and $15 million associated with the termination of that agreement will occur in 2027 and 2028, respectively. In addition, we deployed $97 million in cash for the Lex acquisition, which was reported in investing activities this quarter. At the end of the second quarter, net debt leverage was 4.3x adjusted EBITDA, including the pro forma adjustments permitted under our credit agreement. As I evaluate the business, among my top priorities are improving cash conversion and reducing leverage. As part of my initial review, we are evaluating opportunities to improve our cost structure, optimize returns on our instrument investments, enhance working-capital efficiency, and maintain a disciplined approach to capital allocation. I am confident that our actions can and will improve cash conversion, but we do not have sufficient clarity today on the evolving market dynamics and the timing and impact of our mitigation efforts with a degree of precision appropriate to provide updated free-cash-flow guidance for 2026. Rather than provide a wider guidance range, reflecting potential cash-flow outcomes for the remainder of the year, which I do not believe would be helpful or meaningful to investors, we made the decision to withdraw free-cash-flow guidance. We are taking a disciplined approach to external cash-flow guidance while remaining intensely focused on execution and strengthening the balance sheet. Turning to our outlook, based on current market conditions and the trends we see across our business, we are updating our full-year 2026 guidance. We now expect revenue in the range of $2.52 billion to $2.6 billion. The downward revision reflects two primary factors. First, we expect the challenges in China to persist through the remainder of the year, including continued pressure on demand and ongoing uncertainty related to the China IVD pricing guidelines. Second, we are taking a prudent approach to respiratory-season assumptions in the second half. At the midpoint of our outlook, we are assuming a respiratory environment that is generally consistent with the more muted flu activity experienced during the first half of this year. Importantly, the adjustment to our outlook is not being driven by changes in expectations for our core laboratory and immunohematology businesses outside of China. Performance in these franchises remained stable, and we are assuming approximately 3% to 5% aggregate growth for those businesses in the second half of the year. The revised outlook primarily reflects our expectation that China-related challenges will persist and our more cautious assumptions regarding respiratory-season demand. Turning to profitability, we now expect full-year 2026 adjusted EBITDA of $540 million to $560 million, representing an EBITDA margin range of 21% to 22%. And we now expect adjusted EPS of $0.65 to $0.90. One of my priorities as CFO is to ensure that the guidance and commitments we make externally are grounded in a high level of confidence. Given the current operating environment, we have decided to withdraw free-cash-flow guidance. This decision is not a change in our view of the long-term quality of the business. It reflects continued uncertainty around factors that can significantly influence cash generation, including the current market environment in China, the ultimate strength and timing of the respiratory season, and the related working-capital impacts. As I step into this role, I see significant opportunities to strengthen financial performance beyond the income statement. My priorities are clear: improving cash conversion, reducing leverage, and maintaining a disciplined capital-allocation framework focused on returns and balance-sheet strength. While the environment remains dynamic, I am encouraged by the resilience of the underlying business, the strength of our market positions, and the opportunities we have to improve execution. Ultimately, my objective is to improve the consistency with which our operating performance converts into cash flow, support deleveraging, and drive sustainable long-term shareholder value. With that, we will open the line for questions. Operator: We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please press 1 to raise your hand. To withdraw your question, please press 1 again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from Jack Meehan with Oppenheimer. Please go ahead. Jack Meehan: Thank you. Good afternoon. Wondering if you could talk about what proactive steps you are taking to improve the balance-sheet leverage? Micah Young: Absolutely, Jack. So first, thank you for your question. Let me step back a bit. The reason I joined QuidelOrtho is because I saw an opportunity to help drive the next phase of value creation. As I have evaluated the business, as I mentioned in the prepared remarks, improving cash conversion, reducing leverage, and increasing returns on invested capital are priorities. Where I am focused with this team is on improving working capital, reducing the capital that is tied up in inventory, optimizing the returns on our instrument investments, rationalizing capital expenditures, and directing capital to the geographies and businesses generating the highest returns. Jack Meehan: Okay. And at the end of June, there was a Financial Times article that was reporting that QuidelOrtho was considering selling its point-of-care business. I was wondering if you had any comment on that, and if you were to consider something like that, just talk through the rationale. Brian J. Blaser: Hey, Jack. This is Brian. Yeah. We saw the article, of course, and have seen some of the speculation. I am not going to comment on that. Just as a general matter, we do not comment on market rumors like that. But I will say that our highest priority is maximizing long-term shareholder value. And just as a matter of good governance, our board and our management team are regularly evaluating a broad range of opportunities, including portfolio opportunities to strengthen the business and improve shareholder returns. But our current focus right now is on executing our strategy, as Micah said, improving cash conversion, reducing leverage, and driving operational performance across our portfolio. And as always, we take actions that we believe are in the best interest of shareholders. Jack Meehan: Okay. Thanks, Brian. If I could squeeze in one more. You mentioned the reduced respiratory forecast for the year, and you are seeing some early indicators that might suggest a lower season. I was wondering if you could elaborate on that. Is it Australia data or something else? Any color would be great. Thank you. Brian J. Blaser: Yeah. I think our approach to the respiratory season here has changed a little bit. So, as you know, the respiratory