伯乐 (BIO) 2026年第三季度业绩电话会：ddPCR增长与利润率扩张

得益于临床诊断业务的表现以及微滴式数字PCR（Droplet Digital PCR）仪器的持续强劲增长，伯乐生命医学（Bio-Rad Laboratories，NYSE: BIO）2026年第三季度营收实现小幅增长。Non-GAAP盈利能力有所改善，但重组费用和无形资产减值导致GAAP营业亏损。

核心要点

• 第三季度营收约为6.56亿美元，报表口径同比增长0.5%，汇率中性口径同比增长0.7%。这是伯乐生命医学在2026年首个实现汇率中性增长的季度。
• 在质控系统、糖尿病产品以及订单交付节奏的推动下，临床诊断业务营收在汇率中性口径下增长2.8%，达到约4.02亿美元。
• 由于工艺层析产品销售额下滑以及学术科研需求疲软，生命科学业务营收在汇率中性口径下下降2.4%至2.55亿美元。若剔除工艺层析业务，该板块实现增长2.5%。
• ddPCR产品组合在汇率中性口径下增长7%；在QX700系列产品的带动下，仪器营收连续第三个季度增长超过20%。
• Non-GAAP毛利率从上年同期的53.5%提升至54.5%，同时Non-GAAP营业利润率从11.8%提高至12.8%。
• 伯乐生命医学重申了其2026年业绩指引，预计全年汇率中性营收增速将处于-3%至+0.5%预测区间的中点附近。

核心财务数据

伯乐生命医学就生命科学板块外购无形资产计提了约5000万美元的非现金减值。管理层表示，该项计提反映了旨在优先考虑投资回报的产品组合决策。

业务与经营表现

临床诊断业务恢复增长，质控系统和糖尿病产品表现强劲。管理层称质控业务是公司最大的诊断核心业务板块，并表示各区域市场需求依然强劲。

生命科学业务表现喜忧参半。工艺层析销售下滑以及学术科研领域的持续承压，抵消了ddPCR仪器营收的增长。尽管工艺层析业务在2026年各季度呈现环比改善，管理层预计第四季度将出现环比下滑，但仍预期全年将实现同比改善。

ddPCR仍是核心增长引擎。仪器销售额连续第三个季度实现超过20%的增长，这主要得益于传统qPCR用户的转化、竞争优势、更丰富的产品组合以及简化后的工作流程。耗材拉动的收入正在改善但尚未恢复正常，且随着近期装机系统的利用率逐步爬坡，耗材利用率在2027年之前可能仍将低于正常水平。

伯乐生命医学在第三季度推出了ChemiDoc Pro Western blot成像系统。其分析算法采用了基于数千张Western blot图像训练的AI。公司表示，研发优先级的调整使该产品的上市时间提前了约两个季度。此外，伯乐生命医学还拓展了Foresight Pro预装层析柱产品组合，纳入了Nuvia填料。

从区域来看，得益于部分订单从第二季度顺延以及上年同期基数较低，中国市场恢复增长。尽管如此，管理层指出，当地市场对本土供应商存在偏好，且国家医保局最新指导方针带来了价格压力。

管理层业绩指引

伯乐生命医学重申了以下2026年Non-GAAP业绩指引：

第四季度方面，管理层预计报表营收将环比增长5%至6%，符合正常季节性规律。销售、一般及行政费用（SG&A）预计与第三季度持平，研发费用预计环比增加300万美元。折旧与摊销预计约为4000万美元。

管理层预计第四季度Non-GAAP毛利率将出现环比下滑，主要是由于产品组合向仪器倾斜、工艺层析营收环比下降以及燃油价格上涨。

展望2027年，伯乐生命医学表示将专注于重回正增长并进一步扩大营业利润率，但管理层同时提醒增长可能尚未完全恢复正常。公司重申重组有望节省3000万至3500万美元，相关效益将在2028年全面显现。

