Speaker #1: ANSWER QUESTION by pressing STOP followed by 1 on your telephone keypad. If you change your mind, please press STOP followed by 2 on your telephone keypad.
Speaker #1: I would now like to introduce our moderator for the call, Mr. Rafael Tejada, Vice President Investor Relations. Mr. Tejada, you may begin the
Speaker #1: call. Good
Speaker #2: morning. And thank you for joining us. On the call with me today is Marc Casper, our Chairman, President, and Chief Executive Officer; and Stephen Williamson, Senior Vice President and Chief Financial Officer.
Speaker #2: Please note this call is being webcast live and will be archived on the investor section of our website THERMO FISHER .COM under the heading NEWS, EVENTS, AND PRESENTATIONS until April 22, 2026.
Speaker #2: A copy of the press release of our fourth quarter and full year 2025 earnings is available in the investor section of our website under the heading FINANCIALS.
Speaker #2: So, before we begin, let me briefly cover our safe harbor statement. Various remarks that we may make about the company's future expectations plans and prospects constitute forward-looking statements within the meaning of applicable securities laws.
Speaker #2: Actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors including those discussed in the company's most recent annual report on Form 10-K and subsequent quarterly reports on Form 10-Q under the heading RISK FACTORS.
Speaker #2: These forward-looking statements are based on our current expectations and speak only as of the date they are made. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even in the event of new information, future developments, or otherwise.
Speaker #2: Also, during this call, we will be referring to certain financial measures not prepared in accordance with generally accepted accounting principles or GAAP, a reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures is available in the press release of our fourth quarter and full year 2025 earnings and also in the investor section of our website under the heading FINANCIALS.
Speaker #2: So, with that, I'll now turn the call over to Marc.
Speaker #3: Thank you, Raf. Good morning, everyone, and thanks for joining us today. For our fourth quarter call, as you saw in our press release, we delivered a strong year capped off by an excellent fourth quarter.
Speaker #3: Our results reflect outstanding execution from the team. The strength of our proven growth strategy and excellent operational performance enabled by our PPI business system.
Speaker #3: Looking to the year ahead, we enter 2026 from a position of strength as the market leader serving attractive end markets. Our growth strategy is resonating with customers, and our PPI business system will enable us to continue to deliver excellent operational performance.
Speaker #3: To recap our 2025 financial performance, starting with the quarter, revenue grew 7% year over year to $12.21 billion. Adjusted operating income grew 6% to $2.88 billion.
Marc N. Casper: saw in our press release, we delivered a strong year capped off by an excellent fourth quarter. Our results reflect outstanding execution from the team, the strength of our proven growth strategy, and excellent operational performance enabled by our PPI Business System. Looking to the year ahead, we enter 2026 from a position of strength as the market leader serving attractive end markets. Our growth strategy is resonating with customers, and our PPI Business System will enable us to continue to deliver excellent operational performance. To recap our 2025 financial performance, starting with the quarter, revenue grew 7% year-over-year to $12.21 billion. Adjusted operating income grew 6% to $2.88 billion. Adjusted operating margin was 23.6%, and Adjusted EPS grew 8% to $6.57 per share. Now, turning to our full year results, revenue grew 4% to $44.56 billion. Adjusted operating income grew 4% to $10.11 billion.
Marc N. Casper: saw in our press release, we delivered a strong year capped off by an excellent fourth quarter. Our results reflect outstanding execution from the team, the strength of our proven growth strategy, and excellent operational performance enabled by our PPI Business System. Looking to the year ahead, we enter 2026 from a position of strength as the market leader serving attractive end markets. Our growth strategy is resonating with customers, and our PPI Business System will enable us to continue to deliver excellent operational performance. To recap our 2025 financial performance, starting with the quarter, revenue grew 7% year-over-year to $12.21 billion. Adjusted operating income grew 6% to $2.88 billion. Adjusted operating margin was 23.6%, and Adjusted EPS grew 8% to $6.57 per share. Now, turning to our full year results, revenue grew 4% to $44.56 billion. Adjusted operating income grew 4% to $10.11 billion.
Speaker #3: Adjusted operating margin was 23.6%. And adjusted EPS grew 8% to $6.57 per share. Now, turning to our full year results, revenue grew 4% to $44.56 billion.
In the fourth quarter.
Our results reflect outstanding execution from the team the strength of our proven growth strategy and excellent operational performance enabled by our PPI business system.
Speaker #3: Adjusted operating income grew 4% to $10.11 billion. Adjusted operating margin was 22.7%. And adjusted EPS grew 5% to $22.87 per share. As I reflect on the year, first, the environment evolved differently than everyone had envisioned entering 2025.
Looking to the year ahead, we entered 2026 from a position of strength as the market leader serving attractive end markets. Our growth strategy is resonating with customers and our PPI business system will enable us to continue to deliver excellent operational performance.
Speaker #3: We actively managed the company and our team responded with agility, effectively managing tariffs and the U.S. policy dynamics to deliver a very strong year.
To recap, our 2025 financial performance starting with the quarter.
Revenue grew 7% year over year to $12 to $1 billion.
Speaker #3: As a trusted partner, we worked closely with our customers, helping them navigate the landscape and enabling their success. Let me now turn to our performance by end market and provide some context on how the out.
Adjusted operating income grew 6% to $2 88 billion.
Adjusted operating margin was 23, 6% and adjusted EPS grew 8% to $6 57 per share.
Speaker #3: quarter and full year played Starting with pharma and biotech, we delivered high single-digit growth in Q4 and mid-single digits for the full year. Performance in the quarter was led by continued strong growth in our bioproduction business as well as our research and safety market channel.
Now turning to our full year results revenue grew 4% to $44 $56 billion adjusted.
Marc N. Casper: Adjusted operating margin was 22.7%, and adjusted EPS grew 5% to $22.87 per share. As I reflect on the year, first, the environment evolved differently than everyone had envisioned entering 2025. We actively managed the company, and our team responded with agility, effectively managing tariffs and the US policy dynamics to deliver a very strong year. As a trusted partner, we worked closely with our customers, helping them navigate the landscape and enabling their success. Let me now turn to our performance by end market and provide some context on how the quarter and full year played out. Starting with pharma and biotech, we delivered high single-digit growth in Q4 and mid-single digits for the full year. Performance in the quarter was led by continued strong growth in our bioproduction business as well as our research and safety market channel.
Adjusted operating margin was 22.7%, and adjusted EPS grew 5% to $22.87 per share. As I reflect on the year, first, the environment evolved differently than everyone had envisioned entering 2025. We actively managed the company, and our team responded with agility, effectively managing tariffs and the US policy dynamics to deliver a very strong year. As a trusted partner, we worked closely with our customers, helping them navigate the landscape and enabling their success. Let me now turn to our performance by end market and provide some context on how the quarter and full year played out. Starting with pharma and biotech, we delivered high single-digit growth in Q4 and mid-single digits for the full year. Performance in the quarter was led by continued strong growth in our bioproduction business as well as our research and safety market channel.
Operating income grew 4% to $10, one 1 billion.
Adjusted operating margin was 22, 7% and adjusted EPS grew 5% to $22 87 per share.
Speaker #3: As expected, our clinical research business continues to strengthen, delivering mid-single digits growth in the quarter. For the full year, revenue growth was broad-based, and was highlighted by strong performance in bioproduction, research and safety market channel, and analytical instruments, and pharma services businesses.
As I reflect on the year.
First the environment evolved differently than everyone ahead of vision entering 2025.
We actively manage the company and our team responded with agility effectively managing tariffs in the U S policy dynamics to deliver a very strong year.
Speaker #3: In academic and government, throughout the year, performances and market was impacted by the macro conditions in the U.S. and China. We declined in the low single-digits during the quarter and for the full year.
As a trusted partner, we work closely with our customers, helping them navigate the landscape and enabling their success.
Let me now turn to our performance by end market and provide some context on how the quarter and full year played out.
Speaker #3: In industrial and applied, we declined in the low single-digits during the quarter and grew in the low single digits for the full year. Growth during the year was highlighted by strong performance in our research and safety market channel, as well as our electron microscopy business.
Starting with pharma and biotech we delivered high single digit growth in Q4, and mid single digits for the full year.
Performance in the quarter was led by continued strong growth in our bio production business as well as our research and safety market channel as expected our clinical research business continues to strengthen delivering mid single digit growth in the quarter.
Speaker #3: Finally, in diagnostics and healthcare, we delivered low single-digit growth in Q4, reflecting good performance across our specialty diagnostics businesses. For the full year, growth in this end market was flat, with strong contributions from our transplant diagnostics and immunodiagnostics businesses.
Marc N. Casper: As expected, our clinical research business continues to strengthen, delivering mid-single digits growth in the quarter. For the full year, revenue growth was broad-based and was highlighted by strong performance in bioproduction, research and safety market channel, analytical instruments, and pharma services businesses. In academic and government, throughout the year, performance in end market was impacted by the macro conditions in the US and China. We declined in the low single digits during the quarter and for the full year. In industrial and applied, we declined in the low single digits during the quarter and grew in the low single digits for the full year. Growth during the year was highlighted by strong performance in our research and safety market channel as well as our electron microscopy business. Finally, in diagnostics and healthcare, we delivered low single-digit growth in Q4, reflecting good performance across our specialty diagnostics businesses.
As expected, our clinical research business continues to strengthen, delivering mid-single digits growth in the quarter. For the full year, revenue growth was broad-based and was highlighted by strong performance in bioproduction, research and safety market channel, analytical instruments, and pharma services businesses. In academic and government, throughout the year, performance in end market was impacted by the macro conditions in the US and China. We declined in the low single digits during the quarter and for the full year. In industrial and applied, we declined in the low single digits during the quarter and grew in the low single digits for the full year. Growth during the year was highlighted by strong performance in our research and safety market channel as well as our electron microscopy business. Finally, in diagnostics and healthcare, we delivered low single-digit growth in Q4, reflecting good performance across our specialty diagnostics businesses.
For the full year revenue growth was broad based and was highlighted by strong performance in bio production research and safety market channel analytical instruments and pharma services businesses.
Speaker #3: Thanks to our proven growth strategy and our team's excellent execution, we delivered a strong finish to the year across our end markets and continue to drive meaningful share gain.
In academic and government throughout the year performances and market was impacted by the macro conditions in the U S and China, we declined in the low single digits during the quarter and for the full year.
Speaker #3: Let me now turn to our growth strategy. As a reminder, our growth strategy consists of three pillars: high-impact innovation, our trusted partner status with customers, and our unparalleled commercial engine.
In industrial and applied we declined in the low single digits during the quarter and grew in the low single digits for the full year.
Speaker #3: In 2025, we meaningfully advanced the position of the company, becoming even more relevant for our customers and enhancing our competitive position. Let me call out some key highlights for the year, starting with innovation.
Growth during the year was highlighted by strong performance in our research and safety market channel as well as our electron microscopy business.
Speaker #3: 2025 was another outstanding year of innovation, as we launched a number of high-impact products across our businesses. That strengthened our industry leadership and enabled our customers to accelerate breakthroughs and enhance their productivity.
Finally in diagnostics and healthcare, we delivered low single digit growth in Q4, reflecting good performance across our specialty diagnostics businesses.
Marc N. Casper: For the full year, growth in this end market was flat, with strong contributions from our Transplant Diagnostics and Immunodiagnostics businesses. Thanks to our proven growth strategy and our team's excellent execution, we delivered a strong finish to the year across our end markets and continue to drive meaningful share gain. Let me now turn to our growth strategy. As a reminder, our growth strategy consists of three pillars: high-impact innovation, our trusted partner status with customers, and our unparalleled commercial engine. In 2025, we meaningfully advanced the position of the company, becoming even more relevant for our customers and enhancing our competitive position. Let me call out some key highlights for the year, starting with innovation.
For the full year, growth in this end market was flat, with strong contributions from our Transplant Diagnostics and Immunodiagnostics businesses. Thanks to our proven growth strategy and our team's excellent execution, we delivered a strong finish to the year across our end markets and continue to drive meaningful share gain. Let me now turn to our growth strategy. As a reminder, our growth strategy consists of three pillars: high-impact innovation, our trusted partner status with customers, and our unparalleled commercial engine. In 2025, we meaningfully advanced the position of the company, becoming even more relevant for our customers and enhancing our competitive position. Let me call out some key highlights for the year, starting with innovation.
For the full year growth in this end market was flat with strong contributions from our transplant diagnostics and immuno diagnostics businesses.
Speaker #3: In chromatography and mass spectrometry, we launched a thermoscientific orbit trap astral zoom. Building on the success of the astral mass spectrometer, astral zoom delivers even greater sensitivity, speed, and depth of coverage, enabling researchers to uncover new biological insights and advanced precision medicine.
Thanks to our proven growth strategy and our team's excellent execution, we delivered a strong finish to the year across our end markets and continued to drive meaningful share gains.
Let me now turn to our growth strategy as a reminder, our growth strategy consists of three pillars high impact innovation, our trusted partner status with customers and our unparalleled commercial engine.
Speaker #3: Customer adoption and feedback have been extremely strong, as the platform represents a significant leap forward in mass spectrometry. Enabling researchers around the world to accelerate discovery and advance the pace of scientific breakthroughs.
In 2025, we meaningfully advance the position of the company, becoming even more relevant for our customers and enhancing our competitive position.
Speaker #3: In bioproduction, we expanded our single-use portfolio with the launch of the thermoscientific 5-liter DynaDrive single-use bioreactor, offering pharma and biotech customers increased workflow efficiencies and the ability to seamlessly scale up manufacturing of new therapies.
Marc N. Casper: 2025 was another outstanding year of innovation as we launched a number of high-impact products across our businesses that strengthen our industry leadership and enable our customers to accelerate breakthroughs and enhance their productivity. In chromatography and mass spectrometry, we launched the Thermo Scientific Orbitrap Astral Zoom. Building on the success of the Astral mass spectrometer, Astral Zoom delivers even greater sensitivity, speed, and depth of coverage, enabling researchers to uncover new biological insights and advance precision medicine. Customer adoption and feedback have been extremely strong as the platform represents a significant leap forward in mass spectrometry, enabling researchers around the world to accelerate discovery and advance the pace of scientific breakthroughs. In bioproduction, we expanded our single-use portfolio with the launch of the Thermo Scientific 5-liter DynaDrive single-use bioreactor, offering pharma and biotech customers increased workflow efficiencies and the ability to seamlessly scale up manufacturing of new therapies.
2025 was another outstanding year of innovation as we launched a number of high-impact products across our businesses that strengthen our industry leadership and enable our customers to accelerate breakthroughs and enhance their productivity. In chromatography and mass spectrometry, we launched the Thermo Scientific Orbitrap Astral Zoom. Building on the success of the Astral mass spectrometer, Astral Zoom delivers even greater sensitivity, speed, and depth of coverage, enabling researchers to uncover new biological insights and advance precision medicine. Customer adoption and feedback have been extremely strong as the platform represents a significant leap forward in mass spectrometry, enabling researchers around the world to accelerate discovery and advance the pace of scientific breakthroughs. In bioproduction, we expanded our single-use portfolio with the launch of the Thermo Scientific 5-liter DynaDrive single-use bioreactor, offering pharma and biotech customers increased workflow efficiencies and the ability to seamlessly scale up manufacturing of new therapies.
Let me call out some key highlights for the year, starting with innovation two.
2025 was another outstanding year of innovation as we launched a number of high impact products across our businesses that strengthen our industry leadership and enable our customers to accelerate breakthroughs and enhance their productivity.
Speaker #3: In electron microscopy, we delivered a series of high-impact innovations across life sciences and advanced materials. This included the thermoscientific cryo 5 cryo TEM, which is advancing structural biology by enabling faster, higher-resolution insights to support drug discovery and development.
In chromatography and mass spectrometry, we launched the thermo scientific <unk> zoom.
Building on the success of the Astral mass spectrometer, Astro zoom delivers even greater sensitivity speed and depth of coverage, enabling researchers to uncover new biological insights and advanced precision medicine customer.
Speaker #3: In the fourth quarter, we launched the thermoscientific Helios MX1 plasma-focused ion beam SEM, a fully automated semiconductor analysis system designed to accelerate time-to-data for yield ramp and fab process control.
Customer adoption and feedback has been extremely strong as the platform represents a significant leap forward in mass spectrometry, enabling researchers around the world to accelerate discovery and advance the pace of scientific breakthroughs.
Speaker #3: In clinical next-gen sequencing, it's great to see the growing application of our ion torrent oncomine DX target test as a companion diagnostic. During the quarter, this technology received another FDA approval, this time as a companion diagnostic for buyers new therapy targeted for certain patients with non-small cell lung cancer.
And bio production, we expanded our single use portfolio with the launch of the Thermo scientific five liter Dynode drive single use bioreactor, offering pharma and biotech customers increased workflow efficiencies and the ability to seamlessly scale up manufacturing of new therapies.
Marc N. Casper: In electron microscopy, we delivered a series of high-impact innovations across life sciences and advanced materials. This included the Thermo Scientific Krios 5 Cryo-TEM, which is advancing structural biology by enabling faster, higher-resolution insights to support drug discovery and development. In Q4, we launched the Thermo Scientific Helios MX1 Plasma-Focused Ion Beam SEM, a fully automated semiconductor analysis system designed to accelerate time to data for yield ramp and fab process control. In clinical next-gen sequencing, it's great to see the growing application of our Ion Torrent Oncomine Dx Target Test as a companion diagnostic. During the quarter, this technology received another FDA approval, this time as a companion diagnostic for BIOR's new therapy targeted for certain patients with non-small cell lung cancer.
In electron microscopy, we delivered a series of high-impact innovations across life sciences and advanced materials. This included the Thermo Scientific Krios 5 Cryo-TEM, which is advancing structural biology by enabling faster, higher-resolution insights to support drug discovery and development. In Q4, we launched the Thermo Scientific Helios MX1 Plasma-Focused Ion Beam SEM, a fully automated semiconductor analysis system designed to accelerate time to data for yield ramp and fab process control. In clinical next-gen sequencing, it's great to see the growing application of our Ion Torrent Oncomine Dx Target Test as a companion diagnostic. During the quarter, this technology received another FDA approval, this time as a companion diagnostic for BIOR's new therapy targeted for certain patients with non-small cell lung cancer.
Intellectual my Costco, Pete we delivered a series of high impact innovations across life Sciences and advanced materials. This included the thermo scientific <unk> five cryo, Tim which is advancing structural biology by enabling faster higher resolution insights to support drug discovery and development.
Speaker #3: In clinical diagnostics, we also achieved US 510K clearance for the Xen system, a first-of-its-kind automated platform that enables earlier and more confident diagnosis for patients with multiple myeloma and related disorders.