market is variable year to year. And really, what has changed here, more than anything, is our approach to forecasting for it. So historically, and I know you are familiar with this, we have used an average respiratory season as a baseline for creating our annual guidance. And this year, we are assuming that the respiratory testing market is going to be consistent with more of the lower end of the historical seasons. And I think moving forward, we intend to take a more conservative approach and align our cost structure accordingly. We have seen, up until now, our positivity rates in the U.S. are significantly lower than they were this time last year. We have seen lower strength of data coming out of the Southern Hemisphere, which at a minimum suggests either a later season or could indicate a softer season. So we think that taking a more prudent approach here to respiratory season, given what we are seeing as early indicators, is the right way to position the business. That makes sense. Thank you, Brian. Operator: Your next question comes from William Bonello with Craig-Hallum Capital Group. Please go ahead. William Bonello: Hey. Thanks a lot. So, appreciate the commentary about, you know, what growth looks like excluding China this quarter. Brian J. Blaser: But I think, you know, we find ourselves lots of times in a quarter where, you know, if you do not count something that is not growing, then growth looks pretty good. I am just curious sort of how you are thinking about the business as a whole, maybe how the board and the management team think about risk-mitigation strategy, you know, how do you get to a point where you can absorb portions of the business that are underperforming without it being sort of a major problem for the company as a whole? Yeah. So, Bill, I would answer that a couple of ways. First, I would point to the strength of the underlying business here. When you step back and look at the business excluding respiratory and China, which is basically our labs and immunohematology business, it is about 75% of the company last year. Those are, you know, really strong, predictable businesses that are supported by really nice underlying business model attributes. They have long contracts, very durable recurring revenue streams, a large base of instruments, and so on. They have very strong brand recognition and solid market positions. And, you know, those businesses continue to demonstrate very solid growth in the mid-single digits. And if you look at our first-half results, you know, without China, we grew 6% in the second quarter. We had very nice performance across all of our geographies and our business units. Impacts like the one we are seeing in China, as it relates to significant headwinds, all I can tell you is that we are taking very aggressive mitigation steps in China and across the business to better position the company and our cost structure to be able to, you know, manage through that and emerge on the other side of that stronger. So, you know, we have a lot of cost-improvement opportunities underway. We are taking additional steps. I have already taken additional steps, and we are going to continue to augment those as we go through the back half of this year. William Bonello: Okay. That is really helpful. Brian J. Blaser: Thanks, Bill. Operator: If you would like to ask a question, press star one to raise your hand. To withdraw your question, press star one again. There are no further questions at this time. Brian J. Blaser: I will now hand the call back to Brian J. Blaser for closing remarks. Thanks, operator, and thank you all for joining us today and for the questions. I would like to close with the following points. First, despite the pricing changes in China and the uncertainty surrounding the upcoming respiratory season, our Q2 results demonstrate that the underlying health of our core business remains strong. And secondly, we recognize the challenges in front of us, and we are addressing them head-on with aggressive mitigation actions. We believe that revising our outlook is a prudent and responsible course based on what we know today. Lastly, our priorities have not changed. We remain intensely focused on serving our customers, improving our cost structure, strengthening cash flow, and significantly reducing leverage as we move through the balance of the year. And we remain focused on execution and taking the steps necessary to strengthen our financial position. So thank you all for joining us, and we look forward to updating you on our progress next quarter. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in QuidelOrtho, 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 QuidelOrtho wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and 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 $400,209!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,375,393!* That performance is why people listen. With a track record of beating the S&P 500 by 4x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 13, 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 positions in and recommends QuidelOrtho. The Motley Fool has a disclosure policy. QuidelOrtho (QDEL) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

QuidelOrtho Corporation QDEL delivered adjusted earnings per share (EPS) of 13 cents in second-quarter 2026, up 8.3% year over year. The figure beat the Zacks Consensus Estimate by 425%. The adjustments include expenses related to the amortization of intangibles, acquisition and integration costs, among others. GAAP loss per share for the quarter was $1.36 compared with the year-earlier loss of $3.77. QuidelOrtho registered revenues of $630.9 million in the second quarter of 2026, which increased 2.8% year over year on a reported basis and 1.9% at constant exchange rate (CER). The figure surpassed the Zacks Consensus Estimate by 2.65%. In the second quarter, Respiratory revenues were $47.9 million (up 2.6% on a reported basis and 2.5% at CER), while Non-Respiratory revenues were $583 million (up 2.8% on a reported basis and 1.8% at CER). QuidelOrtho derives revenues from five business units — Labs, Immunohematology, Donor Screening, Point of Care and Molecular Diagnostics. As a result of the wind-down of the U.S. Donor Screening portfolio, the previously reported Transfusion Medicine business unit is now presented in its two product categories — Immunohematology and Donor Screening. In the second quarter, Labs revenues were $382.9 million, up 3.6% on a reported basis and 2.4% at CER. Immunohematology revenues were $134.2 million in the second quarter, up 1.4% and 0.7% on a reported basis and at CER, respectively. Donor Screening revenues were $4 million in the second quarter, down 69.9% on a reported basis and 69.5% at