QuidelOrtho Corporation disclosed that its preliminary first‑quarter 2026 revenue fell to $615 million to $620 million, a decline of roughly 11‑12% from the $693 million reported in the same quarter of 2025 and well below the consensus estimate of $680.59 million.
The shortfall was driven by a softer U.S. influenza‑like illness season, with visits down about 30% year‑over‑year, slower sales through China distributors amid proposed reimbursement rate reductions by the China National Health Security Administration, and delayed orders in the EMEA region caused by geopolitical tensions in the Middle East.
In the prior year, QuidelOrtho generated $2.73 billion in revenue and recorded a negative free cash flow of $(77) million. The company’s core business—comprising more than 70% of total revenue—remained robust, but the weaker respiratory and point‑of‑care segments weighed on overall growth.
Management projected that free cash flow will stay negative for the first half of 2026, with a first‑quarter range of $(65) million to $(70) million, but it expects positive free cash flow for the full year. The company will release its full‑year 2026 guidance and detailed financial figures during its earnings call on May 5.
"Despite macroeconomic challenges and a softer first‑quarter respiratory season, QuidelOrtho is taking decisive cost actions to drive full‑year 2026 performance. Our core business―representing more than 70% of total revenue―remains strong, providing a solid foundation amid near‑term volatility. We remain focused on operational execution, margin expansion, cash flow improvement, and advancing our innovation pipeline to support durable long‑term growth," said President and CEO Brian J. Blaser.
The results underscore the company’s exposure to seasonal demand cycles and regional market dynamics. While the core business provides a stable base, the revenue miss signals that QuidelOrtho will need to accelerate cost discipline and pursue new growth opportunities to meet its full‑year targets and reassure investors about its long‑term trajectory.
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