Speaker #3: So, another spectacular year of innovation. And we also have an exciting pipeline of launches in 2026 that positions us well for the future. Let me turn to our trusted partner status and industry-leading commercial engine, which we continue to strengthen in 2025.
In the fourth quarter, we launched the thermo scientific Helios Amex, one plasma focused ion beam SCM, a fully automated semiconductor analysis system designed to accelerate time to data for yield ramp and fab process control.
Speaker #3: Our trusted partner status with customers has built over many years by anticipating, understanding, and meeting their needs. Increasingly, customers are relying on us, not just for technologies and services, but for our expertise and deep understanding of how to apply them to enable their success.
In clinical next Gen sequencing, it's great to see the growing application of our ion torrent <unk> Dx target test as a companion diagnostic.
During the quarter. This technology received another FDA approval. This time as a companion diagnostic for buyers new therapy targeted for certain patients with non small cell lung cancer.
Marc N. Casper: In clinical diagnostics, we also achieved US 510(k) clearance for the EXENT Solution, a first-of-its-kind automated platform that enables earlier and more confident diagnosis for patients with multiple myeloma and related disorders. So, another spectacular year of innovation, and we also have an exciting pipeline of launches in 2026 that positions us well for the future. Let me turn to our trusted partner status and industry-leading commercial engine, which we've continued to strengthen in 2025. Our trusted partner status with customers has been built over many years by anticipating, understanding, and meeting their needs. Increasingly, customers are relying on us not just for technologies and services, but for our expertise and deep understanding of how to apply them to enable their success. We help our customers accelerate innovation and improve their productivity. You've heard me talk about our accelerated drug development solution throughout the year.
In clinical diagnostics, we also achieved US 510(k) clearance for the EXENT Solution, a first-of-its-kind automated platform that enables earlier and more confident diagnosis for patients with multiple myeloma and related disorders. So, another spectacular year of innovation, and we also have an exciting pipeline of launches in 2026 that positions us well for the future. Let me turn to our trusted partner status and industry-leading commercial engine, which we've continued to strengthen in 2025. Our trusted partner status with customers has been built over many years by anticipating, understanding, and meeting their needs. Increasingly, customers are relying on us not just for technologies and services, but for our expertise and deep understanding of how to apply them to enable their success. We help our customers accelerate innovation and improve their productivity. You've heard me talk about our accelerated drug development solution throughout the year.
Speaker #3: We help our customers accelerate innovation and improve their productivity. You've heard me talk about our accelerated drug development solution throughout the year. It's a terrific example of one of our unique capabilities.
In clinical diagnostics, we also achieved U S. Five 10-K clearance for the <unk> system. Our first of its kind automated platform that enables earlier and more confident diagnosis for patients with multiple myeloma and related disorders.
Speaker #3: As a reminder, accelerator is our integrated CDMO and CRO offering that brings together the strengths of our pharma services and clinical research businesses to help customers reduce development timelines, improve decision-making, and enhance returns on their R&D investment.
So another spectacular year of innovation and we also have an exciting pipeline of launches in 2026 that positions us well for the future.
Let me turn to our trusted partner status and industry, leading commercial engine, which can we continued to strengthen in 2025.
Speaker #3: In 2025, we secured meaningful wins for our clinical research and pharma services businesses, and continue to see outstanding customer adoption. During the year, we also expanded and deepened strategic partnerships that create value for our customers and our company.
Our trusted partner status with customers has built has been built over many years by anticipating understanding and meeting their needs increasingly customers are relying on us not just for technologies and services, but for our expertise and deep understanding of how to apply them to enable their success we hope.
Speaker #3: This included a technology alliance with the Chan Zuckerberg Institute for Advanced Biological Imaging to develop new technologies to better visualize human cells. We also announced a strategic collaboration with OpenAI aimed at increasing our use of artificial intelligence at the company.
Customers accelerate innovation and improve their productivity.
Marc N. Casper: It's a terrific example of one of our unique capabilities. As a reminder, Accelerator is our integrated CDMO and CRO offering that brings together the strengths of our pharma services and clinical research businesses to help customers reduce development timelines, improve decision-making, and enhance returns on their R&D investment. In 2025, we secured meaningful wins for our clinical research and pharma services businesses and continue to see outstanding customer adoption. During the year, we also expanded and deepened strategic partnerships that create value for our customers and our company. This included a technology alliance with the Chan Zuckerberg Institute for Advanced Biological Imaging to develop new technologies to better visualize human cells. We also announced a strategic collaboration with OpenAI aimed at increasing our use of artificial intelligence at the company.
It's a terrific example of one of our unique capabilities. As a reminder, Accelerator is our integrated CDMO and CRO offering that brings together the strengths of our pharma services and clinical research businesses to help customers reduce development timelines, improve decision-making, and enhance returns on their R&D investment. In 2025, we secured meaningful wins for our clinical research and pharma services businesses and continue to see outstanding customer adoption. During the year, we also expanded and deepened strategic partnerships that create value for our customers and our company. This included a technology alliance with the Chan Zuckerberg Institute for Advanced Biological Imaging to develop new technologies to better visualize human cells. We also announced a strategic collaboration with OpenAI aimed at increasing our use of artificial intelligence at the company.
You've heard me talk about our accelerated drug development solutions throughout the year.
A terrific example of one of our unique capabilities.
Speaker #3: This will improve productivity across our operations and also allow us to embed AI capabilities in our products and services to accelerate scientific breakthroughs and advance the drug development process.
As a reminder, accelerator is our integrated CMO and CRM offering that brings together the strengths of our pharma services and clinical research businesses to help customers reduce development time lines improved decision, making and enhance returns on their R&D investments.
Speaker #3: In addition, we continue to expand our global footprint to better support customers. During the fourth quarter, this included the expansion of our bioprocess design centers in Asia, with the opening of a new site in India.
In 2025, we secured meaningful wins for our clinical research in pharma services businesses and continue to see outstanding customer adoption.
Speaker #3: So, as you can see, it was another excellent year of advancing our growth strategy. Let me now turn to capital deployment. We continue to successfully execute our proven capital deployment strategy, which is a combination of strategic M&A and returning capital to shareholders.
During the year, we also expanded and deepened strategic partnerships that create value for our customers and our company. This included a technology alliance with the Chan Zuckerberg Institute for advanced biological imaging to develop new technologies to better visualize human cells. We also announced a strategic collaboration with open AI.
Speaker #3: 2025 was a very active year, as we advanced our strategy and added exciting new capabilities that further strengthen our long-term competitive position and create value for all of our stakeholders.
Marc N. Casper: This will improve productivity across our operations and also allow us to embed AI capabilities in our products and services to accelerate scientific breakthroughs and advance the drug development process. In addition, we continue to expand our global footprint to better support customers. During Q4, this included the expansion of our bioprocess design centers in Asia with the opening of a new site in India. So, as you can see, it was another excellent year of advancing our growth strategy. Let me now turn to capital deployment. We continue to successfully execute our proven capital deployment strategy, which is a combination of strategic M&A and returning capital to shareholders. 2025 was a very active year as we advanced our strategy and added exciting new capabilities that further strengthen our long-term competitive position and create value for all of our stakeholders.
This will improve productivity across our operations and also allow us to embed AI capabilities in our products and services to accelerate scientific breakthroughs and advance the drug development process. In addition, we continue to expand our global footprint to better support customers. During Q4, this included the expansion of our bioprocess design centers in Asia with the opening of a new site in India. So, as you can see, it was another excellent year of advancing our growth strategy. Let me now turn to capital deployment. We continue to successfully execute our proven capital deployment strategy, which is a combination of strategic M&A and returning capital to shareholders. 2025 was a very active year as we advanced our strategy and added exciting new capabilities that further strengthen our long-term competitive position and create value for all of our stakeholders.
Aimed at increasing our use of artificial intelligence at the company.
Speaker #3: During the year, we deployed approximately 16 and a half billion dollars, including committing 13 billion dollars to M&A, and returning 3.6 billion dollars to shareholders through stock buybacks and dividends.
This will improve productivity across our operations and also allow us to embed AI capabilities in our products and services to accelerate scientific breakthroughs and advance the drug development process.
Speaker #3: In terms of M&A, we completed the acquisition of our filtration and separation business from Solventa. The addition of filtration is a natural extension of our bioproduction capabilities where we have leadership and cell culture media and single-use technologies along with a rapidly growing purification business.
In addition, we continue to expand our global footprint to better support customers. During the fourth quarter. This included the expansion of our Bioprocess design centers in Asia with the opening of a new site in India.
So as you can see it was another excellent year of advancing our growth strategy.
Speaker #3: Our pharma and biotech customers see real value in thermal fissure offering these filtration capabilities for their manufacturing processes. The integration is going smoothly, and our new colleagues are thrilled to be part of thermal fissure scientific.
Let me now turn to capital deployment, we continue to successfully execute our proven capital deployment strategy, which is a combination of strategic M&A and returning capital to shareholders 2025 was a very active year as we advanced our strategy and added exciting new capabilities that further strengthen our long term competitive position and create.
Speaker #3: This year, we also expanded our US drug product manufacturing footprint through the acquisition of Sanofi's state-of-the-art sterile fill finish site in New Jersey. Both of these acquisitions enhance our ability to support our customers' growing production needs.
Marc N. Casper: During the year, we deployed approximately $16.5 billion, including committing $13 billion to M&A and returning $3.6 billion to shareholders through stock buybacks and dividends. In terms of M&A, we completed the acquisition of our filtration and separation business from Solventum. The addition of filtration is a natural extension of our bioproduction capabilities, where we have leadership in cell culture media and single-use technologies, along with a rapidly growing purification business. Our pharma and biotech customers see real value in Thermo Fisher offering these filtration capabilities for their manufacturing processes. The integration is going smoothly, and our new colleagues are thrilled to be part of Thermo Fisher Scientific. This year, we also expanded our US drug product manufacturing footprint through the acquisition of Sanofi's state-of-the-art sterile fill finish site in New Jersey. Both of these acquisitions enhance our ability to support our customers' growing production needs.
During the year, we deployed approximately $16.5 billion, including committing $13 billion to M&A and returning $3.6 billion to shareholders through stock buybacks and dividends. In terms of M&A, we completed the acquisition of our filtration and separation business from Solventum. The addition of filtration is a natural extension of our bioproduction capabilities, where we have leadership in cell culture media and single-use technologies, along with a rapidly growing purification business. Our pharma and biotech customers see real value in Thermo Fisher offering these filtration capabilities for their manufacturing processes. The integration is going smoothly, and our new colleagues are thrilled to be part of Thermo Fisher Scientific. This year, we also expanded our US drug product manufacturing footprint through the acquisition of Sanofi's state-of-the-art sterile fill finish site in New Jersey. Both of these acquisitions enhance our ability to support our customers' growing production needs.
Value for all of our stakeholders during the year, we deployed approximately $16 5 billion <unk>.
Including committing $13 billion to M&A, and returning $3 $6 billion to shareholders through stock buybacks and dividends.
Speaker #3: During the fourth quarter, we also announced a definitive agreement to acquire Clario. The company is a market leader in digital endpoint data solutions, one of the fastest-growing areas and an essential capability in drug development and clinical research.
In terms of M&A, we completed the acquisition of our filtration and separation business from <unk> the.
The addition of filtration is a natural extension of our bio production capabilities, where we have leadership in cell culture media and single use technologies, along with a rapidly growing purification business.
Speaker #3: In 2025, the business generated approximately 1.25 billion dollars in revenue. It's differentiated technology and deep medical expertise together enable unique capabilities in generating and delivering digital endpoint data for clinical trials.
Our pharma and biotech customers see real value and thermo Fisher offering these filtration capabilities.
The event for their manufacturing processes.
Speaker #3: The business is an outstanding strategic fit, highly valued by our customers, and complementary to our clinical research capabilities. By adding Clario's high-growth capabilities, over time, we will be able to deliver even deeper clinical insights for our customers and further accelerate the digital transformation of clinical research.
The integration is going smoothly and our new colleagues are thrilled to be part of Thermo Fisher scientific.
This year, we also expanded our U S drug product manufacturing footprint through the acquisition of Sanofi state of the art sterile fill finish site in New Jersey.
Both of these acquisitions enhance our ability to support our customers' growing production needs.
Marc N. Casper: During the fourth quarter, we also announced a definitive agreement to acquire Clario. The company is a market leader in digital endpoint data solutions, one of the fastest-growing areas and an essential capability in drug development and clinical research. In 2025, the business generated approximately $1.25 billion in revenue. Its differentiated technology and deep medical expertise together enable unique capabilities in generating and delivering digital endpoint data for clinical trials. The business is an outstanding strategic fit, highly valued by our customers, and complementary to our clinical research capabilities. By adding Clario's high-growth capabilities, over time, we will be able to deliver even deeper clinical insights for our customers and further accelerate the digital transformation of clinical research. This is an incredibly exciting opportunity to help our pharma and biotech customers improve the return on investment of the drug development process. Financially, the transaction has an attractive double-digit return profile.
During the fourth quarter, we also announced a definitive agreement to acquire Clario. The company is a market leader in digital endpoint data solutions, one of the fastest-growing areas and an essential capability in drug development and clinical research. In 2025, the business generated approximately $1.25 billion in revenue. Its differentiated technology and deep medical expertise together enable unique capabilities in generating and delivering digital endpoint data for clinical trials. The business is an outstanding strategic fit, highly valued by our customers, and complementary to our clinical research capabilities. By adding Clario's high-growth capabilities, over time, we will be able to deliver even deeper clinical insights for our customers and further accelerate the digital transformation of clinical research. This is an incredibly exciting opportunity to help our pharma and biotech customers improve the return on investment of the drug development process. Financially, the transaction has an attractive double-digit return profile.
Speaker #3: This is an incredibly exciting opportunity to help our pharma and biotech customers improve the return on investment of the drug development process. Financially, the transaction has an attractive double-digit return profile.
During the fourth quarter, we also announced the definitive agreement to acquire <unk>.
The company is a market leader in digital endpoint data solutions, one of the fastest growing areas and in a central capability in drug development and clinical research.
Speaker #3: It's expected to be accretive to organic revenue growth and to adjusted operating margin. We expect it to be accretive to adjusted EPS by approximately 45 cents in the first 12 months of ownership, and we expect to close the transaction by the middle of 2026.
2025, the business generated approximately $1 to $1 $5 billion in revenue.
<unk> differentiated technology and deep medical expertise together enable unique capabilities and generating and delivering digital endpoint data for clinical trials.
Speaker #3: So, overall, an active and high-impact year of capital deployment. Let me now turn to our PPI business system. In 2025, PPI continued to be a critical enabler of our performance.
The business is an outstanding strategic fit highly valued by our customers and complementary to our clinical research capabilities.
Speaker #3: Throughout the year, we leveraged PPI to actively manage our cost base to drive operational excellence and deliver strong earnings growth while continuing to invest to strengthen our long-term competitive position.
By adding <unk> high growth capabilities over time, we will be able to deliver even deeper clinical insights for our customers and further accelerate the digital transformation of clinical research. This is an incredibly exciting opportunity to help our pharma and biotech customers improve their return on investment of the drug development.
Speaker #3: PPI enabled us to operate with agility and discipline as we navigated the environment and delivered excellent results for our customers and shareholders. PPI is deeply embedded in our culture and empowers colleagues across the company to find a better way every day.
Marc N. Casper: It is expected to be accretive to organic revenue growth and to adjusted operating margin. We expect it to be accretive to adjusted EPS by approximately $0.45 in the first 12 months of ownership, and we expect to close the transaction by the middle of 2026. So, overall, an active and high-impact year of capital deployment. Let me now turn to our PPI business system. In 2025, PPI continued to be a critical enabler of our performance. Throughout the year, we leveraged PPI to actively manage our cost base, drive operational excellence, and deliver strong earnings growth while continuing to invest to strengthen our long-term competitive position. PPI enabled us to operate with agility and discipline as we navigated the environment and delivered excellent results for our customers and shareholders. PPI is deeply embedded in our culture and empowers colleagues across the company to find a better way every day.
It is expected to be accretive to organic revenue growth and to adjusted operating margin. We expect it to be accretive to adjusted EPS by approximately $0.45 in the first 12 months of ownership, and we expect to close the transaction by the middle of 2026. So, overall, an active and high-impact year of capital deployment. Let me now turn to our PPI business system. In 2025, PPI continued to be a critical enabler of our performance. Throughout the year, we leveraged PPI to actively manage our cost base, drive operational excellence, and deliver strong earnings growth while continuing to invest to strengthen our long-term competitive position. PPI enabled us to operate with agility and discipline as we navigated the environment and delivered excellent results for our customers and shareholders. PPI is deeply embedded in our culture and empowers colleagues across the company to find a better way every day.
<unk>.
Financially the transaction has an attractive double digit return profile is expected to be accretive to organic revenue growth and to adjusted operating margin. We expect it to be accretive to adjusted EPS by approximately 45.
Speaker #3: That's why we're also increasingly using artificial intelligence into PPI, which will further enhance its impact across the organization. The combination is helping us improve how we serve customers, streamline internal processes, and operate the company more effectively, strengthening execution today and positioning us well for the future.
In the first 12 months of ownership, we expect to close the transaction by the middle of 2026.
So overall in active in high impact year of capital deployment.
Let me now turn to our PPI business system in 2025, PPI continued to be a critical enabler of our performance.
Speaker #3: Before I wrap up on 2025, I want to briefly touch on the progress we made with our corporate social responsibility priorities. Part of our mission-driven culture is a focus on making a positive impact on society by supporting our communities and being a good steward of our planet.
Throughout the year, we leveraged PPI to actively manage our cost base drive operational excellence and deliver strong earnings growth, while continuing to invest to strengthen our long term competitive position.
Speaker #3: You can read more about this on our website, but I'll share a couple of highlights. In terms of the environmental stewardship, we increased the use of renewable energy across our global operations and expanded the number of sites achieving zero waste certification, keeping us on track with our long-term sustainability commitments.
PPI enabled us to operate with agility and discipline as we navigated the environment and delivered excellent results for our customers and shareholders.
PPI is deeply embedded in our culture and empowers colleagues across the company to find a better way every day. That's why we are so we're also increasing.
