Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $772 million, resulting in 4% organic growth, with a full year revenue of $2.86 billion, reflecting 3% organic growth [22][24] - Adjusted EPS for the fourth quarter was $1.70, exceeding the high end of expectations, while the full year adjusted EPS was $5.06, representing 3% growth year-over-year [10][24] - Adjusted operating margins for the fourth quarter were 29.7%, down 60 basis points year-over-year, while full year adjusted operating margins were 27.1%, down 120 basis points year-over-year [23][24] Business Line Data and Key Metrics Changes - The diagnostics segment generated $390 million in revenue for the fourth quarter, up 10% on a reported basis and 7% on an organic basis, with full year organic growth of 4% [28] - The life sciences segment reported revenue of $382 million in the fourth quarter, flat on an organic basis, with full year organic growth also at 2% [26][27] - The immunodiagnostics business grew in the high single digits organically in the fourth quarter, while the reproductive health business grew mid-single digits [28][30] Market Data and Key Metrics Changes - Geographically, the company experienced flat performance in both the Americas and APAC, while Europe saw double-digit growth [26] - For the full year, the Americas grew low single digits, Europe grew high single digits, and APAC declined in the low single digits [26] Company Strategy and Development Direction - The company plans to continue its focus on capital deployment, including share repurchases and potential acquisitions, while maintaining a disciplined approach [11][20] - The introduction of the AI models-as-a-service platform, Signals Synthetica, is expected to enhance the company's position in the market [15][16] - The company anticipates organic growth of 2%-3% for 2026, with potential upside if market conditions improve [12][31] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism regarding the recovery of end markets, particularly in pharma and biotech, while acknowledging ongoing uncertainties [11][12] - The company noted improvements in customer sentiment and funding in the biotech sector, contributing to a more favorable outlook [52] - Management emphasized the importance of maintaining a prudent approach in light of recent market trends and uncertainties [12][31] Other Important Information - The company repurchased over $800 million worth of shares in 2025, reducing the share count by 8.5 million shares [10][11] - The acquisition of ACD/Labs is expected to contribute over $20 million in revenue for the year, adding approximately 75 basis points to overall revenue growth [13][31] Q&A Session Summary Question: Can you provide more color on the 2%-3% organic growth guidance? - Management acknowledged positive signs in end markets since September but maintained the conservative guidance to allow for potential upside as the year unfolds [39][40] Question: What is driving the strength in instruments and reagents within life sciences? - Management indicated that continued momentum in the end market and share gains in the preclinical market are contributing factors [45] Question: Can you elaborate on the timing and trajectory of new software products? - Management highlighted that the Signals business is in a significant new product introduction phase, with expectations for growth to accelerate in the coming years [48][49] Question: How is the company approaching M&A opportunities? - Management stated that any potential M&A must provide a strong strategic addition and meet financial return criteria [56] Question: What are the expectations for the diagnostics business going into 2026? - Management expressed a more prudent assumption for newborn screening and immunodiagnostics in China, while still anticipating potential upside [64][70]