Financial Performance - Revenue for Q4 2025 grew 7% year-over-year to $12.21 billion, while full-year revenue increased 4% to $44.56 billion [7][8] - Adjusted operating income for Q4 rose 6% to $2.88 billion, and for the full year, it grew 4% to $10.11 billion [8][27] - Adjusted EPS for Q4 increased 8% to $6.57, and for the full year, it grew 5% to $22.87 [8][26] - Adjusted operating margin for Q4 was 23.6%, and for the full year, it was 22.7% [8][28] Business Segment Performance - Life Science Solutions reported revenue growth of 13% in Q4 and 8% for the full year, driven by strong bioproduction performance [32] - Analytical Instruments saw a 1% increase in revenue for both Q4 and the full year, with adjusted operating income decreasing 12% in Q4 [33] - Specialty Diagnostics reported a 5% revenue increase in Q4 and a 4% increase for the full year, with adjusted operating income up 19% in Q4 [34] - Laboratory Products and Biopharma Services experienced a 7% revenue increase in Q4 and a 4% increase for the full year [35] Market Performance - North America and Asia Pacific grew low single digits in Q4, while Europe grew mid-single digits [27] - China experienced a low single-digit decline for both Q4 and the full year [27] Company Strategy and Competitive Position - The company’s growth strategy focuses on high-impact innovation, trusted partnerships, and a strong commercial engine [10][11] - Significant advancements in innovation were highlighted, including new product launches in chromatography, bioproduction, and clinical diagnostics [11][12][13] - Strategic partnerships, including collaborations with the Chan Zuckerberg Institute and OpenAI, were emphasized to enhance capabilities and productivity [16] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 from a position of strength, with expectations of continued share gain and operational excellence [6][24] - The guidance for 2026 includes revenue expectations of $46.3 billion to $47.2 billion, representing 4%-6% growth, and adjusted EPS guidance of $24.22 to $24.80, indicating 6%-8% growth [23][36] Other Important Information - The company deployed approximately $16.5 billion in 2025, including $13 billion for M&A and $3.6 billion returned to shareholders [17][30] - The acquisition of Clario, expected to close by mid-2026, is anticipated to be accretive to adjusted EPS by approximately $0.45 in the first year [19][38] Q&A Session Summary Question: Insights on the guidance and market conditions - Management indicated that the guidance assumes market conditions similar to 2025, with expectations of organic growth in the 3%-4% range [51][52] Question: Sentiment on biopharma spending - Management noted improved sentiment in biopharma spending, with indications of better budgets for 2026 [60][61] Question: Industry supply and demand dynamics in pharma services - Management highlighted strong demand in sterile fill finish and the strategic acquisition of a site to expand capacity [66][67] Question: Competitive dynamics in the channel business - Management stated that competitive dynamics remain stable, with a consistent share gain over the years [69][70] Question: Impact of ecosystem changes on customer preferences - Management discussed the positive impact of the Accelerator offering and collaboration with OpenAI to enhance drug development efficiency [78][79]

Financial Performance - In Q4 2025, revenue grew 7% year-over-year to $12.21 billion, and adjusted operating income increased 6% to $2.88 billion [5][20] - For the full year 2025, revenue grew 4% to $44.56 billion, with adjusted operating income also growing 4% to $10.11 billion [6][20] - Adjusted EPS for Q4 was $6.57, an 8% increase, while for the full year, it was $22.87, reflecting a 5% growth [6][20] Business Segment Performance - In the Life Sciences Solutions segment, Q4 revenue increased 13% year-over-year, driven by BioProduction, with full-year growth at 8% [28] - The Analytical Instruments segment saw Q4 revenue growth of 1%, with full-year revenue decreasing by 11% [29][30] - Specialty Diagnostics reported a 5% revenue increase in Q4 and a 4% increase for the full year, with adjusted operating income up 19% in Q4 [31] - The Laboratory Products and Biopharma Services segment experienced a 7% revenue increase in Q4 and a 4% increase for the full year [32] Market Performance - In Q4, North America and Asia Pacific grew low single digits, while Europe grew mid-single digits; China experienced a low single-digit decline [22] - For the full year, North America and Asia Pacific also grew low single digits, with China declining mid-single digits [23] Company Strategy and Competitive Position - The company’s growth strategy focuses on high-impact innovation, trusted partnerships, and a strong commercial engine [8][12] - In 2025, the