Qiagen N.V. Q2 FY2026 earnings call

Overall Financial Performance

• Q2 2026 results outperformed management's prior outlook: net sales were projected to decline ~2% CER, and adjusted diluted EPS was projected to be at least $0.60 CER; actual adjusted diluted EPS came in at $0.62 CER.
• Growth pillars (Sample Technologies, QIAcuity, QDI, Quantiferon) delivered 5% CER growth, outperforming broader market growth. Quantiferon returned to positive growth after the Q1 2026 immigration testing headwind.
• Profitability remained strong: adjusted operating income was $157 million (down 2% YoY), with an adjusted operating margin of 29.4% (down 50 basis points YoY, but up 200 basis points sequentially from Q1 2026). Adjusted gross margin was 66.2%, with disciplined cost management offsetting mix-related headwinds.
• Cash generation remained solid: operating cash flow for the first half of 2026 was $301 million, flat YoY, despite $20 million in restructuring/efficiency program payments and planned inventory builds for upcoming product launches. QIAGEN increased its 2026 annual dividend by 40% and completed a $500 million synthetic share repurchase in January 2026.

Product Pipeline and Launch Updates

• Sample Technologies & Automation: The commercial launch of QIAGEN's new IVD-compliant Kaya Symphony Connect automation system reached a key milestone, with initial placements receiving strong customer feedback, particularly from pharma customers. The Qaya Mini launch remains on track for fall 2026, with beta testing starting in North America in the coming weeks. The single-cell analysis platform PARS (which was acquired as part of the PaaS business) launched a next-generation immune profiling solution and was selected for a NASA-funded research program on the International Space Station. PaaS sales are tracking ahead of the full-year 2026 target of $40 million.
• Quantiferon: QIAGEN is preparing for the next phase of latent TB testing growth, in partnership with automation partners Diasorin and Impeko. The first fully automated sample-to-answer Quantiferon workflow is planned for launch in H2 2027. An AI-enabled tool to assess risk of progression to active TB is also in development to expand clinical value beyond latent TB detection.
• QIAstat Diagnostics: Two new bloodstream infection BCID panels (detecting 33 pathogens and 28 antimicrobial resistance markers in one hour) have launched in Europe, with FDA approval for the U.S. expected by the end of 2026. The large GI panel supported U.S. laboratory response to the ongoing 2026 cyclospora outbreak. A complicated UTI panel, targeting a significant unmet clinical need with no direct competitor announced, is on track for a European launch in H2 2027.
• QIAcuity (Digital PCR): New gene expression assays and a high-multiplex kit for up to 12 RNA targets per reaction will launch in H2 2026. The cell and gene therapy offering is being expanded with new software and workflow automation via a collaboration with Hamilton. QIAcuity rapid custom assays were deployed to support Ebola outbreak surveillance and research in 2026.
• QIAGEN Digital Insights (QDI): A new collaboration with NVIDIA combines QDI's 25+ years of curated biomedical knowledge with NVIDIA's accelerated computing and graph-based AI to accelerate global drug discovery research.

QIAGEN reported total Q2 2026 net sales of $535 million, flat year-over-year on both a reported basis and at constant exchange rates (CER). Performance across product segments is as follows:

• Sample Technologies: Grew 9% CER, driven by strong demand for automated consumables and higher instrument sales compared to the year-ago period. This segment was the top growth contributor among QIAGEN's core growth pillars.
• Diagnostic Solutions: Declined 2% CER overall. Within this segment:
  • Quantiferon returned to 1% CER growth, as solid broad-based testing demand offset the previously communicated significant decline in U.S. and Middle East immigration testing demand.
  • QIAstat (Qiagen's syndromic testing business) declined 7% CER, due to a challenging year-over-year comparison against a strong 2025 respiratory testing season. This decline was partially offset by double-digit growth in the company's gastrointestinal (GI) and meningitis-encephalitis panels.
• PCR and Nucleic Acid Amplification: Declined 8% CER overall. The segment's digital PCR product, QIAcuity, delivered double-digit CER growth driven by strong consumables demand, but this growth was more than offset by weaker OEM demand.
• Genomics and Next-Generation Sequencing (NGS): Grew 2% CER overall. QIAGEN Digital Insights (QDI) delivered solid single-digit growth, and consumables for universal NGS panels (for use on third-party sequencers) grew more than 20% CER. Lower sales of other genomics products moderated the segment's overall growth rate.