CER. Point of Care revenues amounted to $108.2 million in the second quarter, reflecting increases of 16.3% on a reported basis and 15.7% at CER. Molecular Diagnostics revenues totaled $1.6 million in the second quarter, down 71.4% on a reported basis and 72% at CER. Geographically, QuidelOrtho derives revenues from North America, Europe, the Middle East and Africa (EMEA), China, Latin America and Japan and other Asia-Pacific markets (JPAC). Revenues from North America amounted to $327.4 million, reflecting an increase of 5.4% on a reported basis and 5.8% at constant exchange rate (CER). EMEA revenues amounted to $91.2 million, reflecting an increase of 4.5% on a reported basis and 1.5% at CER. Revenues from China amounted to $67.8 million, reflecting a decrease of 18.7% on a reported basis and 23.3% at CER. Revenues from JPAC amounted to $74.3 million, reflecting an uptick of 2.9% on a reported basis and 10.5% at CER. Revenues from Latin America amounted to $70.2 million, reflecting an uptick of 16.4% on a reported basis and 7.8% at CER. QuidelOrtho Corporation price-consensus-eps-surprise-chart | QuidelOrtho Corporation Quote In the quarter under review, QuidelOrtho’s adjusted gross profit declined 0.2% year over year to $279.9 million. The adjusted gross margin contracted 130 basis points (bps) to 44.4%. Adjusted selling, marketing and administrative expenses increased 2% year over year to $174 million. Adjusted research and development expenses remained flat year over year at $45 million. Adjusted operating expenses of $219 million increased 2% year over year. Adjusted operating profit totaled $60.2 million, flat year over year. Adjusted operating margin in the second quarter contracted 30 bps to 9.5%. QuidelOrtho exited the second quarter of 2026 with cash and cash equivalents of $123.4 million compared with $140.4 million at the end of the first quarter of 2026. Total debt (including short-term debt) at the end of second-quarter 2026 was $2.89 billion compared with $2.69 billion at the end of the first quarter of 2026. Cumulative net cash used by operating activities at the end of the second quarter was $143.6 million, against net cash provided by operating activities of $18.8 million a year ago. QuidelOrtho lowered its 2026 revenue guidance to $2.52-$2.60 billion from $2.70-$2.75 billion. Management expects China weakness to persist through the year and adopted more conservative assumptions for the upcoming respiratory season amid lower test positivity and softer early indicators. Adjusted EBITDA guidance was reduced to $540-$560 million from $615-$630 million, with the margin outlook lowered to 21%-22% from 23%. Adjusted earnings guidance now calls for 65-90 cents per share compared with the previous range of $1.80-$2.00. Following the reduced guidance for 2026, shares of the company lost around 25% in Friday’s trading session. QuidelOrtho ended the second quarter of 2026 on a strong note, with both earnings and revenues surpassing the Zacks Consensus Estimate. The company benefited from solid growth in its Labs and Point of Care businesses, while strength across North America, JPAC and Latin America was encouraging. Adjusted EBITDA rose year over year and the corresponding margin expanded, reflecting benefits from productivity initiatives and disciplined expense management. However, persistent weakness in China and a softer respiratory testing environment remain major concerns. China revenues declined sharply amid uncertainty related to proposed in vitro diagnostics pricing guidelines, while the company also adopted a more cautious outlook for the upcoming respiratory season. These headwinds prompted QuidelOrtho to lower its 2026 revenues, adjusted EBITDA and adjusted earnings guidance and withdraw its free cash flow outlook. Negative operating cash flow, elevated leverage and weak cash conversion also remain key areas to watch. Meanwhile, progress on the NULEXA point-of-care molecular platform remains a key positive. Following the LEX Diagnostics acquisition, QuidelOrtho has advanced manufacturing scale-up, supply-chain readiness and commercial launch preparations. Management expects customer placements and test utilization to gain momentum during the upcoming respiratory season, with NULEXA providing a platform for future menu expansion and leveraging the company’s existing point-of-care commercial infrastructure. QDEL currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader medical space are McKesson MCK, Phibro Animal Health PAHC and Cardinal Health CAH. McKesson carries a Zacks Rank #2 (Buy) at present and has an estimated long-term growth rate of 13.7%. MCK’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 3.09%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. McKessonshares have gained 8.8% against the industry’s 12.7% decline in the year-to-date period. Phibro Animal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 21.5%. PAHC’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 16.25%. Phibro Animal Health stock has climbed 44.2% against the industry’s 17.1% decline in the year-to-date period. Cardinal Health, carrying a Zacks Rank of 2 at present, has an estimated long-term growth rate of 17%. CAH’s earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 10.27%. Cardinal Health’s shares have lost 2.6% compared with the industry’s 3.1% decline in the year-to-date period. 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 QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report Cardinal Health, Inc. (CAH) : Free Stock Analysis Report McKesson Corporation (MCK) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

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. Management attributed the 2% total revenue growth to a significant divergence between core business strength and regional headwinds, noting that revenue outside of China grew 6%. The 23% decline in China revenue was driven by customer inventory reductions in response to evolving IVD pricing guidelines, which recently expanded in scope to include more products and provinces. Adjusted EBITDA margin expanded by 310 basis points to 20%, which management cited as evidence that productivity initiatives and disciplined expense management are offsetting volume pressures. The company completed the Lex acquisition and rebranded the platform as Neulixa, positioning it as a scalable molecular diagnostic foundation to leverage existing commercial infrastructure. Operational focus has shifted toward protecting the installed base in China while aligning commercial resources with the new reimbursement environment to maintain customer engagement. Management emphasized that the core Labs and Immunohematology franchises, which represented approximately 75% of the company last year