Detailed narrative
Q1 Performance and Outlook Revision
Qiagen delivered adjusted EPS of $0.54 CER, meeting its outlook despite net sales of $492 million, which were down 1% CER and below expectations. This mixed performance led to an updated full-year 2026 outlook, with net sales growth now projected at 1% to 2% CER (down from at least 5% CER) and adjusted diluted EPS at least $2.43 CER (down from at least $2.50 CER).
The revision primarily accounts for lower QuantiFERON immigration testing demand and continued caution in the U.S. Life Sciences market.
QuantiFERON Demand Reset
QuantiFERON sales declined 5% CER in Q1, mainly due to a significant drop in immigration testing demand in the U.S. and Middle East. This specific segment, representing about 10% of total QuantiFERON sales, saw a $35 million reduction in full-year expectations.
Management views this as a demand rebasing, not a change in long-term opportunity, with stable ordering patterns and solid growth in the remaining 90% of the business. The underlying latent TB testing market is still growing at 4-5% annually globally, and 4% in the U.S. excluding immigration.
Life Sciences and OEM Headwinds
Beyond QuantiFERON, the updated outlook incorporates a more cautious view on U.S. Life Sciences customer spending, contributing about $40 million in headwinds. This includes $15 million to $20 million from research customers, $20 million from volatile OEM customer ordering trends (including government agencies), and a few million dollars from geopolitical uncertainty🌐.
The softness is mainly observed in pure research and academia, particularly in commoditized PCR, enzymes, and oligos, rather than pharma or biotech segments.
Growth Pillars Performance
Despite overall sales challenges, Qiagen's four growth pillars performed solidly, increasing 4% CER. Sample Technologies grew 9% CER (3% ex-Parse), driven by automated consumables and instrument placements. QIAcuity achieved double-digit CER sales growth. QIAGEN Digital Insights saw solid single-digit CER growth, led by clinical bioinformatics.
QIAstat Diagnostics sales declined 1% CER due to tough prior-year comparisons, but consumables were up double-digits for GI and meningitis panels.
Profitability and Efficiency Initiatives
Qiagen maintained a high level of profitability, with an adjusted operating income margin expected at 27.4% in Q1. This reflects ongoing efficiency gains and disciplined execution, absorbing headwinds from tariffs, currency, and the Parse acquisition impact. The company expects to achieve its full-year adjusted EBIT target of 29.5% CER, driven by efficiency projects, favorable product mix (higher-margin sample prep), and ERP system implementation.
Second Half 2026 Growth Drivers
Management anticipates faster sales growth of about 4% CER in the second half of 2026. Key drivers include a 2 percentage point benefit from the roll-off of NeuMoDx discontinuation headwinds, 2 percentage points from new product launches (sample prep instruments, QIAstat-Dx, QIAcuity offerings), 1 percentage point from improving QuantiFERON year-over-year growth, and 0.5 percentage point from better-than-expected Parse performance and modest improvement in U.S.
Life Sciences funding.
Strategic Product Launches and Pipeline
Qiagen is advancing its automation strategy with new system launches like QIAsprint Connect (launched February, positive customer feedback), QIAsymphony Connect (full IVD commercialization on track for mid-year), and QIAmini (on track for later 2026). In diagnostics, U.S. clearance for GI panels on QIAstat Rise was received, and the first blood culture panels were launched in Europe and submitted to the FDA, expanding syndromic testing beyond respiratory, GI, and meningitis.