QuidelOrtho Reports Second Quarter 2026 Financial Results, Highlights Growth Across Core Diagnostics Business Despite China Headwinds
QuidelOrtho Corporation , a global provider of diagnostic testing solutions, has reported its financial results for the second quarter ended June 28, 2026, delivering revenue growth driven by strong performance across several of its core business segments despite continued challenges in the Chinese market and softer global demand for respiratory testing.
The company generated $631 million in total revenue during the quarter, representing a 3% increase on a reported basis and 2% growth in constant currency compared with the same period last year. Excluding operations in China, revenue increased by 6% on both a reported and constant-currency basis, demonstrating the resilience of QuidelOrtho’s diversified diagnostics portfolio across its global markets.
Although profitability remained under pressure due to market conditions and operational challenges, the company reported meaningful improvement in adjusted profitability metrics while continuing to execute its long-term strategic initiatives.
Revenue Growth Driven by Core Business Performance
QuidelOrtho’s second-quarter results reflected broad-based growth across its primary diagnostic businesses.
Management noted that the company’s diversified product portfolio helped offset weaker demand in certain markets, particularly China, where recently announced changes to in vitro diagnostics (IVD) pricing policies have affected purchasing activity.
The company also cited softer global respiratory testing demand compared with previous years as another factor influencing quarterly performance.
Despite these challenges, core business operations continued to demonstrate underlying strength across most geographic regions.
Total Revenue Reaches $631 Million
During the second quarter of 2026, QuidelOrtho generated total revenue of $631 million.
Compared with the same quarter in 2025:
- Revenue increased 3% on a reported basis
- Revenue increased 2% in constant currency
Constant-currency reporting removes the effects of foreign exchange fluctuations, providing a clearer picture of underlying operational performance across international markets.
When excluding the Chinese business, total company revenue increased 6%, highlighting stronger performance across most other regions.
This result illustrates the importance of QuidelOrtho’s diversified international footprint in balancing regional market fluctuations.
Laboratory Diagnostics Business Continues to Expand
The company’s largest operating segment, Labs, delivered another quarter of revenue growth.
Laboratory diagnostics revenue totaled $383 million, representing:
- 4% growth on a reported basis
- 2% growth in constant currency
Management attributed the performance primarily to continued strength across the company’s core laboratory diagnostics portfolio.
These gains were partially offset by weaker sales in China, where evolving pricing policies affecting in vitro diagnostic products have influenced purchasing patterns.
Outside China, the Labs business demonstrated significantly stronger momentum.
Revenue excluding China increased:
- 9% on a reported basis
- 9% in constant currency
These results indicate that demand across most global laboratory markets remains healthy despite regional challenges.
China Market Continues Facing Pricing Pressures
China remained the company’s most significant source of market headwinds during the quarter.
According to QuidelOrtho, recently announced changes to national pricing guidelines for in vitro diagnostics have affected purchasing activity throughout the Chinese healthcare market.
The proposed pricing adjustments have created uncertainty among healthcare providers and purchasing organizations, slowing sales across portions of the diagnostics industry.
Management believes these pricing-related developments were the primary factor behind weaker performance in China during the second quarter.
The company continues monitoring market conditions while adjusting its operational strategies to respond to the evolving regulatory and reimbursement environment.
Immunohematology Business Delivers Stable Performance
QuidelOrtho’s Immunohematology business also contributed to quarterly growth.
Revenue for the segment reached $134 million, representing:
- 1% reported growth
- 1% constant-currency growth
Although overall growth was modest, the segment performed more strongly outside the Chinese market.
Excluding China, Immunohematology revenue increased:
- 5% on a reported basis
- 5% in constant currency
Immunohematology products play a critical role in blood typing, compatibility testing, transfusion medicine, and laboratory diagnostics supporting hospitals and blood banks worldwide.
Stable growth within this segment reflects continued demand for essential transfusion diagnostics.
Point-of-Care Diagnostics Posts Strongest Growth
Among QuidelOrtho’s primary business segments, Point of Care delivered the strongest growth during the quarter.
Revenue reached $108 million, representing:
- 16% growth on a reported basis
- 16% growth in constant currency
Point-of-care diagnostics enable healthcare professionals to perform rapid testing closer to patients, reducing turnaround times and supporting faster clinical decision-making.
Growing adoption of decentralized testing continues driving expansion within this segment.
Triage Product Line Maintains Momentum
Within Point of Care, QuidelOrtho’s Triage product family also recorded positive growth.
Revenue increased:
- 10% on a reported basis
- 9% in constant currency
The Triage portfolio supports rapid diagnostic testing across emergency medicine, cardiovascular care, toxicology, and other acute clinical settings.
Continued expansion of this business reflects sustained demand for fast, reliable diagnostic solutions capable of supporting urgent patient care decisions.
Profitability Remains Under Pressure
Although revenue increased during the quarter, profitability remained affected by market conditions.
QuidelOrtho reported a GAAP net loss of $93 million for the second quarter.
The company also recorded:
- GAAP operating loss: $22 million
- Adjusted EBITDA: $129 million
Adjusted EBITDA excludes certain non-operational items and is commonly used to evaluate core operating performance.
