QuidelOrtho Stock Gains Following Q2 Earnings Beat, Margins Expand

QuidelOrtho Corporation QDEL delivered adjusted earnings per share (EPS) of 12 cents in second-quarter 2025 against the year-earlier loss of 7 cents. The figure surpassed the Zacks Consensus Estimate of breakeven.

The adjustments include expenses related to the amortization of intangibles, and acquisition and integration costs, among others.

GAAP loss per share for the quarter was $3.77 compared with the year-earlier loss of $2.2 per share.

QDEL’s Revenues in Detail

QuidelOrtho registered revenues of $613.9 million in the second quarter of 2025, which decreased 3.6% year over year on a reported basis and 3.9% at constant exchange rate (CER). However, the figure surpassed the Zacks Consensus Estimate by 0.4%.

In the second quarter, Respiratory revenues were $46.7 million (down 19.5% on a reported basis and 19.9% at CER), while Non-Respiratory revenues were $567.2 million (down 2% on a reported basis and 2.2% at CER).

Shares of this company gained nearly 12.8% in yesterday’s after-market hours. The company’s shares have plunged 46.8% in the year-to-date period against the industry’s growth of 4.9%. The broader S&P 500 Index has increased 7.4% in the same time frame.

QuidelOrtho’s Business Units in Detail

QuidelOrtho derives revenues from five business units — Labs, Immunohematology, Donor Screening, Point of Care and Molecular Diagnostics. As a result of the wind-down of the U.S. Donor Screening portfolio, the previously reported Transfusion Medicine business unit is now presented in its two product categories — Immunohematology and Donor Screening.

In the second quarter, Labs revenues were $369.7 million, up 4.4% on a reported basis and 4.6% at CER.

Immunohematologyrevenues were $132.3 million in the second quarter, up 4.3% and 2.9% on a reported basis and at CER, respectively.

Donor Screening revenues were $13.3 million in the second quarter, down 61.2% and 61.4% on a reported basis and at CER, respectively.

Point of Care revenues amounted to $93 million in the second quarter, reflecting a decline of 20.6%on a reported basis and 20.9% at CER.

Molecular Diagnosticsrevenues totaled $5.6million in the second quarter, up 27.3% and 24.2% on a reported basis and at CER, respectively.

QDEL’s Geographical Distribution

Geographically, QuidelOrtho derives revenues from North America, Europe, the Middle East and Africa (EMEA), China and Other regions (which include Latin America, Japan and other Asia-Pacific markets).

Revenues from North Americaamounted to $310.7million, reflecting a decline of 11.3% and 11.6% on a reported basis and at CER, respectively.

EMEA revenues amounted to $87.3million, reflecting an increase of 7.6% on a reported basis and 3.3% at CER.

Revenues from China amounted to $83.4million, reflecting an increase of 2.2% on a reported basis as well as at CER.

Revenues from Other regions amounted to $132.5million, reflecting an uptick of 6.7% on a reported basis and 9.6% at CER.

QuidelOrtho’s Margin Trend

In the quarter under review, QuidelOrtho’s adjusted gross profit declined 0.4% year over year to $280.5 million. However, the adjusted gross margin expanded 150 basis points (bps) to 45.7%.

Adjusted selling, marketing and administrative expenses fell 5.9% year over year to $170 million. Adjusted research and development expenses declined 18.6% year over year to $45.2 million. Adjusted operating expenses of $215.2 million decreased 8.9% year over year.

Adjusted operating profit totaled $60.2 million, reflecting a 67.7% improvement from the prior-year quarter’s level. Adjusted operating margin in the second quarter expanded 420 bps to 9.8%.

QuidelOrtho Corporation Price, Consensus and EPS Surprise

QuidelOrtho Corporation price-consensus-eps-surprise-chart | QuidelOrtho Corporation Quote

QDEL’s Financial Position

QuidelOrtho exited the second quarter of 2025 with cash and cash equivalents of $151.7 million compared with $127.1 million at the first-quarter end. Total debt (including short-term debt) at the end of second-quarter 2025 was $2.61 billion compared with $2.49 billion at the first-quarter end.

Cumulative net cash provided by operating activities at the end of the second quarter was $18.8 million, against net cash used in operating activities of $98.6 million a year ago.

