Financial Data and Key Metrics Changes - The company achieved high single-digit reported revenue growth and low double-digit adjusted EPS growth in Q4 2025, with sales growing 7% on a reported basis and 6% in constant currency [5][7] - Adjusted EPS grew 11% to $13.13 for the full year, while GAAP EPS was $10.76 [9][33] - Recurring revenue grew 9%, driven by a 12% increase in chemistry [7][32] Business Line Data and Key Metrics Changes - Instrument revenue grew 5%, led by high single-digit growth in LCMS, while TA instruments declined due to cautious spending in the U.S. and Europe [9][30] - Chemistry revenue grew 12% for the full year, significantly above the historical average growth rate of 7% [12][33] - The transition to a subscription-based model for Empower reduced overall instrument growth by a low single-digit percentage for the quarter, but is expected to provide long-term recurring revenue benefits [8][48] Market Data and Key Metrics Changes - Pharma revenue grew 9%, with high single-digit growth across the Americas and Europe, and low double-digit growth in Asia [13][30] - In China, sales grew 9% for the year, driven by strong performance in biotech and CDMOs [14][33] - Non-pharma end markets saw industrial growth of 6%, while academic and government declined by 1% [13][32] Company Strategy and Development Direction - The company completed the acquisition of BD's Biosciences and Diagnostic Solutions business, aiming to strengthen its position in high-growth adjacencies and enhance operational execution [5][18] - The strategic roadmap laid out five years ago continues to advance, with a focus on innovation and commercial execution [6][9] - The company plans to expand its idiosyncratic growth driver framework from three to five drivers, adding biologics and informatics to its growth strategy [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving organic revenue growth of 5.5%-7% for 2026, with the acquired business expected to contribute $3 billion in revenue [26][35] - The company anticipates a blended year-over-year revenue growth of approximately 5.3% for the combined entity in 2026, with an adjusted operating margin percentage of approximately 28.1% [27][36] - Management highlighted the importance of improving operational execution and pricing discipline to enhance revenue synergies [44][52] Other Important Information - Free cash flow totaled $677 million for the full year, with a net debt position of $820 million at year-end [34][36] - The company expects to realize approximately $55 million of adjusted EBIT from cost synergies in 2026, alongside $50 million in revenue synergies [24][36] Q&A Session Questions and Answers Question: Insights on BD results and path to recovery - Management acknowledged several issues that impacted growth in the BD business, including a weaker flu season and challenges in export approvals, but expressed confidence in a lower baseline for 2026 to support recovery [42][46] Question: Impact of Empower transition on instruments - Management noted that the transition to subscription for Empower had a low single-digit headwind on overall instrument growth but is expected to provide long-term recurring revenue benefits [43][48] Question: Full year guidance and deceleration dynamics - Management clarified that the guidance reflects a prudent approach, incorporating assumptions of mid-single-digit growth in China and the impact of the Empower transition [49][50]