Marc N. Casper: That's why we're also increasingly using artificial intelligence into PPI, which will further enhance its impact across the organization. The combination is helping us improve how we serve customers, streamline internal processes, and operate the company more effectively, strengthening execution today and positioning us well for the future. Before I wrap up on 2025, I want to briefly touch on the progress we made with our corporate social responsibility priorities. Part of our mission-driven culture is a focus on making a positive impact on society by supporting our communities and being a good steward of our planet. You can read more about this on our website, but I'll share a couple of highlights. In terms of the environmental stewardship, we increased the use of renewable energy across our global operations and expanded the number of sites achieving zero-waste certification, keeping us on track with our long-term sustainability commitments.
That's why we're also increasingly using artificial intelligence into PPI, which will further enhance its impact across the organization. The combination is helping us improve how we serve customers, streamline internal processes, and operate the company more effectively, strengthening execution today and positioning us well for the future. Before I wrap up on 2025, I want to briefly touch on the progress we made with our corporate social responsibility priorities. Part of our mission-driven culture is a focus on making a positive impact on society by supporting our communities and being a good steward of our planet. You can read more about this on our website, but I'll share a couple of highlights. In terms of the environmental stewardship, we increased the use of renewable energy across our global operations and expanded the number of sites achieving zero-waste certification, keeping us on track with our long-term sustainability commitments.
Speaker #3: We also continue to launch more sustainable products to help our customers achieve their own sustainability goals. In our communities, we remain focused on expanding access to STEM education and advancing global health equity.
Increasingly using artificial intelligence into PPI, which will further enhance this impact across the organization.
The combination is helping us improve how we serve customers streamline internal processes and operate the company more effectively strengthening execution today and positioning us well for the future.
Speaker #3: In addition, our engaged colleagues and community action councils made a huge impact around the world through their volunteer activities throughout the year. As I reflect on 2025, I'm very proud of what our team accomplished and deeply grateful to our colleagues for their unwavering passion, for our mission, which fuels our success.
Before I wrap up on 2025, I want to briefly touch on the progress we made with our corporate social responsibility priorities part of our mission driven culture is a focus on making a positive impact on society by supporting our communities and being a good steward of our planet you can read more about this on our website, but I'll share a couple of highlights.
Speaker #3: So, let me now turn to guidance. Stephen will outline the assumptions that factor into the guidance for the upcoming year. So, let me quickly cover the highlights.
Speaker #3: In 2026, we will continue to actively manage the company leveraging the PPI business system to enable excellent operational performance and very strong earnings growth.
In terms of the environmental stewardship, we increased the use of renewable energy across our global operations and expanded the number of sites achieving zero waste certification keeping us on track with our long term sustainability commitments.
Marc N. Casper: We also continue to launch more sustainable products to help our customers achieve their own sustainability goals. In our communities, we remain focused on expanding access to STEM education and advancing global health equity. In addition, our engaged colleagues and community action councils made a huge impact around the world through their volunteer activities throughout the year. As I reflect on 2025, I'm very proud of what our team accomplished and deeply grateful to our colleagues for their unwavering passion for our mission, which fuels our success. Let me now turn to guidance. Stephen will outline the assumptions that factor into the guidance for the upcoming year, so let me quickly cover the highlights. In 2026, we will continue to actively manage the company, leveraging the PPI business system to enable excellent operational performance and very strong earnings growth. We are also well-positioned to continue our share gain momentum.
We also continue to launch more sustainable products to help our customers achieve their own sustainability goals. In our communities, we remain focused on expanding access to STEM education and advancing global health equity. In addition, our engaged colleagues and community action councils made a huge impact around the world through their volunteer activities throughout the year. As I reflect on 2025, I'm very proud of what our team accomplished and deeply grateful to our colleagues for their unwavering passion for our mission, which fuels our success. Let me now turn to guidance. Stephen will outline the assumptions that factor into the guidance for the upcoming year, so let me quickly cover the highlights. In 2026, we will continue to actively manage the company, leveraging the PPI business system to enable excellent operational performance and very strong earnings growth. We are also well-positioned to continue our share gain momentum.
Speaker #3: We are also well-positioned to continue our share gain momentum. We are initiating a 2026 revenue guidance range of 46.3 billion dollars to 47.2 billion dollars, which represents four to six percent reported revenue growth over 2025 and assumes three to four percent organic growth for the year.
We also continue to launch more sustainable products to help our customers achieve their own sustainability goals.
And our communities, we remained focus on expanding access to stem education, and advancing global health equity.
In addition, our engaged colleagues and community action Council made a huge impact around the world who they volunteer activities throughout the year.
Speaker #3: We are initiating our earnings guidance with an adjusted EPS range of 24 dollars and 22 cents to 24 dollars and 80 cents per share, which represents six to eight percent growth in adjusted earnings per share.
As I reflect on 2025, I'm very proud of what our team accomplished and deeply grateful to our colleagues for their unwavering passion for our mission, which fuels our success.
So let me now turn to guidance.
Stephen will outline the assumptions that factor into the guidance for the upcoming year. So let me quickly cover the highlights and 2026, we will continue to actively manage the company leveraging the PPI business system to enable excellent operational performance and very strong earnings growth. We are also well positioned to continue our share gain momentum.
Speaker #3: So, to summarize our key takeaways, we delivered a strong 2025 capped off by an excellent fourth quarter. We delivered another year of excellent operational performance and share gain, reflecting the active management of the company.
Marc N. Casper: We are initiating a 2026 revenue guidance range of $46.3 to 47.2 billion, which represents 4% to 6% reported revenue growth over 2025 and assumes 3% to 4% organic growth for the year. We are initiating our earnings guidance with an Adjusted EPS range of $24.22 to 24.80 per share, which represents 6% to 8% growth in adjusted earnings per share. So, to summarize our key takeaways, we delivered a strong 2025 capped off by an excellent Q4. We delivered another year of excellent operational performance and share gain, reflecting the active management of the company, the strength of our proven growth strategy, and the power of our PPI Business System. We advanced our long-term competitive position throughout the year with high-impact innovation, strategic partnerships, and disciplined capital deployment. We enter 2026 with strong momentum.
We are initiating a 2026 revenue guidance range of $46.3 to 47.2 billion, which represents 4% to 6% reported revenue growth over 2025 and assumes 3% to 4% organic growth for the year. We are initiating our earnings guidance with an Adjusted EPS range of $24.22 to 24.80 per share, which represents 6% to 8% growth in adjusted earnings per share. So, to summarize our key takeaways, we delivered a strong 2025 capped off by an excellent Q4. We delivered another year of excellent operational performance and share gain, reflecting the active management of the company, the strength of our proven growth strategy, and the power of our PPI Business System. We advanced our long-term competitive position throughout the year with high-impact innovation, strategic partnerships, and disciplined capital deployment. We enter 2026 with strong momentum.
Speaker #3: The strength of our proven growth strategy and the power of our PPI business system. We advanced our long-term competitive position throughout the year with high-impact innovation, strategic partnerships, and disciplined capital deployment.
We are initiating a 2026 revenue guidance range of $46 $3 billion to $47 2 billion.
Which represents 4% to 6% reported revenue growth over 2025, and assumes 3% to 4% organic growth for the year.
Speaker #3: And we entered 2026 with strong momentum. Our growth strategy is resonating with customers, and positions us for a very bright future. With that, I'll turn the call over to our CFO, Stephen Williamson.
We are initiating our earnings guidance with an adjusted EPS range of $24 22 to.
Speaker #3: Stephen,
Speaker #2: Thanks, Mark, and good
Speaker #2: morning, everyone. As you saw in our press release, we had a great Q4 to cap off the year. Throughout the year, the team effectively navigated the external environment and remained focused on delivering for all of our stakeholders.
To $24 80 per share, which represents 6% to 8% growth in adjusted earnings per share.
So to summarize our key takeaways, we delivered a strong 2025 capped off by an excellent fourth quarter.
Speaker #2: I'll take you through an overview of our fourth quarter and full-year results for the total company, then provide color on our four business segments and I'll conclude by providing our 2026 guidance.
We delivered another year of excellent operational performance and share gains, reflecting the active management of the company the strength of our proven growth strategy and the power of our PPI business system.
Speaker #2: Before I get into the details of our financial performance, let me provide you with a high-level view of how the fourth quarter played out versus our expectations at the time of our last earnings call.
We advanced our long term competitive position throughout the year with high impact innovation strategic partnerships and disciplined capital deployment.
Speaker #2: In Q4, we delivered 3 percent organic growth and 8 percent growth in adjusted EPS. It was another quarter of excellent execution. These results are significantly ahead of the assumptions of the midpoint of our prior guidance on both the top and bottom line.
Marc N. Casper: Our growth strategy is resonating with customers and positions us for a very bright future. With that, I'll turn the call over to our CFO, Stephen Williamson. Stephen? Thanks, Marc, and good morning, everyone. As you saw in that press release, we had a great Q4 to cap off the year. Throughout the year, the team effectively navigated the external environment and remained focused on delivering for all of our stakeholders. I'll take you through an overview of our fourth quarter and full-year results for the total company, then provide color on our four business segments, and I'll conclude by providing our 2026 guidance. Before I get into the details of our financial performance, let me provide you with a high-level view of how the fourth quarter played out versus our expectations at the time of our last earnings call.
Our growth strategy is resonating with customers and positions us for a very bright future. With that, I'll turn the call over to our CFO, Stephen Williamson. Stephen?
Stephen Williamson: Thanks, Marc, and good morning, everyone. As you saw in that press release, we had a great Q4 to cap off the year. Throughout the year, the team effectively navigated the external environment and remained focused on delivering for all of our stakeholders. I'll take you through an overview of our fourth quarter and full-year results for the total company, then provide color on our four business segments, and I'll conclude by providing our 2026 guidance. Before I get into the details of our financial performance, let me provide you with a high-level view of how the fourth quarter played out versus our expectations at the time of our last earnings call.
And we enter 2026 with strong momentum our growth strategy is resonating with customers and positions us for a very bright future with that I will turn the call over to our CFO Stephen Williamson Stephen.
Speaker #2: Q4 revenue was approximately 250 million dollars ahead, driven by 1 percent stronger organic revenue growth and a stronger than expected tailwind from FX. Adjusted EPS in Q4 was 14 cents ahead.
Thanks, Mark and good morning, everyone. As you saw in our press release, we had a great Q4 to cap off the year.
Throughout the year the team effectively navigated the external environment and remain focused on delivering for all of our stakeholders.
Speaker #2: This was comprised of 25 cents from very strong operational performance partially offset by 11 cents of higher FX headwind on the bottom line. The FX impact was driven by continued volatility in rates during the quarter due to trade tensions.
Take you through an overview of our fourth quarter and full year results for the total company then provide color on our four business segments and I'll conclude by providing our 2026 guidance.
They get into the details of our financial performance. Let me provide you with a high level view of how the fourth quarter played out versus our expectations at the time of our last earnings call.
Speaker #2: And represented an incremental 65 basis points of headwind to margins relative to our prior guidance. So, as I said, a great Q4 with a strong beat to cap off the year.
Marc N. Casper: In Q4, we delivered 3% organic growth and 8% growth in adjusted EPS. It was another quarter of excellent execution. These results are significantly ahead of the assumptions of the midpoint of our prior guidance on both the top and bottom line. Q4 revenue was approximately $250 million ahead, driven by 1% stronger organic revenue growth and a stronger-than-expected tailwind from FX. Adjusted EPS in Q4 was $0.14 ahead. This was comprised of $0.25 from very strong operational performance, partially offset by $0.11 of higher FX headwind on the bottom line. The FX impact was driven by continued volatility in rates during the quarter due to trade tensions and represented an incremental 65 basis points of headwind to margins relative to our prior guidance. So, as I said, a great Q4 with a strong beat to cap off the year.
In Q4, we delivered 3% organic growth and 8% growth in adjusted EPS. It was another quarter of excellent execution. These results are significantly ahead of the assumptions of the midpoint of our prior guidance on both the top and bottom line. Q4 revenue was approximately $250 million ahead, driven by 1% stronger organic revenue growth and a stronger-than-expected tailwind from FX. Adjusted EPS in Q4 was $0.14 ahead. This was comprised of $0.25 from very strong operational performance, partially offset by $0.11 of higher FX headwind on the bottom line. The FX impact was driven by continued volatility in rates during the quarter due to trade tensions and represented an incremental 65 basis points of headwind to margins relative to our prior guidance. So, as I said, a great Q4 with a strong beat to cap off the year.
Q4, we delivered 3% organic growth and 8% growth in adjusted EPS. It was another quarter of excellent execution. These results are significantly ahead of the assumptions at the midpoint of our prior guidance on both the top and bottom line.
Speaker #2: Let me now provide you with some additional details on our Q4 and full-year 2025 performance. Starting with earnings per share. In the quarter, adjusted EPS grew by 8 percent to 6 dollars and 57 cents.
Speaker #2: For the full year, we delivered adjusted EPS of 22 dollars and 87 cents, a 5 percent up 5 percent compared to last year. GAP EPS in the quarter was 5 dollars and 21 cents, and for the full year, it was 17 dollars and 74 cents.
Q4 revenue was approximately $250 million ahead, driven by 1% stronger organic revenue growth and a stronger than expected tailwind from FX.
Adjusted EPS in Q4 was 14 cents ahead. This is comprised of 25 from very strong operational performance.
Speaker #2: On the top line, Q4 reported revenue grew 7 percent year over year. The components of our reported revenue change included 3 percent organic growth, a 2 percent contribution from acquisitions, and a 2 percent tailwind from foreign exchange.
Partially offset by <unk> 11 of higher FX headwind on the bottom line.
The FX impact was driven by continued volatility in rates during the quarter due to trade tensions.
And represented an incremental 65 basis points of headwind to margins relative to our prior guidance.
Speaker #2: For the full-year 2025, reported revenue growth increased 4 percent, organic growth was 2 percent, and both acquisitions and FX were a 1 percent tailwind.
Marc N. Casper: Let me now provide you with some additional details on our Q4 and full-year 2025 performance. Starting with earnings per share. In the quarter, adjusted EPS grew by 8% to $6.57. For the full year, we delivered adjusted EPS of $22.87, up 5% compared to last year. GAAP EPS in the quarter was $5.21, and for the full year, it was $17.74. On the top line, Q4 reported revenue grew 7% year over year. The components of our reported revenue change included 3% organic growth, a 2% contribution from acquisitions, and a 2% tailwind from foreign exchange. For the full year 2025, reported revenue growth increased 4%. Organic growth was 2%, and both acquisitions and FX were a 1% tailwind. Turn to our organic revenue performance by geography.
Let me now provide you with some additional details on our Q4 and full-year 2025 performance. Starting with earnings per share. In the quarter, adjusted EPS grew by 8% to $6.57. For the full year, we delivered adjusted EPS of $22.87, up 5% compared to last year. GAAP EPS in the quarter was $5.21, and for the full year, it was $17.74. On the top line, Q4 reported revenue grew 7% year over year. The components of our reported revenue change included 3% organic growth, a 2% contribution from acquisitions, and a 2% tailwind from foreign exchange. For the full year 2025, reported revenue growth increased 4%. Organic growth was 2%, and both acquisitions and FX were a 1% tailwind. Turn to our organic revenue performance by geography.
So as I said, a great Q4, with a strong beat to cap off the year.
Let me now provide you with some additional details on our Q4 and full year 2025 performance.
Speaker #2: Turn to our organic revenue performance by geography. In Q4, North America grew low single digits, Europe grew mid-single digits, and Asia Pacific grew low single digits, with China declining low single digits.
Starting with earnings per share.
In the quarter adjusted EPS grew by 8% to $6 57.
For the full year, we delivered adjusted EPS of $2 87.
Speaker #2: For the full year, North America grew low single digits, Europe grew mid-single digits, and Asia Pacific grew low single digits, with China declining mid-single digits.
A 5% or up 5% compared to last year.
GAAP EPS in the quarter was $5 21 and for the full year. It was $17 74.
Speaker #2: With respect to our operational performance, we delivered 2.88 billion dollars of adjusted operating income in the quarter, an increase of 6 percent year over year, and adjusted operating margin was 23.6 percent, 30 basis points lower than Q4 last year.
On the top line Q4 reported revenue grew 7% year over year.
The components of our reported revenue change included 3% organic growth.
A 2% contribution from acquisitions, and a 2% tailwind from foreign exchange.
Speaker #2: Which includes over 100 basis points of headwind from tariffs and related FX. For the full year, we delivered 10.11 billion dollars of adjusted operating income, a year-over-year increase of 4 percent versus 2024, and adjusted operating margin was 22.7 percent, 10 basis points higher than the prior year, which also includes a headwind from tariffs and related FX of over 100 basis points.
For the full year 2025 reported revenue growth increased 4%.
Organic growth was 2% in both acquisitions and FX were a 1% tailwind.
Marc N. Casper: In Q4, North America grew low single digits, Europe grew mid-single digits, and Asia Pacific grew low single digits, with China declining low single digits. For the full year, North America grew low single digits, Europe grew mid-single digits, and Asia Pacific grew low single digits, with China declining mid-single digits. With respect to our operational performance, we delivered $2.88 billion of adjusted operating income in the quarter, an increase of 6% year over year. Adjusted operating margin was 23.6%, 30 basis points lower than Q4 last year, which includes over 100 basis points of headwind from tariffs and related FX. For the full year, we delivered $10.11 billion of adjusted operating income, a year-over-year increase of 4% versus 2024, and adjusted operating margin was 22.7%, 10 basis points higher than the prior year, which also includes a headwind from tariffs and related FX of over 100 basis points.
In Q4, North America grew low single digits, Europe grew mid-single digits, and Asia Pacific grew low single digits, with China declining low single digits. For the full year, North America grew low single digits, Europe grew mid-single digits, and Asia Pacific grew low single digits, with China declining mid-single digits. With respect to our operational performance, we delivered $2.88 billion of adjusted operating income in the quarter, an increase of 6% year over year. Adjusted operating margin was 23.6%, 30 basis points lower than Q4 last year, which includes over 100 basis points of headwind from tariffs and related FX. For the full year, we delivered $10.11 billion of adjusted operating income, a year-over-year increase of 4% versus 2024, and adjusted operating margin was 22.7%, 10 basis points higher than the prior year, which also includes a headwind from tariffs and related FX of over 100 basis points.
Turning to our organic revenue performance by geography in Q4, North America grew low single digits Europe grew mid single digits.
In Asia Pacific grew low single digits with China declining low single digits.
Speaker #2: Throughout the year, our active management of the business and the power of our PPI business system enabled us to effectively manage the unexpected macro headwinds and continue to grow our adjusted operating income and expand our margins.
For the full year North America grew low single digits.
Europe grew mid single digits, and Asia Pacific grew low single digits with China declining mid single digits.
Speaker #2: I'm proud of how the team stepped up this year to enable these results. Total company adjusted gross margin in the quarter was 41.8 percent, and for the full year, it was 41.7 percent.