when excluding respiratory and China, remain stable with mid-single-digit growth. Full-year revenue guidance was lowered to $2.52 billion–$2.6 billion, assuming that China market pressures will persist and respiratory demand will remain at the lower end of historical averages. Management withdrew free-cash-flow guidance due to uncertainty regarding the working-capital implications of the China pricing transition and the timing of the respiratory season. The company is adopting a more conservative 'prudent' forecasting methodology for respiratory revenue, moving away from using average historical seasons as a baseline. Strategic priorities for the second half of 2026 include aggressive cost-structure mitigation, reducing net debt leverage from the current 4.3x, and optimizing instrument investment returns. Neulixa commercialization is expected to gain momentum in late 2026, with the goal of establishing a large installed base ahead of the 2027–2028 respiratory season. Free cash flow was negative $136 million, which included a $25 million payment to Grifols for the termination of a joint business arrangement; additionally, the company deployed $97 million for the Lex acquisition, reported in investing activities. The second draft of China's IVD pricing guidelines eliminated methodology differentiation, creating broader market uncertainty than the initial March draft. Management flagged that early indicators from the Southern Hemisphere and current U.S. positivity rates suggest a potentially below-average or delayed flu season. Net debt leverage stands at 4.3x adjusted EBITDA, prompting a management focus on rationalizing capital expenditures and improving working-capital efficiency. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. The new CFO is focusing on reducing capital tied up in inventory and optimizing returns on instrument investments. Management is rationalizing capital expenditures and directing resources specifically to geographies and business units with the highest returns. Management declined to comment on specific market rumors or speculation regarding a potential divestiture. The CEO stated the board regularly evaluates portfolio opportunities to maximize shareholder value but emphasized the current focus is on operational execution and deleveraging. The downward revision is based on lower positivity rates in the U.S. compared to the prior year and soft data from the Southern Hemisphere. Management noted that even if a typical uptick occurs, they are modeling the second half based on first-half softness to ensure a conservative baseline.

Interested in QuidelOrtho Corporation? Here are five stocks we like better. Second-quarter revenue rose 2% to $631 million on a constant-currency basis, while revenue outside China increased 6%. Adjusted EBITDA climbed 21% to $129 million, though gross margin declined because of unfavorable geographic mix. China revenue fell 23% as customers reduced purchases and inventories amid uncertainty over proposed pricing guidelines. QuidelOrtho also cited weaker respiratory-testing trends and adopted a more conservative outlook for the remainder of the year. The company lowered its 2026 revenue, adjusted EBITDA and adjusted EPS forecasts, and withdrew free cash flow guidance because of uncertainty around China, respiratory demand and working-capital impacts. Lucira Stock Jumps over 250% on FDA Approval, Beware Chapter 11 QuidelOrtho (NASDAQ:QDEL) reported second-quarter revenue growth despite continued pressure from China and a softer respiratory testing environment, while lowering its full-year outlook and withdrawing free cash flow guidance. Total second-quarter revenue was $631 million, up 2% on a constant-currency basis. Revenue outside China, representing nearly 90% of company revenue, rose 6%, according to Chief Financial Officer Micah Young. Chief Executive Officer Brian Blaser said the underlying business showed broad-based strength across core franchises and regions. → Meta’s Earnings Drop Shows Wall Street Wants More Than Ad Growth “While we are navigating significant headwinds in China and a softer respiratory environment, the underlying performance of our business remains strong,” Blaser said. Revenue in North America increased 6%, supported by laboratory and TRIAGE point-of-care businesses. Revenue in the JPAC region rose 10%, driven by Japan and India, while Latin America grew 8%, with strength in Brazil and Central America. → 4 Oil and Gas ETF Plays as Prices Stay Sky-High Outside China, laboratory revenue increased 9%, immunohematology revenue rose 5%, and TRIAGE revenue expanded 9%, Blaser said. Young added that the company expects its laboratory and immunohematology businesses outside China to generate aggregate growth of approximately 3% to 5% in the second half of 2026. Adjusted EBITDA increased 21% to $129 million during the quarter, and adjusted EBITDA margin expanded 310 basis points to 20% of revenue. Adjusted gross margin was 44.4%, down 130 basis points from a year earlier, reflecting unfavorable geographic mix from lower China volumes. Combined non-GAAP selling, general and administrative and research and development expense rose 2% to $219 million, but improved by 40 basis points as a percentage of revenue. → Sandisk Just Delivered a Blowout Quarter—Here's Why the Stock Is Falling Adjusted earnings per share were $0.13. China revenue declined 23% year over year as customers adjusted purchases and reduced inventories amid uncertainty around proposed in vitro diagnostics pricing guidelines. Blaser said the second draft of the guidelines, released for comment in late June, differed meaningfully from a preliminary draft issued in March. The revised draft eliminates methodology and use-case differentiation, includes a broader range of products and expands pilot implementation from three to six provinces, according to Blaser. Final guidelines and implementation timelines have not been established. “We observed customers adjusting their purchasing and inventory levels more quickly and significantly than we had anticipated,” Blaser said. The company is focusing its near-term China actions on protecting its installed base, maintaining customer engagement and aligning commercial resources with the changing reimbursement environment. Young said the company does not expect China market conditions to improve in the near term. QuidelOrtho also cited lower respiratory test positivity rates compared with 2025 and softer-than-expected indicators from the Southern Hemisphere. Blaser said those trends could point to either a later season or a weaker season. Rather than use an average respiratory season as the basis for its outlook, the company is now assuming that the respiratory testing market will be toward the