Bio-Rad Laboratories (BIO) Q3 2026 earnings summary

Executive summary

• Q3 net sales were $656.4M, up 0.5% reported and 0.7% currency-neutral; Clinical Diagnostics growth offset Life Science declines.

• Non-GAAP gross and operating margins rose to 54.5% and 12.8%, respectively; GAAP operating results included restructuring and impairment charges.

• GAAP net income was $458.6M, largely reflecting a $588.2M fair-value gain on equity securities and a loan receivable; non-GAAP net income was $71.5M.

• FY26 revenue and margin guidance was maintained; 2027 priorities include positive growth and further margin expansion.

Financial highlights

• Q3 net sales were $656.4M versus $653.0M; GAAP gross margin was 50.1% versus 52.6%, while non-GAAP gross margin rose to 54.5% from 53.5%.

• GAAP operating loss was $49.7M versus operating income of $65.3M; non-GAAP operating income was $83.7M versus $77.0M.

• Non-GAAP net income was $71.5M, or $2.65 diluted EPS, versus $60.8M and $2.26; GAAP net income was $458.6M versus a $341.9M loss.

• Net cash from operations was $96.4M versus $120.9M; non-GAAP free cash flow was $65.2M versus $89.2M.

Outlook and guidance

• FY26 currency-neutral revenue growth guidance remains -3.0% to +0.5%; Life Science outlook is -3.0% to -1.0% and Clinical Diagnostics -3.0% to +1.0%.

• FY26 non-GAAP gross margin guidance is 53.0%-54.0% and operating margin guidance is 10.0%-12.0%; forecast operating margin excludes 83 bps for purchased-intangible amortization.

• FY26 free cash flow guidance is $290M-$340M; $210.0M was generated in the first nine months.

• July 2026 restructuring is expected to cost $80M-$90M pre-tax, be substantially complete by FY2027-end, and deliver $30M-$35M in annual savings by end-2027.

• Q4 reported revenue is expected to rise 5%-6% sequentially, in line with seasonality; 2027 priorities are positive revenue growth and further margin expansion.