GET DAILY SIGNALSQuidelOrtho (QDEL) Q3 2026 Earnings: Revenue Drops 11.6% but Adjusted EPS Beats Forecasts
Key Takeaways
- QuidelOrtho reported third-quarter 2026 revenue of $618.9 million, down 11.6% year over year and below Wall Street consensus estimates.
- Adjusted earnings per share (EPS) of $0.31 came in ahead of analyst expectations, which ranged from roughly $0.18 to $0.20.
- Adjusted EBITDA reached $148 million, reflecting a 23.9% margin.
- Management launched a new cost transformation and enterprise restructuring program aimed at improving profitability and cash flow.
- Full-year 2026 guidance was maintained in a range of $0.65–$0.90 for adjusted EPS and $2.52 billion–$2.60 billion for revenue.
Earnings Context and Its Significance
QuidelOrtho's third-quarter report comes at a critical time for the diagnostics company. It has been dealing with a softer respiratory testing season, distributor disruptions in China related to proposed pricing changes, and effects from the Middle East conflict. These factors have pressured the Point of Care and Labs segments, though the Immunohematology business has held up better. From what I see, investors are focused on whether the new restructuring program can help stabilize margins and cash flow, especially as recent launches like the High-Sensitivity Troponin assay and VITROS 450 platform start to gain traction. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
Quarterly Results in Detail
For the third quarter ended September 27, 2026, QDEL reported total revenue of $618.9 million, an 11.6% decline from the prior year and below consensus estimates of roughly $628 million to $635 million. On a constant-currency basis, the decline was also 11.6%.
Adjusted diluted EPS was $0.31, beating analyst expectations of approximately $0.18 to $0.20. Adjusted EBITDA came in at $148 million, for a 23.9% margin and slightly ahead of the consensus estimate of about $145 million. The GAAP operating margin was negative 1.2%, better than the negative 101% reported in the same quarter last year.
Management kept full-year 2026 guidance unchanged at adjusted EPS of $0.65 to $0.90 and revenue of $2.52 billion to $2.60 billion, with midpoints roughly in line with or slightly below consensus. The company also announced a cost transformation and enterprise restructuring program intended to boost profitability and free cash flow.
Market Reaction and Sentiment
QDEL shares dropped sharply after the release, falling about 10.6% to around $12.63 right after the results. The reaction seemed driven by disappointment with the revenue miss and the cautious full-year outlook, even with the adjusted EPS beat. The stock has faced ongoing pressure over the past year, and this report highlighted concerns about weaker demand in respiratory testing and China-related sales. Investors appeared to focus more on the top-line shortfall and restructuring news than on the profitability improvement.
Looking Ahead: Key Factors to Watch
Going forward, I’m watching this closely to see how quickly the new cost transformation and enterprise restructuring program delivers better margins and cash flow. Management has described it as an effort to align the operating model with customer needs, but the financial effects and any related charges will be important to track in upcoming quarters.
Demand trends remain key. The China market continues to carry uncertainty as the company waits for final guidelines from the China National Health Security Administration on in vitro diagnostics pricing. Clarity on timelines could have a notable impact on the Labs segment.
Product launch progress and the respiratory testing cycle will also matter. The U.S. rollout of the High-Sensitivity Troponin assay and international expansion of the VITROS 450 platform are potential positives, while the Immunohematology segment provides more stability. Balancing these elements with ongoing cost pressures will shape the story ahead.
Exploring Tickeron AI Tools
In my research process, I frequently use Tickeron’s AI Screener to filter stocks by technical patterns, fundamentals, and performance metrics. It helps me quickly identify relevant opportunities and compare names like QDEL against peers without spending hours on manual analysis. The tool’s customizable filters make it straightforward to spot potential setups across sectors.
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Contributor
Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.
QDEL's RSI Indicator peaks and leaves overbought zone
The 10-day RSI Indicator for QDEL moved out of overbought territory on October 14, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 19 instances where the indicator moved out of the overbought zone. In 17 of the 19 cases the stock moved lower in the days that followed. This puts the odds of a move down at 89%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 54 of 62 cases where QDEL's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 87%.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where QDEL declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 80%.
QDEL broke above its upper Bollinger Band on October 09, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for QDEL entered a downward trend on October 12, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on October 30, 2026. You may want to consider a long position or call options on QDEL as a result. In 54 of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 64%.
The Moving Average Convergence Divergence (MACD) for QDEL just turned positive on September 28, 2026. Looking at past instances where QDEL's MACD turned positive, the stock continued to rise in 33 of 49 cases over the following month. The odds of a continued upward trend are 67%.
QDEL moved above its 50-day moving average on October 20, 2026 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for QDEL crossed bullishly above the 50-day moving average on October 16, 2026. This indicates that the trend has shifted higher and could be considered a buy signal. In 12 of 15 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are 80%.
Following a +2.15% 3-day Advance, the price is estimated to grow further. Considering data from situations where QDEL advanced for three days, in 176 of 261 cases, the price rose further within the following month. The odds of a continued upward trend are 67%.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is 26 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 32 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (0.542) is normal, around the industry mean (4.204). P/E Ratio (-0.909) is within average values for comparable stocks, (1.723). Projected Growth (PEG Ratio) (0.010) is also within normal values, averaging (11.253). Dividend Yield (0.000) settles around the average of (0.010) among similar stocks. P/S Ratio (0.274) is also within normal values, averaging (40.124).
The Tickeron Seasonality Score of 45 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 53 (best 1 - 100 worst), indicating steady price growth. QDEL’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 98 (best 1 - 100 worst), indicating weak sales and an unprofitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Profit vs. Risk Rating rating for this company is 100 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. QDEL’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 95, placing this stock worse than average.
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General Information
a provider of diagnostic healthcare solutions
Industry MedicalNursingServices
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