lower end of historical seasonal activity. Blaser said QuidelOrtho intends to use a more conservative respiratory forecasting approach going forward and align its cost structure accordingly. The company expects customer placements and test utilization for its newly branded NULEXA point-of-care molecular platform to gain momentum during the respiratory season later this year. QuidelOrtho acquired LEX in April and has been advancing manufacturing scale-up, supply chain readiness and commercial launch preparations, Blaser said. Management aims to enter the 2027-2028 respiratory season with a growing installed base and expanded commercial activity for the platform. For full-year 2026, QuidelOrtho now expects: Revenue of $2.52 billion to $2.60 billion. Adjusted EBITDA of $540 million to $560 million. Adjusted EBITDA margin of 21% to 22%. Adjusted earnings per share of $0.65 to $0.90. The revised outlook reflects expectations for continuing China-related demand pressure and a more muted respiratory season in the second half. Management said the revised forecast does not reflect a change in expectations for the company’s core laboratory and immunohematology businesses outside China. The company withdrew its full-year free cash flow guidance, citing uncertainty surrounding China, the timing and strength of respiratory testing demand, and related working-capital effects. Operating cash flow was negative $111 million in the second quarter, while free cash flow was negative $136 million. Free cash flow included a $25 million payment to Grifols related to the termination of a joint business arrangement. Additional payments of $25 million and $15 million are expected in 2027 and 2028, respectively. The company also used $97 million of cash for the LEX acquisition during the quarter. QuidelOrtho ended the quarter with $123 million in cash and $250 million outstanding under its revolving credit facility. Net debt leverage was 4.3 times adjusted EBITDA, including pro forma adjustments allowed under its credit agreement. Young, who joined as CFO, said his priorities include improving working capital, reducing inventory-related capital needs, improving returns on instrument investments, rationalizing capital expenditures and directing capital toward higher-return businesses and geographies. Blaser said management is pursuing cost-improvement measures and additional mitigation actions to manage through the China and respiratory headwinds. QuidelOrtho is a global diagnostics company formed through the merger of Quidel Corporation and Ortho Clinical Diagnostics. The combined entity develops, manufactures and markets a broad portfolio of rapid and high-throughput diagnostic solutions across immunoassay, molecular diagnostics and transfusion medicine. Its offerings span point-of-care platforms for acute care testing as well as large-scale automated systems designed for clinical laboratories and blood banks. The company's product range includes rapid antigen and antibody tests for infectious diseases, molecular assays utilizing nucleic acid amplification technology, and integrated immunodiagnostic analyzers. 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 "QuidelOrtho Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

QuidelOrtho (QDEL) came out with quarterly earnings of $0.13 per share, beating the Zacks Consensus Estimate of a loss of $0.04 per share. This compares to earnings of $0.12 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +425.00%. A quarter ago, it was expected that this medical diagnostics company would post earnings of $0.37 per share when it actually produced a loss of $0.04, delivering a surprise of -110.81%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. QuidelOrtho, which belongs to the Zacks Medical - Products industry, posted revenues of $630.9 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.65%. This compares to year-ago revenues of $613.9 million. The company has topped consensus revenue estimates four 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. QuidelOrtho shares have lost about 38.7% since the beginning of the year versus the S&P 500's gain of 12.8%. While QuidelOrtho 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 QuidelOrtho was favorable. 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 #2 (Buy) for the stock. So, the shares are expected to outperform 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 $0.82 on $708.97 million in revenues for the coming quarter and $1.87 on $2.68 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, CeriBell, Inc. (CBLL), is yet to report results for the quarter ended June 2026. The results are expected to be released on August 10. This company is expected to post quarterly loss of $0.45 per share in its upcoming report, which represents a year-over-year change of -18.4%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. CeriBell, Inc.'s revenues are expected to be $27.22 million, up 28.4% 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 QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report CeriBell, Inc. (CBLL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

― Total revenue grew 3% reported and 2% constant currency, primarily driven by Labs and Point of Care growth ― ― Excluding China, total revenue grew 6% both as reported and in constant currency ― ― Company updates full-year 2026 financial guidance ― SAN DIEGO, Aug. 6, 2026 /PRNewswire/ -- QuidelOrtho Corporation (Nasdaq: QDEL) (the "Company" or "QuidelOrtho"), a leading global provider of diagnostic solutions, today announced financial results for the second quarter ended June 28, 2026. Key Second Quarter 2026 Results:(all comparisons are to the prior year period) Total revenue was $631 million, an increase of 3% as reported and 2% in constant currency. Excluding China, total revenue grew 6% both as reported and in constant currency. GAAP net loss was $93 million; GAAP operating loss was $22 million; adjusted EBITDA was $129 million. GAAP net loss margin was 14.7%; GAAP operating loss margin was 3.5%; adjusted EBITDA margin was 20.5%, an improvement of 310 basis points. GAAP diluted loss per share was $1.36; adjusted diluted earnings per share ("EPS") was $0.13. "Our second quarter performance demonstrated QuidelOrtho's underlying strength and the benefits of our diversified portfolio, with solid results across our core franchises and regions, with the exception of China. Demand headwinds in China related to the proposed IVD pricing guidelines and a softer global respiratory environment are continuing to impact our business," said Brian J. Blaser, President and Chief Executive Officer of QuidelOrtho. "As a result, we are revising our full-year 2026 revenue and earnings guidance to reflect these evolving