风险与关注领域

• 美国学术与政府部门需求依然疲软。美国国立卫生研究院（NIH）第三季度支出同比下降约15%，且在联邦财政年度结束时比国会拨款额低约60亿美元。
• 伯乐生命医学的第四季度展望未计入美国学术和政府终端市场的复苏预期。
• 管理层预计，中国最新调整的体外诊断定价指引将使2027年营收减少中个位数百万美元。
• 中东地区物流成本依然处于高位，伯乐生命医学的规划假设包含了相关扰动将持续至2027年。
• 管理层预计PAMA实验室医保报销规则调整对2027年的间接影响有限，但最终费率预计将在11月出台。
• 尽管仪器装机量表现强劲，但ddPCR耗材的利用率仍未恢复正常，并可能在2027年继续构成逆风。

分析师问答亮点

管理层表示，鉴于学术科研资助、中国市场定价以及物流方面持续承压，2027年营收增速应为正增长，但尚未完全恢复正常。进一步扩大利润率仍是既定目标。

关于ddPCR业务，随着可比基数抬高，伯乐生命医学并未承诺仪器增速能持续保持在20%以上。不过，管理层表示，新客户的拓展和平台的持续普及将使ddPCR在中短期内成为重要的增长贡献力量。

管理层还指出，随着客户从计算机模拟走向湿实验验证，AI驱动的药物研发可能会支撑相关需求，并有望提升实验室活跃度与试剂利用率。

在资本配置方面，伯乐生命医学表示，股份回购仍将是择机进行，而非系统性执行。公司不寻求转型式并购，但会考虑在诊断或生命科学工具领域涉及1亿至5亿美元营收规模的并购交易。管理层还重申，若出现适当时机，其持有的赛多利斯（Sartorius AG）股权具备变现可能。

完整业绩电话会议纪要

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完整财报电话会议逐字稿

管理层陈述

Operator

Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your operator today. At this time, I would like to welcome everyone to Bio-Rad's Third Quarter 2026 Results Conference Call and Webcast. [Operator Instructions] I would now like to turn the conference over to Ruben Argueta, Bio-Rad's Head of Investor Relations. You may begin.

Ruben Argueta

Thank you, operator. Good afternoon, everyone. And thank you for joining us. Today, we will review the financial results for the third quarter ended September 30, 2026, and provide an update on key business trends for Bio-Rad. With me on the call today are Norman Schwartz, our Chief Executive Officer; Jon DiVincenzo, President and Chief Operating Officer; and Roop Lakkaraju, Executive Vice President and Chief Financial Officer.

Before we begin our review, I would like to remind everyone that we will be making forward-looking statements about management's goals, plans and expectations, our future financial performance and other matters. These statements are based on assumptions and expectations of future events that are subject to risks and uncertainties. Our actual results may differ materially from these plans, goals and expectations. You should not place undue reliance on these forward-looking statements, and I encourage you to review our filings with the SEC, where we discuss in detail the risk factors in our business. The company does not intend to update any forward-looking statements made during the call today.

Finally, our remarks today will include references to non-GAAP financials, including net income and diluted earnings per share, which are financial measures that are not defined under generally accepted accounting principles. In addition to excluding certain atypical and nonrecurring items, our non-GAAP financial measures exclude changes in the equity value of our stake in Sartorius AG in order to provide investors with a better understanding of Bio-Rad's underlying operational performance. Investors should review the reconciliation of these non-GAAP measures to the comparable GAAP results contained in our earnings release. We have also posted a supplemental earnings presentation in the Investor Relations section of our website for your reference.

With that, I will now turn the call over to our Chief Operating Officer, Jon DiVincenzo.

Jonathan DiVincenzo

Thanks, Ruben. Good afternoon, everyone, and thank you for joining us. The third quarter represented another step forward in our efforts to improve Bio-Rad's operating and financial performance. Total company revenue in the third quarter was approximately $656 million, an increase of 0.5% on a reported basis and 0.7% on a currency-neutral basis compared with the prior year. This was our first quarter of currency-neutral growth this year. Gross margin expanded to 54.5% on a non-GAAP basis.

