Q2 2026 Bio Rad Laboratories Inc Earnings Call Transcript
Key Points
- Clinical Diagnostics returned to modest currency-neutral growth, driven by quality controls and blood typing portfolio.
- Digital PCR (DDPCR) revenue grew 6% year-over-year, with instrument revenue up more than 20%, indicating strong customer demand and competitive wins.
- The Stella Technologies acquisition has accelerated revenue growth and delivered margin performance ahead of expectations.
- The company is executing a restructuring program expected to deliver $30-35 million in annualized net cost savings by end of 2027, with 40-50 bps operating margin expansion in 2027.
- Early signs of stabilization in the biopharma market and improving academic/government end markets, with NIH funding outlays increasing year-over-year.
- Total company revenue declined 1.9% on a currency-neutral basis, with Life Science segment down 5.1% due to softness in academic research.
- China revenue declined in the high teens, with an estimated $4 million headwind for the remainder of 2026.
- Process chromatography continues to face tough year-over-year comparisons and revenue concentration risks, with a modest drag expected on Q3 growth.
- Middle East volatility persists, driving higher fuel and transportation costs globally, with no expected catch-up in inventory restocking.
- Non-GAAP operating margin declined to 12.5% from 13.6% year-over-year, with SG&A expenses rising due to higher employee-related costs.
Ladies and gentlemen, thank you for standing by. My name is Lisa, and I will be your conference operator today. At this time, I would like to welcome everyone to Bio-Rad's second-quarter 2026 results conference call and webcast. (Operator Instructions)
I would now like to turn the conference over to Ruben Argueta, Bio-Rad's Head of Investor Relations. You may begin.
Thank you, operator. Good afternoon, everyone, and thank you for joining us. Today, we will review the financial results for the second-quarter ended June 30, 2026 and provide an update on key business trends for (technical difficulty). With me on the call today are Norman Schwartz, our Chief Executive Officer; Jonathan DiVincenzo, President and Chief Operating Officer; and Roop Lakkaraju, Executive Vice President and Chief Financial Officer.
Before we begin our review, I would like to remind everyone that we will be making forward-looking statements about management's goals, plans and expectations, our
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