second quarter 2026
Filed Aug 4, 2026Bio-Rad Reports Second -Quarter 2026 Financial Results
Reported revenue was essentially flat, Clinical Diagnostics growth offset continued Life Science softness, and the company reaffirmed its full-year outlook. GAAP net income was substantially affected by the change in fair market value of the Sartorius AG investment.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net salesGAAP | $651M | – | essentially flat |
| Net sales, currency-neutralother | decreased 1.9 percent | – | decreased 1.9 percent |
| Cost of goods soldGAAP | 305.2M | – | – |
| Gross profitGAAP | 345.8M | – | – |
| Gross marginGAAP | 53.1% | – | – |
| Selling, general and administrative expenseGAAP | 212M | – | – |
| Research and development expenseGAAP | 61.2M | – | – |
| Income from operationsGAAP | $72.6M | – | – |
| Interest expenseGAAP | 12.1M | – | – |
| Foreign currency exchange (gains) losses, netGAAP | −200K | – | – |
| (Gains) losses from change in fair market value of equity securities and loan receivableGAAP | −458M | – | – |
| Other income, netGAAP | −23.4M | – | – |
| Income before income taxesGAAP | 542.1M | – | – |
| Provision for income taxesGAAP | −170.7M | – | – |
| Effective tax rateGAAP | 31.5 percent | – | – |
| Net incomeGAAP | $371.4M | – | – |
| Income per diluted shareGAAP | $13.85 | – | – |
| Net income per basic shareGAAP | $13.89 | – | – |
| Weighted average common shares - basicGAAP | 26.75M | – | – |
| Weighted average common shares - dilutedGAAP | 26.81M | – | – |
| Net cash from operationsGAAP | $98.7M | – | – |
| Net salesnon-GAAP | $651M | – | – |
| Gross marginnon-GAAP | 53.9% | – | – |
| Income from operationsnon-GAAP | $81.1M | – | – |
| Net incomenon-GAAP | $70.2M | – | – |
| Income per diluted sharenon-GAAP | $2.62 | – | – |
| Free cash flownon-GAAP | $66.7M | – | – |
| Effective tax ratenon-GAAP | 18.3 percent | – | – |
| Net salesGAAP | $1.24B | – | – |
| Cost of goods soldGAAP | 587.9M | – | – |
| Gross profitGAAP | 655.2M | – | – |
| Selling, general and administrative expenseGAAP | 424.4M | – | – |
| Research and development expenseGAAP | 124.1M | – | – |
| Income from operationsGAAP | 106.7M | – | – |
| Interest expenseGAAP | 24.4M | – | – |
| Foreign currency exchange (gains) losses, netGAAP | −2.6M | – | – |
| (Gains) losses from change in fair market value of equity securities and loan receivableGAAP | 280.2M | – | – |
| Other income, netGAAP | −47.6M | – | – |
| Income (loss) before income taxesGAAP | −147.7M | – | – |
| Provision for income taxesGAAP | −8M | – | – |
| Net income (loss)GAAP | −$155.7M | – | – |
| Net income (loss) per basic shareGAAP | $(5.80) | – | – |
| Weighted average common shares - basicGAAP | 26.85M | – | – |
| Net income (loss) per diluted shareGAAP | $(5.80) | – | – |
| Weighted average common shares - dilutedGAAP | 26.85M | – | – |
| Net cash provided by operating activitiesGAAP | 206.8M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Life ScienceThe currency-neutral year-over-year sales decrease was primarily driven by ongoing challenges in the academic research market. | $252M | – | decrease of 4.1 percent |
| Clinical DiagnosticsThe currency-neutral year-over-year sales increase was primarily driven by growth in quality systems, diabetes and blood typing products, partially offset by lower sales of infectious disease products. | $399M | – | increase of 2.6 percent |
full-year 2026 outlook
- Revenuenon-GAAP, currency-neutral revenue to be in the range of a decline of approximately 3.0 percent to growth of approximately 0.5 percent
- Noteestimated non-GAAP operating margin of approximately 10.0 to 12.0 percent
Capital returns
- repurchased approximately $32 million of shares
What drove it
- EMEA returned to growth, aided by Middle East channel restocking amid continued volatility in the region.
- Digital PCR instrument revenue grew more than 20%.
- Clinical Diagnostics growth reflected quality systems, diabetes and blood typing products.
- The reported effective tax rate was primarily affected by the change in fair market value of equity securities, shifts in the geographical mix of earnings and enactment of new tax legislation during the period.
Concerns
- Life Science segment sales decreased 4.1 percent, and currency-neutral Life Science segment sales decreased 5.1 percent.
- The company cited ongoing challenges in the academic research market.
