stockrowLatest quarter
Bio-Rad reported Q3 FY2026 revenue of $656.4 million, up from $653.0 million a year earlier. Its filing attributed the increase to Clinical Diagnostics, where sales reached $401.8 million as quality systems and diabetes products grew. Life Science sales fell as lower process chromatography sales and challenges in academic research outweighed growth in Droplet Digital PCR.
Gross margin fell to 50.1% from 52.6%, which the filing attributed to higher restructuring costs. Bio-Rad also reported an operating margin of −7.57%, compared with 10.0% a year earlier.
Diluted earnings per share were $17.02, compared with −$12.70 a year earlier. The filing reported a holding gain on Bio-Rad’s Sartorius investment, compared with a holding loss in the prior-year quarter. CFO Roop Lakkaraju said non-GAAP diluted earnings per share were $2.65, excluding the change in the value of those shares. Bio-Rad reported free cash flow of $96.4 million, up from $89.2 million a year earlier.
| Q3 FY2026 | Q3 FY2025 | Change | |
|---|---|---|---|
| Revenue | $656.4 million | $653.0 million | 0.52% |
| Diluted EPS | $17.02 | −$12.70 | — |
| Gross margin | 50.1% | 52.6% | −2.5 percentage points |
| Operating margin | −7.57% | 10.0% | −17.6 percentage points |
| Free cash flow | $96.4 million | $89.2 million | 8.07% |
| Against its own guidance | For | Guided | Reported | Result |
|---|---|---|---|---|
| Revenue growth | Q2 FY2026 | 5.00% | −0.09% | Below the guide |
What management said on the call
CFO Roop Lakkaraju said lower process chromatography sales and ongoing academic research challenges held back Life Science in the quarter, partly offset by digital PCR instrument sales. Excluding process chromatography, he said, Life Science currency-neutral sales grew 2.50%. The digital PCR portfolio grew 7.00% on that basis, with instrument revenue rising more than 20.0% year over year.
Asked about the instrument performance, President and COO Jon DiVincenzo said the newer portfolio was attracting customers, including in the academic market. He cautioned that some customers were not yet using the platform at full capacity and that he could not project continued growth at the same instrument-sales rate.
On research demand, DiVincenzo said academic spending remained below its usual run rate, while the biopharma environment had improved and activity was moving toward discovery work. Asked about China, Lakkaraju said order timing helped the quarter, including in quality control and process chromatography. He said Bio-Rad was still assessing the impact of newly issued guidelines.
Lakkaraju said restructuring charges reduced reported gross margin and that Bio-Rad recorded a non-cash impairment of Life Science intangible assets as it prioritized investment returns. For the fourth quarter, he expects a shift toward instruments, lower process chromatography revenue and higher fuel prices to reduce gross margin sequentially.
On capital allocation, Lakkaraju said Bio-Rad would invest in its business, repurchase shares opportunistically and consider acquisitions with differentiated offerings. He said the Sartorius stake remained a monetizable asset. CEO Norman Schwartz said the board was evaluating candidates with broader life science and diagnostics experience, adding that dialogue with Elliott Management continued.
Guidance
Bio-Rad now expects FY2026 non-GAAP gross margin of 53.5% to 54.0%, compared with its previous wider range. CFO Roop Lakkaraju said the company expects a sequential fourth-quarter margin decline because of a shift toward instruments, lower process chromatography revenue and higher fuel prices.
| Metric | For | Guide | Previous guide | Change |
|---|---|---|---|---|
| Free cash flow, non-GAAP | FY2026 | $290.0 million–$340.0 million | $290.0 million–$340.0 million | Held |
| Research and development, non-GAAP | Q4 FY2026 | $3.0 million | — | New |
| Operating expenses, Non Gaap, sga | Q4 FY2026 | Bio-Rad expects non-GAAP SG&A expense to be flat sequentially in Q4 FY2026. | — | — |
| Gross margin, non-GAAP | Q4 FY2026 | Bio-Rad expects non-GAAP gross margin to decline sequentially in Q4 FY2026. | — | — |
| Gross margin, non-GAAP | FY2026 | 53.5%–54.0% | 53.0%–54.0% | Raised |
| Revenue, China Ivd Pricing Impact | FY2027 | Bio-Rad expects a revenue impact in the middle single-digit millions of dollars from China’s IVD pricing guidelines in FY2027. | — | — |
| Revenue, Process Chromatography | Q4 FY2026 | Bio-Rad expects process chromatography revenue to decline sequentially in Q4 FY2026. | — | — |
| Free cash flow | FY2026 | $290.0 million–$340.0 million | — | New |
| Operating margin, non-GAAP | FY2026 | 10.0%–12.0% | 10.0%–12.0% | Held |
| Operating expenses, Restructuring Annualized Cost Savings | FY2027 | $30.0 million–$35.0 million | — | New |
| Operating expenses, Restructuring Cost Savings | FY2026 | Bio-Rad expects minimal restructuring savings in FY2026. | — | — |
| Revenue | Q4 FY2026 | Bio-Rad expects a sequential mid-single-digit revenue increase in Q4 FY2026. | Q3 FY2026: Bio-Rad expects Q3 FY2026 revenue to be flat sequentially. | — |
| Tax rate, non-GAAP | FY2026 | 22.0% | — | New |
| Revenue, Diagnostics Ex Quality Controls | FY2026 | Bio-Rad expects Diagnostics revenue excluding quality controls to decline by low to mid-single digits in FY2026. | — | — |
| Revenue, Quality Controls | FY2026 | Bio-Rad expects mid-single-digit revenue growth in its quality controls business in FY2026. | — | — |