Management emphasized that adjusted profitability continued improving despite external market challenges.
EBITDA Margin Shows Significant Improvement
One of the quarter’s more encouraging financial developments was improvement in adjusted EBITDA margins.
Second-quarter results included:
- GAAP net loss margin: 14.7%
- GAAP operating loss margin: 3.5%
- Adjusted EBITDA margin: 20.5%
The adjusted EBITDA margin improved by 310 basis points compared with the prior-year period.
This improvement indicates stronger operational efficiency despite ongoing revenue headwinds.
Margin expansion remains an important objective as QuidelOrtho continues integrating operations and optimizing its cost structure.
Earnings Per Share
For the second quarter, the company reported:
- GAAP diluted loss per share: $1.36
- Adjusted diluted earnings per share: $0.13
Adjusted earnings exclude selected non-recurring and non-cash items, providing investors with an additional perspective on underlying operational performance.
While GAAP results reflected continued financial pressures, positive adjusted earnings demonstrate ongoing progress toward profitability improvements.
CEO Highlights Portfolio Strength
President and Chief Executive Officer Brian J. Blaser said the second-quarter results demonstrated the resilience of QuidelOrtho’s diversified diagnostics portfolio.
According to Blaser, the company’s core businesses delivered solid performance across most regions despite continued weakness in China.
He noted that strength across major product franchises helped offset localized challenges while reinforcing confidence in the company’s long-term strategic direction.
Management believes diversification across multiple diagnostic technologies and geographic markets remains an important competitive advantage.
China and Respiratory Testing Affect Outlook
Blaser acknowledged that two primary market factors continue affecting company performance.
The first involves demand headwinds in China resulting from proposed pricing changes affecting in vitro diagnostic products.
The second involves a softer global respiratory testing environment.
During recent years, respiratory diagnostic demand experienced unusually elevated levels due to widespread infectious disease testing.
As market conditions normalize, respiratory testing volumes have moderated, affecting portions of the diagnostics industry.
Management expects these factors to continue influencing financial performance during the remainder of 2026.
Company Revises Full-Year Guidance
Given evolving market conditions, QuidelOrtho announced revisions to its financial outlook for the remainder of 2026.
Management lowered its:
- Full-year revenue guidance
- Full-year earnings guidance
The updated outlook reflects continued uncertainty regarding China as well as expectations for softer respiratory testing demand globally.
Revising financial guidance allows management to provide investors with projections better aligned with current market conditions.
Free Cash Flow Guidance Withdrawn
In addition to revising revenue and earnings expectations, QuidelOrtho announced it is withdrawing its previously issued free cash flow guidance.
Management explained that current uncertainty surrounding working capital impacts and mitigation initiatives makes it difficult to provide reliable free cash flow projections at this time.
The decision reflects a cautious financial approach while the company evaluates changing market dynamics.
Importantly, management emphasized that withdrawing guidance does not indicate reduced focus on cash generation.
Cash Conversion Remains Top Financial Priority
Despite withdrawing free cash flow guidance, company leadership reaffirmed that improving cash conversion remains one of QuidelOrtho’s highest strategic priorities.
Management continues working to strengthen:
- Working capital management
- Inventory optimization
- Operational efficiency
- Balance sheet performance
- Cash generation
These initiatives are intended to enhance financial flexibility while supporting long-term growth investments.
Continuing Strategic Execution
Blaser reiterated that QuidelOrtho remains focused on executing its long-term business strategy despite near-term market challenges.
Key priorities include:
- Supporting customers worldwide
- Expanding diagnostic innovation
- Strengthening operational performance
- Improving financial flexibility
- Enhancing balance sheet strength
- Building a more resilient organization
Management believes these strategic initiatives will position the company for stronger long-term performance once current market pressures moderate.
Diversified Diagnostics Portfolio Supports Resilience
QuidelOrtho continues benefiting from a broad diagnostics portfolio spanning laboratory diagnostics, immunohematology, point-of-care testing, molecular diagnostics, and other healthcare technologies.
Serving hospitals, laboratories, physician offices, blood banks, and healthcare providers worldwide, the company maintains diversified revenue streams across multiple diagnostic disciplines.
This broad portfolio helps reduce dependence on any single testing category while supporting long-term growth opportunities across global healthcare markets.
Although the second quarter reflected ongoing challenges from China’s evolving pricing environment and reduced respiratory testing demand, QuidelOrtho delivered revenue growth across its core businesses and improved adjusted profitability. Strong performance in laboratory diagnostics outside China, continued stability in immunohematology, and double-digit growth in point-of-care testing underscore the resilience of the company’s diversified diagnostics portfolio.
While management has revised its financial outlook for the remainder of 2026 and withdrawn free cash flow guidance due to current market uncertainties, the company remains focused on operational execution, improving cash conversion, strengthening its balance sheet, and advancing its long-term strategy. As healthcare systems continue investing in diagnostic technologies worldwide, QuidelOrtho believes its diversified product offerings and global presence position the company to navigate near-term headwinds while pursuing sustainable long-term growth.
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