market dynamics. In addition, we have decided to withdraw free cash flow guidance as we work through the associated impacts on working capital and our mitigation efforts. This decision does not change our commitment to improving cash conversion, which remains our top priority. We remain focused on serving our customers, executing our strategy, strengthening our balance sheet, and building a stronger, more resilient QuidelOrtho." Full-year 2026 Financial Guidance Based on its current business outlook, the Company is updating its full-year financial guidance below: A reconciliation of forward-looking non-GAAP measures, including adjusted EBITDA, adjusted EBITDA margin and adjusted diluted EPS, to the most directly comparable GAAP measures is not provided because comparable GAAP measures for such measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be necessary for such reconciliation. We are not, without unreasonable effort, able to reliably predict the impact of impairment charges and related tax benefits and other non-recurring adjustments. These items are uncertain, depend on various factors and may have a material impact on our future GAAP results. In addition, the Company believes any such reconciliation would imply a degree of precision and certainty that could be confusing to investors. See "Forward-Looking Statements" and "Non-GAAP Financial Measures." Conference Call Information Following the release of financial results, QuidelOrtho will hold a conference call today beginning at 2:00 p.m. PT / 5:00 p.m. ET to discuss its financial results. Interested parties can access the call from the "Events & Presentations" section of the "Investor Relations" page of the Company's website at https://ir.quidelortho.com. Presentation materials will also be posted to the "Events & Presentations" section of the "Investor Relations" page of the Company's website at the time of the call. A replay of the conference call will be available shortly after the event on the "Investor Relations" page of the Company's website under the "Events & Presentations" section. QuidelOrtho is dedicated to advancing diagnostics to power a healthier future. For more information, please visit quidelortho.com and follow QuidelOrtho on LinkedIn, Facebook and X. About QuidelOrtho Corporation With expertise spanning clinical chemistry, immunoassay, immunohematology and molecular testing, QuidelOrtho Corporation (Nasdaq: QDEL) is a leading global provider of diagnostic solutions, dedicated to advancing fast, accurate and reliable results that help improve patient outcomes – from the point of care to hospital, lab to clinic. Building on a legacy of innovation, QuidelOrtho works with healthcare providers to advance diagnostics that connect insights with solutions, defining a clearer path for informed decisions and better care. Forward-Looking Statements This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are any statement contained herein that is not strictly historical, including, but not limited to, QuidelOrtho's commercial and other strategic goals, financial guidance for 2026 and related assumptions and other future financial condition and operating results, including growth expectations and expected results of operations, financial position or cost-savings and operational improvement initiatives, and other future plans, objectives, strategies, expectations and intentions. Without limiting the foregoing, the words "may," "will," "could," "would," "should," "might," "expect," "anticipate," "believe," "estimate," "plan," "intend," "goal," "project," "strategy," "future," "continue," "aim," "strive," "seek" or similar words, expressions or the negative of such terms or other comparable terminology are intended to identify forward-looking statements. Such statements are based on the beliefs and expectations of QuidelOrtho's management as of the date of this press release and are subject to significant known and unknown risks and uncertainties. Actual results or outcomes may differ significantly from those set forth or implied in the forward-looking statements. The following factors, among others, could cause actual results or outcomes to differ from those set forth or implied in the forward-looking statements: fluctuations in demand for QuidelOrtho's non-respiratory and respiratory products; supply chain, production, logistics, distribution and labor disruptions and challenges; inability to successfully identify, consummate or realize the anticipated benefits of strategic transactions, strategic restructurings, divestitures, spin-offs or discontinuances of certain business operations, or debt financings, on the anticipated timelines, or at all; delays in the development of or failures or delays in the receipt of approvals for new or enhanced products; failure of new products and services to be commercially viable or accepted; changes in reimbursement rates for our products, including reimbursement rate reductions proposed by the China National Health Security Administration; and other macroeconomic, geopolitical, market, business, competitive and/or regulatory factors affecting the business of QuidelOrtho generally, including those arising from the effects of announced or future or amended tariffs, trade policies, investigations, global trade relations and other tariff-related developments, as well as those discussed in QuidelOrtho's Annual Report on Form 10-K for the fiscal year ended December 28, 2025 and subsequent reports filed with the Securities and Exchange Commission (the "Commission"), including under Part I, Item 1A, "Risk Factors" of the Form 10-K. You should not rely on forward-looking statements as predictions of future events because these statements are based on assumptions that may not come true and are speculative by their nature. All forward-looking statements are based on information currently available to QuidelOrtho and speak only as of the date of this press release. QuidelOrtho undertakes no obligation to update any of the forward-looking information or time-sensitive information included in this press release, whether as a result of new information, future events, changed expectations or otherwise, except as required by law. Non-GAAP Financial Measures This press release contains financial measures that are considered non-GAAP financial measures under applicable rules and regulations of the Commission, including but not limited to "constant currency total revenue changes," "constant currency total revenue changes, excluding China," "constant currency Labs revenue changes," "constant currency Labs revenue changes, excluding China," "constant currency Immunohematology revenue changes," "constant currency Immunohematology revenue changes, excluding China," "constant currency Point of Care revenue changes," "constant currency Triage revenue changes," "adjusted EBITDA," "adjusted EBITDA margin," "adjusted diluted EPS" and other non-GAAP financial measures included in the reconciliation tables accompanying this press release. