QuidelOrtho Q4 Earnings and Revenues Beat Estimates, Margins Down

QuidelOrtho Corporation QDEL delivered adjusted earnings per share (EPS) of 46 cents in fourth-quarter 2025, down from the year-earlier 63 cents. However, the figure surpassed the Zacks Consensus Estimate by 6.9%.

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

GAAP loss per share for the quarter was $1.92 compared with the year-earlier loss of $2.65.

QDEL’s Revenues in Detail

QuidelOrtho registered revenues of $723.6 million in the fourth quarter of 2025, which increased 2.2% year over year on a reported basis and 1.1% at constant exchange rate (“CER”). However, the figure surpassed the Zacks Consensus Estimate by 3.6%.

In the fourth quarter, Respiratory revenues were $123.3 million (down 13.9% on a reported basis and 14.2% at CER), while Non-Respiratory revenues were $600.3 million (up 6.3% on a reported basis and 3.5% at CER).

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 fourth quarter, Labs revenues were $389.2 million, up 8.1% on a reported basis and 7% at CER.

Immunohematologyrevenues were $141 million in the fourth quarter, up 3.4% and 1.2% on a reported basis and at CER, respectively.

Donor Screening revenues were $11.8 million in the fourth quarter, down 40.1% and 40.7% on a reported basis and at CER, respectively.

Point of Care revenues amounted to $173.1 million in the fourth quarter, reflecting a decline of 6.4%on a reported basis and 6.9% at CER.

Molecular Diagnosticsrevenues totaled $8.5million in the fourth quarter, up 25% and 23.7% 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 $390.1million, reflecting a decline of 2.4% on a reported basis as well as at CER.

EMEA revenues amounted to $92.7million, reflecting an increase of 9.3% on a reported basis and a decline of 0.6% at CER.

Revenues from China amounted to $91.7million, reflecting an increase of 5.5% on a reported basis and 5.3% at CER.

Revenues from Japan and Asia Pacific marketsamounted to $75.9million, reflecting an uptick of 0.7% on a reported basis and 3.8% at CER.

Revenues from Latin America amounted to $73.2million, reflecting an uptick of 22% on a reported basis and 17% at CER.

QuidelOrtho’s Margin Trend

In the quarter under review, QuidelOrtho’s adjusted gross profit declined 1.8% year over year to $325.2 million. The adjusted gross margin contracted 190 basis points (bps) to 44.9%.

Adjusted selling, marketing and administrative expenses increased 2.3% year over year to $183.7 million. Adjusted research and development expenses declined 2.8% year over year to $45.8 million. Adjusted operating expenses of $229 million increased 1.2% year over year.

Adjusted operating profit totaled $89.3 million, reflecting an 8.7% decline from the prior-year quarter’s level. Adjusted operating margin in the fourth quarter contracted 150 bps to 12.3%.

QuidelOrtho Corporation Price, Consensus and EPS Surprise

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

QDEL’s Financial Position

QuidelOrtho exited the fourth quarter of 2025 with cash and cash equivalents of $169.8 million compared with $98.1 million at the third-quarter end. Total debt (including short-term debt) at the end of fourth-quarter 2025 was $2.65 billion compared with $2.66 billion at the end of the third quarter.

Cumulative net cash provided by operating activities at the end of the fourth quarter was $105.2 million compared with $83 million a year ago.

QuidelOrtho’s 2026 Guidance

QuidelOrtho has provided its financial outlook for 2026.

Total revenues are expected to lie in the range of$2.7-$2.9 billion. The Zacks Consensus Estimate is pegged at $2.71 billion.

For the full-year 2026, QuidelOrtho projects a steady revenue profile anchored by its core Labs business, which is expected to deliver mid-single-digit growth, while Immunohematology is seen growing at a low-single-digit pace. The company also expects the U.S. Donor Screening wind-down to be largely complete by mid-year, removing a lingering drag on results. Point-of-care revenues are assumed to be broadly flat at the midpoint of guidance, indicating a normalized respiratory testing environment.

In Molecular, management anticipates a slight decline tied to the discontinuation of the Savanna platform, with only a minimal revenue contribution expected from the planned LEX Diagnostics acquisition in 2026.

Regionally, China is forecasted to post low-single-digit growth, in line with current market conditions.

Adjusted EPS is expected to be between $2.00 and $2.42. The Zacks Consensus Estimate is pegged at $2.28 per share.

Our Take

QuidelOrtho ended the fourth quarter of 2025 with better-than-expected results, where both earnings and revenues beat the respective Zacks Consensus Estimate. The company registered robust revenues from its Labs and Immunohematology business units and EMEA, China and Latin America, which were encouraging.

However, the continued decline in respiratory revenues hurt the overall top line. Donor Screening and Point of Care business units witnessed a decrease in revenues. A decline in year-over-over bottom line and contraction in margins does not bode well.

QDEL’s Zacks Rank and Key Picks

QDEL currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the broader medical space that have announced quarterly results are DaVita Inc. DVA, Cardinal Health, Inc. CAH and Doximity, Inc. DOCS.

DaVita reported fourth-quarter 2025 adjusted EPS of $3.40, beating the Zacks Consensus Estimate by 5.1%. Revenues of $3.62 billion surpassed the Zacks Consensus Estimate by 2.7%. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

DaVita has a long-term estimated growth rate of 20.2%. DVA’s earnings surpassed estimates in three of the trailing four quarters and missed once, the average surprise being 1.2%.

Cardinal Health, carrying a Zacks Rank of 2 (Buy) at present, reported second-quarter fiscal 2026 adjusted EPS of $2.63, beating the Zacks Consensus Estimate by 9.9%. Revenues of $65.63 billion topped the consensus mark by 0.9%.

Cardinal Health has a long-term estimated growth rate of 15%. CAH’s earnings surpassed estimates in each of the trailing four quarters, the average surprise being 9.3%.

Doximity reported third-quarter fiscal 2026 adjusted EPS of 46 cents, beating the Zacks Consensus Estimate by 4.6%. Revenues of $185.1 million surpassed the Zacks Consensus Estimate by 2.2%. It currently carries a Zacks Rank #2.

Doximity has a long-term estimated growth rate of 16.1%. DOCS’ earnings surpassed estimates in each of the trailing four quarters, the average surprise being 19.9%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research