Bio-Rad Restores Currency-Neutral Sales Growth

The Tip Desk · November 4, 2026 · 3 min read

Third-quarter net sales were $656.4 million, up 0.5% as Clinical Diagnostics rose 2.7% and currency-neutral sales increased 0.7%.

Bio-Rad Laboratories (BIO) returned to currency-neutral revenue growth in the third quarter ended September 30, 2026, as Clinical Diagnostics sales rose and Droplet Digital PCR instruments contributed to the Life Science franchise.

Net sales were $656.4 million, up 0.5% from $653.0 million a year earlier. On a currency-neutral basis, sales increased 0.7%, reversing a 1.9% currency-neutral decline in the second quarter. Chief Executive Officer Norman Schwartz said the results reflected steady progress, with Clinical Diagnostics and Droplet Digital PCR demand leading the return to growth.

Clinical Diagnostics, the larger of the two reportable segments, generated $401.8 million in net sales, up 2.7% reported and 2.8% currency-neutral. The company said the currency-neutral increase was driven primarily by growth in quality systems and diabetes products. That pace compared with a 0.3% currency-neutral increase in the second quarter.

Life Science net sales were $254.6 million, down 2.8% reported and 2.4% currency-neutral. The company attributed the currency-neutral decline primarily to lower process chromatography sales and ongoing challenges in the academic research market, partially offset by increased Droplet Digital PCR sales. Excluding process chromatography, Life Science revenue grew 2.5% currency-neutral. The supplemental presentation said the Droplet Digital PCR franchise grew 7%, with instrument revenue up more than 20%.

GAAP income from operations was a $49.7 million loss, or a 7.6% operating margin, versus $65.3 million of income, or a 10.0% margin, a year earlier. The quarter included $49.8 million of impairment of purchased intangibles and $77.2 million of restructuring costs. The presentation said the operating margin included those items, reflecting the discontinuation and reprioritization of certain R&D programs. Excluding those items, non-GAAP income from operations was $83.7 million, or a 12.8% operating margin, versus $77.0 million, or 11.8%, a year earlier. Non-GAAP gross margin was 54.5%. GAAP gross margin was 50.1%.

GAAP net income was $458.6 million, or $17.02 a share, versus a net loss of $341.9 million, or $12.70 a share, a year earlier. The company said a change in the fair market value of its investment in Sartorius AG substantially contributed to that result; the income statement showed a $588.2 million gain from changes in fair market value of equity securities and a loan receivable. Non-GAAP net income was $71.5 million, or $2.65 a share, versus $60.8 million, or $2.26 a share. The GAAP effective tax rate was 14.9%; the non-GAAP rate was 21.4%.

Net cash from operations was $96.4 million. Free cash flow was $65.2 million.

For full-year 2026, the company continued to expect non-GAAP, currency-neutral revenue in a range of a decline of approximately 3.0% to growth of approximately 0.5%, and an estimated non-GAAP operating margin of approximately 10.0% to 12.0%. Schwartz said progress in the quarter gave the company confidence in that outlook.