Key Highlights

  • Third quarter 2026 Revenue fell to USD 619 million, down 12% both as reported and in constant currency, as QuidelOrtho (NASDAQ:QDEL) absorbed China pricing changes and a weaker respiratory season.
  • A new cost transformation is expected to save over USD 80 million a year starting in 2027, with one-time charges of USD 30 to 35 million landing in the fourth quarter.
  • The GAAP net loss of USD 54 million, or USD 0.78 per diluted share, sat alongside adjusted EBITDA of USD 148 million and a 23.9% margin.
  • Adjusted diluted EPS guidance for 2026 now runs USD 0.65 to 0.70, having been USD 0.65 to 0.90, so the cut touches only the upper bound.

Revenue Slides as China and Respiratory Demand Weaken

QuidelOrtho (NASDAQ:QDEL) makes diagnostic tests spanning clinical chemistry, immunoassay, immunohematology and molecular testing. It released its third quarter numbers on November 3, 2026, covering the quarter that ended September 27. Sales of USD 619 million compared with USD 699.9 million a year earlier. Labs revenue dropped 6% to USD 353 million, mostly from lower China sales after recently announced In Vitro Diagnostics pricing changes. Point of Care sales fell 27% to USD 120 million as respiratory activity softened, while Immunohematology held flat at USD 142 million. Stripping out respiratory sales, China and U.S. Donor Screening, the Top Line would have gone up 2%, while Labs excluding China increased 3%.

Restated Losses, Thin Free Cash Flow and Heavy Interest

The GAAP net loss was USD 53.8 million, a large improvement on the USD 733.0 million loss of a year earlier, which included a USD 700.7 million Goodwill write-down. The GAAP operating loss was USD 7.5 million. On an adjusted basis, EBITDA of USD 148 million and EPS of USD 0.31 paint a rosier picture, since those metrics exclude restructuring and Impairment charges. Interest expense rose, reaching USD 55.4 million compared with USD 46.1 million a year before. Quarterly Operating Cash Flow of USD 19.6 million left just USD 0.3 million of free cash flow. Against USD 166.4 million of cash sit roughly USD 2.94 billion of borrowings (own arithmetic on the current and long-term Debt lines), and over the first nine months operating cash flow came to minus USD 124.0 million.

Savings Program, Guidance Trim and Watch List

The plan reorganizes the Business into Core Diagnostics and Point of Care Diagnostics, with the goal of sharper accountability and over USD 80 million of annual savings during 2027. Management expects one-time charges of roughly USD 30 to 35 million in the fourth quarter. Full-year 2026 revenue guidance now sits at USD 2.52 to 2.54 billion, versus a previous top end of USD 2.60 billion, while adjusted EBITDA is projected at USD 540 to 545 million, an adjusted Margin near 21%. Risks include further reimbursement cuts in China, the severity of the respiratory season, tariffs and debt service. Savings remain a target, and restructuring can disrupt operations.

Where Things Stand

QuidelOrtho (NASDAQ:QDEL) is pursuing a USD 80 million savings plan, and whether margins recover hinges on execution. Revenue fell 12% while free cash flow was only USD 0.3 million, and heavy interest absorbs much of the adjusted EBITDA. The Labs and Immunohematology businesses outside China are growing modestly, which is not enough to offset the declines. Narrowing guidance by removing the top of the range signals caution. Next markers include fourth quarter results, the size of the restructuring charges, evidence that savings arrive in 2027 and any decision on China reimbursement.