QuidelOrtho’s Guidance

QuidelOrtho has reiterated its financial outlook for 2025.

Total revenues are expected to lie in the range of$2.60 billion-$2.81 billion billion. The Zacks Consensus Estimate is pegged at $2.72 billion.

For the full year, QuidelOrtho projects stable growth across most business lines, with strength in its Labs and Immunohematology businesses. In China, despite early second-quarter softness caused by delayed shipments related to evolving tariffs, full-year growth is still expected to be in the mid- to high-single digits. This optimism is supported by strong performance in clinical chemistry and immunohematology, with limited impact from the country’s volume-based procurement policies.

Within theRespiratory revenues for the full year, COVID-19 revenues are expected to be in the range of $110-$140 million for 2025, assuming a summer spike consistent with trends observed over the past two years.

Adjusted EPS is expected to lie between $2.07 and $2.57. The Zacks Consensus Estimate is pegged at $2.39.

Our Take

QuidelOrtho ended the second quarter of 2025 with better-than-expected results. The company registered robust revenues from its Labs, Immunohematology and Molecular Diagnostics business units and EMEA, China and Other regions, which were encouraging. The expansion of margins bodes well. QDEL witnessed robust bottom-line growth as well.

Per management,QuidelOrtho’s underlying business continued to perform well in the second quarter of 2025, led by steady growth in its Labs and Immunohematology units. The company highlighted strong recurring revenue from long-term contracts and an expanding installed base of integrated and automated lab systems. Management reiterated the success of its commercial and operational improvement initiatives, pointing to a 330-basis point year-over-year improvement in adjusted EBITDA margin and a 271% rise in adjusted diluted EPS. The company remains focused on driving incremental margin improvement through its ongoing cost-reduction actions, including indirect procurement efforts and manufacturing consolidation. It reaffirmed its goal of achieving mid- to high-20% EBITDA margins by mid-2027.

QuidelOrtho now expects a gross tariff impact of $20–$25 million in 2025, down from its previous estimate of $30–$40 million. The reduction is driven by effective mitigation efforts that are already being implemented. These include changes in the origin of raw materials, repositioning of inventory, selective supplier shifts, targeted pricing actions, and other procurement savings. The company stated that these measures are expected to fully offset the tariff headwinds and have already been factored into its unchanged full-year 2025 guidance. Management emphasized that they are continuing to monitor global trade dynamics and are confident in their ability to navigate the environment effectively.

That said, top-line performance remained soft. The company continued to face headwinds from the ongoing wind-down of its Donor Screening business and a significant decline in COVID-related testing. The Point of Care segment was also pressured by reduced demand in respiratory testing, while the Triage business saw a slight dip due to timing-related factors in China. Regionally, weakness in North America persisted, and although China delivered modest growth, management took a more measured stance on full-year expectations amid reimbursement and procurement-related challenges. Despite these pressures, QuidelOrtho remains optimistic about its long-term prospects in China, citing low market penetration and a strategic focus on stat labs as key advantages.

QDEL’s Zacks Rank and Key Picks

QDEL currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space that have announced quarterly results are Medpace Holdings, Inc. MEDP, West Pharmaceutical Services, Inc. WST and Boston Scientific Corporation BSX.

Medpace Holdings, sporting a Zacks Rank of 1 (Strong Buy), reported second-quarter 2025 EPS of $3.10, beating the Zacks Consensus Estimate by 3.3%. Revenues of $603.3 million outpaced the consensus mark by 11.5%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Medpace Holdings has a long-term estimated growth rate of 11.4%. MEDP’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 13.9%.

West Pharmaceutical reported second-quarter 2025 adjusted EPS of $1.84, beating the Zacks Consensus Estimate by 21.9%. Revenues of $766.5 million surpassed the Zacks Consensus Estimate by 5.4%. It currently flaunts a Zacks Rank #1.

West Pharmaceutical has a long-term estimated growth rate of 8.5%. WST’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 16.8%.

Boston Scientific reported second-quarter 2025 adjusted EPS of 75 cents, beating the Zacks Consensus Estimate by 4.2%. Revenues of $5.06 billion surpassed the Zacks Consensus Estimate by 3.5%. It currently carries a Zacks Rank #2 (Buy).

Boston Scientific has a long-term estimated growth rate of 14%. BSX’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.1%%.

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