With respect to our operational performance, we delivered $2 8 billion of adjusted operating income in the quarter, an increase of 6% year over year and adjusted operating margin was 23, 6% 30 basis points lower than Q4 last year.
Speaker #2: The drivers of gross margin are similar to those of adjusted operating margin. Moving on to the details of the P&L, adjusted SG&A in the quarter was 15.3 percent of revenue, down 80 basis points.
Which includes over 100 basis points of headwind from tariffs and related to FX.
For the full year, we delivered $10 1 billion of adjusted operating income a year over year increase of 4% versus 2024, and adjusted operating margin was 22, 7% 10 basis points higher than the prior year, which also includes a headwind from tariffs and related FX of over 100 basis points.
Speaker #2: For the full year, it was 15.9 percent of revenue, down 40 basis points. Total R&D expense, with 357 million in Q4 and 1.4 billion for the full year, up 1 percent year over year, reflecting our ongoing investments in high-impact innovation.
Marc N. Casper: Throughout the year, our active management of the business and the power of our PPI Business System enabled us to effectively manage the unexpected macro headwinds and continue to grow our adjusted operating income and expand our margins. I'm proud of how the team stepped up this year to enable these results. Total company adjusted growth margin in the quarter was 41.8%, and for the full year, it was 41.7%. The drivers of growth margin are similar to those of adjusted operating margin. Moving on to the details of the P&L, adjusted SG&A in the quarter was 15.3% of revenue, down 80 basis points. For the full year, it was 15.9% of revenue, down 40 basis points. Total R&D expense was $357 million in Q4 and $1.4 billion for the full year, up 1% year-over-year, reflecting our ongoing investments in high-impact innovation.
Throughout the year, our active management of the business and the power of our PPI Business System enabled us to effectively manage the unexpected macro headwinds and continue to grow our adjusted operating income and expand our margins. I'm proud of how the team stepped up this year to enable these results. Total company adjusted growth margin in the quarter was 41.8%, and for the full year, it was 41.7%. The drivers of growth margin are similar to those of adjusted operating margin. Moving on to the details of the P&L, adjusted SG&A in the quarter was 15.3% of revenue, down 80 basis points. For the full year, it was 15.9% of revenue, down 40 basis points. Total R&D expense was $357 million in Q4 and $1.4 billion for the full year, up 1% year-over-year, reflecting our ongoing investments in high-impact innovation.
Speaker #2: R&D is a percent of our manufacturing revenue for the year, with 7 percent. Looking at our results below the line, our Q4 net interest expense was 107 million dollars, net interest expense for the full year was 426 million dollars, the adjusted tax rate in Q4 was 10.5 percent, and 10.4 percent for the full year.
Throughout the year, our active management of the business and the power of our PPI business system enabled us to effectively manage the unexpected macro headwinds and continued to grow our adjusted operating income and expand our margins I'm proud of how the team stepped up this year to enable these results.
Total company adjusted gross margin in the quarter was 41, 8%.
Speaker #2: And average diluted shares were 377 million in Q4, 6 million lower year over year, driven by share repurchases net of option dilution. Turning to free cash flow on the balance sheet, full-year cash flow from operations was 7.82 billion dollars, and free cash flow was 6.34 billion dollars, after investing 1.48 billion dollars of net capital expenditures.
And for the full year it was 41, 7%.
The drivers of gross margin are similar to those of adjusted operating margin.
Moving on to the details of the P&L adjusted SG&A in the quarter was 15, 3% of revenue down 80 basis points for the full year was 15, 9% of revenue down 40 basis points.
Total R&D expense was $357 million in Q4, and $1 4 billion for the full year.
Speaker #2: Cash flow was slightly lower than we'd assumed in the prior guide, largely driven by temporary impacts in working capital and the timing of cash taxes.
Marc N. Casper: R&D is a percent of our manufacturing revenue for the year, was 7%. Looking at results below the line, our Q4 net interest expense was $107 million. Net interest expense for the full year was $426 million. The adjusted tax rate in Q4 was 10.5% and 10.4% for the full year. Average diluted shares were 377 million in Q4, 6 million lower year over year, driven by share repurchases net of option dilution. Turning to free cash flow on the balance sheet, full-year cash flow from operations was $7.82 billion, and free cash flow was $6.34 billion after investing $1.48 billion of net capital expenditures. Cash flow was slightly lower than we'd assumed in the prior guide, largely driven by temporary impacts in working capital and the timing of cash taxes. During 2025, we continued to successfully execute our capital deployment strategy, deploying approximately $16.5 billion in 2025.
R&D is a percent of our manufacturing revenue for the year, was 7%. Looking at results below the line, our Q4 net interest expense was $107 million. Net interest expense for the full year was $426 million. The adjusted tax rate in Q4 was 10.5% and 10.4% for the full year. Average diluted shares were 377 million in Q4, 6 million lower year over year, driven by share repurchases net of option dilution. Turning to free cash flow on the balance sheet, full-year cash flow from operations was $7.82 billion, and free cash flow was $6.34 billion after investing $1.48 billion of net capital expenditures. Cash flow was slightly lower than we'd assumed in the prior guide, largely driven by temporary impacts in working capital and the timing of cash taxes. During 2025, we continued to successfully execute our capital deployment strategy, deploying approximately $16.5 billion in 2025.
Up 1% year over year, reflecting our ongoing investments in high impact innovation.
Speaker #2: During 2025, we continued to successfully execute our capital deployment strategy, deploying approximately 16.5 billion dollars in 2025. This includes 4 billion dollars for the acquisitions of our filtration and separation business from Solventum, and the sterile fuel finish site from Sanofi earlier in the year.
R&D as a percent of our manufacturing revenue for the year was 7%.
Looking at our results below the line. Our Q4 net interest expense was $107 million net interest expense for the full year was $426 million.
The adjusted tax rate in Q4 was 10, 5% and.
Speaker #2: That in Q4, we announced a definitive agreement to acquire Clario for approximately 9 billion dollars in cash, plus potential future performance-based payments. We expect to complete the transaction by the middle of 2026, at which point the business will become part of our laboratory products and biopharma services segment.
10, 4% for the full year.
And average diluted shares were $377 million in Q4, 6 million lower year over year, driven by share repurchases net of option dilution.
Turning to free cash flow and the balance sheets full year cash flow from operations was 782 billion and free cash flow was $6 34 billion after investing $1 four 8 billion.
Speaker #2: In 2025, we also deployed 3.6 billion dollars through the return of capital to shareholders. 3 billion dollars of share buybacks, and approximately 600 million dollars of dividends.
Net capital expenditures.
Speaker #2: We ended the year with 10.1 billion dollars in cash and short-term investments, and 39.4 billion dollars of total debt. Our leverage ratio at the end of the year was 3.5 times, gross debt to adjusted EBITDA, and 2.6 times on a net debt basis.
Cash flow was slightly lower than we'd assumed in the prior guide largely driven by temporary impacts in working capital and the timing of cash taxes.
During 2025, we continue to successfully execute our capital deployment strategy deploying approximately $16 $5 billion. In 2025. This includes full billion dollars for the acquisitions.
Marc N. Casper: This includes $4 billion for the acquisitions of our filtration and separation business from Solventum and the sterile fill finish site from Sanofi earlier in the year. Then, in Q4, we announced a definitive agreement to acquire Clario for approximately $9 billion in cash, plus potential future performance-based payments. We expect to complete the transaction by the middle of 2026, at which point the business will become part of our laboratory products and biopharma services segment. In 2025, we also deployed $3.6 billion through the return of capital to shareholders, $3 billion of share buybacks, and approximately $600 million of dividends. We ended the year with $10.1 billion in cash and short-term investments and $39.4 billion of total debt. A leverage ratio at the end of the year was 3.5 times gross debt to adjusted EBITDA and 2.6 times on a net debt basis.
This includes $4 billion for the acquisitions of our filtration and separation business from Solventum and the sterile fill finish site from Sanofi earlier in the year. Then, in Q4, we announced a definitive agreement to acquire Clario for approximately $9 billion in cash, plus potential future performance-based payments. We expect to complete the transaction by the middle of 2026, at which point the business will become part of our laboratory products and biopharma services segment. In 2025, we also deployed $3.6 billion through the return of capital to shareholders, $3 billion of share buybacks, and approximately $600 million of dividends. We ended the year with $10.1 billion in cash and short-term investments and $39.4 billion of total debt. A leverage ratio at the end of the year was 3.5 times gross debt to adjusted EBITDA and 2.6 times on a net debt basis.
Speaker #2: In concluding my comments on our total company performance, adjusted ROIC was 11.3 percent, reflecting a strong return on investment that we're generating across the company.
That filtration and separation business from solvents them and our sterile fill finish sites with Sanofi earlier in the year that in Q4, we announced a definitive agreement to acquire <unk> for approximately $9 billion in cash plus potential future performance based payments.
Speaker #2: Now provide some color on the performance of our four business segments. In life science solutions, Q4 reported revenue in this segment increased 13 percent versus the prior year quarter, and organic revenue growth was 4 percent.
To complete the transaction by the middle of 2026 at which point the business will become part of our laboratory products and Biopharma services segments.
Speaker #2: Gross in this segment was led by our bioproduction business, which had another quarter of excellent growth. For the full year, reported revenue increased 8 percent, and organic revenue growth was 3 percent.
In 2025, we also deployed $3 6 billion for the return of capital to shareholders $3 billion of share buybacks and approximately $600 million of dividends.
Speaker #2: Q4 adjusted operating income for life science solutions increased 10 percent, and adjusted operating margin was 35.5 percent, down 110 basis points versus the prior year quarter.
We ended the year with $10 1 billion in cash and short term investments of $39 4 billion of total debt.
Our leverage ratio at the end of the year was three five times gross debt to adjusted EBITDA.
Speaker #2: During Q4, we delivered very strong productivity, and good volume leverage, which was more than offset by unfavorable mix strategic investments, and the expected impact from the acquisition of our filtration and separation business.
Marc N. Casper: In concluding my comments on our total company performance, adjusted ROIC was 11.3%, reflecting the strong returns on investment that we're generating across the company. Now, provide some color on the performance of our four business segments. In life science solutions, Q4 reported revenue in this segment increased 13% versus the prior year quarter, and organic revenue growth was 4%. Growth in this segment was led by a bioproduction business, which had another quarter of excellent growth. For the full year, reported revenue increased 8%, and organic revenue growth was 3%. Q4 adjusted operating income for life science solutions increased 10%, and adjusted operating margin was 35.5%, down 110 basis points versus the prior year quarter. During Q4, we delivered very strong productivity and good volume leverage, which was more than offset by unfavorable mix, strategic investments, and the expected impact from the acquisition of our filtration and separation business.
In concluding my comments on our total company performance, adjusted ROIC was 11.3%, reflecting the strong returns on investment that we're generating across the company. Now, provide some color on the performance of our four business segments. In life science solutions, Q4 reported revenue in this segment increased 13% versus the prior year quarter, and organic revenue growth was 4%. Growth in this segment was led by a bioproduction business, which had another quarter of excellent growth. For the full year, reported revenue increased 8%, and organic revenue growth was 3%. Q4 adjusted operating income for life science solutions increased 10%, and adjusted operating margin was 35.5%, down 110 basis points versus the prior year quarter. During Q4, we delivered very strong productivity and good volume leverage, which was more than offset by unfavorable mix, strategic investments, and the expected impact from the acquisition of our filtration and separation business.
And two six times on a net debt basis.
Clearly my comments on our total company performance adjusted ROIC was 11, 3%, reflecting the strong returns on investment that we're generating across the company.
Speaker #2: For the full year, adjusted operating income increased 8 percent, and adjusted operating margin was 36.3 percent, down 10 basis points versus 2024. In the analytical instrument segment for both Q4 and the full year, reported revenue increased 1 percent, and organic revenue growth was flat.
And I'll provide some color on the performance of our four business segments and life Science solutions Q4 reported revenue in this segment increased 13% versus the prior year quarter.
<unk> revenue growth was 4%.
Growth in this segment was led by our bio production business, which had another quarter of excellent growth for.
Speaker #2: Growth in the quarter was led by our chromatography and mass spectrometry business. In this segment, Q4 adjusted operating income decreased 12 percent, and adjusted operating margin was 26.3 percent, down 420 basis points versus the year-ago quarter.
For the full year reported revenue increased 8% on organic revenue growth was 3%.
Q4, adjusted operating income for life Science solutions increased 10% and adjusted operating margin was 35, 5% down 110 basis points versus the prior year quarter.
Speaker #2: The majority of the year-over-year margin change was driven by the impact of tariffs and related FX. Outside of that impact, strong productivity was partially offset, by strategic investments and unfavorable mix.
During Q4, we delivered very strong productivity and good volume leverage which is more than offset by unfavorable mix.
Speaker #2: For the full year, adjusted operating income decreased 11 percent, and adjusted operating margin was 23 percent, 320 basis points lower than 2024. Turning to specialty diagnostics, in Q4, reported revenue grew 5 percent year-over-year, and organic revenue growth was 3 percent.
<unk> investments and the expected impact from the acquisition of our filtration and separation business.
Marc N. Casper: For the full year, adjusted operating income increased 8%, and adjusted operating margin was 36.3%, down 10 basis points versus 2024. In the analytical instruments segment for both Q4 and the full year, reported revenue increased 1%, and organic revenue growth was flat. Growth in the quarter was led by our chromatography and mass spectrometry business. In this segment, Q4 adjusted operating income decreased 12%, and adjusted operating margin was 26.3%, down 420 basis points versus the year-ago quarter. The majority of the year-over-year margin change was driven by the impact of tariffs and related FX. Outside of that impact, strong productivity was partially offset by strategic investments and unfavorable mix. For the full year, adjusted operating income decreased 11%, and adjusted operating margin was 23%, 320 basis points lower than 2024. Technical specialty diagnostics in Q4 reported revenue grew 5% year-over-year, and organic revenue growth was 3%.
For the full year, adjusted operating income increased 8%, and adjusted operating margin was 36.3%, down 10 basis points versus 2024. In the analytical instruments segment for both Q4 and the full year, reported revenue increased 1%, and organic revenue growth was flat. Growth in the quarter was led by our chromatography and mass spectrometry business. In this segment, Q4 adjusted operating income decreased 12%, and adjusted operating margin was 26.3%, down 420 basis points versus the year-ago quarter. The majority of the year-over-year margin change was driven by the impact of tariffs and related FX. Outside of that impact, strong productivity was partially offset by strategic investments and unfavorable mix. For the full year, adjusted operating income decreased 11%, and adjusted operating margin was 23%, 320 basis points lower than 2024. Technical specialty diagnostics in Q4 reported revenue grew 5% year-over-year, and organic revenue growth was 3%.
For the full year adjusted operating income increased 8% and adjusted operating margin was 36, 3% down 10 basis points versus 2024.
Speaker #2: In Q4, gross in this segment was led by our clinical diagnostics, transplant diagnostics, and immunodiagnostics businesses. For the full year, reported revenue increased 4 percent, and organic revenue growth was 2 percent.
In the analytical instruments segment for both Q4 and the full year reported revenue increased 1% and organic revenue growth was flat.
Growth in the quarter was led by our chromatography and mass spectrometry business.
Speaker #2: Q4 adjusted operating income for specialty diagnostics increased 19 percent, and adjusted operating margin was 26.6 percent, 300 basis points higher than Q4 2024. During the quarter, delivered good productivity and volume leverage, and had favorable mix, which was partially offset by headwinds from foreign exchange.
In this segment in Q4, adjusted operating income decreased 12% adjusted operating margin was 26, 3% down 420 basis points versus the year ago quarter.
The majority of the year over year margin change was driven by the impact of tariffs and related FX outside.
Outside of that impacts strong productivity was partially offset by strategic investments and unfavorable mix.
Speaker #2: For the full year, adjusted operating income was 8 percent higher than 2024, and adjusted operating margin was 26.9 percent, an increase of 120 basis points versus the prior year.
For the full year adjusted operating income decreased 11%.
<unk> operating margin was 23% 320 basis points lower in 2024.
Speaker #2: And finally, in the laboratory products and biopharma services segment, reported revenue increased 7 percent, and organic revenue growth was 5 percent. With broad-based strengths across our research and safety market channel, and our pharma services, and clinical research businesses.
Turning to specialty diagnostics in Q4 reported revenue grew 5% year over year and organic revenue growth was 3% and.
Marc N. Casper: In Q4, growth in this segment was led by our clinical diagnostics, transplant diagnostics, and immunodiagnostics businesses. For the full year, reported revenue increased 4%, and organic revenue growth was 2%. Q4 adjusted operating income for Specialty Diagnostics increased 19%, and adjusted operating margin was 26.6%, 300 basis points higher than Q4 2024. During the quarter, we delivered good productivity and volume leverage and had a favorable mix, which was partially offset by headwinds from foreign exchange. For the full year, adjusted operating income was 8% higher than 2024, and adjusted operating margin was 26.9%, an increase of 120 basis points versus the prior year. And finally, in the Laboratory Products and Biopharma Services segment, reported revenue increased 7%, and organic revenue growth was 5%, with broad-based strengths across our research and safety market channel, and our Pharma Services and Clinical Research businesses.
In Q4, growth in this segment was led by our clinical diagnostics, transplant diagnostics, and immunodiagnostics businesses. For the full year, reported revenue increased 4%, and organic revenue growth was 2%. Q4 adjusted operating income for Specialty Diagnostics increased 19%, and adjusted operating margin was 26.6%, 300 basis points higher than Q4 2024. During the quarter, we delivered good productivity and volume leverage and had a favorable mix, which was partially offset by headwinds from foreign exchange. For the full year, adjusted operating income was 8% higher than 2024, and adjusted operating margin was 26.9%, an increase of 120 basis points versus the prior year. And finally, in the Laboratory Products and Biopharma Services segment, reported revenue increased 7%, and organic revenue growth was 5%, with broad-based strengths across our research and safety market channel, and our Pharma Services and Clinical Research businesses.
In Q4 growth in this segment was led by our clinical diagnostics transplant diagnostics and immuno diagnostics businesses for.
Speaker #2: revenue grew 4 percent, and organic revenue For the full year, reported was 3 percent higher year-over-year. Q4 adjusted operating income in this segment increased 12 percent, and adjusted operating margin was 14.5 percent, 50 basis points higher than Q4 2024.
For the full year reported revenue increased 4% and organic revenue growth was 2%.
Q4, adjusted operating income for specialty diagnostics increased 19% and adjusted operating margin was 26, 6% 300 basis points higher than Q4 2024.
