Bio‑Rad Laboratories reported fourth‑quarter 2025 revenue of $693.2 million, a 3.9% increase from $667.5 million in Q4 2024. The growth was driven by an 8.4% rise in the Clinical Diagnostics segment, while Life Science sales fell 2.6%. The company’s full‑year revenue rose 0.7% to $2.583 billion, matching the modest year‑over‑year increase seen in the prior year.
The company’s diluted earnings per share were $2.51 on a non‑GAAP basis, missing the consensus estimate of $2.71–$2.74. The GAAP diluted EPS, which includes a $26.65 million fair‑market‑value gain on its investment in Sartorius AG, was substantially higher. The EPS miss reflects the impact of the one‑time investment gain on the GAAP figure and the lower operating earnings that were not fully offset by the gain.
Net income for the quarter was $720 million GAAP, largely driven by the fair‑market‑value gain on the Sartorius AG investment. Excluding that gain, non‑GAAP net income was $68 million, underscoring the core business’s modest profitability. The company’s gross margin fell to 49.8% GAAP from 51.2% in Q4 2024; the non‑GAAP gross margin was 52.5%, indicating that the margin compression was driven by higher material costs and a shift toward lower‑margin product mix.
Management highlighted that the margin decline was due to execution‑related supply‑chain costs and one‑time inventory write‑offs associated with product portfolio rationalization. CEO Norman Schwartz said, "2025 was a challenging year with geopolitical uncertainty and continued pressure on academic research funding affecting our end markets. While we delivered modest revenue growth and strong free cash flow, our gross and operating margin performance fell below our expectations."
The company remains on track for its 2026 guidance of 0.5–1.5% revenue growth and a 12.0–12.5% operating margin. President & COO Jonathan DiVincenzo noted, "gross margin did not meet our expectations or, frankly, what Bio‑Rad is capable of delivering. We are seeing strong traction from the Stilla acquisition and QX700 ddPCR product launch, which is enabling us to expand our served market and gain share in the entry‑level digital PCR segment." CFO Roop Lakkaraju added, "Net sales for the fourth quarter of 2025 were approximately $693 million, a 3.9% increase on a reported basis versus $668 million in Q4 of '24. The Stilla acquisition will be accretive by mid‑2026, 6 to 12 months earlier than our initial view."
Market reaction was tempered by the EPS miss, margin compression, and cautious 2026 outlook. Investors focused on the significant difference between GAAP and non‑GAAP earnings, the impact of the one‑time investment gain, and the company’s ongoing supply‑chain and cost‑inflation challenges.
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