Qiagen Q2 Earnings Call Highlights

Key Points

• Qiagen exceeded its second-quarter outlook, reporting $535 million in sales, flat year over year, and adjusted diluted EPS of $0.62 versus guidance of at least $0.60. Growth pillars including Sample Technologies, QIAcuity digital PCR and QIAGEN Digital Insights increased 5% at constant exchange rates.
• Performance varied by product: Sample Technologies rose 9%, while QIAstat-Dx declined 7% and PCR and nucleic acid amplification fell 8% due to weaker respiratory testing comparisons and OEM demand. Margins remained strong at 29.4%, supported by cost controls, and first-half operating cash flow totaled $301 million.
• Qiagen reaffirmed its full-year guidance for 1%–2% constant-currency sales growth and adjusted EPS of at least $2.43, expecting growth to accelerate to roughly 3%–4% in the second half. New automation, diagnostic and QIAcuity launches are expected to support the outlook, while the CEO search and strategic review continue independently.

Qiagen NYSE: QGEN reported second-quarter 2026 results above its prior outlook, with net sales of $535 million, unchanged year over year on both a reported and constant-exchange-rate basis. The company had forecast an approximately 2% decline at constant exchange rates. Adjusted diluted earnings per share were $0.62, exceeding guidance of at least $0.60 at constant exchange rates.

Chief Executive Officer Thierry Bernard said the company’s growth pillars rose 5% at constant exchange rates during the quarter, led by Sample Technologies, QIAcuity digital PCR and QIAGEN Digital Insights. He said QuantiFERON latent tuberculosis testing returned to growth despite a significant decline in U.S. immigration testing demand, while QIAstat-Dx faced a difficult comparison in respiratory testing.

Product-group performance varied

Sample Technologies sales increased 9% at constant exchange rates, supported by automated consumables and higher instrument sales compared with the prior-year period. Diagnostic Solutions revenue declined 2% at constant exchange rates. Within that segment, QuantiFERON grew 1%, as demand across most testing groups outweighed lower immigration testing demand in the U.S. and Middle East.

QIAstat-Dx sales fell 7% at constant exchange rates. Growth in gastrointestinal and meningitis panels was offset by lower respiratory-panel sales against a strong prior-year comparison. PCR and nucleic acid amplification sales declined 8%, although QIAcuity delivered double-digit growth driven by consumables demand. The growth in QIAcuity was more than offset by weaker OEM demand, according to Chief Financial Officer Roland Sackers.

Genomics and next-generation sequencing sales rose 2% at constant exchange rates. QIAGEN Digital Insights posted solid single-digit growth, while consumables for universal NGS panels used on third-party sequencers grew more than 20%. Lower sales of other genomics products moderated the segment’s overall growth rate.

• Americas sales rose 1% at constant exchange rates, including 2% growth in North America.
• EMEA sales declined 2%, with gains in Spain, Belgium and Poland offset by declines in Germany, France and Italy.
• Asia-Pacific sales declined 2%, though the region excluding China grew at a low-single-digit rate and Japan posted high-teens growth.
• China sales declined in the low teens year over year, but improved sequentially at a double-digit percentage rate.

Margins and cash flow remained high

Adjusted operating income declined 2% to $157 million, while the adjusted operating margin was 29.4%, compared with 29.9% in the second quarter of 2025. Sackers said disciplined cost management and efficiency measures helped offset product-mix-related pressure on gross margin. The adjusted cost margin was 66.2%, down from 66.7% a year earlier.

The operating margin improved by 200 basis points sequentially from 27.4% in the first quarter. Qiagen’s adjusted tax rate was 18%, within its 17% to 18% target range.

Operating cash flow totaled $301 million for the first six months of 2026, unchanged from the same period in 2025. The figure included approximately $20 million in cash payments tied to efficiency and restructuring programs, as well as a planned inventory increase ahead of product launches. Days sales outstanding improved to approximately 55 days from 57 days at the end of 2025, while days inventory outstanding increased to 153 from 149.

The company completed a $500 million synthetic share repurchase in January and paid an approximately $72 million annual dividend in July. The dividend rose 40% to $0.35 per share from $0.25 in 2025.

New launches underpin second-half expectations

Bernard highlighted progress in the company’s automation portfolio, including the commercial launch of QIAsymphony Connect and early placements of QIAsprint Connect. QIAmini remains scheduled for a fall launch, with beta field testing in North America expected to begin in coming weeks.

In diagnostics, Qiagen launched two QIAstat-Dx bloodstream infection panels in Europe that collectively detect 33 pathogens and 28 antimicrobial resistance markers in about one hour. Bernard said the company expects FDA approval for the panels by year-end. Qiagen also expects its complicated urinary tract infection panel to be available in Europe during the second half of 2027.

The company plans to launch new QIAcuity gene-expression assays and a multiplex kit for up to 12 RNA targets in a single reaction during the second half of 2026. It is also working with DiaSorin and Inpeco on a fully automated QuantiFERON Sample to Insight workflow, targeted for launch in the second half of 2027.

Guidance reaffirmed; strategic review continues

Qiagen reaffirmed its full-year outlook for constant-exchange-rate sales growth of about 1% to 2% and adjusted diluted EPS of at least $2.43. For the third quarter, the company forecast sales growth of approximately 1% to 2% at constant exchange rates and adjusted diluted EPS of at least $0.62.

Sackers said the company expects sales growth to improve from a 1% decline in the first half to roughly 3% to 4% in the second half. Management cited the end of headwinds from discontinued NeuMoDx and bioinformatics portfolios, contributions from recent product launches, Parse single-cell analysis performance ahead of its approximately $40 million 2026 sales target, and modestly improving U.S. life-science funding conditions.

Bernard said Qiagen’s CEO search and strategic review are complementary but independent processes. He reiterated that the CEO transition is expected during the second half of 2026 and said the company will continue evaluating options intended to increase shareholder and stakeholder value.

About Qiagen (NYSE:QGEN)

Qiagen NV NYSE: QGEN is a global provider of sample and assay technologies designed to enable molecular testing in the fields of molecular diagnostics, applied testing, academic research and pharmaceutical development. The company's solutions span the full workflow of nucleic acid and protein analysis, offering customers standardized kits, instruments and software tools that streamline the preparation, detection and quantification of DNA, RNA and proteins.

The company's product portfolio includes nucleic acid extraction and purification systems, polymerase chain reaction (PCR) reagents and instrumentation, digital PCR platforms, next-generation sequencing (NGS) library‐preparation kits and proteomics solutions.

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