Speaker #2: In the quarter, we delivered very strong productivity and good volume leverage, which was partially offset by unfavorable mix, strategic investments, and headwinds from foreign exchange.
During the quarter to deliver.
Productivity and volume leverage and favorable mix, which was partially offset by headwinds from foreign exchange.
Speaker #2: For the full year, adjusted operating income increased 8 percent, and adjusted operating margin was 14 percent, 70 basis points higher than 2024. Turning now to guidance, as Mark outlined, we're initiating a 2026 revenue guidance range of 46.3 billion dollars to 47.2 billion dollars, and an adjusted EPS guidance range of 24 dollars and 22 cents to 24 dollars and 80 cents.
For the full year adjusted operating income was 8% higher than 2024, and adjusted operating margin was 26, 9% an increase of 120 basis points versus the prior year.
And finally in laboratory products and Biopharma services segment reported revenue increased 7% and organic revenue growth was 5%.
With broad based strength across our research and safety market channel and our pharma services and clinical research businesses.
Marc N. Casper: For the full year, reported revenue grew 4%, and organic revenue was 3% higher year-over-year. Q4 adjusted operating income in the segment increased 12%, and adjusted operating margin was 14.5%, 50 basis points higher than Q4 2024. In the quarter, we delivered very strong productivity and good volume leverage, which was partially offset by unfavorable mix, strategic investments, and headwinds from foreign exchange. For the full year, adjusted operating income increased 8%, and adjusted operating margin was 14%, 70 basis points higher than 2024. Turning now to guidance, as Mark outlined, we're initiating a 2026 revenue guidance range of $46.3 billion to $47.2 billion, and an adjusted EPS guidance range of $24.22 to $24.80, representing 6% to 8% growth. The guidance assumes 3% to 4% organic revenue growth, a $300 million revenue tailwind from foreign exchange, and 50 basis points of adjusted operating margin expansion.
For the full year, reported revenue grew 4%, and organic revenue was 3% higher year-over-year. Q4 adjusted operating income in the segment increased 12%, and adjusted operating margin was 14.5%, 50 basis points higher than Q4 2024. In the quarter, we delivered very strong productivity and good volume leverage, which was partially offset by unfavorable mix, strategic investments, and headwinds from foreign exchange. For the full year, adjusted operating income increased 8%, and adjusted operating margin was 14%, 70 basis points higher than 2024. Turning now to guidance, as Mark outlined, we're initiating a 2026 revenue guidance range of $46.3 billion to $47.2 billion, and an adjusted EPS guidance range of $24.22 to $24.80, representing 6% to 8% growth. The guidance assumes 3% to 4% organic revenue growth, a $300 million revenue tailwind from foreign exchange, and 50 basis points of adjusted operating margin expansion.
Speaker #2: Representing 6 to 8 percent growth. The guidance assumes 3 to 4 percent organic revenue growth. A 300 million dollar revenue tailwind from foreign exchange, and 50 basis points of adjusted operating margin expansion.
For the full year reported revenue grew 4% on organic revenue was 3% higher year over year.
Q4, adjusted operating income in this segment increased 12% and adjusted operating margin was 14, 5% 50 basis points higher than Q4 2024 in the quarter, we delivered very strong productivity and good volume leverage which was partially offset by unfavorable mix strategic investments.
Speaker #2: All of this will enable a really strong 6 to 8 percent growth in adjusted EPS. This guidance is consistent with the financial framing for 26 and 27 that we shared with you back on our Q2 earnings call.
Investments and headwinds from foreign exchange for the full year adjusted operating income increased 8% and adjusted operating margin was 14% 70 basis points higher in 2024.
Speaker #2: It reflects a continued improvement in our organic growth in 26, coupled with very strong earnings growth. The strength of our guidance reflects our industry-leading position, our proven growth strategy, and the power of our PPI business system.
Turning now to guidance as Mark outlined we're initiating a 2026 revenue guidance range of $46 3 billion.
Speaker #2: Let me now provide some detailed context behind the guide. The midpoint of our guidance assumes organic revenue growth of slightly above 3 percent. This is a step up from 2025.
To $47 2 billion.
On an adjusted EPS guidance range of $24 22.
Speaker #2: We think this appropriate to start at 3 percent at the beginning of the year, and as we execute through 2026, we can retire risk as we go, and progress higher in the range.
The $24 80.
Representing 6% to 8% growth.
The guidance assumes 3% to 4% organic revenue growth.
Speaker #2: As is our normal practice, we've not included any future acquisitions or divestitures within our guidance. The guide, therefore, does not include the benefit of the pending acquisition of Clario.
$300 million revenue tailwind from foreign exchange.
Marc N. Casper: All of this will enable a really strong 6% to 8% growth in Adjusted EPS. This guidance is consistent with the financial framing for 2026 and 2027 that we shared with you back on our Q2 earnings call. It reflects a continued improvement in our organic growth in 2026, coupled with very strong earnings growth. The strength of our guidance reflects our industry-leading position, our proven growth strategy, and the power of our PPI Business System. Let me now provide some detailed context behind the guide. The midpoint of our guidance assumes organic revenue growth of slightly above 3%. This is a step up from 2025. We think this is appropriate to start at 3% at the beginning of the year, and as we execute through 2026, we can retire risk as we go and progress higher in the range.
All of this will enable a really strong 6% to 8% growth in Adjusted EPS. This guidance is consistent with the financial framing for 2026 and 2027 that we shared with you back on our Q2 earnings call. It reflects a continued improvement in our organic growth in 2026, coupled with very strong earnings growth. The strength of our guidance reflects our industry-leading position, our proven growth strategy, and the power of our PPI Business System. Let me now provide some detailed context behind the guide. The midpoint of our guidance assumes organic revenue growth of slightly above 3%. This is a step up from 2025. We think this is appropriate to start at 3% at the beginning of the year, and as we execute through 2026, we can retire risk as we go and progress higher in the range.
And 50 basis points of adjusted operating margin expansion.
All of this will enable a really strong 6% to 8% growth in adjusted EPS.
Speaker #2: As a reminder, we expect this deal to close by the middle of 2026. Should that be the case, we would expect 20 to 25 cents of incremental adjusted EPS for this year.
This guidance is consistent with the financial framing for 26% 27 that we shared with you back on our Q2 earnings call.
Speaker #2: Reflecting the strongly accretive nature of the acquisition. That would represent roughly one additional point of adjusted EPS growth for 2026, taking the total company growth into the range of 7 to 9 percent.
Flex the continued improvements in our organic growth in 'twenty six coupled with very strong earnings growth the.
The strength of our guidance reflects our industry, leading position a proven growth strategy and the power of our PPI business system.
Let me now provide some detailed context behind the guidance.
Speaker #2: In terms of the macro environment, our guidance is based on the tariffs that are in place as of today. It doesn't contemplate any future changes in tariffs, nor their potential impact on FX rates.
The midpoint of our guidance assumes organic revenue growth was slightly above 3%. This is a step up from 2025, we think thats appropriate to start at 3% at the beginning of the year as we execute through 2026, we can retire risk as we go and progress higher in the range.
Speaker #2: Should additional tariffs be levied, as we did last year, we will act with speed and scale, to minimize them and provide our usual level of transparency as to their impact.
Marc N. Casper: As is our normal practice, we've not included any future acquisitions or divestitures within our guidance. The guide, therefore, does not include the benefit of the pending acquisition of Clario. As a reminder, we expect this deal to close by the middle of 2026. Should that be the case, we would expect 20 to 25 cents of incremental adjusted EPS for this year, reflecting the strongly accretive nature of the acquisition. That would represent roughly one additional point of adjusted EPS growth for 2026, taking the total company growth into the range of 7% to 9%. In terms of the macro environment, our guidance is based on the tariffs that are in place as of today. It doesn't contemplate any future changes in tariffs nor their potential impact on FX rates.
As is our normal practice, we've not included any future acquisitions or divestitures within our guidance. The guide, therefore, does not include the benefit of the pending acquisition of Clario. As a reminder, we expect this deal to close by the middle of 2026. Should that be the case, we would expect 20 to 25 cents of incremental adjusted EPS for this year, reflecting the strongly accretive nature of the acquisition. That would represent roughly one additional point of adjusted EPS growth for 2026, taking the total company growth into the range of 7% to 9%. In terms of the macro environment, our guidance is based on the tariffs that are in place as of today. It doesn't contemplate any future changes in tariffs nor their potential impact on FX rates.
As is our normal practice, we have not included any future acquisitions or divestitures within our guidance. The guidance. Therefore does not include the benefit of the pending acquisition of <unk>.
Speaker #2: The guidance includes 600 million dollars of inorganic revenue from the acquisitions closed in 2025. In that inorganic period, these acquisitions are expected to contribute 60 million dollars of operating adjusted operating income.
As a reminder, we expect this deal to close by the Middle of 2026 should that be the case, we would expect 20% to 25 of incremental adjusted EPS for this year, reflecting the strongly accretive nature of the acquisition.
Speaker #2: The math of which adds a 20 basis point headwind to adjusted operating margins in 2026. After factoring in the financing costs, they represent a 7 cent of adjusted EPS dilution for 2026.
That would represent roughly and one additional point of adjusted EPS growth for 2026, taking the total company growth into the range of 7% to 9%.
Speaker #2: These acquisitions are progressing well versus our deal model expectations. We're in the integration and investment phase in 2026, which is setting us up to deliver strong accretion and very attractive returns going forward.
In terms of the macro environments. Our guidance is based on the tariffs that are in place as of today.
It doesn't contemplate any future changes in tariffs, nor the potential impacts on FX rates.
Marc N. Casper: Should additional tariffs be levied, as we did last year, we will act with speed and scale to minimize them and provide our usual level of transparency as to their impact. The guidance includes $600 million of inorganic revenue from the acquisitions closed in 2025. In that inorganic period, these acquisitions are expected to contribute $60 million of adjusted operating income, the math of which adds a 20 basis point headwind to adjusted operating margins in 2026. After factoring in the financing costs, they represent a 7% of adjusted EPS dilution for 2026. These acquisitions are progressing well versus our deal model expectations. We're in the integration and investment phase in 2026, which is setting us up to deliver strong accretion and very attractive returns going forward. To help you with your modeling, here are a few additional assumptions behind the guide.
Should additional tariffs be levied, as we did last year, we will act with speed and scale to minimize them and provide our usual level of transparency as to their impact. The guidance includes $600 million of inorganic revenue from the acquisitions closed in 2025. In that inorganic period, these acquisitions are expected to contribute $60 million of adjusted operating income, the math of which adds a 20 basis point headwind to adjusted operating margins in 2026. After factoring in the financing costs, they represent a 7% of adjusted EPS dilution for 2026. These acquisitions are progressing well versus our deal model expectations. We're in the integration and investment phase in 2026, which is setting us up to deliver strong accretion and very attractive returns going forward. To help you with your modeling, here are a few additional assumptions behind the guide.
Speaker #2: To help you with your modeling, here are a few additional assumptions behind the guide. We expect approximately 500 million dollars of net interest expense in 2026.
Should additional tariffs be levied as we did last year, we will act with speed and scale to minimize them and provide our usual level of transparency as to that impact.
Speaker #2: We assume that the adjusted income tax rate will be 11.5 percent in 2026, largely driven by the increased earnings. We're expecting between 1.8 and 2 billion dollars of net capital expenditures in 2026.
The guidance includes $600 million of inorganic revenue from the acquisitions closed in 2025.
And that inorganic periods. These acquisitions are expected to contribute $60 million of addition of upright adjusted operating income the.
Speaker #2: The increase over 25 is driven by our investment in U.S. manufacturing. In terms of free cash flow, we're expecting that to be in the range of 6.8 billion dollars to 7.3 billion dollars for the year.
The math of which a 20 basis point headwind to adjusted operating margins in 2026.
After factoring in the financing costs they represented seven.
Speaker #2: In terms of capital deployment, we're assuming 3 billion dollars of share buybacks, which we're already completed in January. We estimate a full year average diluted share count will be between 300 to 70 and 375 million shares.
Adjusted EPS dilution for 2026.
These acquisitions are progressing well versus our deal model expectations.
The integration and investment phase in 2026, which is setting us up to deliver strong accretion and very attractive returns going forward.
Speaker #2: And we're assuming we'll return approximately 700 million dollars of capital to shareholders this year through dividends. Then finally, I wanted to touch on phasing for Q1.
Marc N. Casper: We expect approximately $500 million of net interest expense in 2026. We assume that the adjusted income tax rate will be 11.5% in 2026, largely driven by the increased earnings. We're expecting between $1.8 and $2 billion of net capital expenditures in 2026. The increase over 2025 is driven by our investment in US manufacturing. In terms of free cash flow, we're expecting that to be in the range of $6.8 billion to $7.3 billion for the year. In terms of capital deployment, we're assuming $3 billion of share buybacks, which were already completed in January. The estimate of full-year average diluted share count will be between 370 and 375 million shares. I'm assuming we'll return approximately $700 million of capital to shareholders this year through dividends. Then finally, I wanted to touch on phasing for Q1.
We expect approximately $500 million of net interest expense in 2026. We assume that the adjusted income tax rate will be 11.5% in 2026, largely driven by the increased earnings. We're expecting between $1.8 and $2 billion of net capital expenditures in 2026. The increase over 2025 is driven by our investment in US manufacturing. In terms of free cash flow, we're expecting that to be in the range of $6.8 billion to $7.3 billion for the year. In terms of capital deployment, we're assuming $3 billion of share buybacks, which were already completed in January. The estimate of full-year average diluted share count will be between 370 and 375 million shares. I'm assuming we'll return approximately $700 million of capital to shareholders this year through dividends. Then finally, I wanted to touch on phasing for Q1.
To help you with your modeling here are a few additional assumptions behind the guide we expect approximately $500 million of net interest expense in 2026.
Speaker #2: Embedded in the guidance is the assumption that Q1 organic revenue growth will be a couple of points lower than the full year '26. This is largely driven by selling days and the expected phasing of our revenue and our pharma services business over the course of 2026.
We assume that the adjusted income tax rate will be 11, 5% in 2026, largely driven by the increased earnings.
We're expecting between one eight and $2 billion of net capital expenditures in 2026 the.
Speaker #2: And we're expecting low single-digit adjusted EPS growth in Q1. So, in conclusion, Q4 capped off a very successful 2025. The team is focused on continuing to maximize share gain, delivering very strong earnings growth, and generating great returns from our capital deployment, all to enable an excellent 2026 and advance our strategy for an even brighter future.
The increase over 25 is driven by our investments in U S manufacturing.
In terms of free cash flow, we're expecting that to be in the range of $6 8 billion to $7 3 billion for the year.
In terms of capital deployment, we're assuming $3 billion of share buybacks, which were already completed in January.
We estimate our full year average diluted share count will be between 370 and 375 million shares.
Speaker #2: With that, I'll turn the call back over to Mark. Thanks, Stephen. So, before we turn to Q&A, I just want to say a few words.
Im assuming works had approximately $700 million of capital to shareholders this year through dividends.
Speaker #2: As you know, Stephen, we'll retire at the end of March. Let me start with thank you to Stephen for all of your contributions, to the success of THERMO FISHER, and the deep friendship we have developed over the past 25 years.
Marc N. Casper: Embedded in the guidance is the assumption that Q1 organic revenue growth will be a couple of points lower than the full year 2026. This is largely driven by selling days and the expected phasing of our revenue in our Pharma Services business over the course of 2026. We're expecting low single-digit Adjusted EPS growth in Q1. So in conclusion, Q4 capped off a very successful 2025. The team is focused on continuing to maximize share gain, delivering very strong earnings growth, and generating great returns from our capital deployment, all to enable an excellent 2026 and advance our strategy for an even brighter future. With that, I'll turn the call back over to Marc. Thanks, Stephen. So before we turn to Q&A, I just want to say a few words. As you know, Stephen will retire at the end of March.
Embedded in the guidance is the assumption that Q1 organic revenue growth will be a couple of points lower than the full year 2026. This is largely driven by selling days and the expected phasing of our revenue in our Pharma Services business over the course of 2026. We're expecting low single-digit Adjusted EPS growth in Q1. So in conclusion, Q4 capped off a very successful 2025. The team is focused on continuing to maximize share gain, delivering very strong earnings growth, and generating great returns from our capital deployment, all to enable an excellent 2026 and advance our strategy for an even brighter future. With that, I'll turn the call back over to Marc.
And finally I wanted to touch on phasing for Q1.
Embedded in the guidance is the assumption that Q1 organic revenue growth will be a couple of points lower than the full year 2006.
Speaker #2: And let me say a heartfelt congratulations on a spectacular career at THERMO FISHER, including being our CFO for the past 10 years. You have played such an active leadership role in our growth and success, and we're all very grateful.
This is largely driven by selling days and the expected phasing of our revenue in our pharma services business over the course of 2026.
And we're expecting low single digit adjusted EPS growth in Q1.
Speaker #2: What is both so cool and so important is your consistent passion for developing people and also in building a world-class finance function. I'm thrilled to have the opportunity to work with Jim Meyer, who will be taking the reins as CFO in March, having spent 17 years at the company.
So in conclusion Q4 capped off a very successful 2025. The team is focused on continuing to maximize share gain living very strong earnings growth and generating great returns from our capital deployment also enable an excellent 2026 and advance our strategy for an even brighter future.
Speaker #2: Stephen, on behalf of all of your colleagues and stakeholders at THERMO FISHER, thank you and congratulations. We wish you a wonderful retirement. And Jim, congratulations on your
Marc N. Casper: Thanks, Stephen. So before we turn to Q&A, I just want to say a few words. As you know, Stephen will retire at the end of March.
With that I'll turn the call back over to Mark. Thanks, Steven So before we turn to Q&A I just want to say a few words as you know Stephen will retire at the end of March let me start with thank you Steven for all of your contributions to the success of Thermo Fisher and the deep friendship we have developed over the past 25 years, and let me say a hartford.
Marc N. Casper: Let me start with thank you to Stephen for all of your contributions to the success of Thermo Fisher and the deep friendship we have developed over the past 25 years. Let me say a heartfelt congratulations on a spectacular career at Thermo Fisher, including being our CFO for the past 10 years. You have played such an active leadership role in our growth and success, and we're all very grateful. What is both so cool and so important is your consistent passion for developing people and also in building a world-class finance function. I'm thrilled to have the opportunity to work with Jim Meyer, who will be taking the reins as CFO in March, having spent 17 years at the company. Stephen, on behalf of all of your colleagues and stakeholders of Thermo Fisher, thank you and congratulations. We wish you a wonderful retirement.
