QuidelOrtho reported a significant top-line miss for the third quarter 2026, with total revenue declining 12% year-over-year to $618.9 million. The shortfall was driven primarily by a 38.7% drop in respiratory revenue and a 45.9% decline in China-based Labs revenue due to pricing changes. Despite the revenue miss, adjusted EPS of $0.31 exceeded analyst expectations, and the company announced a restructuring plan to achieve $80 million in annual savings.
Key Highlights
- Total revenue of $618.9 million fell well short of the $732.5 million estimate, hampered by a softer respiratory season and IVD pricing headwinds in China.
- Respiratory revenue plummeted to $68.8 million, a 39% year-over-year decline, missing the projected $124.8 million baseline.
- Adjusted diluted EPS reached $0.31, beating the $0.18 estimate, as the company managed costs effectively amid the sales downturn.
- Management initiated a Cost Transformation program targeted at delivering $80 million in annual savings by 2027, including the elimination of the Chief Operations Officer role.
- Full-year 2026 revenue guidance was narrowed to $2.52B–$2.54B from the prior $2.52B–$2.60B range, while adjusted EPS guidance was revised to $0.65–$0.70.