10-Q · April 30, 2026
Bio-Rad Laboratories reported Q1 2026 earnings with revenues of $592.1 million, a 1.1% increase from $585.4 million in Q1 2025. However, adverse effects from global economic conditions and geopolitical conflicts led to…
Earnings analysis · 10-Q
BIO earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Bio-Rad delivered Q2 sales of $651.0 million, essentially flat year over year, as 2.6% Clinical Diagnostics growth to $399.0 million only partly offset a 4.1% Life Science decline to $252.0 million. Gross margin edged…
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Bio-Rad delivered Q2 sales of $651.0 million, essentially flat year over year, as 2.6% Clinical Diagnostics growth to $399.0 million only partly offset a 4.1% Life Science decline to $252.0 million. Gross margin edged up to 53.1%, but the implied 11.1% operating margin remained below the 11.8% prior-year level due to higher operating costs. Reported EPS of $13.85 was dominated by a $458.0 million fair-value gain, while six-month operating cash flow fell to $206.8 million from $246.4 million. Management expects weak academic/biotech demand and EMEA conflict effects to continue through 2026, although $1.62 billion of liquidity supports the $400.0 million March 2027 note maturity.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $13.85
What stood out
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Revenue stable reported, down organically
Q2 net sales were $651.0 million, essentially flat versus $651.6 million a year earlier; reported revenue improved from $592.0 million in Q1 2026. Currency-neutral sales declined 1.9% year over year, indicating underlying demand remained soft.
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Diagnostics offsets Life Science decline
Clinical Diagnostics sales increased 2.6% to $399.0 million, led by quality systems, diabetes and blood-typing products. This partially offset a 4.1% decline in Life Science sales to $252.0 million.
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Gross margin holds; operating leverage lags
Consolidated gross margin improved 10 basis points year over year to 53.1% from 53.0%. The implied operating margin was 11.1%, up from 5.8% in Q1 2026 but below 11.8% in Q2 2025, as SG&A rose to 32.6% of sales from 31.9%.
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GAAP EPS lifted by investment gains
Reported diluted EPS was $13.85, versus $11.67 in Q2 2025 and a loss of $19.55 in Q1 2026. However, Q2 included a $458.0 million fair-value gain, including a $430.0 million holding gain on Sartorius, making EPS unrepresentative of core operations.
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Operating cash flow declined year over year
Six-month operating cash flow was $206.8 million, down $39.6 million from $246.4 million a year earlier, due to lower customer collections and higher supplier and employee payments. Free cash flow is not disclosed in the filing extract because capital expenditures are not separately provided.
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Liquidity covers 2027 debt maturity
Liquidity totaled $1.62 billion in cash, cash equivalents and short-term investments, while no revolver borrowings were outstanding. The company has $400.0 million of 3.3% Senior Notes maturing in March 2027 and stated it has sufficient liquidity to repay or potentially refinance them.
What to watch
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Academic and biotech demand remains weak
Life Science sales declined 4.1% to $252.0 million in Q2, or 5.1% currency-neutral, as academic research demand remained challenged. Management expects constrained government spending and small-biotech conditions to continue through the rest of 2026.
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Sartorius investment drives earnings volatility
The filing identifies material exposure to Sartorius valuation changes: Q2 net income included a $430.0 million Sartorius holding gain, while the first six months recorded a $297.7 million holding loss. These market-value movements can materially alter earnings independently of operations.
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EMEA conflict and international exposure
Regional conflicts adversely affected EMEA demand and logistics in the first half of 2026, particularly Clinical Diagnostics, and management expects the effect to persist for the remainder of 2026. Foreign entities generated 61% of six-month net sales, increasing exposure to international disruption and currency risk.
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Near-term debt maturity and refinancing risk
Outstanding debt was approximately $1.2 billion at June 30, 2026, including $400.0 million classified as current and due in March 2027. Although cash and short-term investments were $1.62 billion, refinancing could carry a rate above the existing 3.3% notes.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management expects weak government/biotech demand, China uncertainty, and Middle East-related EMEA disruption to continue through the remainder of 2026.
Earlier filings 4
10-K · February 14, 2025
Bio‑Rad describes itself as a global developer, manufacturer and distributor of life science research and clinical diagnostics products, focused on translational research and higher‑margin IVD niches. For the year ended…
10-K · February 17, 2023
Bio-Rad describes a two-segment business (Life Science and Clinical Diagnostics) with roughly even revenue mix (Life Science 48% / Clinical Diagnostics 52% of net sales for year ended December 31, 2022) and broad…
10-Q · November 5, 2018
Bio‑Rad reported Q3 net sales of $545,138,000, up $10,997,000 (+2.06%) versus Q3 2017, while gross profit declined to $286,716,000 (gross margin 52.63% vs ~55.96% a year ago). Operating income fell modestly to…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.