Bio-Rad Laboratories (BIO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $592M, up 1.1% year-over-year, but flat or down on a currency-neutral basis due to headwinds from the Middle East conflict and academic funding delays, especially impacting diagnostics and life science segments.

• Net loss was $527M, driven by a $727.7M holding loss on Sartorius AG investment, while non-GAAP net income was $51M ($1.89 EPS).

• Strategic focus remains on innovation, operational efficiency, targeted capital deployment, and manufacturing localization in China.

• M&A strategy targets accretive, complementary businesses with $100M–$500M revenue.

• Strong operating cash flow and free cash flow of $78M, with share repurchases of approximately 176,000 shares during the quarter.

Financial highlights

• Q1 2026 net sales were $592M, up 1.1% reported, down 4.2% currency-neutral; Life Science sales were $229M (flat reported, down 4.3% currency-neutral), Clinical Diagnostics sales were $364M (up 1.9% reported, down 4.1% currency-neutral).

• Non-GAAP gross margin was 53.1% (down from 53.8% in Q1 2025); GAAP gross margin was 52.3%.

• Non-GAAP operating margin was 6.6% (down from 10.8%); GAAP operating margin was 5.8%.

• Free cash flow was $78M, down from $96M–$95.5M in Q1 2025; cash and short-term investments at $1.56B–$1.57B.

• Net cash from operations was $108M, down from $129.9M year-over-year.

Outlook and guidance

• 2026 currency-neutral revenue growth guidance revised to -3% to +0.5% due to ongoing Middle East conflict and market challenges.

• Life Science segment expected to decline -3% to -1% year-over-year; Clinical Diagnostics guidance is -3% to +1%.

• Full-year non-GAAP gross margin projected at 53–54%; operating margin at 10–12%; free cash flow expected between $290M–$340M.

• Guidance for revenue and free cash flow was revised downward for the full year.