company launched several high-impact products, including advancements in mass spectrometry and bioreactor technologies [9][10] - Strategic partnerships, including collaborations with the Chan Zuckerberg Institute and OpenAI, aim to enhance capabilities and improve productivity [12] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 from a position of strength, with a revenue guidance range of $46.3 billion to $47.2 billion, indicating 4%-6% growth [19][33] - The company anticipates organic growth of 3%-4% for 2026, with adjusted EPS guidance of $24.22-$24.80, reflecting 6%-8% growth [19][33] Other Important Information - The company deployed approximately $16.5 billion in 2025, including $13 billion for M&A and $3.6 billion returned to shareholders [13][26] - The acquisition of Clario, expected to close by mid-2026, is anticipated to be accretive to adjusted EPS by approximately $0.45 in the first year [15][27] Q&A Session Summary Question: Insights on 2026 guidance and market conditions - Management indicated that the guidance assumes similar market conditions to 2025, with expectations for gradual improvement in organic growth [45][47] Question: Sentiment in biopharma spending - Management noted positive sentiment in pharma and biotech, with expectations for improved spending plans in 2026 [53][56] Question: Industry supply and demand dynamics in Pharma Services - Management highlighted strong demand in sterile fill finish and the strategic acquisition of a New Jersey site to expand capacity [61][62] Question: Competitive advantage in the research and safety market - Management confirmed stable competitive dynamics and continued share gains in the research and safety market [64]

Financial Performance - In Q4 2025, revenue grew 7% year-over-year to $12.21 billion, while adjusted operating income increased 6% to $2.88 billion [5][25] - For the full year 2025, revenue grew 4% to $44.56 billion, and adjusted operating income also grew 4% to $10.11 billion [6][25] - Adjusted EPS for Q4 was $6.57, an 8% increase, and for the full year, it was $22.87, a 5% increase [6][25] Business Segment Performance - In the Life Science Solutions segment, Q4 revenue increased 13% year-over-year, with organic growth of 4%, driven by the bioproduction business [32] - The Analytical Instruments segment saw a 1% increase in revenue for both Q4 and the full year, with adjusted operating income decreasing 12% in Q4 due to tariffs and related FX impacts [33] - Specialty Diagnostics reported a 5% revenue growth in Q4, with adjusted operating income increasing 19% [34] - The Laboratory Products and Biopharma Services segment experienced a 7% revenue increase in Q4, with adjusted operating income rising 12% [35] Market Performance - In Q4, North America and Asia Pacific grew low single digits, while Europe grew mid single digits; China experienced a low single-digit decline [26] - For the full year, North America and Asia Pacific also grew low single digits, with China declining mid single digits [26] Company Strategy and Competitive Position - The company’s growth strategy focuses on high-impact innovation, trusted partnerships, and a strong commercial engine [10] - In 2025, the company launched several high-impact products, enhancing its competitive position and customer relevance [10][12] - Strategic partnerships, including collaborations with the Chan Zuckerberg Institute and OpenAI, aim to enhance productivity and innovation [14] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 from a position of strength, with a revenue guidance range of $46.3 billion to $47.2 billion, reflecting 4%-6% growth [22][37] - The company anticipates continued share gain momentum and strong earnings growth, with adjusted EPS guidance of $24.22 to $24.80, representing 6%-8% growth [22][37] Other Important Information - The company deployed approximately $16.5 billion in 2025, including $13 billion for M&A and $3.6 billion returned to shareholders [16][30] - The acquisition of Clario, expected to close by mid-2026, is anticipated to be accretive to adjusted EPS by approximately $0.45 in the first year [18][39] Q&A Session Summary Question: Can you discuss the acceleration in organic growth guidance for 2026? - Management indicated that the guidance assumes market conditions similar to 2025, with expectations for improved conditions leading to 3%-4% organic growth [49][50] Question: How are pharma budgets looking for 2026? - Management noted positive sentiment in pharma spending, with confidence in navigating government regulations and excitement around pipelines [58][60] Question: What is the outlook for the Pharma Services business? - The company is well-positioned in the Pharma Services sector, particularly in sterile fill finish, with heightened demand relative to industry capacity [66]