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, financial information prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). These non-GAAP financial measures eliminate impacts of certain non-cash, unusual or other items that the Company does not consider indicative of its ongoing operating performance, and the Company generally uses these non-GAAP financial measures to facilitate management's financial and operational decision-making, including evaluation of the Company's historical operating results and comparison to competitors' operating results. The Company's definitions of these non-GAAP measures may differ from similarly titled measures used by others. These non-GAAP financial measures reflect an additional way of viewing aspects of the Company's operations that, when viewed with GAAP results and the reconciliations to corresponding GAAP financial measures, may provide a more complete understanding of factors and trends affecting the Company's business. Because non-GAAP financial measures exclude the effect of items that will increase or decrease the Company's reported results of operations, management strongly encourages investors to review the Company's consolidated financial statements and reports filed with the Commission in their entirety. Reconciliations of the historical non-GAAP financial measures to the most directly comparable GAAP financial measures are included in the tables accompanying this press release. Investor Contact:Juliet CunninghamVice President, Investor [email protected] Media Contact:Stephanie KleeweinSenior Corporate Communications and PR [email protected] View original content to download multimedia:https://www.prnewswire.com/news-releases/quidelortho-reports-second-quarter-2026-financial-results-302845031.html

Align Technology, Inc. ALGN reported second-quarter 2026 non-GAAP earnings of $2.64 per share, up 6.0% year over year. The figure beat the Zacks Consensus Estimate by 3.1%. Revenues increased 4.3% to $1.06 billion and topped the consensus mark by 0.4%. The quarterly results benefited from record Clear Aligner shipments of 691.8 thousand cases, up 7.4% year over year. International markets delivered double-digit volume growth, while North America remained stable. Following the earnings announcement, ALGN shares rose 2.6% yesterday. Clear Aligner revenues increased 8.2% year over year to $870.9 million. This growth reflected higher shipment volumes, price increases, lower net deferrals and favorable foreign exchange. These gains were partly offset by higher discounts and a mix shift toward lower-priced products and countries. Shipments to orthodontists and general practitioner dentists rose 7.8% and 6.6%, respectively. A record 89,200 doctors submitted Invisalign cases, while doctor utilization increased 3.8% year over year. International momentum was led by double-digit growth across EMEA and APAC, along with record second-quarter shipments in Latin America. Imaging Systems and CAD/CAM Services revenues declined 10.8% year over year to $185.3 million. Persistent softness in the capital equipment market and a shift toward lower-priced scanners, rentals and leasing programs weighed on reported revenues. However, scanner unit placements increased by double digits, with placements to new doctors reaching a record. The active scanner installed base grew approximately 11%, while restorative, wellness and orthodontic scans increased 16% to more than 12.4 million. Exocad revenues also posted double-digit growth. The second-quarter gross margin expanded 180 basis points year over year to 71.7%, driven by operational efficiencies, a tariff refund and higher Clear Aligner average selling prices. Non-GAAP gross margin also increased 180 basis points to 72.3%. Operating expenses rose 10.7% to $603.4 million, mainly due to a U.K. value-added tax accrual and higher employee compensation. GAAP operating margin contracted 150 basis points to 14.6%, while non-GAAP operating margin expanded 160 basis points to 22.9%. Align ended the second quarter with $1.10 billion in cash and cash equivalents, up from $1.06 billion at the end of the first quarter. Operating cash flow totaled $192.8 million, while free cash flow totaled $157.1 million after capital expenditures of $35.7 million. The company repurchased roughly 393,400 shares for $67 million during the quarter. Management increased its 2026 repurchase commitment to $400-$500 million. ALGN had $733.3 million remaining under its existing $1 billion authorization at quarter-end. Align Technology, Inc. price-eps-surprise | Align Technology, Inc. Quote For the third quarter of 2026, Align expects worldwide revenues of $1.00-$1.02 billion, down sequentially. Clear Aligner volume is projected to grow in the mid-single digits year over year, while average selling prices are expected to decline sequentially due to geographic mix and foreign exchange. Systems and Services revenues are forecasted to decrease both sequentially and year over year. For 2026, management continues to expect worldwide revenue growth of 3-4%. Clear Aligner volume is now projected to increase approximately 6%, while average selling prices are expected to be flat to slightly lower year over year. Systems and Services revenues are forecasted to decline 6-8%, reflecting the shift toward lower-priced scanners and flexible acquisition models. Align Technology exited the second quarter of 2026 on a solid note, with both earnings and revenues beating their respective estimates. The company delivered growth across customer segments and continued to gain momentum among teen and growing kid patients. The growth was led by China, Japan, Turkey, India and Brazil. Management cited continued adoption of Invisalign First, the Invisalign Palatal Expander and Invisalign Mandibular Advancement with Occlusal Blocks. Investments in patient financing, clinical support, doctor subscription programs and practice productivity tools also supported treatment adoption and patient conversion. Expansion of both margins in the quarter is highly promising. However, the seasonality in capital equipment affected the quarter’s Systems and Services revenues. Align Technology currently has a Zacks Rank #4 (Sell). Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Phibro Animal Health PAHC and QuidelOrtho CP QDEL. Intuitive Surgical, carrying a Zacks Rank #2 (Buy) at present, posted a second-quarter 2026 adjusted EPS of $2.80, which exceeded the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion topped the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. ISRG’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.5%. Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a third-quarter fiscal 2026 adjusted EPS of 76 cents, which outpaced the Zacks Consensus Estimate by 5.9%. Revenues of $383.5 million outperformed the Zacks Consensus Estimate by 6.3%. PAHC’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.2%. QuidelOrtho, currently carrying a Zacks Rank #2, reported a first-quarter 2026 adjusted loss of 4 cents per share, which missed the Zacks Consensus Estimate by 110.8%. Revenues of $619.8 million beat the Zacks Consensus Estimate by 0.3%. QDEL beat earnings estimates in three of the trailing four quarters and missed on one occasion. 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 Align Technology, Inc. (ALGN) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report Phibro Animal Health Corporation (PAHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for QuidelOrtho (QDEL). Shares have added about 24.1% in that time frame, outperforming the S&P 500. Will the recent positive trend continue leading up to its next earnings release, or is QuidelOrtho due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers. QuidelOrtho Corporation delivered adjusted loss per share of 4 cents in first-quarter 2026 against earnings per share of 74 cents in the prior-year quarter. The figure missed the Zacks Consensus Estimate by 110.8%. The adjustments include expenses related to the amortization of intangibles, acquisition and integration costs, among others. GAAP loss per share for the quarter was $1.35 compared with the year-earlier loss of 19 cents. QuidelOrtho registered revenues of $619.8 million in the first quarter of 2026, which decreased 10.5% year over year on a reported basis and 12.6% at constant exchange rate (CER). However, the figure surpassed the Zacks Consensus Estimate by 0.3%. In the first quarter, Respiratory revenues were $67.9 million (down 43.3% on a reported basis and 43.6% at CER), while Non-Respiratory revenues were $551.9 million (down 3.7% on a reported basis and 6.2% at CER). QuidelOrtho derives revenues from five business units — Labs, Immunohematology, Donor Screening, Point of Care and Molecular Diagnostics. As a result of the wind-down of the U.S. Donor Screening portfolio, the previously reported Transfusion Medicine business unit is now presented in its two product categories — Immunohematology and Donor Screening. In the first quarter, Labs revenues were $353.1 million, down 5.3% on a reported basis and 7.6% at CER. Immunohematology revenues were $138.3 million in the first quarter, up 7.6% and 3.4% on a reported basis and at CER, respectively. Donor Screening revenues were $7.8 million in the first quarter, down 39.1% and 39.5% on a reported basis and at CER, respectively. Point of Care revenues amounted to $112.8 million in the first quarter, reflecting a decline of 35%on a reported basis and 34.6% at CER. Molecular Diagnostics revenues totaled $7.8million in the first quarter, up 2.6% and down 1.8% on a reported basis and at CER, respectively. Geographically, QuidelOrtho derives revenues from North America, Europe, the Middle East and Africa (EMEA), China, Latin America and Japan and other Asia-Pacific markets (JPAC). Revenues from North Americaamounted to $328.9million, reflecting a decline of 19.1% on a reported basis and 18.9% at CER. EMEA revenues amounted to $92.5million, reflecting an increase of 4% on a reported basis and a decline of 6.1% at CER. Revenues from China amounted to $63.5million, reflecting a decrease of 15.3% on a reported basis and 19% at CER. Revenues from JPAC amounted to $70million, reflecting an uptick of 2.8% on a reported basis and 4.7% at CER. Revenues from Latin America amounted to $64.9million, reflecting an uptick of 20% on a reported basis and 9.3% at CER. In the quarter under review, QuidelOrtho’s adjusted gross profit declined 21.8% year over year to $271.2 million. The adjusted gross margin contracted 630 basis points (bps) to 43.8%. Adjusted selling, marketing and administrative expenses increased 2.6% year over year to $184.8 million. Adjusted research and development expenses declined 19.2% year over year to $42.6 million. Adjusted operating expenses of $227.4 million decreased 2.4% year over year. Adjusted operating profit totaled $43.6 million, reflecting an 59.5% decline from the prior-year quarter’s level. Adjusted operating margin in the first quarter contracted 850 bps to 7%. QuidelOrtho exited the first quarter of 2026 with cash and cash equivalents of $140.4 million compared with $169.8 million at the end of the fourth quarter of 2025. Total debt (including short-term debt) at the end of first-quarter 2026 was $2.69 billion compared with $2.65 billion at the end of the fourth quarter 2025. Net cash used by operating activities at the end of the first quarter was $33 million, against net cash provided by operating activities of $65.6 million a year ago. QuidelOrtho has provided its financial outlook for 2026. Total revenues are expected to lie in the range of$2.7-$2.75 billion. The Zacks Consensus Estimate is pegged at $2.69 billion. Adjusted earnings per share is expected to be between $1.80 and $2.00. The Zacks Consensus Estimate is pegged at $2.18 per share. It turns out, estimates revision have trended downward during the past month. The consensus estimate has shifted -20% due to these changes. Currently, QuidelOrtho has a poor Growth Score of F, a grade with the same score on the momentum front. However, the stock was allocated a grade of B on the value side, putting it in the second quintile 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. Estimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. It's no surprise QuidelOrtho has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months. QuidelOrtho belongs to the Zacks Medical - Products industry. Another stock from the same industry, GE HealthCare Technologies (GEHC), has gained 0.5% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026. GE HealthCare reported revenues of $5.13 billion in the last reported quarter, representing a year-over-year change of +7.4%. EPS of $0.99 for the same period compares with $1.01 a year ago. For the current quarter, GE HealthCare is expected to post earnings of $1.04 per share, indicating a change of -1.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.9% over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #4 (Sell) for GE HealthCare. Also, the stock has a VGM Score of C. 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 QuidelOrtho Corporation (QDEL) : Free Stock Analysis Report GE HealthCare Technologies Inc. (GEHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research