Quidel's stock plummeted 21.67% during intraday trading on Thursday, following the company's announcement of preliminary first-quarter revenue that fell significantly short of analyst expectations.

The in vitro diagnostics company expects preliminary unaudited Q1 2026 revenue of $615 million to $620 million, well below the $677.8 million analysts had anticipated. The shortfall is attributed to multiple macroeconomic headwinds, including a weaker respiratory season with U.S. influenza-like illness visits down approximately 30% year-over-year, slower distributor sales in China potentially linked to proposed reimbursement rate cuts, and delayed orders in Europe, the Middle East, and Africa due to geopolitical conflict.

The negative market reaction was further compounded by JP Morgan cutting its price target on the stock to $15 from $25. Despite the Q1 miss, QuidelOrtho stated that the low end of its full-year 2026 guidance remains achievable and expects positive free cash flow for the full year.