Diagnostics stock QuidelOrtho falls to 15-year low on disappointing 1Q26 results

QuidelOrtho shares tumbled more than 27% on Thursday to their lowest level since April 2011 after the small-cap diagnostics provider reported preliminary first-quarter results that came in well below Wall Street expectations. The move was driven by a weaker flu season in the U.S. and the Middle East conflict, the company said.

Shares of QuidelOrtho fell more than 27% on the Nasdaq on Thursday to $12.70 apiece, marking their lowest level since April 2011. The stock continued to decline in premarket trading on Friday.

On Wednesday, the company said preliminary unaudited revenue for the first quarter totaled $615-620 million. This represents a decline of about 11% year over year. The preliminary revenue also came in 9% below Wall Street expectations, Barron’s reported.

The performance was primarily driven by a weaker respiratory season in the U.S.: influenza-like illness visits fell by about 30% in the first three months of 2026 versus the same period in 2025, the company said. The Centers for Disease Control and Prevention classifies the U.S. flu season, which typically runs from October to May, as “moderate severity,” Barron’s wrote.

Other factors weighing on quarterly results included the war in Iran, which delayed some orders in the EMEA region, as well as slower China distributor sales, the company said.

QuidelOrtho is taking decisive cost actions to drive full-year 2026 performance, CEO Brian J. Blaser said in the press release.

The diagnostics provider still believes the low end of its previous full-year 2026 guidance remains achievable. In February, the company said it expects revenue in the range of $2.7 billion to $2.9 billion and earnings of $2.00-2.42 per share this year.

Andrew Cooper, an analyst at Raymond James, said after speaking with the management on Wednesday that he remains “frustrated with the overall result, but further details at least provide more visibility into the moving parts, as well as clarity around the team’s position,” Barron’s reported.

Cooper noted that QuidelOrtho “had already assumed” a year over year revenue reduction due to the weaker respiratory illness season and “communicated this view.” “The magnitude ultimately proved larger as the season progressed. Seeing similar dynamics from other players should add credibility to this as earnings season gets underway,” he wrote.

Wall Street is broadly taking a wait-and-see approach to QuidelOrtho shares. Four analysts rate the stock “hold,” three “buy,” and one “sell.” The average target price stands at $28.14 per share, implying upside of more than 2.2 times versus the closing price on Thursday.