Start here if you're new
what it is
QuidelOrtho sells diagnostic tests and lab tools that help doctors find infections, heart issues, and blood-matching problems.
how it gets paid
Last year Quidelortho made $2.7B in revenue. specialized diagnostic solutions was the main engine at $0.92B, or 34% of sales.
why growth slowed
Revenue fell 1.9% last year. Negative $1.92 of EPS mattered most because it landed far below the $0.49 estimate and showed the turnaround is still uneven.
what just happened
The quarter was a miss: EPS came in at -$1.92 versus a $0.49 estimate.
At a glance
B balance sheet — gets the job done, barely
20/100 earnings predictability — expect surprises
13.3x trailing p/e — the market's not buying it — or you found a deal
5.5% return on capital — nothing to write home about
xvary composite: 39/100 — weak
What they do
QuidelOrtho sells diagnostic tests and lab tools that help doctors find infections, heart issues, and blood-matching problems.
This business sits inside hospitals, labs, and clinics where switching is painful. Once your workflow runs on a test platform, changing it means retraining staff and revalidating results. That reach supports $2.7 billion in annual revenue across physician offices, hospitals, labs, universities, and retail clinics.
How they make money
$2.7B
annual revenue · their business grew -1.9% last year
rapid immunoassay
$0.86B
9.0%
cardiac immunoassay
$0.49B
2.0%
specialized diagnostic solutions
$0.92B
+2.0%
molecular diagnostic solutions
$0.46B
+1.0%
The products that matter
rapid immunoassay and cardiac testing
Rapid Diagnostic Tests
$2.7B revenue · all of sales
it generates the full $2.7B business, which makes the model easy to follow and harder to forgive. growth slowing to 4.2% matters because there is no second engine to distract you from the main line.
100% of revenue
Key numbers
$36
18-month target
The base-case target is 26% above $28.68, but the $16 to $56 range tells you this is still a wide-arc turnaround, not a clean story.
33.7%
operating margin
Operating margin → core profit after running the business → so what: QuidelOrtho is still losing money on operations.
$2.5B
long-term debt
Debt equal to 57% of capital leaves less room for a slow recovery.
13.3x
trailing p/e
The stock looks cheap against future earnings, but cheap stocks stay cheap when margins are negative.
Financial health
B
strength
- balance sheet grade B — adequate — nothing special
- risk rank 4 — safer than 20% of stocks
- price stability 10 / 100
- long-term debt $2.5B (57% of capital)
- net profit margin 7.5% — keeps 8 cents of every dollar in revenue
- return on equity 8% — $0.08 profit for every $1 investors have put in
B — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in QDEL 3 years ago → it's now worth $3,330.
The index would have given you $14,770.
source: institutional data · total return
What just happened
missed estimates
The quarter was a miss: EPS came in at -$1.92 versus a $0.49 estimate.
Revenue reached $724 million in Q4 2025, up about 2% vs. prior year and above the $701 million expectation. Sales held up better than profits, which tells you the real problem is still margin recovery.
$724M
revenue
$1.92
eps
22%
gross margin
the number that mattered
Negative $1.92 of EPS mattered most because it landed far below the $0.49 estimate and showed the turnaround is still uneven.
-
revenues were expected to struggle amid a challenging operating landscape.although the overall diagnostic market has intrinsic value, practices are somewhat discretionary in nature.
-
the respiratory portfolio is of concern.
-
to wit, quidel’s fortunes were mainly derived from covid-19 contributions.
-
at this endemic stage though, contributions are likely to continue to recede in prominence.
-
the company is working toward improving its operating landscape.pared operating expenses, particularly administrative ones, should drive annual cost-saving opportunities in the $100 million annual range.
source: company earnings report, 2026
Get this snapshot in your inbox
This page, delivered free — plus weekly updates when the numbers change. plain english, no spam.
weekly updates
earnings alerts
plain english
no spam
What could go wrong
the core risk is simple: QuidelOrtho has one disclosed revenue line, that line is tied to diagnostics demand that was distorted by COVID, and the balance sheet already carries $2.5B of long-term debt. if the reset drags on, you feel it in more than one place.
med
respiratory testing normalization
a meaningful part of the old narrative was lifted by pandemic-era testing demand. if respiratory volumes keep settling lower, the market will keep treating current earnings as a ceiling instead of a base.
this directly pressures the same diagnostics business that generates 100% of disclosed revenue.
med
debt limiting flexibility
$2.5B of long-term debt equals 57% of capital. that does not mean distress, but it does mean weaker demand or slower margin repair matters more here than it would on a cleaner balance sheet.
if earnings stay soft, debt becomes part of the investment case whether you like it or not.
med
cost savings failing to convert into earnings
management is targeting about $100M in annual savings. the market will eventually want proof in EPS, not another promise slide.
if that $100M self-help target misses, the $2.15 full-year EPS base starts looking less like a trough and more like the new normal.
with 100% of disclosed revenue tied to one diagnostics line and $2.5B of long-term debt on the balance sheet, you do not have much diversification if the recovery stalls.
source: institutional data · regulatory filings · risk analysis
Pay attention to
trend
whether growth stays closer to 4.2% than 36.1%
that gap is the whole story. a company can survive slow growth. it does not get revalued until the deceleration stops dominating the conversation.
metric
the $100M cost-savings target
if management is serious about self-help, you should see that program show up in margins and EPS, not just in talking points.
calendar
the next earnings report
watch for commentary on respiratory demand, the current $700M quarterly revenue run-rate, and whether management sounds more confident or more boxed in.
risk
debt versus equity value
$2.5B of long-term debt against a roughly $2B market cap is not a footnote. if operating results wobble, that mismatch gets louder fast.
Analyst rankings
short-term outlook
below average
momentum score 4 — in human-speak, analysts think this is more likely to lag than lead over the next year.
risk profile
below average
stability score 4 — the stock has been shakier than most. that fits a business with 10 / 100 price stability.
chart momentum
below average
technical score 4 — the chart is not arguing with the skeptics yet.
earnings predictability
20 / 100
predictability is low. in human-speak, expect the numbers to move around more than you would like.
source: institutional data
Institutional activity
institutions have been net buying for 3 consecutive quarters — 134 buyers vs. 126 sellers in 3q2025. total institutional holdings: 82.3M shares. net buying for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$16
$56
$29
current price
$36
target midpoint · +26% from current · 3-5yr high: $70 (+145% · 25% ann'l return)
Want the deeper analysis?
The full deep dive: dcf model, scenario analysis, competitive moat breakdown, and quarterly tracking — everything on this page, taken further.
see plans from $5/moThe deep dive