While the pace of revenue growth remains modest, we are encouraged by the progress across several areas of the business. Clinical diagnostics returned to growth, supported by quality systems and diabetes products. In life science, excluding process chromatography, revenue increased 2.5% year-over-year. This represents the third consecutive quarter of sequential improvement in the growth rate. It was driven by our genomics portfolio, including our Droplet Digital PCR business, led by the QX700 portfolio. ddPCR instrument revenue increased more than 20% for the third consecutive quarter, supported by both conversions from traditional qPCR and competitive wins. We believe these wins are attributable to our expanded portfolio, market-leading assay library and a simplified workflow.

While consumables performance continues to improve, pull-through has not yet normalized, and that could continue into 2027. The pace of our placements over the past year gives us confidence that as those systems ramp to full utilization, pull-through will normalize with them. Longer term, we remain very excited about the opportunity in ddPCR. There are numerous applications for our technology, ranging from biopharma R&D to clinical diagnostics to applied testing and the penetration remains low. We are confident ddPCR will remain a durable growth driver for Bio-Rad for many years to come. These results demonstrate progress in our business.

Turning to some of our key end markets. Conditions remain mixed with encouraging developments in some areas and continued pressure in others. In biopharma, we are seeing signs of improving customer activity. While the recovery remains gradual, we view these trends as constructive for the demand for the coming years. Within process chromatography, revenue has improved sequentially throughout 2026. While we expect a sequential decline in the fourth quarter, 2026 revenue should improve year-over-year.

In the U.S., funding conditions in the academic and government markets remain challenging. NIH outlays declined approximately 15% in the third quarter compared with the prior year and finished the federal fiscal year roughly $6 billion below congressional appropriations. Consistent with this environment, our fourth quarter outlook does not assume a recurring academic and government end markets. In the United States, we're closely watching the Protecting Access to Medicare Act, or PAMA, which governs Medicare reimbursement rates for surging clinical laboratory tests. Preliminary rise rates were published in September and final rates expected in November.

While Bio-Rad is not directly reimbursed under these rates, changes in laboratory reimbursement can influence our customers' economics and purchasing decisions. We have not observed a meaningful change in customer purchasing behavior attributed to the proposed rates to date and expect any indirect impact on our business in 2027 to be limited. We will continue to evaluate the implications as the final rates become available. Within our APAC region, we saw a return to growth in China in the third quarter. This performance was largely driven by orders that shifted from the second quarter, together with a favorable prior year comparison.

The operating environment here remains challenging, with continued preferences for domestic suppliers and pricing power affecting the competitive landscape. The National Healthcare Security Administration's updated guidelines continues to create pricing pressure across China's in vitro diagnostics market. Based on our current assessment, we estimated revenue impact in the middle single-digit millions of dollars in 2027. We are addressing this environment through commercial execution, portfolio management and cost discipline while maintaining a measured view of the near-term market outlook.

Within EMEA, in the Middle East, our [indiscernible] teams continue to work closely with our customers and supply chain partners to maintain product availability. Logistics costs remain elevated, and our current planning assumptions contemplate continued disruption into 2027. We believe maintaining a realistic set of assumptions is important as we manage through these external changes.

Now turning to our operational priorities. We remain focused on 3 interconnected objectives: strengthening execution, improving our cost structure and increasing the productivity across our enterprise. Within our global supply chain, we continue to advance initiatives focus on operational efficiency, procurement, inventory management and optimization of our manufacturing footprint. These initiatives are important components of our efforts to improve gross margin and build a more efficient operating model.

Another important enabler is artificial intelligence. We are approaching AI with 2 practical objectives; improving how we operate the company and enhancing the price we deliver to our customers. As discussed on the Q2 call, we're applying AI to processes where we believe it can improve productivity, decision-making and execution. Our focus on applications that deliver measurable business value. Over time, we expect these efforts, together with the broader organizational improvements to continue -- to contribute to productivity.

The second opportunity to incorporate AI into our products to improve their capabilities and the value they deliver to our customers. And that brings me to innovation. We continue to make progress in strengthening our product development pipeline and improve the pace at which we bring new solutions to market. During the third quarter, we launched the ChemiDoc Pro imaging system, our new flagship platform for Western blot imaging. This launch is a tangible example of the benefits of our R&D portfolio prioritization initiated in late 2025. For example, by concentrating resources on selected development programs and improving execution, we were able to accelerate ChemiDoc Pro launch by approximately 2 quarters.

