Key Highlights

  • Revenue fell 12% to USD 619 million, but excluding respiratory, China and donor screening it grew 2% as reported.
  • The GAAP net loss was USD 54 million, or USD 0.78 per share, while adjusted diluted EPS was USD 0.31.
  • Adjusted EBITDA was USD 148 million at a 23.9% margin, and free Cash Flow was USD 0.3 million.
  • A new cost program targets over USD 80 million of annual savings in 2027, and full-year guidance ranges were narrowed.

China and the Respiratory Season

QuidelOrtho Corporation (NASDAQ:QDEL), the San Diego-based diagnostics company, reported third-quarter 2026 Revenue of USD 619 million, down 12% both as reported and in constant currency, from USD 699.9 million. Excluding respiratory, China and the U.S. Donor Screening business, revenue grew 2% as reported and 3% in constant currency. President and Chief Executive Officer Brian Blaser said Labs and Immunohematology grew outside China, while China and the respiratory season continued to affect results.

Labs revenue was USD 353 million, down 6%, primarily because of lower sales in China tied to recently announced changes to in vitro diagnostics pricing. Outside China, Labs revenue grew 3% as reported and 4% in constant currency. Immunohematology revenue was USD 142 million, flat as reported, with growth of 2% outside China. Point of Care revenue was USD 120 million, down 27%, in the respiratory season.

Analyst estimates were EPS of USD 0.20 against reported EPS of USD 0.31, and revenue of USD 627.8 million against reported revenue of USD 618.9 million.

Profitability and Cash

The GAAP net loss was USD 54 million and the GAAP operating loss was USD 8 million, equal to margins of negative 8.7% and negative 1.2%. GAAP diluted loss per share was USD 0.78, and adjusted diluted EPS was USD 0.31. Adjusted EBITDA was USD 148 million, an adjusted EBITDA Margin of 23.9%.

Selling, Marketing and administrative expense was USD 182.7 million against USD 186.9 million, Research and Development was USD 42.5 million against USD 41.5 million, and restructuring, integration and other charges were USD 7.1 million against USD 39.6 million. Operating Cash Flow was USD 20 million and free cash flow was USD 0.3 million. Cash and cash equivalents were USD 166.4 million at the quarter end, compared with USD 169.8 million at December 28, 2025, while inventories rose to USD 642.7 million from USD 577.6 million.

Restructuring and Guidance

The company started a cost transformation and enterprise restructuring program that reorganizes the Business around two units, Core Diagnostics and Point of Care Diagnostics, with the aim of clearer accountability and alignment of technology investment. It expects the program to deliver over USD 80 million of annual savings in 2027 and to record USD 30 million to USD 35 million of one-time restructuring charges in the fourth quarter of 2026.

Full-year 2026 guidance was narrowed. Revenue is now USD 2.52 billion to USD 2.54 billion, versus USD 2.52 billion to USD 2.60 billion on August 6, 2026. Adjusted EBITDA is USD 540 million to USD 545 million versus USD 540 million to USD 560 million, with a margin of 21% against 21% to 22%. Adjusted diluted EPS is USD 0.65 to USD 0.70 versus USD 0.65 to USD 0.90. The top end of each range was lowered while the bottom end was left unchanged.

Cost of sales excluding amortization was USD 329.3 million against USD 364.3 million. Nine-month revenue was USD 1,869.6 million versus USD 2,006.6 million.

Items to Follow

China pricing effects, the respiratory season and the pace of restructuring savings are the items to follow.