QuidelOrtho Corporation's core diagnostics businesses outside China grew 6% at constant currency in the second quarter, but worsening China visibility and financial pressure keep the investment case constrained. China revenues fell 18.7% on a reported basis and 23.3% at constant currency, with slower distributor purchases ahead of evolving national in-vitro diagnostics pricing guidelines and faster-than-expected inventory reductions. Adjusted EBITDA rose 21% year over year to $129 million, while adjusted gross margin contracted 130 basis points to 44.4%. The company ended the quarter with $123.4 million in cash against $2.89 billion of total debt, and operating activities used $143.6 million of cash in the first six months of 2026. QuidelOrtho is shifting its molecular strategy toward NULEXA following the April acquisition of LEX Diagnostics, but adoption is not assured against rivals like Abbott Laboratories and Danaher Corporation. The stock carries a Zacks Rank #5 (Strong Sell), with a Value Score of B but Growth and Momentum Scores of F.
Quidel CorporationChina revenues fell sharply due to slower distributor purchases and inventory reductions.
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