Its analytical algorithm was developed using AI trained on thousands of Western blot images with the objective of improving the consistency and reliability of image analysis and image interpretation. For customers, these capabilities are designed to enhance confidence in their results and support research productivity. For Bio-Rad, the launch expands our opportunity to serve both existing customers considering system upgrades and new customers seeking advanced imaging capabilities. We also expanded our Foresight Pro prepacked chromatography column portfolio during the quarter to include our Nuvia resins. This extension broadens the formats available to customers and reflects closer collaboration amongst our product development, marketing and field application teams.

While individual product launches will contribute to growth over time, our broader objective is to establish a more consistent and predictable cadence of innovation across our portfolio. As part of our ongoing portfolio evaluation, we also recorded a noncash impairment of certain intangible assets during the quarter. We are taking a disciplined approach to evaluating technologies and product programs including making decisions about where continued investment offers the greatest potential churn. Our objective is to improve the return on R&D investments to support revenue growth.

So in closing, the third quarter provided encouraging evidence of progress. We returned to modest currency-neutral revenue growth, delivered another quarter of strong ddPCR instrument performance and continued to improve our non-GAAP gross margin and advanced important organizational and innovation initiatives. Recognizing that our end markets remain uneven, our priorities remain clear: consistent organic growth, improved profitability and strengthening the execution capabilities of the company. There is more work ahead, but we are encouraged by the progress we are making and remain focused on delivering measurable, sustainable improvements in performance.

With that, I will turn the call over to Roop.

Roop Lakkaraju

Thank you, Jon, and good afternoon. I'd like to start with a review of the third quarter 2026 results, then move to guidance. Overall, net revenues for the third quarter of 2026 were approximately $656 million on a reported basis versus $653 million in Q3 of 2025, a year-over-year increase of 0.5%. On a currency-neutral basis, this represents 0.7% year-over-year increase. Life Science sales in the third quarter of 2026 were $255 million, a decrease of 2.8% compared to Q3 of 2025 on a reported basis and a 2.4% decrease on a currency-neutral basis. This was primarily driven by lower process chromatography sales and ongoing challenges in the academic research market, partially offset by increased ddPCR instrument sales.

Excluding process chromatography, Life Science currency-neutral sales increased 2.5%. Currency-neutral sales decreased in the Americas, partially offset by increased sales in EMEA and Asia Pacific and Greater China. Our ddPCR portfolio posted 7% currency-neutral growth in the quarter with instrument revenue growing more than 20% year-over-year. Clinical Diagnostic sales in the third quarter of 2026 were approximately $402 million compared to $391 million in Q3 of 2025, an increase of 2.7% on a reported basis and 2.8% on a currency-neutral basis. Growth was driven by timing of orders and quality systems in diabetes products. Regionally, growth came from Americas and Asia Pacific.

Turning to gross margin. Consolidated gross margin was 50.1% for the third quarter of '26, compared to 52.6% in Q3 of '25. The year-over-year decline primarily reflects charges associated with our restructuring program. On a non-GAAP basis, third quarter gross margin was 54.5% versus 53.5% in the year ago period, and improved sequentially from 53.9% in the second quarter. SG&A expense for the third quarter of 2026 was $257 million, or 39.2% of sales, compared to $207 million or 31.7% of sales in Q3 of 25%. The increase in SG&A expense was primarily due to higher restructuring costs. Third quarter non-GAAP SG&A expense was $214 million or 32.6% of sales versus $202 million or 31% of sales in the year ago period.

Research and development expense for the third quarter of 2026 was $71 million or 10.9% of sales, equal to the third quarter of the prior year. Third quarter non-GAAP R&D expense was $60 million versus $70 million in the year ago period. The decrease in R&D largely reflects focused management and R&D programs and a prior year milestone payment that did not repeat. During the quarter, we also recorded a noncash impairment of approximately $50 million related to purchased intangible assets in the Life Science segment. The charge reflects the portfolio decisions we are making to prioritize our return on investments.