Management reaffirmed full-year 2026 guidance, maintaining prior projections:

• Full-year 2026 total net sales growth of ~1-2% at CER, unchanged from prior guidance.
• Full-year 2026 adjusted diluted EPS of at least $2.43 at CER, unchanged from prior guidance.
• Q3 2026 guidance calls for ~1-2% CER total net sales growth and adjusted diluted EPS of at least $0.62 at CER.
• Management expects CER sales growth to accelerate from -1% in H1 2026 to 3-4% in H2 2026, with growth weighted toward Q4 2026. Key drivers of the H2 acceleration include: 1) the end of year-over-year headwinds from the discontinued NeumodX and Dynaludix portfolio, contributing ~2 percentage points of improvement; 2) increasing contributions from recent and upcoming new product launches, contributing an additional ~2 percentage points; 3) combined benefits from PaaS (tracking ahead of its $40 million full-year sales target) and modestly improving U.S. life science funding trends, contributing ~0.5 percentage points.
• Q4 2026 also benefits from an easier year-over-year comparison, following the 2025 U.S. government shutdown that disrupted sales in Q4 2025. Quantiferon is still tracking toward its full-year 2026 revenue target of $500 million.
• Currency impact assumptions are unchanged: a ~1 percentage point tailwind to full-year sales and a neutral impact on adjusted diluted EPS.
• A potential net benefit of ~$0.02 EPS from customer tariff refunds is already included in the current guidance, with any additional benefit incremental to guidance.

• U.S. immigration testing demand for Quantiferon has declined significantly, and management does not expect this market to recover in the near term, creating ongoing year-over-year comparable headwinds through 2026.
• Funding for U.S. research and academic laboratories remains below 2025 levels year-to-date, which constrains capital investment in new instruments, creating a continued headwind for capital sales even as trends improve sequentially.
• QIAGEN, like all syndromic testing providers, is exposed to variability in annual respiratory testing demand, which depends on the severity of flu and respiratory virus seasons, creating potential quarterly volatility. The strong 2025 respiratory season created a challenging comparison for Q2 2026.
• New competitors entering the latent TB testing market could create pricing or share pressure, though management has not seen impact on market share to date and notes that new entry expands overall market awareness for latent TB testing.

Q: The H2 growth guidance was adjusted to 3-4% from a prior 4% — what has changed, and what drives the expected step-up in growth from Q3 to Q4? / A: Management confirms the underlying drivers of H2 acceleration (easier comps from discontinued products, new product launch contributions, improving funding trends) have been consistent since Q1. U.S. research funding is improving sequentially in Q2 vs Q1, but remains below 2025 levels, keeping management cautious. New product launches take time to gain traction: Kaya Mini will launch in Q3, so contributions will grow through Q4. Q4 also benefits from a much easier comparison to the Q4 2025 U.S. government shutdown disruption. Sample prep will move to double-digit growth in H2, and QIAstat will return to low double-digit growth after the respiratory comp headwind eases.

Q: What is the status of the ongoing strategic review alongside the CEO search, and what options are on the table? / A: The CEO search (on track for H2 2026 transition) and strategic review are independent, complementary processes. The board and management conduct ongoing, continuous reviews of all options to increase shareholder value, including portfolio optimization, R&D prioritization, potential strategic combinations or alliances, and capital allocation adjustments. The process will not stop with the CEO transition; it is a permanent part of governance at QIAGEN. The review includes assessment of all business segments to focus on areas where QIAGEN can hold leadership positions and generate strong returns.

Q: Quantiferon outperformed in Q2 but language softened on the $500 million full-year target. Are incremental competitive headwinds expected in H2? / A: After removing the $35 million lost immigration testing revenue in Q1, Quantiferon returned to positive growth in Q2, and management remains on track to hit the $500 million full-year target. Q3 will face a strong 2025 comparable, especially in the U.S., but H2 overall will return to growth. New competitor entry confirms the large unmet need in the $2 billion addressable latent TB market, expanding overall awareness rather than just stealing share; to date, there has been no impact on QIAGEN market share. QIAGEN's main competitor remains the traditional TST skin test, and the company continues to convert TST customers and expand into new high-potential segments like dialysis patients and diabetic patients, with new automated and AI-enhanced products launching in 2027 to drive further growth.

Q: Why was there no share buyback in Q2 after the AGM authorization, and what is the outlook for the high-performing sample tech/PaaS business in H2? / A: The lack of Q2 buyback is purely technical: there is a standard 2-3 month opposition period for debt holders after AGM authorization, so repurchases could not begin until that window closed. For sample tech, the multi-year automation upgrade strategy is clearly paying off, with strong organic growth from new product launches continuing into H2. The PaaS single-cell acquisition is performing extremely well, with a differentiated instrument-free workflow and unmatched cell capture capability that led to its selection for the NASA research program, and full-year 2026 PaaS sales are expected to exceed the original $40 million target.

Q: Why does the fully automated Quantiferon launch take 1.5 years to reach market, given potential competitive entry? / A: The workflow requires developing two new custom instruments (a dedicated aliquoter and incubator) and integrating all components to deliver a seamless sample-in-result-out workflow, which takes time to develop, test, customize for key customer workflows, and gain regulatory approval. A 1.5-year timeline for this level of custom development is already aggressive. Early customer feedback has been extremely positive, with many leading labs requesting to be pilot sites, and the H2 2027 launch timeline remains realistic and on track.