Key Highlights

  • Q3 net sales were USD 656.4 million against an estimate of USD 649.94 million and USD 653.0 million last year.
  • EPS was USD 2.65 against an estimate of USD 2.23, while GAAP Net Income per diluted share was USD 17.02.
  • Restructuring charges were USD 77.6 million, under a plan projecting pre-tax costs of USD 80 million to USD 90 million.
  • Gross Margin was 50.1% against 52.6% a year earlier, and cash and short-term investments were USD 1.66 billion.

Bio-Rad Laboratories, Inc. (NYSE:BIO) opened a new restructuring plan on July 31, 2026, and the third quarter carried the first charges: USD 77.6 million, of which USD 28.5 million related to Life Science and USD 49.1 million to Clinical Diagnostics. Net sales were USD 656.4 million, against USD 653.0 million a year earlier and an estimate of USD 649.94 million. EPS was USD 2.65 against an estimate of USD 2.23, and GAAP net income per diluted share was USD 17.02, against a loss of USD 12.70 in the third quarter of 2025.

How the Restructuring Fits the Quarter

The plan centers on workforce reductions, consolidation of certain functions and Facility closures. Management projects total pre-tax costs of about USD 80 million to USD 90 million, mostly severance and related benefits, and said the plan is scheduled to be substantially completed by the end of fiscal 2027. Once fully implemented, it is projected to reduce annual operating expenses by USD 30 million to USD 35 million by the end of 2027. Restructuring liabilities were USD 69.0 million at September 30.

Gross margin was 50.1% against 52.6%, and the company tied the decline to higher restructuring costs. Selling, general and administrative expense was USD 257.1 million, or 39.2% of sales, against USD 206.8 million, or 31.7%. In the third quarter the company also recorded a USD 49.8 million Impairment of intangible assets from its 2020 Celsee acquisition, reported in the Life Science segment.

Results Around the Event

Clinical Diagnostics sales were USD 401.8 million, up 2.7%, with growth in quality systems and diabetes products; management said Middle East conflict has affected Demand and logistics in EMEA. Life Science sales were USD 254.6 million, down 2.8%, which the company attributed to lower process chromatography sales and challenges in the academic research market, partly offset by Droplet Digital PCR.

The operating result was a loss of USD 49.7 million, against income of USD 65.3 million. A gain of USD 588.2 million from the change in Fair Value of Equity securities and the Loan receivable lifted pre-tax income to USD 538.7 million, of which USD 583.2 million came from the holding in Sartorius. Net income was USD 458.6 million against a loss of USD 341.9 million.

Financing, Cash and Capital Returns

Cash, cash equivalents and short-term investments were USD 1.66 billion. Operating Cash Flow for the nine months was USD 303.2 million against USD 367.3 million. A USD 200.0 million revolving Credit agreement through February 2029 has no borrowings outstanding. Of its USD 1.2 billion in senior notes, USD 400 million at 3.3% matures in March 2027 and is classified as current, while USD 800 million at 3.7% matures in March 2032.

During the nine months it repurchased 286,685 Class A shares for USD 79.3 million, and USD 206.0 million remained available under the 2023 repurchase program.

Guidance Versus Reported Results

The company's stated restructuring cost projection of USD 80 million to USD 90 million sits alongside USD 77.6 million of charges recorded in the third quarter, a USD 1.66 billion cash position and net sales of USD 656.4 million.

Management named dated items: substantial completion of the restructuring plan by the end of fiscal 2027, the USD 30 million to USD 35 million annual Operating Expense reduction by the end of 2027, and the March 2027 Maturity of the USD 400 million senior notes, which it said it can repay from available liquidity. It also said Middle East conflict conditions continue to affect EMEA through the rest of 2026.