Q3 GAAP operating loss was approximately $50 million compared to operating income of approximately $65 million in Q3 of 2025. On a non-GAAP basis, third quarter operating margin was 12.8% compared to 11.8% in Q3 of 2025, and this represents a sequential improvement from 12.5% in the second quarter of '26. Third quarter 2026 non-GAAP net income, which excludes the impact of the change in equity value [indiscernible] shares was $72 million or $2.65 diluted earnings per share versus $61 million or $2.26 diluted earnings per share for Q3 of 2025.

For full details on the balance sheet, cash flow, tax and Sartorius valuation, please refer to our earnings presentation, press release and 10-Q filed today, all available on our Investor Relations website.

Moving on to our non-GAAP guidance for '26. We are reaffirming our guidance of full year '26 currency-neutral revenue growth between minus 3% and plus 0.5%. We expect full year growth to be approximately at the midpoint of this range. We expect Life Science segments currency-neutral revenue growth to be between minus 3% and minus 1% and the Clinical Diagnostics segment's currency-neutral revenue growth to be between minus 3% and plus 1%. We expect a sequential revenue ramp from Q3 to Q4, up 5% to 6% on a reported basis, in line with our typical seasonality.

Included in this guide is continued softness in the academic and government market and a favorable comparison for process chromatography. We expect full year non-GAAP gross margin to be in the upper half of the guidance range of between 53% and 54%. We expect a sequential decline in the fourth quarter due to product mix shifting more toward instruments, the expected sequential decline in process chromatography revenue and higher fuel prices, which are expected to continue into '27. In the fourth quarter, we expect SG&A to be flat to Q3 and a $3 million sequential step-up in R&D support continued innovation.

We're also modeling approximately $40 million of depreciation and amortization in the quarter. We expect full year non-GAAP operating margin to be in the upper half of the guidance range of between 10% and 12%. We are reaffirming our 2026 full year free cash flow estimate to be in the range of approximately $290 million to $340 million. Through 9 months, we've generated $210 million in the fourth quarter is seasonally our strongest.

Our third quarter results do not include any benefit from tariff refunds. In our year-end results, we expect to recognize any tariff refunds that we receive. As a reminder, we did not pass any tariff-related surcharges to our customers, instead absorbing them in our cost of goods sold. As a result, we will not need to test any of the refunded amounts to our customers. Finally, any tariff refunds will be recognized on a GAAP basis only, and as such, will be excluded from our non-GAAP results. We continue to firmly believe that Bio-Rad is capable of delivering operating margins above 20%, and we are not satisfied with the gap between our current performance and that potential.

We are committed to delivering stronger profitability while investing in innovation and sustainable growth, and we look forward to sharing further updates as that work progresses.

I'll now turn the call over to Norman.

Norman Schwartz

Thank you, Roop. Just maybe a few comments on [indiscernible] as we wrap up on products, in 2024, as you may remember, we began refocusing our product development efforts on market segments where we're best positioned to compete. Innovation has always been fundamental to Bio-Rad. And I think the products that Jon mentioned are good examples of that work to date. In today's challenging markets, delivering differentiated products that meet customer needs, I think it's certainly more important than ever.

So next, over the past 12 months, our Board has been evaluating its composition and the mix of experience that will really best support Bio-Rad's future. We believe would benefit from additional perspectives and broader operational experience in both life science tools and in diagnostics. And with that in mind, we have been actively evaluating candidates to expand our Board. We would expect to be able to share updates with you in the near future on this project.

And maybe finally, with regard to Elliott Management. I guess I would say our dialogue continues to be active and productive, and we believe we're broadly aligned on the objectives. So as we move forward, I'm certainly encouraged by the progress we're making and excited about what's ahead.

So maybe with that, operator, we'll open up the line for questions.

Operator

[Operator Instructions] Your first question comes from Dan Leonard with RBC Capital Markets.

分析师问答

Dan Leonard

To start off, I'm just trying to get a better sense of where your head's at in framing 2027. I think there were -- I counted on 3 or 4 discrete lingering headwinds you reminded that could drag into 2027. But I'm not really sure how to interpret what your thinking is for the appropriate starting point in aggregate on revenue to clarify?