- Clinical Diagnostics infectious disease product sales were lower.
- Non-GAAP income from operations was $81.1 million, compared to $88.6 million.
- Non-GAAP free cash flow was $66.7 million, compared to $70.8 million.
What to watch
- Life Science demand and the academic research market.
- Whether Clinical Diagnostics growth in quality systems, diabetes and blood typing products continues to offset lower infectious disease product sales.
- EMEA growth and the effect of Middle East channel restocking amid regional volatility.
- Delivery against full-year 2026 non-GAAP, currency-neutral revenue guidance and estimated non-GAAP operating margin guidance.
Balance sheet and cash flow
- Cash and cash equivalents: $517.0 million as of June 30, 2026; $529.8 million as of December 31, 2025.
- Short-term investments: 1,101.5 million as of June 30, 2026; 1,010.9 million as of December 31, 2025.
- Current maturities of long-term debt and notes payable: 400.7 million as of June 30, 2026; 1.3 million as of December 31, 2025.
- Long-term debt, net of current maturities: 803.0 million as of June 30, 2026; 1,201.7 million as of December 31, 2025.
- Total assets: $10,252.0 million as of June 30, 2026; $10,576.5 million as of December 31, 2025.
- Total liabilities: 3,078.1 million as of June 30, 2026; 3,122.9 million as of December 31, 2025.
- Cash received from customers was $1,242.7 million for the six months ended June 30, 2026, compared to $1,304.9 million for the six months ended June 30, 2025.
- Cash paid to suppliers and employees was $(1,054.6) million for the six months ended June 30, 2026, compared to $(993.9) million for the six months ended June 30, 2025.
- Payments for acquisitions were $1.1 million for the six months ended June 30, 2026, compared to $(216.7) million for the six months ended June 30, 2025.
- Payments for purchases of marketable securities and investments were $(410.3) million for the six months ended June 30, 2026, compared to $(306.6) million for the six months ended June 30, 2025.
Analysis
Bio-Rad reported second-quarter GAAP net sales of $651.0 million, compared with $651.6 million in the prior-year quarter, which the company characterized as essentially flat. Currency-neutral sales decreased 1.9 percent. Clinical Diagnostics revenue of $399.0 million increased 2.6 percent and offset a 4.1 percent decline in Life Science revenue to $252.0 million. The company attributed the Life Science decline to ongoing challenges in the academic research market, while Clinical Diagnostics benefited from quality systems, diabetes and blood typing products, partly offset by lower infectious disease product sales.
Profitability presented two distinct views. GAAP gross margin was 53.1%, compared with 53.0%, while GAAP income from operations was $72.6 million, compared with $77.1 million. Non-GAAP gross margin was 53.9%, compared with 53.7%, and non-GAAP income from operations was $81.1 million, compared with $88.6 million. The gap between headline GAAP earnings and operating performance is material: the company said that the change in fair market value of its Sartorius AG investment substantially contributed to GAAP net income of $371.4 million, or $13.85 per diluted share.
Cash generation declined from the prior-year quarter, with net cash from operations of $98.7 million versus $116.5 million and non-GAAP free cash flow of $66.7 million versus $70.8 million. For the six months ended June 30, 2026, net cash provided by operating activities was 206.8 million, compared with 246.4 million. Management also said it repurchased approximately $32 million of shares during the quarter. Cash and cash equivalents were $517.0 million at June 30, 2026, while current maturities of long-term debt and notes payable were 400.7 million and long-term debt, net of current maturities, was 803.0 million.
The full-year outlook was reaffirmed. Bio-Rad continues to expect non-GAAP, currency-neutral revenue ranging from a decline of approximately 3.0 percent to growth of approximately 0.5 percent and estimated non-GAAP operating margin of approximately 10.0 to 12.0 percent. The key operating variables are the persistence of academic research market weakness in Life Science, the durability of Clinical Diagnostics growth, and the contribution from EMEA, where growth returned with support from Middle East channel restocking amid continuing regional volatility.
Management, verbatim
Second-quarter reported revenue was flat year-over-year, with growth in Clinical Diagnostics offset by continued softness in Life Science. Despite Life Science headwinds, our digital PCR instrument revenue grew more than 20%.
Norman Schwartz, Chairman and Chief Executive Officer
We are reaffirming our full-year outlook, and remain focused on the discipline we believe will drive growth, durable margin expansion, and long-term shareholder value creation.
Norman Schwartz, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Previous outlook section for comparison with actual results
- Prior-quarter comparisons for reported metrics
- Full-year 2026 gross margin guidance
- Full-year 2026 operating expenses guidance
- Full-year 2026 tax rate guidance
- Complete cash flow statement beyond the truncated filing text
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.