QuidelOrtho’s first quarter was marked by notable headwinds, as management pointed to a significantly milder and shorter respiratory illness season compared to the prior year and highlighted disruptions in China linked to anticipated changes in diagnostic pricing guidelines. CEO Brian J. Blaser noted, “Our first quarter results were impacted by a significantly softer respiratory season…with influenza-like illness visits down approximately 30%.” Management also cited broader macroeconomic and geopolitical pressures, including order delays in the Middle East, as contributors to the company’s weaker performance.
Is now the time to buy QDEL? Find out in our full research report (it’s free for active Edge members).
QuidelOrtho (QDEL) Q1 CY2026 Highlights:
- Revenue: $619.8 million vs analyst estimates of $668.7 million (10.5% year-on-year decline, 7.3% miss)
- Adjusted EPS: -$0.04 vs analyst estimates of $0.36 (significant miss)
- Adjusted EBITDA: $108.7 million vs analyst estimates of $148.4 million (17.5% margin, 26.7% miss)
- The company dropped its revenue guidance for the full year to $2.73 billion at the midpoint from $2.8 billion, a 2.7% decrease
- Management lowered its full-year Adjusted EPS guidance to $1.90 at the midpoint, a 14% decrease
- EBITDA guidance for the full year is $622.5 million at the midpoint, below analyst estimates of $640.1 million
- Operating Margin: -5.1%, down from 4.7% in the same quarter last year
- Constant Currency Revenue fell 12.6% year on year (-1.1% in the same quarter last year)
- Market Capitalization: $679.2 million
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From QuidelOrtho’s Q1 Earnings Call
- Jack Meehan (Jefferies) asked for details on Q2 segment growth and margin outlook. CFO Joseph M. Busky said sequential revenue should remain flat, with year-over-year growth driven by core labs, immunohematology, and triage businesses.
- Meehan (Jefferies) also pressed for more detail on the China headwind and how much of the guidance reset is tied to market conditions there. Busky explained that guidance was lowered primarily due to weaker respiratory and China sales, with the China impact estimated at $30 million.
- Andrew Brackmann (William Blair) questioned how QuidelOrtho plans to achieve the implied margin ramp in the second half. Busky cited anticipated stabilization in China, growth in core businesses, and contributions from new products as key drivers.
- Patrick Donnelly (Citi) asked about the long-term commitment to the China business after a competitor exited the market. CEO Brian J. Blaser stated the company remains committed, viewing China as profitable even after reimbursement changes.
- Lu Li (UBS) inquired about the timeline for margin expansion and the impact of China’s regulatory changes. Both Busky and Blaser reaffirmed confidence in margin targets, citing cost actions and a year to implement mitigation before guideline changes fully take effect.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will closely monitor (1) the stabilization of Chinese distributor order patterns and clarity on national IVD pricing guidelines, (2) ramp-up and customer adoption of new molecular and cardiac diagnostic platforms like Lex Diagnostics and the high-sensitivity troponin assay, and (3) the pace and effectiveness of cost reduction and facility consolidation initiatives. Execution in these areas will be essential for regaining financial momentum.
QuidelOrtho currently trades at $10.12, down from $11.66 just before the earnings. Is the company at an inflection point that warrants a buy or sell? Find out in our full research report (it’s free).
The Best Stocks for High-Quality Investors
WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don't just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses.
But our AI platform says the party isn't over. Find out which 9 stocks made the cut this week - FREE. Get Our Top 9 Market-Beating Stocks for Free HERE.
Stocks that have made our list include now familiar names such as Nvidia (+1,326% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