Roop Lakkaraju

Okay. This is Roop, again. Good to have you on the call. So from a revenue standpoint, I think 1 of the things we're trying to balance here is to give a perspective of the end markets that we're dealing with and how we're navigating through that with the understanding that ultimately as we continue to drive innovation and some of the portfolio management that we've been doing is to get back to growth. And we think that 2027 and obviously, it's a little bit early right now with this third quarter call, and we'll lay out '27's guidance at the year-end call, but we'll be focused on driving towards positive growth rate in '27, and as part of that, obviously, driving further margin expansion in '27 as we move forward.

So hopefully, that helps you the bread crumbs that we put into the script to give you a sense of the end market dynamics we're dealing with, it's simply to help frame our understanding and what we're dealing with, with our portfolio and our customer set.

Dan Leonard

Okay. So the message is growth but not fully normalized given the bread crumbs that you have to contend with?

Roop Lakkaraju

That's right.

Dan Leonard

Okay. And then just specifically on Droplet Digital, -- you've had a number of quarters in a row with really strong instrumentation growth. What's your degree of conviction that, that can continue as opposed to any caution that you're going to start cycling up against more challenging comparisons?

Jonathan DiVincenzo

Dan, Jon DiVincenzo. Thanks for the question. As we model this out, first of all, we reflect on, I don't know, the last year that the new portfolio has been in the marketplace. And it's very positive to see a number of new customers. We're expanding kind of the available market that we're serving. And there's a lot of positivity there. We're going to continue to have these wins. I can't project it's going to be 20% continuity. As you said, we come up against some more difficult comps, but even in that challenging academic environment, customers are still choosing to invest in the platform. They may not be at full utilization of the platform yet, but it will be an important part of their research moving forward. So we continue to believe it's going to be an important part of our growth in the near to midterm.

Operator

Your next question comes from the line of Jack Meehan with Operon Research.

Jack Meehan

Wanted to talk about the Diagnostics business a little bit more. You mentioned some of the expectations around the China region. I was wondering if you could just talk about how the region performed in the quarter and like how you think the updates are going to -- how exactly is that impacting the business or ability to compete in the market?

Roop Lakkaraju

So Jack, maybe I'll start out. This is Roop. So first, in terms of the dynamics, we've had some -- China was a little bit stronger for us in the quarter as a discrete quarter for the third quarter. largely driven by order timing around quality control, some process chromatography, these sort of things, which is obviously positive to see. I think from an overall China dynamic, when you speak about the guidelines that have just come out, we think overall that there -- and we kind of said this within the prepared remarks, there is some single-digit million impact into '27, we think obviously, we're doing the final assessments. Those guidelines are getting rolled out. So there's a little bit yet to come potentially.

But overall, we don't think it's overly material, but there is some impact. I think from an overall China the ex perspective [indiscernible] continues to be strong there, and we continue to execute within the market overall.

Jack Meehan

Great. Okay. And then on the Life Science side, kind of ex digital PCR, ex process chromatography, remainder of the Life Science business. I was wondering if you could just talk about how you see demand trends across academic and pharma at the moment? And building off that, just whether you're seeing any indications of demand related to AI-related experiment?

Jonathan DiVincenzo

Yes, Jack, Jon DiVincenzo. Good questions there. So we -- although we have some optimism on academic, it still is not where you normally would think the academic spending would go on a kind of a run rate basis and all the activity in the labs. We'll see what happens with the midterm election, if that is any positive out of tailwind into '27 and '28. In biopharma, we see kind of an improved environment. Initially, it was kind of the later stages of the large pharma and biotech customers, but it's seen moving over to more discovery role. I think when it comes to AI, overall, we believe that's a positive for demand for our portfolio.

We are very close to our customers, particularly customers that are deploying AI and transitioning from in silico modeling to the wet lab work and how do we ensure that we're supporting that transition. Overall, we just think it's going to be meaning more productive testing in the lab, more utilization of reagents in our products and are quite optimistic about the impact on the market for both academic as well as drug discovery.

