QuidelOrtho cuts full-year 2026 guidance on China pricing pressure

QuidelOrtho Corporation reported second quarter 2026 results on August 6, 2026 for the period ended June 28, 2026, and used the release to reset its full-year targets. Total revenue for the quarter was $631 million, up 3% as reported and 2% in constant currency.¹ Excluding China, total revenue grew 6% both as reported and in constant currency.¹

The company pointed to China as the source of the shortfall. Labs segment growth was helped by strength in the core business but partly offset by slower China sales, which the company said were mainly tied to recently announced changes to In Vitro Diagnostics pricing.¹ CEO Brian J. Blaser said the quarter showed underlying strength across core franchises and regions except China, where proposed IVD pricing guidelines and a weaker global respiratory market kept weighing on the business.¹

As a result, QuidelOrtho lowered its full-year 2026 guidance. Total revenue guidance was cut to $2.52 to $2.60 billion from a prior $2.70 to $2.75 billion, adjusted EBITDA guidance was lowered to $540 to $560 million from $615 to $630 million, adjusted EBITDA margin guidance moved to 21% to 22% from 23%, and adjusted diluted EPS guidance was reduced to $0.65 to $0.90 from $1.80 to $2.00.¹

The company also withdrew a cash flow target. It said it decided to withdraw free cash flow guidance while working through impacts on working capital and mitigation efforts, adding that the decision does not change its stated priority of improving cash conversion.¹ Previously, free cash flow guidance had been $100 to $120 million as of May 5, 2026.¹

On the balance sheet, cash and cash equivalents stood at $123.4 million as of June 28, 2026, down from $169.8 million at the end of fiscal 2025.¹ The company posted a GAAP net loss of $93 million for the quarter, with a GAAP operating loss of $22 million and adjusted EBITDA of $129 million.¹