Let me start with thank you to Stephen for all of your contributions to the success of Thermo Fisher and the deep friendship we have developed over the past 25 years. Let me say a heartfelt congratulations on a spectacular career at Thermo Fisher, including being our CFO for the past 10 years. You have played such an active leadership role in our growth and success, and we're all very grateful. What is both so cool and so important is your consistent passion for developing people and also in building a world-class finance function. I'm thrilled to have the opportunity to work with Jim Meyer, who will be taking the reins as CFO in March, having spent 17 years at the company. Stephen, on behalf of all of your colleagues and stakeholders of Thermo Fisher, thank you and congratulations. We wish you a wonderful retirement.
Speaker #2: promotion. Thanks, Mark,
Speaker #3: for those incredibly kind words. It's been an honor to be part of this amazing company. I'm really excited about my next chapter, and I'm also excited about the continued success of THERMO FISHER with Jim as the CFO.
Speaker #3: Let me turn it back to Raph to start the
Speaker #3: Q&A. Operator,
Congratulations on the spectacular career at Thermo Fisher, including being our CFO for the past 10 years, you have played such an active leadership role in our growth and success and we're all very grateful.
Speaker #4: we're ready for the Q&A portion of the
Speaker #4: call. Thank you.
Speaker #5: To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two.
We're disposal pool, and so important as youre consistent passion for developing people and also in building a world class finance function.
Speaker #5: When preparing to ask your question, please ensure your device is unmuted locally. In order to allow everyone in the queue an opportunity to address the THERMO FISHER management team, please limit your time on the call to one question and only one follow-up.
Thrilled to have the opportunity to work with Jim Meyer, who will be taking the reins as CFO in March having spent 17 years at the company.
Stephen on behalf of all of your colleagues and stakeholders of Thermo Fisher. Thank you and congratulations we wish you a wonderful retirement and Jim Congratulations on your promotion.
Speaker #5: If you have any additional questions, please return to the queue. Our first question comes from Michael Riskin from Bank of America. Your line is now open, Michael.
Marc N. Casper: And Jim, congratulations on your promotion. Thanks, Marc, for those incredibly kind words. It's been an honor to be part of this amazing company. I'm really excited about my next chapter, and I'm also excited about the continued success of Thermo Fisher with Jim as the CFO. Let me turn it back to Rafael to start the Q&A. Operator, we're ready for the Q&A portion of the call. Thank you. To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. In order to allow everyone in the queue an opportunity to address the Thermo Fisher Management Team, please limit your time on the call to one question and only one follow-up.
And Jim, congratulations on your promotion.
Stephen Williamson: Thanks, Marc, for those incredibly kind words. It's been an honor to be part of this amazing company. I'm really excited about my next chapter, and I'm also excited about the continued success of Thermo Fisher with Jim as the CFO. Let me turn it back to Rafael to start the Q&A.
Speaker #5: Please go
Speaker #5: ahead. Great.
Thanks, a lot for us incredibly kind words, it's been an honor to be part of this amazing company.
Speaker #6: Thanks for taking the question, and first off, I'll mirror Mark's comments. Congrats, Stephen. It's been a great run. It's been a pleasure working with you, and wish you all the best going forward.
I'm really excited about my next chapter and I'm also excited about the continued success of them associated with Jim as the CFO, Let me turn it back to wrap to start the Q&A.
Rafael Tejada: Operator, we're ready for the Q&A portion of the call.
Operator: Thank you. To ask a question, please press star followed by one on your telephone keypad now. If you change your mind, please press star followed by two. When preparing to ask your question, please ensure your device is unmuted locally. In order to allow everyone in the queue an opportunity to address the Thermo Fisher Management Team, please limit your time on the call to one question and only one follow-up.
Speaker #6: Mark, maybe I'll start with a high-level one on the guide. As you laid out, you guys had a framework previously that you talked to, and then the guide falls in that range.
Operator, we're ready for the Q&A portion of the call.
Thank you to ask a question. Please press star followed by one on your telephone keypad now.
Speaker #6: Just, but still, you're talking about the acceleration from 2 percent that you did in 2025 organic to this 3 to 4. Just can you talk a little bit more about what's underpinning that, what gives you confidence that the acceleration?
If you change your mind, Please press star followed by.
When preparing to ask your question. Please ensure your device is on mute locally.
In order to allow everyone in the queue and opportunity to address the Thermo Fisher management team. Please limit your time on the call to one question and only one follow up.
Speaker #6: Any particular end markets or customer groups that you are seeing the most improvement in activity as you look ahead and have a quick follow-up?
Marc N. Casper: If you have any additional questions, please return to the queue. Our first question comes from Michael Ryskin from Bank of America. Your line is now open, Michael. Please go ahead. Great. Thanks for taking the question. And first off, I'll mirror Marc's comments. Congrats, Stephen. It's been a great run. It's been a pleasure working with you, and wish you all the best going forward. Marc, maybe I'll start with a high-level one on the guide. As you laid out, you guys had a framework previously that you talked to, and then the guide falls in that range. But still, you're talking about the acceleration from 2% that you did in 2025 organic to the 3% to 4%. Just can you talk a little bit more about what's underpinning that? What gives you confidence that the acceleration?
If you have any additional questions, please return to the queue. Our first question comes from Michael Ryskin from Bank of America. Your line is now open, Michael. Please go ahead.
If you have any additional questions. Please return to the queue.
Speaker #6: Thanks.
Michael Ryskin: Great. Thanks for taking the question. And first off, I'll mirror Marc's comments. Congrats, Stephen. It's been a great run. It's been a pleasure working with you, and wish you all the best going forward. Marc, maybe I'll start with a high-level one on the guide. As you laid out, you guys had a framework previously that you talked to, and then the guide falls in that range. But still, you're talking about the acceleration from 2% that you did in 2025 organic to the 3% to 4%. Just can you talk a little bit more about what's underpinning that? What gives you confidence that the acceleration?
Our first question comes from Michael Ruskin from Bank of America. Your line is now open Michael. Please go ahead.
Speaker #7: Sure. So, Mike, thanks for the
Speaker #7: question. When I think about the way we are opening up our guidance for the year, we're actually assuming market conditions are going to be pretty similar to 2025 as a reminder.
Great. Thanks for taking my question first off on your amongst comments Congrats Stephen Curry, one pleasure working with you and wish you all the best going forward.
Speaker #7: We had just under 1 point of pandemic runoff in our 2025 results. So, adjusted for that, we roughly had 3 percent growth last year, and we're assuming that we're going to be in the 3 to 4 range.
Oh.
Morris my own maybe all of them.
Maybe I'll start with a high level one on the guide as you laid out you guys had a framework previously you talked to in the guide falls in that range.
Speaker #7: And as Stephen said, start with the assumptions, around 3. What we expect over time in this two-year timeframe is that just the absence of the negatives will start to allow for conditions to improve, and build within that range.
But still you know youre talking about the foundation from 2%.
I think you did in 2025 organic chemistry before just can you talk a little bit more about what's underpinning that.
Marc N. Casper: Any particular end markets or customer groups where you're seeing the most improvement in activity as you look ahead? And I have a quick follow-up. Thanks. Sure. So my thanks for the question. When I think about the way we're opening up our guidance for the year, we're actually assuming market conditions are going to be pretty similar to 2025. As a reminder, we had just under 1 point of pandemic runoff in our 2025 results. So adjusted for that, we roughly had 3% growth last year. And we're assuming that we're going to be in the 3% to 4% range. And as Stephen said, start with the assumptions around 3%. What we expect over time in this two-year timeframe is that just the absence of the negatives will start to allow for conditions to improve and build within that range.
Any particular end markets or customer groups where you're seeing the most improvement in activity as you look ahead? And I have a quick follow-up. Thanks.
Gives you confidence that the acceleration.
Speaker #7: But we don't want to make any major changes into the markets to start the year. There's lots of things I'm optimistic about, actually, just based on how January is in terms of customer meetings and so forth.
In particular end markets or customer groups, but what are you seeing the most improvement in activity as Youll go ahead.
Marc N. Casper: Sure. So my thanks for the question. When I think about the way we're opening up our guidance for the year, we're actually assuming market conditions are going to be pretty similar to 2025. As a reminder, we had just under 1 point of pandemic runoff in our 2025 results. So adjusted for that, we roughly had 3% growth last year. And we're assuming that we're going to be in the 3% to 4% range. And as Stephen said, start with the assumptions around 3%. What we expect over time in this two-year timeframe is that just the absence of the negatives will start to allow for conditions to improve and build within that range.
And I have a quick follow up thanks.
Speaker #7: But we just want to set ourselves up and the industry for success this year.
Sure So Mike Thanks for the question.
When I think about.
The way we are opening up our guidance for the year, we're actually assuming market conditions are going to be pretty similar to 2025. As a reminder, we had just under one point of pandemic runoff in our 2025 results. So adjusted for that we roughly have 3% growth last year.
Speaker #6: Okay. And then maybe as a quick follow-up, again, Stephen, you referred to that prior framework you gave on the two-queue guide last year at the time.
Speaker #6: I think you talked about 3 to 6 percent over the course of 2026 and 2027 combined, just want to make sure that entire framework is still intact, especially how we think about next year, about 2027.
Speaker #6: Nothing's really changed in your forward outlook there.
We're assuming that we're going to be in the three to four range and as Stephen said start with the assumptions around three.
Speaker #6: Thanks. Yeah.
Speaker #3: Yeah. I think when we gave the back in the time when we gave that framework and where we are now, yeah, we see a consistent in terms of our assumption about the future, and we're executing
While we expect over time or in this two year timeframe is that just the absence of the negatives will start to allow for conditions to improve in and build within that range, but we didn't want to make any major changes into the markets to start the year, there's lots of things I'm optimistic about actually just based on how January in terms of customer.
Marc N. Casper: But we don't want to make any major changes into the markets to start the year. There's lots of things I'm optimistic about, actually, just based on how January is in terms of customer meetings and so forth. But we just want to set ourselves up in the industry for success this year. Okay. And then maybe as a quick follow-up, again, Stephen, you referred to that prior framework you gave on the Q2 guide last year. At the time, I think you talked about 3% to 6% over the course of 2026 and 2027 combined. Just want to make sure that entire framework is still intact, especially how we think about next year, about 2027. Nothing has really changed in your forward outlook there. Thanks. Yeah. Yeah.
But we don't want to make any major changes into the markets to start the year. There's lots of things I'm optimistic about, actually, just based on how January is in terms of customer meetings and so forth. But we just want to set ourselves up in the industry for success this year.
Speaker #3: towards that. So, yeah. Yeah.
Speaker #2: And what I would add is that one of the key focuses back in April is that irrespective of market conditions, we were just going to deliver great earnings growth, right?
Speaker #2: And we did a great job of navigating 2025. There was a lot of headwinds around tariffs and so forth that we just worked our way through in delivering 5 percent EPS growth for the year.
Michael Ryskin: Okay. And then maybe as a quick follow-up, again, Stephen, you referred to that prior framework you gave on the Q2 guide last year. At the time, I think you talked about 3% to 6% over the course of 2026 and 2027 combined. Just want to make sure that entire framework is still intact, especially how we think about next year, about 2027. Nothing has really changed in your forward outlook there. Thanks.
<unk> and so forth, but we.
We just want to set ourselves up in the industry for success this year.
Okay, and then maybe as a quick follow up.
Speaker #2: I feel very good about it. And our opening position with effectively around 3 percent growth, we're assuming 6 to 8 percent of EPS growth without any of the capital deployment embedded into that.
Then Stephen you referred to the framework you gave on the <unk> Guide last year at the time I think you talked about.
6% over the course of 2026 and 2027 combined I just want to make sure that entire framework is still impact, especially when we think about next year about 2027, nothing's really changed in Europe in your forward outlook there. Thanks.
Speaker #2: So, that's what we can control. That's what we're going to deliver. And I'm optimistic about the progression of the industry as well, but we wanted to keep ourselves focused on controlling our destiny, which is just great earnings growth, drive share gain, and that's going to serve us well.
Marc N. Casper: Yeah. Yeah.
Marc N. Casper: I think when we gave the back in the time when we gave that framework and where we are now, yeah, we see it as consistent in terms of our assumption about the future, and we're executing towards that. So yeah. Yeah. And what I would add is that one of the key focuses back in April is that irrespective of market conditions, we were just going to deliver great earnings growth, right? And we did a great job of navigating 2025. There was a lot of headwinds around tariffs and so forth that we just worked our way through in delivering 5% EPS growth for the year. I feel very good about it. In our opening position with effectively around 3% growth, we're assuming 6% to 8% of EPS growth without any of the capital deployment embedded into that. So that's what we can control.
I think when we gave the back in the time when we gave that framework and where we are now, yeah, we see it as consistent in terms of our assumption about the future, and we're executing towards that. So yeah. Yeah. And what I would add is that one of the key focuses back in April is that irrespective of market conditions, we were just going to deliver great earnings growth, right? And we did a great job of navigating 2025. There was a lot of headwinds around tariffs and so forth that we just worked our way through in delivering 5% EPS growth for the year. I feel very good about it. In our opening position with effectively around 3% growth, we're assuming 6% to 8% of EPS growth without any of the capital deployment embedded into that. So that's what we can control.
Sure.
Yeah, I think when we gave the.
Back at the time, when we gave that framework and where we can now yes, we see that.
Just in terms of our assumptions about the future.
And what I would add is that one of the key focuses back in April is that irrespective of market conditions. We would just couldn't deliver great earnings growth rate and we did a great job of navigating 2025, there was a lot of.
Speaker #5: Our next question comes from Dan Arias from Stifel. Your line is now open. Please go ahead.
Speaker #8: Good morning, guys. Thank you. Mark, I wanted to ask about biopharma here. One of the ideas seems to be that denim and non-spending at a high level has improved just because these companies are seemingly breathing a little easier now that you have some of these MFN deals in place.
Headwinds around tariffs and so forth that we just worked our way through and delivering 5% EPS growth for the year I feel very good about in our opening position with.
Speaker #8: I'm just curious, are you finding that that's actually translating to spending plans? Are 26 pharma budgets actually looking better to the extent that you can tell with these meetings that you're having so far?
Effectively around 3% growth, we're assuming 6% to 8% of EPS growth without any of the capital deployment embedded into that so.
Marc N. Casper: That's what we're going to deliver. And I'm optimistic about the progression of the industry as well, but we wanted to keep ourselves focused on controlling our destiny, which is just great earnings growth, drive share gain, and that's going to serve us well. Thanks, Mike. Good. Thanks. I'll leave that. Thanks, guys. Thank you. Our next question comes from Daniel Arias from Stifel. Your line is now open. Please go ahead. Good morning, guys. Thank you. Marc, I wanted to ask about biopharma here. One of the ideas seems to be that sentiment on spending at a high level has improved just because these companies are seemingly breathing a little easier now that you have some of these MFN deals in place. I'm just curious, are you finding that that's actually translating to spending plans?
That's what we're going to deliver. And I'm optimistic about the progression of the industry as well, but we wanted to keep ourselves focused on controlling our destiny, which is just great earnings growth, drive share gain, and that's going to serve us well. Thanks, Mike. Good. Thanks. I'll leave that. Thanks, guys.
That's what we can control that's what we're going to deliver.
Im optimistic about the progression of the industry is ball, but we wanted to keep.
Speaker #2: Yeah. Dan, so it's a great question. So, we have a really unique set of capabilities to serve pharma and biotech, right? And when I think about the year last year, mid-single-digit growth, obviously, we had some headwinds around the final rolloff of the pandemic embedded in that, to finish the quarter the last quarter at high single-digit growth.
Ourselves focused on controlling our destiny, which is just great earnings growth drive share gain and.
Operator: Thank you. Our next question comes from Daniel Arias from Stifel. Your line is now open. Please go ahead.
That's going to service well.
Thanks, Mike It's Greg Thanks.
All right. Thanks, guys.
Thank you. Our next question comes from Dan Arias from Stifel. Your line is now open. Please go ahead.
Daniel Arias: Good morning, guys. Thank you. Marc, I wanted to ask about biopharma here. One of the ideas seems to be that sentiment on spending at a high level has improved just because these companies are seemingly breathing a little easier now that you have some of these MFN deals in place. I'm just curious, are you finding that that's actually translating to spending plans?
Speaker #2: Team is doing a great job. And our customers really value trusted partner, and I'll come back to that in a moment. So, when I think about the tone of what we heard in the healthcare conference and certainly in my meetings in Europe in January, I saw quite a number of customers pharma consistent with what we've been hearing for a while, which is good confidence around the ability to navigate governments, and feel good about the things that have been agreed to.
Hey, good morning, guys. Thank you.
I wanted to ask about Biopharma here, one of the ideas seems to be the sentiment on spending at a high level has improved just because these companies are.
Seemingly breathing a little easier now that you have some of these MSR deals in place I'm. Just curious are you finding that that's actually translating.
Marc N. Casper: Our Q2 pharma budgets actually looking better to the extent that you can tell with these meetings that you're having so far? Yeah, Dan, so it's a great question. So we have a really unique set of capabilities to serve pharma and biotech, right? And when I think about the year last year, mid-single-digit growth, obviously, we had some headwinds around the final rolloff of the pandemic embedded in that to finish the quarter, the last quarter at high single-digit growth. The team is doing a great job. And our customers really value trusted partner, and I'll come back to that in a moment.
Our Q2 pharma budgets actually looking better to the extent that you can tell with these meetings that you're having so far?
The spending plans are 26 final budgets actually looking better.
Marc N. Casper: Yeah, Dan, so it's a great question. So we have a really unique set of capabilities to serve pharma and biotech, right? And when I think about the year last year, mid-single-digit growth, obviously, we had some headwinds around the final rolloff of the pandemic embedded in that to finish the quarter, the last quarter at high single-digit growth. The team is doing a great job. And our customers really value trusted partner, and I'll come back to that in a moment.
To the extent that you can tell with these with these meetings that you are having so far.
Speaker #2: And excitement around their pipeline. So, the tone feels good in pharma, and I think that ultimately we'll see that in activity. And then from a biotech you're seeing the data to show that funding is starting to improve, but the tone was incredibly positive.
Yes, Dan.
It's a great question so.
<unk>.
We have a really unique set of capabilities to serve pharma and biotech right and when I think about the year last year mid single digit growth.
Speaker #2: Now, there's of course a lag between when funding flows and when money is spent, but I would say January in terms of what the sentiment is in our customer base was quite positive.
Obviously, we had some headwinds around the final roll off of the pandemic embedded in that to finish the quarter. The last quarter at high single digit growth team is doing a great job.
