QuidelOrtho Corporation (NASDAQ:QDEL) saw its shares fall about 21% in extended trading Wednesday after the company issued preliminary revenue guidance for the first quarter of 2026 that fell short of Wall Street's consensus.
Management said it now expects revenue for the quarter to be in the range of $615 million to $620 million. That guidance compares with the consensus estimate of $679.59 million and represents a substantial downside to market expectations.
The company attributed the revenue gap in part to a softer-than-expected respiratory season in the United States. Management reported that U.S. Influenza-like Illness visits were down approximately 30% versus the first quarter of 2025, a decline it identified as materially affecting demand dynamics.
QuidelOrtho also pointed to weaker distributor shipments in China, which the company believes are related to proposed reductions in reimbursement rates by the China National Health Security Administration. In addition, the firm said certain orders across Europe, the Middle East, and Africa were delayed amid the conflict in the Middle East.
On cash flow, the diagnostics company expects free cash flow to be in the range of negative $65 million to negative $70 million for Q1 2026. That outlook aligns with prior commentary from the company during its fourth quarter 2025 conference call in February, when management indicated it expected negative free cash flow through the first half of 2026 while maintaining an expectation of positive free cash flow for the full year of 2026.
Chief Executive Officer Brian J. Blaser said the company’s core business - which represents more than 70% of total revenue - remains strong despite the softer respiratory season and broader macroeconomic headwinds. The company is implementing cost reduction measures that it says are intended to improve performance for full-year 2026.
QuidelOrtho plans to publish complete first quarter 2026 financial results on Tuesday, May 5, 2026, after the market closes. Management emphasized that the preliminary revenue figures are based on its initial analysis and remain subject to adjustment as the company completes its quarter-end financial close process.
This report aims to present the company's preliminary guidance and the factors management identified as influencing results. Investors will receive a full accounting of the quarter when the company files its complete financials on the scheduled release date.