Bio-Rad Laboratories, Inc.

Q2 2026 net sales were approximately $651 million versus $652 million in Q2 2025; on a currency-neutral basis sales declined 1.9% year over year. Life Science sales were $252 million, down 4.1% reported and 5.1% currency-neutral, while Clinical Diagnostics sales were approximately $399 million, up 2.6% reported and 8.3% currency-neutral. Consolidated gross margin was 53.1% versus 53.0% a year ago; non-GAAP gross margin was 53.9% versus 53.7%. Non-GAAP operating margin was 12.5% versus 13.6%, and non-GAAP net income was $70 million or $2.62 diluted EPS versus $71 million or $2.61 diluted EPS. For 2026, management reaffirmed full-year currency-neutral revenue growth of minus 3% to plus 0.5%, Life Science growth of minus 3% to minus 1%, Clinical Diagnostics growth of minus 3% to plus 1%, non-GAAP gross margin of 53% to 54%, non-GAAP operating margin of 10% to 12%, and free cash flow of approximately $290 million to $340 million. They also expect Q3 revenue to be flat versus Q2 and a mid-single-digit sequential ramp from Q3 to Q4.

Norman Schwartz framed the quarter as part of a multi-year evolution centered on improving execution and sharpening capital allocation. He said Bio-Rad has been reorganizing around clearer accountability, tighter operating rigor, and better forecasting discipline, with portfolio rationalization already pushing the company toward higher-return areas like digital PCR. He also emphasized that the new restructuring is not just a cost-cutting exercise but a reset of workforce and capabilities to support longer-term competitiveness, and he reiterated that Sartorius remains a monetizable strategic asset. On Elliott Management, he described discussions as active and constructive, with broad alignment around execution, capital allocation, and closing the valuation gap.

Roop Lakkaraju said Q2 gross margin benefited sequentially from favorable manufacturing absorption, partly offset by product mix and elevated logistics costs. SG&A rose to $212 million, or 32.6% of sales, and non-GAAP SG&A was $209 million; R&D was $61 million, or 9.4% of sales. He highlighted the restructuring as an OpEx-heavy effort with facility rationalization and headcount reductions, expected to be substantially complete by the end of 2027, with $30 million to $35 million of annualized net cost savings after reinvestment and minimal savings in 2026. He also reiterated the Q2 buyback activity of about 110,000 shares for approximately $32 million at an average price of $281.57, and noted about $206 million remains available under the current repurchase authorization.

Analysts focused on whether ddPCR's more than 20% instrument growth was helped by one-time factors; management said the growth was broad-based, driven by a fast transition to Stilla-based systems, expanded assay qualification, and share gains across geographies. Questions on the restructuring centered on the $30 million to $35 million savings and the pace of the action; management confirmed those figures are net of reinvestment, said most savings arrive by end-2027, and added that the actions are primarily in OpEx with some facility-related benefits. On China, management said the weakness was mostly Life Science softness and order timing in diagnostics rather than a new reimbursement shock, while on tariffs they said refunds had been applied for but there was no surcharge to customers. Management also said they were bullish on the Geneoscopy partnership but had not yet modeled any contribution into 2026 or 2027 plans.