Marc N. Casper: So when I think about the tone of what we heard in the healthcare conference and certainly in my meetings in Europe in January, I saw quite a number of customers, pharma consistent with what we've been hearing for a while, which is good confidence around the ability to navigate governments and feel good about the things that have been agreed to and excitement around their pipeline. So the tone feels good in pharma, and I think that ultimately we'll see that in activity. Then from a biotech, you're seeing the data to show that funding is starting to improve, but the tone was incredibly positive. Now, there's of course a lag between when funding flows and when money is spent, but I would say January, in terms of what the sentiment is in our customer base, was quite positive. Trusted partner is the other aspect of it, right?
So when I think about the tone of what we heard in the healthcare conference and certainly in my meetings in Europe in January, I saw quite a number of customers, pharma consistent with what we've been hearing for a while, which is good confidence around the ability to navigate governments and feel good about the things that have been agreed to and excitement around their pipeline. So the tone feels good in pharma, and I think that ultimately we'll see that in activity. Then from a biotech, you're seeing the data to show that funding is starting to improve, but the tone was incredibly positive. Now, there's of course a lag between when funding flows and when money is spent, but I would say January, in terms of what the sentiment is in our customer base, was quite positive. Trusted partner is the other aspect of it, right?
And our customers really value trusted partner and I'll come back to that in a moment. So when I think about the tone of.
Speaker #2: Trusted partner is the other aspect of it, right? There's one is what is the industry, and two is what is our role in all of this.
What we heard the healthcare conference and certainly in my meetings in Europe in January I'm, sorry, quite a number of customers.
Speaker #2: When I think about trusted partner, I've talked about it for a number of years, and so what does it really mean? And I thought maybe two anecdotes might be helpful to just bring it to reality.
<unk> pharma consistent with what we've been hearing for a while which is good confidence around the ability to navigate governments.
Speaker #2: Right? Because we see lots of customers, and all of our industry peers do. So, I was at a healthcare conference. I was meeting with the CEO of one of our larger customers, and discussing objectives for the year, where we can be helpful, what were the challenges.
And feel good about the things that have been agreed to.
And excitement around their pipelines so the tone feels good in pharma and I think that ultimately you will see that in activity and then from a biotech.
You've seen the data to show that funding is starting to improve but the tone was incredibly positive no. There's of course, there's a lag between when funding flows and when money is spent but I would say January in terms of what the sentiment is in our in our customer base.
Speaker #2: The discussion was so positive that he literally said, "Can we go and find my head of development?" And which we did. And let's talk about the specifics, right?
Speaker #2: Literally, just kind of real-time, we tracked his peer down or his colleague down, and we got into the details. And the right follow-ups happened from that.
Marc N. Casper: There's one is what is the industry, and two is what is our role in all of this. When I think about trusted partner, I've talked about it for a number of years. And so what does it really mean? And I thought maybe two anecdotes might be helpful to just bring it to reality, right? Because we see lots of customers, and all of our industry peers do. So I was at a healthcare conference. I was meeting with the CEO of one of our larger customers and discussing objectives for the year, where we can be helpful, what were the challenges. The discussion was so positive that he literally said, "Can we go and find my head of development?" Which we did. And let's talk about the specifics, right?
There's one is what is the industry, and two is what is our role in all of this. When I think about trusted partner, I've talked about it for a number of years. And so what does it really mean? And I thought maybe two anecdotes might be helpful to just bring it to reality, right? Because we see lots of customers, and all of our industry peers do. So I was at a healthcare conference. I was meeting with the CEO of one of our larger customers and discussing objectives for the year, where we can be helpful, what were the challenges. The discussion was so positive that he literally said, "Can we go and find my head of development?" Which we did. And let's talk about the specifics, right?
It was quite positive.
Trusted partner.
Speaker #2: And if I think about spending a half-day with a management team of one of our larger biotech customers and just working through systematically about what are their priorities, how we can help them, and then the long list of follow-ups about what the new opportunities are and why that's so relevant to their success, I hope that brings that a little bit more to life.
It's the other aspect of it right. There is one is what is the industry and two is what is our role in all of us.
When I think about trusted partner I've talked about it for a number of years.
So what does it really mean and I thought maybe two anecdotes.
Might be helpful to just bring it to reality, we see lots of customers in all of our.
Industry peers do so sorry was on healthcare conference I was meeting with the CEO of one of our.
Speaker #2: And it's across our whole management team we're having these dialogues, right? And that's the super cool thing about our role in pharma and biotech and why we're so well positioned
Speaker #2: And it's across our whole management team we're having these dialogues, right? And that's the super cool thing about our role in pharma and biotech and why we're so well positioned there.
Larger customers and discussing objectives for the year, we can be helpful with the challenges the.
Speaker #8: Yep. Okay. Helpful perspective. Maybe just to sort of summarize the point that you kind of touched on there. Mid-single-digit growth in 2025 in biopharma in a year with some obvious headwinds is mid-singles plus the right way to think about things or something
The discussion was so positive that he literally say can we go and find my head of development.
Marc N. Casper: Literally, just kind of real-time, we tracked his peer down or his colleague down, and we got into the details, and the right follow-ups happened from that. If I think about spending a half day with the management team of one of our larger biotech customers and just working through systematically about what are their priorities, how we can help them, and then the long list of follow-ups about what the new opportunities are and why that's so relevant to their success, I hope that brings that a little bit more to life. It's across our whole management team we're having these dialogues, right? That's the super cool thing about our role in pharma and biotech and why we're so well-positioned there. Yep. Okay. Helpful perspective. Maybe just to sort of summarize the point that you kind of touched on there.
Literally, just kind of real-time, we tracked his peer down or his colleague down, and we got into the details, and the right follow-ups happened from that. If I think about spending a half day with the management team of one of our larger biotech customers and just working through systematically about what are their priorities, how we can help them, and then the long list of follow-ups about what the new opportunities are and why that's so relevant to their success, I hope that brings that a little bit more to life. It's across our whole management team we're having these dialogues, right?
<unk>, which we did and let's talk about the specifics right literally just kind of real time, we tracked as peer down or his colleague down and we got into the details and the right follow ups happen from that and if I think about spending.
Speaker #8: different? Yeah.
Speaker #3: I think that's the right way to frame it. There's obviously different ways we can get to the 3 to 4, but that's I think that's a way to frame the year as we stand here now.
A half day with the management team of one of our larger biotech customers and just working through systematically about what are their priorities. How we can help them and then the long list of follow ups about what the new opportunities are and why that's so relevant to their success.
Speaker #2: Thank you,
Speaker #2: Dan. Okay.
Speaker #8: Thank
Speaker #8: you. Thank
Speaker #5: you. Our next question comes from Jack Meehan from Nefron Research. Your line is now open, Jack. Please go
Speaker #5: ahead. Thank
Speaker #9: you. Good morning, guys. Wanted to build off of where Dan left off, but focusing on the LPBS segment. So, in pharma services, Mark, how are you feeling about industry-supplied demand dynamics entering 2026?
I hope that brings.
That's the super cool thing about our role in pharma and biotech and why we're so well-positioned there.
That a little bit more to life and it's across our whole management team are having these dialogue right and thats the Super Cool thing about our role in pharma and biotech and why we're so well positioned there.
Daniel Arias: Yep. Okay. Helpful perspective. Maybe just to sort of summarize the point that you kind of touched on there.
Okay helpful perspective, maybe just to sort of summarize the point of view you kind of touched on there mid single digit growth in 2025, and Biopharma and the year with some obvious headwinds is mid singles plus the right way to think about things or or something different.
Marc N. Casper: Mid-single-digit growth in 2025 in biopharma in a year with some obvious headwinds. Is mid-singles plus the right way to think about things or something different? Yeah. I think that's the right way to frame it. There's obviously different ways we can get to the 3 to 4, but I think that's a way to frame the year as we stand here now. Thank you, Dan. Okay. Thank you. Thank you. Our next question comes from Jack Meehan from Nephron Research. Your line is now open, Jack. Please go ahead. Thank you. Good morning, guys. I wanted to build off of where Dan left off, but focusing on the LPBS segment. So in pharma services, Marc, how are you feeling about industry supply demand dynamics entering 2026? And any color you can share on what's reflected in the guide for that business? Yeah.
Mid-single-digit growth in 2025 in biopharma in a year with some obvious headwinds. Is mid-singles plus the right way to think about things or something different?
Speaker #9: And any color you can share on what's reflected in the guide for that business?
Speaker #2: Yeah. So, when I think about our pharma services business, really executing very well. As a reminder, we have the leading positions in the drug products, sterile-filled finish, and in our clinical trials logistics packaging business.
Marc N. Casper: Yeah. I think that's the right way to frame it. There's obviously different ways we can get to the 3 to 4, but I think that's a way to frame the year as we stand here now. Thank you, Dan.
Getting the right way to frame it.
Obviously different ways, we can get to the three to four but thats enough.
Daniel Arias: Okay. Thank you.
Operator: Thank you. Our next question comes from Jack Meehan from Nephron Research. Your line is now open, Jack. Please go ahead.
That's the way to frame the year is it <unk>.
Speaker #2: And we have a smaller position but meaningful in biologics drug substance as well. So, when I think about industry demand capacity, really sterile-filled finish has been the area where there is heightened demand relative to industry capacity as part of the reason that we acquired the Sanofi site in New Jersey.
Thank you Dan Okay. Thank you.
Thank you. Our next question comes from Jack Meehan from Nephron Research. Your line is now open Jack. Please go ahead.
Jack Meehan: Thank you. Good morning, guys. I wanted to build off of where Dan left off, but focusing on the LPBS segment. So in pharma services, Marc, how are you feeling about industry supply demand dynamics entering 2026? And any color you can share on what's reflected in the guide for that business?
Thank you good morning, guys.
Wanted to build off of where Dan left off but focusing on the <unk> segment.
So in pharma services, Mark how are you feeling about industry supply demand dynamics entering 2026.
Speaker #2: It's really in a way a capital project to expand our capacity where winning contracts to meet our pharmaceutical customers' needs for reshoring to the US.
Marc N. Casper: Yeah.
And any color you can share on what's reflected in the guide for that business.
Marc N. Casper: So when I think about our Pharma Services business, really executing very well. As a reminder, we have the leading positions in the drug product Sterile Fill Finish and in our clinical trials logistics packaging business. And we have a smaller position but meaningful in biologic Drug Substance as well. So when I think about industry demand capacity, really Sterile Fill Finish has been the area where there is heightened demand relative to industry capacity. As part of the reason that we acquired the Sanofi site in New Jersey, it's really in a way a capital project to expand our capacity. We're winning contracts to meet our pharmaceutical customers' needs for reshoring to the US. So the demand profile is good, and that business has had a strong year and will continue to step up in growth over the next couple of years. So well-positioned there.
So when I think about our Pharma Services business, really executing very well. As a reminder, we have the leading positions in the drug product Sterile Fill Finish and in our clinical trials logistics packaging business. And we have a smaller position but meaningful in biologic Drug Substance as well. So when I think about industry demand capacity, really Sterile Fill Finish has been the area where there is heightened demand relative to industry capacity. As part of the reason that we acquired the Sanofi site in New Jersey, it's really in a way a capital project to expand our capacity. We're winning contracts to meet our pharmaceutical customers' needs for reshoring to the US. So the demand profile is good, and that business has had a strong year and will continue to step up in growth over the next couple of years. So well-positioned there.
Speaker #2: So, the demand profile is good, and that business is heading strong year. And we'll continue to step up in growth over the next couple of years.
Yes, so when I think about our pharma services business really executing very well.
Speaker #2: So, well-positioned there. And I would believe that that will continue to be a nice contributor to our long-term growth in this business.
As a reminder, we have.
The leading positions.
In the drug products tariff will finish and in our clinical trials logistics packaging business.
Speaker #9: Excellent. Okay. And then next one to talk about the channel. So, if you do some relatively simple benchmarking, it seems like you're doing pretty well there competitively.
We have a smaller position but meaningful in.
Ex drug substance as well.
So when I think about.
Speaker #9: I was wondering if you could just talk about what's resonating in terms of investments you've made there, and do you see this competitive advantage as stable or expanding, weakening entering this year, just any color on that business would be
Speaker #9: I was wondering if you could just talk about what's resonating in terms of investments you've made there, and do you see this competitive advantage as stable or expanding, weakening entering this year, just any color on that business would be great.
Industry demand capacity.
Really sterile fill finish as has been the area, where there is heightened demand relative to industry capacity as part of the reason that we.
<unk> acquired the Sanofi site in New Jersey is really in a way a capital project to expand our capacity.
Speaker #2: Yeah. Jack, thanks for the question on our channel business. So, when I think about how we serve the research and safety market, it's a business that's performed well for us for a long time.
We're winning contracts to meet our pharmaceutical customers needs for reassuring to the us so.
<unk> profile is good and our businesses.
Had a strong year and we will continue to step up in growth over the next couple of years, so so well positioned there.
Marc N. Casper: And I would believe that that will continue to be a nice contributor to our long-term growth in this business. Excellent. Okay. And then, next one to talk about the channel. So if you do some relatively simple benchmarking, it seems like you're doing pretty well there competitively. I was wondering if you could just talk about what's resonating in terms of investments you've made there. And do you see this competitive advantage as stable or expanding, weakening entering this year? Just any color on that business would be great. Yeah, Jack, thanks for the question on our channel business. So when I think about how we serve the research and safety market, it's a business that's performed well for us for a long time. We have an excellent portfolio of supplier partners that has what our customers need. And you see the strength of the performance broad base.
And I would believe that that will continue to be a nice contributor to our long-term growth in this business.
Speaker #2: We have an excellent portfolio of supplier partners that has what our customers need. And you see the strength of the performance broad-based. We've done well in pharma and biotech in terms of winning business.
Jack Meehan: Excellent. Okay. And then, next one to talk about the channel. So if you do some relatively simple benchmarking, it seems like you're doing pretty well there competitively. I was wondering if you could just talk about what's resonating in terms of investments you've made there. And do you see this competitive advantage as stable or expanding, weakening entering this year? Just any color on that business would be great.
I would believe that that will continue to be a nice contributor to our long term growth in this business.
Excellent Okay, and then next I wanted to talk about the channel.
So if you do some relatively simple benchmarking it seems like youre doing pretty well there competitively.
Speaker #2: We have done well in serving industrial customers. We call that out. And while academic and government is certainly more pressured as the end market is, actually, our share position has been quite stable there.
Was wondering if you could just talk about what's resonating in terms of investments you've made there.
And do you see this competitive advantage as stable or expanding weakening entering this year, just any color on that business would be great.
Marc N. Casper: Yeah, Jack, thanks for the question on our channel business. So when I think about how we serve the research and safety market, it's a business that's performed well for us for a long time. We have an excellent portfolio of supplier partners that has what our customers need. And you see the strength of the performance broad base.
Speaker #2: So, I think competitive dynamics remain pretty consistent. We've been a methodical share gainer over many years, and that trend continues. And we'll continue to do a great job serving our customers and helping them meet their innovation and productivity
Yes Jack.
Thanks for the question on our channel business.
So when I think about.
How we serve the research and safety market.
Speaker #2: needs. Excellent.
It's a business that's performed well for us for a long time.
Speaker #9: Thank you,
Speaker #9: Mark. Thank you,
Speaker #2: Jack. Thank you.
We have an excellent.
Speaker #5: Our next question comes from Matt LaRue from William Blair. Your line is now open. Please go
Portfolio of supplier partners.
That has what are.
Speaker #5: ahead. Hi.
Marc N. Casper: We've done well in pharma and biotech in terms of winning business. We have done well in serving industrial customers. We call that out. And while academic and government is certainly more pressured as the end market is, actually, our share position has been quite stable there. So I think competitive dynamics remain pretty consistent. We've been a methodical share gainer over many years, and that trend continues. And we'll continue to do a great job serving our customers and helping them meet their innovation and productivity needs. Excellent. Thank you, Mark. Thank you, Jack. Thank you. Our next question comes from Matt Larew from William Blair. Your line is now open. Please go ahead. Hi, good morning.
We've done well in pharma and biotech in terms of winning business. We have done well in serving industrial customers. We call that out. And while academic and government is certainly more pressured as the end market is, actually, our share position has been quite stable there. So I think competitive dynamics remain pretty consistent. We've been a methodical share gainer over many years, and that trend continues. And we'll continue to do a great job serving our customers and helping them meet their innovation and productivity needs.
Customers need and you see the strength.
Speaker #10: Good morning. Since you launched accelerator in late 2024, now let's say a number of pretty big changes in the drug development and manufacturing ecosystem in terms of manufacturing regionalization, rising use of AI in drug discovery.
The performance broad based we've done well in pharma and biotech in terms of winning business.
We have done well in serving industrial customers, we called that out and while academic and government is certainly more pressured as the end market is.
Speaker #10: Mark, you referenced outstanding customer adoption of that solution. Just curious how some of these ecosystem changes are affecting customer preferences for outsourcing in general, and I guess more specifically in the accelerator offering.
Speaker #10: Mark, you referenced outstanding customer adoption of that solution. Just curious how some of these ecosystem changes are affecting customer preferences for outsourcing in general, and I guess more specifically in the accelerator offering.
Actually our share position has been it's been quite stable. There. So I think competitive dynamics remain pretty consistent we've been.
Methodical share gainer over many years and that trend continues.
Speaker #2: Yeah. That's a great question. So, when I think about let me start with this clinical research more broadly, and then I'll delve into change in a little bit about accelerator.
Jack Meehan: Excellent. Thank you, Mark.
We will continue to do a great job, serving our customers and helping them meet their innovation and productivity needs.
Marc N. Casper: Thank you, Jack.
Operator: Thank you. Our next question comes from Matt Larew from William Blair. Your line is now open.
Speaker #2: So, the clinical research business for thermal fissures performing very well. And the year played out really exactly as we thought it would play out.
Excellent. Thank you Mark Thank you Jack.
Matt Larew: Please go ahead. Hi, good morning.
Thank you. Our next question comes from Matt <unk> from William Blair. Your line is now open. Please go ahead.
Marc N. Casper: Since you launched Accelerator in late 2024, now I've seen a number of pretty big changes in the drug development and manufacturing ecosystem in terms of manufacturing regionalization, rising use of AI, and drug discovery. Marc, you referenced outstanding customer adoption of that solution. Just curious how some of these ecosystem changes are affecting customer preferences for outsourcing in general, and I guess more specifically in the Accelerator offering. Yeah, that's a great question. So when I think about, let me start with this clinical research more broadly, and then I'll delve into change and a little bit about Accelerator. So the clinical research business for Thermo Fisher is performing very well.
