Bio-Rad Laboratories (NYSE:BIO) Issues Quarterly Earnings Results, Beats Estimates By $0.42 EPS

Key Points

• Bio-Rad reported quarterly EPS of $2.65, beating analysts’ $2.23 estimate by $0.42; revenue of $656.4 million also topped expectations. Currency-neutral revenue grew 0.7%, and non-GAAP gross margin increased to 54.5% from 53.5% a year earlier.
• Digital droplet PCR (ddPCR) remained a growth driver, with portfolio revenue up 7% currency-neutral and instrument revenue rising more than 20% for a third straight quarter. However, consumable demand has not normalized and could remain soft into 2027.
• Bio-Rad reaffirmed its 2026 currency-neutral revenue growth outlook of -3% to +0.5%, citing weakness in academic and government markets and other pressures. Management is targeting positive growth and margin expansion in 2027, while expecting restructuring savings of $30 million–$35 million to be fully realized beginning in 2028.

Bio-Rad Laboratories (NYSE:BIO - Get Free Report) posted its quarterly earnings data on Wednesday. The medical research company reported $2.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $2.23 by $0.42, FiscalAI reports. The business had revenue of $656.40 million during the quarter, compared to the consensus estimate of $649.94 million. Bio-Rad Laboratories had a net margin of 8.59% and a return on equity of 3.54%.

Here are the key takeaways from Bio-Rad Laboratories' conference call:

• Bio-Rad returned to modest currency-neutral growth in Q3, with revenue up 0.7%. Non-GAAP gross margin rose to 54.5% from 53.5% a year earlier, and non-GAAP diluted EPS increased to $2.65 from $2.26.
• ddPCR remained a growth driver: portfolio revenue rose 7% currency-neutral, while instrument revenue increased more than 20% for a third consecutive quarter. Management said placements and competitive wins support the opportunity, though consumable pull-through has not yet normalized and may remain soft into 2027.
• Bio-Rad reaffirmed 2026 currency-neutral revenue growth guidance of -3% to +0.5%, expecting results near the midpoint. It anticipates continued academic and government market weakness, a Q4 sequential decline in gross margin, and a sequential decline in process chromatography revenue.
• Management cited ongoing market pressures, including NIH outlays down about 15% year over year in Q3 and pricing pressure in China. It estimates China’s updated healthcare guidelines could reduce 2027 revenue by a mid-single-digit millions of dollars amount; elevated Middle East logistics costs may also persist into 2027.
• Management said it is focused on returning to positive revenue growth and expanding margins in 2027, while cautioning that the recovery may not be fully normalized. The restructuring program is expected to deliver $30 million–$35 million in savings, with full benefits beginning in 2028.

Bio-Rad Laboratories Trading Up 1.2%

NYSE:BIO traded up $4.49 during trading hours on Wednesday, reaching $379.40. The company's stock had a trading volume of 281,797 shares, compared to its average volume of 306,157. The company has a debt-to-equity ratio of 0.11, a quick ratio of 2.33 and a current ratio of 3.14. The firm has a market capitalization of $10.15 billion, a price-to-earnings ratio of 45.99 and a beta of 1.06. The firm has a 50-day simple moving average of $374.53 and a 200-day simple moving average of $314.61. Bio-Rad Laboratories has a 1 year low of $236.73 and a 1 year high of $396.23.

Analysts Set New Price Targets

Several research firms have recently weighed in on BIO. Citigroup increased their price target on Bio-Rad Laboratories from $300.00 to $330.00 and gave the stock a "hold" rating in a research note on Wednesday, August 5th. Zacks Research upgraded Bio-Rad Laboratories from a "strong sell" rating to a "hold" rating in a research note on Tuesday, August 11th. Weiss Ratings raised shares of Bio-Rad Laboratories from a "hold (c-)" rating to a "hold (c)" rating in a report on Thursday, October 8th. Royal Bank Of Canada increased their target price on shares of Bio-Rad Laboratories from $320.00 to $370.00 and gave the stock an "outperform" rating in a research report on Wednesday, August 5th. Finally, Wells Fargo & Company lifted their target price on shares of Bio-Rad Laboratories from $310.00 to $330.00 and gave the stock an "equal weight" rating in a research note on Wednesday, August 5th. One equities research analyst has rated the stock with a Buy rating and four have given a Hold rating to the company's stock. According to MarketBeat, the company has an average rating of "Hold" and a consensus price target of $343.33.

Bio-Rad Laboratories Company Profile

Bio-Rad Laboratories, Inc develops, manufactures and markets products and systems used in life science research and clinical diagnostics. Its life science portfolio includes laboratory instruments, reagents, software and consumables used in areas such as genomics, proteomics, cell biology, biopharmaceutical development and quality control.

The company's clinical diagnostics business provides systems, reagents and software for blood typing, infectious disease testing, diabetes monitoring, quality control and other diagnostic applications.

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