Company Reports

Bio-Rad develops products and solutions for the life sciences research and clinical diagnostic markets and enjoys niche market leadership in diagnostic quality controls, antigens, and digital polymerase chain reaction, or dPCR, molecular testing. Bio-Rad’s business relies on the razor-and-blade model typically seen in the diagnostic market, and consumable reagents account for about 70% of total sales, with these reagents often sold at a higher margin than their associated equipment and instruments.

Bio-Rad reported a second-quarter revenue decline of 1.9% year on year at constant currency, and non-GAAP operating margin fell 1.1 points to 12.5%. Management reiterated full-year guidance ranges for currency-neutral revenue change of negative 3.0% to 0.5% and non-GAAP operating margin of 10%-12%.

Bio-Rad reported a year-on-year revenue decline of 4.2% at constant currency, and the non-GAAP operating profit margin fell 420 basis points to 6.6%. Given difficult end markets, management lowered the midpoints of its guidance ranges and widened them to capture the elevated uncertainty.

Bio-Rad develops products and solutions for the life sciences research and clinical diagnostic markets and enjoys niche market leadership in diagnostic quality controls, antigens, and digital polymerase chain reaction, or dPCR, molecular testing. Bio-Rad’s business relies on the razor-and-blade model typically seen in the diagnostic market, and consumable reagents account for about 70% of total sales, with these reagents often sold at a higher margin than their associated equipment and instruments.

Life science stocks have been under pressure since late 2022, but with profits expected to rebound in the high single digits in 2026 on average and potentially accelerate even further in 2027-30 due to upcoming catalysts, we see growing momentum in the industry’s profit growth trajectory.

Bio-Rad reported fourth-quarter revenue growth of 1.7% at constant currency and non-GAAP operating profit margin of 12%, or 180 basis points worse than last year's fourth quarter. The midpoints of 2026 guidance ranges are 1% revenue growth and 12.1% non-GAAP operating profit margin.

Bio-Rad develops products and solutions for the life sciences research and clinical diagnostic markets and enjoys niche market leadership in diagnostic quality controls, antigens, and digital polymerase chain reaction, or dPCR, molecular testing. Bio-Rad’s business relies on the razor-and-blade model typically seen in the diagnostic market, and consumable reagents account for about 70% of total sales, with these reagents often sold at a higher margin than their associated equipment and instruments.

Bio-Rad reported a year-over-year revenue decline of 1.7% at constant currency due to 1.5% and 1.8% declines in life sciences and clinical diagnostics, respectively. Management maintained its full-year outlook of 0% to 1% currency-neutral revenue growth and non-GAAP operating margin of 12%-13%.

Bio-Rad reported year-on-year revenue growth of 1% at constant currency, which consisted of 3.8% growth in life sciences and a 0.7% contraction in clinical diagnostics. Management provided more optimistic guidance ranges to include its Stilla acquisition and a less adverse tariff environment, too.

Bio-Rad reported a year-on-year decline in revenue of 1.5% at constant currency, primarily due to weak equipment sales in life sciences due to low demand from the academic research market. Management lowered guidance due to tariffs and softness in academia and biotech markets, too.

Bio-Rad develops products and solutions for the life sciences research and clinical diagnostic markets and enjoys niche market leadership in diagnostic quality controls, antigens, and digital polymerase chain reaction, or dPCR, molecular testing. Bio-Rad’s business relies on the razor-and-blade model typically seen in the diagnostic market, and consumable reagents account for about 70% of total sales, with these reagents often sold at a higher margin than their associated equipment and instruments.

Over the past week, life science shares have experienced significant volatility related to a deepening trade war with China and as broader US tariffs were implemented and then paused for 90 days to allow time for negotiations. A pharmaceutical-specific tariff is also being considered.

Wide-moat Bio-Rad reported fourth-quarter results that were in line with expectations. Although guidance for next year was slightly below our expectations for non-GAAP operating margin, the company still expects to return to positive revenue growth in 2025 and improve margin by about 60 basis points at the midpoint. We lower our fair value estimate to $400 per share from $430 to incorporate slightly more conservative profit margins and a lower valuation of the firm’s holdings of Sartorius. We continue to view Bio-Rad shares as undervalued.

Bio-Rad develops products and solutions for the life sciences research and clinical diagnostic markets and enjoys niche market leadership in diagnostic quality controls, antigens, and digital polymerase chain reaction, or dPCR, molecular testing. Bio-Rad’s business relies on the razor-and-blade model typically seen in the diagnostic market, and consumable reagents account for about 70% of total sales, with these reagents often sold at a higher margin than their associated equipment and instruments.

Wide-moat Bio-Rad’s third-quarter results were in line with our expectations. Revenue of $650 million grew 3% year over year, driven primarily by the clinical diagnostics segment. Management reiterated its expectation that full-year revenue will decline 2.5%-4% on a currency-neutral basis, but it now estimates that non-GAAP operating margin will be 12.75%-13.25%, which is 50 basis points better at the midpoint compared with previous guidance of 12%-13%. We maintain our $430 fair value estimate and view the shares as undervalued. Despite a lackluster 2024, we think Bio-Rad can return to growth in 2025 and improve its operating profit margins.

Wide-moat Bio-Rad’s second-quarter earnings were in line with our expectations. Revenue for the three months was $638 million, or a 6% year-over-year decline. Although the first half of the year has largely performed in line with expectations, Bio-Rad significantly revised its full-year guidance downward. Despite this revision, we maintain our fair value estimate of $430 per share and view shares as undervalued. Although we expect 2024 to be lackluster in terms of revenue growth and margin improvement, next year we think Bio-Rad can resume its progress in increasing operating profit margins.

Wide-moat Bio-Rad’s first-quarter earnings were in line with expectations. Revenue for the period was $611 million, or a 10% year-over-year decline, while adjusted operating profit margin of 9.7% fell 2.7 percentage points from the same period last year. We maintain our fair value estimate of $430 per share and view shares as undervalued. Although we expect 2024 to be lackluster in terms of revenue growth and margin improvement, next year we think Bio-Rad can resume its progress in increasing operating profit margins.

We initiate coverage of Bio-Rad with a wide moat rating and $430 fair value estimate. We think the company is an attractive long-term investment with significant margin expansion opportunities in its consolidated businesses. Although the company’s profit margins have historically lagged peers, we think the market does not sufficiently appreciate Bio-Rad's progress and momentum in improving its cost structure.

Bio-Rad develops products and solutions for the life sciences research and clinical diagnostic markets and enjoys niche market leadership in diagnostic quality controls, antigens, and digital polymerase chain reaction, or dPCR, molecular testing. Bio-Rad’s business relies on the razor-and-blade model typically seen in the diagnostic market, and consumable reagents account for about 70% of total sales, with these reagents often sold at a higher margin than their associated equipment and instruments.

We are dropping coverage of Bio-Rad. We provide broad coverage of more than 1,500 companies globally and periodically adjust our coverage according to investor interest and staffing.