Jack Meehan

Great. And 1 last question is just on capital deployment. It looks like the buyback was a little muted in the quarter. Can you just talk about how you think about allocating capital? And then I would be remiss not to ask about just any way you thought on sort of core strategy monetize in...

Jonathan DiVincenzo

Jack, you trailed off at the end there. Would you mind just kind of restating the tail end of year? I heard the capital allocation and the buyback piece. Was there an incremental piece you mentioned as well?

Jack Meehan

Yes, sorry. The just latest thoughts on the Sartorius stake and ability to monetize that.

Jonathan DiVincenzo

Got it. So maybe I'll start with the Sartorius stake. Our point of view on that hasn't changed. It's a monetizable asset. And if there is a potential scenario in which we think it would make sense to monetize it, we would do so. And that's within our own rights to do so. So that's kind of Sartorius. So same as before, no change in comments there. As it relates to capital allocation, obviously, we talk about kind of 3 significant areas of capital allocation. One is investing back in the business from a CapEx standpoint. We continue to do that, especially from innovation capability. The second is share repurchases, which we have done.

But we've also indicated that we'd be opportunistic with those share repurchases and therefore, not necessarily systemic in every quarter. And with all that said, we still feel like we're undervalued and from an intrinsic value standpoint, there's opportunity for value creation from a share price standpoint, but we will continue to look at it more opportunistically versus systemic, if you will.

The final piece is M&A. And as we've stated very clearly, we're not seeking to do transformative deals. However, we are focused on finding deals of some scale and size. And as we've said in prior earnings calls, anywhere from $100 million to $500 million of revenue, whether it's in the DX space or the life sciences tool space, would be interesting to us. But what's critical is it provides value differentiation for our customers, gives us the ability to drive top line growth as [indiscernible] has done, and allows us to expand margins and drive working capital efficiency.

So we'll continue to have that kind of balanced capital allocation outlook, but any discrete lack of share repurchases in a quarter or not shouldn't be read in any direction other than we'll continue to balance these different areas quarter-to-quarter.

Operator

[Operator Instructions] Your next question comes from Tycho Peterson with Jefferies.

Unknown Analyst

This is Chad on for Tycho. Could you give us an update on where you are against the $80 million to $90 million restructuring program and if the $30 million to $35 million net realized savings is still the right ballpark for 2027.

Roop Lakkaraju

Jack, this is Roop. I'll jump into that. We are executing on the restructuring plan that we announced in the Q2 call. So that is proceeding. The $30 million, $35 million is still intact in terms of savings that we expect to see. And just as a reminder to you in the market. That really is into 2028. So the actions will take hold throughout the latter part of '26 and throughout '27. And as such, the full realization of that 30% to 35% will really be in full effect starting in '28.

Unknown Analyst

And then on Diagnostics, you called out upside in quality control and diabetes. Can you just give us a refreshed sense of how big and material these businesses are and kind of the latest trends you're seeing, how sustainable do you think they are?

Roop Lakkaraju

Yes. I mean from a China standpoint, and Jack, I think you were referring to China specifically or...

Unknown Analyst

Quality control and diabetes within diagnostics.

Roop Lakkaraju

Okay. So we haven't actually quantified those specific areas. With that said, we have said and obviously, diagnostics is about 61% of our total revenue, roughly at the enterprise level. Quality Controls is the largest franchise that we have within diagnostics. We're a market leader there, and we continue to see strength on a global basis across all regions.

From a diabetes standpoint, we've seen strength as we've gone throughout 2026. We're very pleased with that, and that's broad-based across various regions around the world, and we continue to focus on identifying those growth opportunities, both in QC diabetes, but other parts of our diagnostics portfolio as well.

Operator

There are no further questions at this time. I would like to turn the call back over to Ruben Argueta for any closing remarks.

Ruben Argueta

Thank you again for joining us today. Also, a quick reminder that we will be attending the UBS Global Healthcare Conference next week and hope to connect with many of you there. Goodbye.

Operator

Ladies and gentlemen, that concludes today's call. Thank you all for joining, and you may now disconnect.