QuidelOrtho Narrows 2026 Outlook After Third-Quarter Revenue Drop

The Tip Desk · November 10, 2026 · 3 min read

The diagnostics company posted $619 million of third-quarter revenue, down 12% year over year, and cut the top of its full-year sales range to $2.54 billion.

QuidelOrtho Corporation (QDEL), a global provider of diagnostic solutions, reported third-quarter revenue of $619 million, down 12% as reported and in constant currency from a year earlier, reversing the 3% reported and 2% constant-currency increase in the second quarter.

The company said excluding respiratory, China, and the U.S. Donor Screening business, revenue was $501.2 million, up 2% as reported and 3% in constant currency. That compared with 6% growth excluding China in the second quarter.

Labs, the largest reportable segment, generated $353.2 million, down 6% as reported and in constant currency after a 4% reported and 2% constant-currency increase in the second quarter. The company attributed the year-over-year Labs decline primarily to lower sales in China related to recently announced changes to In Vitro Diagnostics pricing. China Labs revenue was $36.9 million, down 46% as reported and 49% in constant currency from $67.7 million a year earlier. Outside China, Labs revenue was $316.3 million, up 3% as reported and 4% in constant currency, slowing from 9% growth both as reported and in constant currency in the second quarter.

Immunohematology revenue was $142.0 million, flat as reported and up 1% in constant currency. Outside China, Immunohematology revenue was $134.0 million, up 2% as reported and 3% in constant currency, slowing from 5% growth both as reported and in constant currency in the second quarter.

Point of Care revenue fell to $119.6 million, down 27% as reported and in constant currency, after a 16% increase both as reported and in constant currency in the second quarter. The company said the decline was due to a softer respiratory season. Respiratory revenue was $68.8 million, down 39% as reported and in constant currency from $112.3 million a year earlier. U.S. Donor Screening revenue was $0.5 million, down 96% as reported and in constant currency from $13.1 million a year earlier.

GAAP net loss was $54 million, or $0.78 a share, and GAAP operating loss was $8 million. Adjusted EBITDA was $148.0 million, with a 23.9% margin, versus $129 million and a 20.5% margin in the second quarter. Adjusted diluted earnings were $0.31 a share, versus $0.13 in the second quarter.

Operating cash flow was $20 million and free cash flow was $0.3 million. A year earlier, operating cash flow was negative $45.5 million and free cash flow was negative $94.7 million.

President and Chief Executive Officer Brian J. Blaser said the underlying performance of Labs and Immunohematology remained solid, supported by customer relationships and the global installed base, and that China and a softer respiratory season continued to pressure results. The company said it is taking action through a new cost transformation and enterprise restructuring program designed to improve profitability and cash flow while evolving the operating model around Core Diagnostics and Point of Care Diagnostics.

The company said it expects the program to deliver over $80 million in annual savings in 2027 and to record approximately $30 to $35 million in one-time restructuring charges in the fourth quarter of 2026.

QuidelOrtho narrowed full-year 2026 guidance. Reported revenue is now $2.52 billion to $2.54 billion, from $2.52 billion to $2.60 billion as of August 6. Adjusted EBITDA is $540 million to $545 million, from $540 million to $560 million. Adjusted EBITDA margin is about 21%, from 21% to 22%. Adjusted diluted EPS is $0.65 to $0.70, from $0.65 to $0.90.