Since you launched Accelerator in late 2024, now I've seen a number of pretty big changes in the drug development and manufacturing ecosystem in terms of manufacturing regionalization, rising use of AI, and drug discovery. Marc, you referenced outstanding customer adoption of that solution. Just curious how some of these ecosystem changes are affecting customer preferences for outsourcing in general, and I guess more specifically in the Accelerator offering.
Speaker #2: And with a steady progression of revenue building sequentially quarter over quarter and then returning to growth in Q3 and mid-single-digit growth in Q4, organically and authorizations have been far ahead of our revenue throughout the year.
Hi, Good morning, since you launched accelerator in late 2024.
I'll state number of a pretty big changes in the drug development and manufacturing ecosystem in terms of manufacturing regionalization and.
And use of AI in drug discovery, Mark you referenced outstanding customer adoption of that solution. Just curious how some of these ecosystem changes are affecting customer.
Speaker #2: And it's showing the strong momentum in our competitive position. So, when I think about accelerated drug development, which was something that we worked on creating for almost three years, we launched it in the fourth quarter of 2024.
Marc N. Casper: Yeah, that's a great question. So when I think about, let me start with this clinical research more broadly, and then I'll delve into change and a little bit about Accelerator. So the clinical research business for Thermo Fisher is performing very well.
And as for outsourcing in general and I guess more specifically in the.
Accelerator offering.
Yes, that's a great question, so when I think about.
Speaker #2: What it really is about is how do you shave a week off here a month off there? How do you get waste out of the system?
Let me start with its clinical research more broadly and then I'll delve into change in a little bit about accelerator.
Marc N. Casper: The year played out really exactly as we thought it would play out, with a steady progression of revenue building sequentially quarter over quarter, and then returning to growth in Q3 and mid-single-digit growth in Q4 organically. Authorizations have been far ahead of our revenue throughout the year and is showing a strong momentum in our competitive position. So when I think about Accelerator drug development, which was something that we worked on creating for almost three years, we launched it in Q4 2024. What it really is about is how do you shave a week off here, a month off there?
The clinical research business.
The year played out really exactly as we thought it would play out, with a steady progression of revenue building sequentially quarter over quarter, and then returning to growth in Q3 and mid-single-digit growth in Q4 organically. Authorizations have been far ahead of our revenue throughout the year and is showing a strong momentum in our competitive position. So when I think about Accelerator drug development, which was something that we worked on creating for almost three years, we launched it in Q4 2024. What it really is about is how do you shave a week off here, a month off there?
Speaker #2: And ultimately, meaningfully bring the drugs to market more quickly or have insights that a drug is not performing well and therefore end a clinical trial more quickly?
For Thermo Fisher is performing very well and the year played out really exactly as we thought it would play out.
With a steady progression.
Speaker #2: Both of which add value to our customers and it's really resulting in very meaningful authorizations wins for both our clinical research business and new total contracts for our pharma services business.
<unk>.
Revenue building sequentially quarter over quarter, and then returning to growth in Q3 and mid single digit growth in Q4 organically and authorizations have been far ahead of our revenue throughout the year.
Speaker #2: So, it is a differentiated capabilities. It's one that we've really worked hard to understand where the best opportunity is and then apply it to customers.
Is showing the strong momentum in our competitive position so when I think about <unk>.
Speaker #2: When I think about how we are collaborating with OpenAI, really focus on the clinical research side of the thing, the equation. It's how do you further shave time and cost out of the process?
Accelerated drug development, which was something that we worked on creating for almost three years, we launched it in the fourth quarter of 2024.
What it really is about is how do you achieve a week off here a month follow up there how do you get waste out of the system and ultimately meaningfully bring.
Marc N. Casper: How do you get waste out of the system and ultimately meaningfully bring the drugs to market more quickly or have insights that a drug is not performing well, and therefore end a clinical trial more quickly, both of which add value to our customers? And it's really resulting in very meaningful authorizations wins for both our clinical research business and new total contracts for our pharma services business. So it is a differentiated capabilities. It's one that we've really worked hard to understand where the best opportunity is, and then apply it to customers. When I think about how we are collaborating with OpenAI, really focused on the clinical research side of the thing, the equation is how do you further shave time and cost out of the process and have even more insights? And that's going to be a journey because it's a highly regulated industry.
How do you get waste out of the system and ultimately meaningfully bring the drugs to market more quickly or have insights that a drug is not performing well, and therefore end a clinical trial more quickly, both of which add value to our customers? And it's really resulting in very meaningful authorizations wins for both our clinical research business and new total contracts for our pharma services business. So it is a differentiated capabilities. It's one that we've really worked hard to understand where the best opportunity is, and then apply it to customers. When I think about how we are collaborating with OpenAI, really focused on the clinical research side of the thing, the equation is how do you further shave time and cost out of the process and have even more insights? And that's going to be a journey because it's a highly regulated industry.
Speaker #2: And have even more insights? And that's going to be a journey because it's a highly regulated industry. And we'll go on that journey with our customers and look for new opportunities to drive an even more efficient drug development process and our experience is the higher the returns are sponsors get on their investment, the more indications they want to go after in terms of the scale of the clinical trials and they actually in a way pursue their pipeline more aggressively.
The drugs to market more quickly or have insights that our drug is not performing well and therefore, <unk> and the clinical trial more quickly both of which add value to our customers and.
It's really resulting in very meaningful authorizations wins for both our clinical research business in new total contracts for our pharma services business. So it is a differentiated capabilities. It's one that we've.
Speaker #2: So, we're really excited about what the future holds in terms of drug development more broadly, both in the manufacturing of the medicines as well as executing the clinical
Really worked hard to understand where the best opportunity is and then apply it to customers. When I think about how we are collaborating with open AI really focus on the clinical research side of the thing equation is how do you further shave time and cost out of the process.
Speaker #2: research. Okay.
Speaker #10: Thanks for that. So, encouraged about drug development activities, but thinking about the drug discovery side, I think still some debate about whether AI is a headwind or tailwind to the amount of wet lab work moving forward.
Marc N. Casper: We'll go on that journey with our customers and look for new opportunities to drive an even more efficient drug development process. Our experience is the higher the returns our sponsors get on their investment, the more indications they want to go after in terms of the scale of the clinical trials. And they actually, in a way, pursue their pipeline more aggressively. So we're really excited about what the future holds in terms of drug development more broadly, both in the manufacturing of the medicines as well as executing the clinical research. Okay. Thanks for that. So encouraged about drug development activities. But thinking about the drug discovery side, I think still some debate about whether AI is a headwind or tailwind to the amount of wet lab work moving forward.
We'll go on that journey with our customers and look for new opportunities to drive an even more efficient drug development process. Our experience is the higher the returns our sponsors get on their investment, the more indications they want to go after in terms of the scale of the clinical trials. And they actually, in a way, pursue their pipeline more aggressively. So we're really excited about what the future holds in terms of drug development more broadly, both in the manufacturing of the medicines as well as executing the clinical research.
And have even more insights than.
Speaker #10: Just would be curious what your experience has been with customers be it AI-first biotechs and then larger pharma companies that were perhaps more aggressively using AI.
That's going to be a journey because it is a highly regulated industry.
We will go on that journey with our customers and look for new opportunities to drive an even more efficient drug development process and our experiences.
Speaker #10: And what you've seen about their wet lab activity, their demand for instruments, etc.?
The higher the returns our sponsors get on their investment.
Speaker #2: So, what we're seeing is a recovery in the early research part of our business in terms of demand for the bioscience reagents, the basic R&D labs in pharma from the channel.
More indications they want to go after in terms of the scale of the clinical trials and they actually.
The way pursue their pipeline more aggressively so.
We're really excited about what the future holds in terms of drug development more broadly both in the manufacturing and the medicines as well as executing the clinical research.
Matt Larew: Okay. Thanks for that. So encouraged about drug development activities. But thinking about the drug discovery side, I think still some debate about whether AI is a headwind or tailwind to the amount of wet lab work moving forward.
Speaker #2: So, you're seeing that methodically strengthen. Some of that will come with biotech funding as well as that improves. What I would say is on the application of AI, we're doing a lot of work with customers on the wet lab, dry lab combination, meaning that we're actually working with our customers to better link what goes on in their wet labs with their data management and insights from AI.
Okay. Thanks for that.
<unk> about drug development.
Activities.
Thinking about the drug discovery side.
Still some debate about whether AI as a headwind or tailwind tailwind to the amount of wet lab work moving forward just would be curious.
Marc N. Casper: Just would be curious what your experience has been with customers, be it AI-first biotechs and then larger pharma companies that were perhaps more aggressively using AI, and what you've seen about their wet lab activity, their demand for instruments, etc.? So what we're seeing is a recovery in the early research part of our business in terms of demand for the bioscience reagents, the basic R&D labs in pharma from the channel. So you're seeing that methodically strengthen. Some of that will come with biotech funding as well as that improves. What I would say is on the application of AI, we're doing a lot of work with customers on the wet lab/dry lab combination, meaning that we're actually working with our customers to better link what goes on in their wet labs with their data management and insights from AI.
Just would be curious what your experience has been with customers, be it AI-first biotechs and then larger pharma companies that were perhaps more aggressively using AI, and what you've seen about their wet lab activity, their demand for instruments, etc.?
What your experience has been with customers.
AI first biotechs, and then larger pharma companies, who are perhaps more aggressively using AI and what <unk> seen about.
Speaker #2: Our experience to date and certainly our experience historically is the more confidence you have in the research, you wind up doing actually more wet lab experimentation.
Marc N. Casper: So what we're seeing is a recovery in the early research part of our business in terms of demand for the bioscience reagents, the basic R&D labs in pharma from the channel. So you're seeing that methodically strengthen. Some of that will come with biotech funding as well as that improves. What I would say is on the application of AI, we're doing a lot of work with customers on the wet lab/dry lab combination, meaning that we're actually working with our customers to better link what goes on in their wet labs with their data management and insights from AI.
Their wet lab activity at our demand for instruments et cetera.
So.
What we're seeing is a recovery in the early research part of our business in terms of demand for.
Speaker #2: You're probably going to work on less things that are just going to fail. So, there is some waste that comes out of the system.
Speaker #2: But customers want to have total confidence in the work they're doing, and that's been our experience. And so, we're actually quite optimistic about the intersection between AI and the demand for wet lab research.
The bioscience reagents.
The basic R&D labs, and pharma from the channels, so youre seeing that.
Methodically strengthen.
Some of that will come with biotech funding as well as that improves what I would say is.
Speaker #2: Thanks, Matt, for the
Speaker #10: Thank you.
On the application of AI.
Speaker #5: Thank you. Our next question comes from Casey Woodring from JP Morgan. Your line is now open. Please go ahead.
We're doing a lot of work with customers on the wet lab dry lab combination, meaning that we're actually working with our customers to better link what goes on in their wet labs with their data management and insights from AI.
Speaker #4: Oh, thank you for taking my questions. And first, just want to reiterate the comments: congratulations, Stephen. On retirement. And Jim, looking forward to working with you moving forward.
Marc N. Casper: Our experience to date, and certainly our experience historically, is the more confidence you have in the research, you wind up doing actually more wet lab experimentation. You're probably going to work on less things that are just going to fail. So there is some waste that comes out of the system. But customers want to have total confidence in the work they're doing. And that's been our experience. And so we're actually quite optimistic about the intersection between AI and the demand for wet lab research. Thanks, Matt, for the questions. Thank you. Thank you. Our next question comes from Casey Woodring from J.P. Morgan. Your line is now open. Please go ahead. Thank you for taking my questions. And first, just want to reiterate the comments. Congratulations, Stephen, on retirement. And Jim, looking forward to working with you moving forward.
Our experience to date, and certainly our experience historically, is the more confidence you have in the research, you wind up doing actually more wet lab experimentation. You're probably going to work on less things that are just going to fail. So there is some waste that comes out of the system. But customers want to have total confidence in the work they're doing. And that's been our experience. And so we're actually quite optimistic about the intersection between AI and the demand for wet lab research. Thanks, Matt, for the questions.
Our experience to date and certainly our experience historically is the more confidence you have in the research you wind up doing actually more wet lab experimentation, you're probably going to work on less things that are just going to fail. So there is some waste that comes out of the system.
Speaker #4: Wanted to touch on analytical instruments performance in 4Q. Curious on how performance played out relative to expectations in the quarter. Obviously, a tough comp, but curious to hear what you're seeing in that business across the different regions and end markets and whether you saw a budget flush in the quarter or any sort of stimulus in China.
Customers want to have total confidence.
Speaker #2: Casey, thanks for the question. So, the analytical instruments team did a really good job in the fourth quarter. As you said, we had a more challenging comparison and we were a flat growth in the quarter.
In the work Theyre doing and Thats been our experience.
So we're actually quite optimistic about.
The intersection between AI and the demand for.
Matt Larew: Thank you.
Operator: Thank you. Our next question comes from Casey Woodring from J.P. Morgan. Your line is now open. Please go ahead.
Wet lab research thanks, Matt for the questions.
Speaker #2: And we grew modestly in the full year. And when I think about that dynamic, that's in a dynamic where you have pressures on academic and government funding.
Thank you.
Thank you. Our next question comes from Casey Woodring from Jpmorgan. Your line is now open. Please go ahead.
Casey Woodring: Thank you for taking my questions. And first, just want to reiterate the comments. Congratulations, Stephen, on retirement. And Jim, looking forward to working with you moving forward.
Speaker #2: You also have pressures in China more broadly throughout the year. So, two of the important sectors of that part of the business faced the headwinds.
Thank you for taking my questions and first just want to reiterate the comments congratulations Stephen on retirement and Jim looking forward to working with you moving forward.
Marc N. Casper: Wanted to touch on analytical instruments performance in Q4. Curious on how performance played out relative to your expectations in the quarter. Obviously, a tough comp, but curious to hear what you're seeing in that business across the different regions and end markets, and whether you saw budget flush in the quarter or any sort of stimulus in China. Casey, thanks for the question. So the analytical instruments team did a really good job in the fourth quarter. As you said, we had a more challenging comparison, and we were flat growth in the quarter, and we grew modestly in the full year. And when I think about that dynamic, that's in a dynamic where you have pressures on academic and government funding. You also have pressures in China more broadly throughout the year. So two of the important sectors of that part of the business faced the headwinds.
Wanted to touch on analytical instruments performance in Q4. Curious on how performance played out relative to your expectations in the quarter. Obviously, a tough comp, but curious to hear what you're seeing in that business across the different regions and end markets, and whether you saw budget flush in the quarter or any sort of stimulus in China.
Speaker #2: We did very well with our pharma and biotech customers. So, I feel good about that. And I feel good about the performance in aggregate.
Wanted to touch on analytical instruments performance in <unk> curious on how the performance played out relative to your expectations in the quarter, obviously, a tough comp, but curious to hear what youre seeing in that business across the different regions and end markets and whether you saw a budget flush in the quarter or any sort of stimulus in China.
Speaker #2: For us, a lot of what drives it is the quality of our innovation and the impact, right? We have an incredible year, right? And if you think about where I allocated time, even in my remarks today, I spent more time on innovation than anything.
Marc N. Casper: Casey, thanks for the question. So the analytical instruments team did a really good job in the fourth quarter. As you said, we had a more challenging comparison, and we were flat growth in the quarter, and we grew modestly in the full year. And when I think about that dynamic, that's in a dynamic where you have pressures on academic and government funding. You also have pressures in China more broadly throughout the year. So two of the important sectors of that part of the business faced the headwinds.
Speaker #2: Because customers want those breakthrough solutions that matter. Right? And whether it was what we're doing in mass spectrometry, the next generation of our cryo-electron microscope or tomography and structural biology for all of those insights that we're bringing, that's what drives demand here.
Okay. Thanks for the question.
So.
In the analytical instruments team did a really good job in the fourth quarter. As you said, we had a more challenging comparison.
We were flat growth in the quarter and we grew modestly in the full year. So when I think about that dynamic.
Speaker #2: So, the business is well positioned. We're applying AI to the capabilities as well. And announced an interesting collaboration with NVIDIA at the beginning of the year.
That's in a dynamic where you have pressures on academic and government funding you also have pressures in China more broadly throughout the year. So two of the important sectors of that part of the business faced the headwinds we did very well with our pharma and biotech customers. So I feel good about that and I feel good about the performance in aggregate for us a lot of it.
Speaker #2: And so, we'll continue to strengthen that business and it's an important part of our
Marc N. Casper: We did very well with our pharma and biotech customers, so I feel good about that. And I feel good about the performance in aggregate. For us, a lot of what drives it is the quality of our innovation and the impact, right? We had an incredible year, right? And if you think about where I allocated time, even in my remarks today, I spent more time on innovation than anything because customers want those breakthrough solutions that matter, right? And whether it was what we're doing in mass spectrometry, the next generation of our cryo electron microscope for tomography and structural biology, for all of those insights that we're bringing, that's what drives demand here. So the business is well positioned. We're applying AI to the capabilities as well and announced an interesting collaboration with NVIDIA at the beginning of the year.
We did very well with our pharma and biotech customers, so I feel good about that. And I feel good about the performance in aggregate. For us, a lot of what drives it is the quality of our innovation and the impact, right? We had an incredible year, right? And if you think about where I allocated time, even in my remarks today, I spent more time on innovation than anything because customers want those breakthrough solutions that matter, right? And whether it was what we're doing in mass spectrometry, the next generation of our cryo electron microscope for tomography and structural biology, for all of those insights that we're bringing, that's what drives demand here. So the business is well positioned. We're applying AI to the capabilities as well and announced an interesting collaboration with NVIDIA at the beginning of the year.
Speaker #2: company.
Speaker #10: helpful. And then relatedly, as we think about your analytical instrument end markets, the US academic market specifically there, Mark, at our conference a few weeks ago, you had talked about the expectation for US academic and government customers to really remain cautious until a finalized NIH budget is passed.
What drives it is the quality of our innovation and the impact we have an incredible year right and if you think about where I allocated time, even in my remarks today I spent more time on innovation than anything because customers want those breakthrough solutions that matter right and whether it was what we're doing in mass spectrometry. The next generation of our.
Speaker #10: And then for spending to increase thereafter. I guess, what's assumed for US academic and government growth in 2026? And really, how quickly would you expect spending to pick up after that budget is finalized?
Speaker #10: Last year, we saw a bit of a discrepancy between fund appropriations and ultimate spending with tools. So, just any further color on the expectations for US academic and government in 2026?
Our cryo electron microscope tomography and structural biology for all of those insights that we're bringing that's what drives demand here. So the business is well positioned.
Speaker #10: Thanks.
We are applying AI to the capabilities as well and announced an interest in collaboration with the video at the beginning of the year and so we will continue to strengthen that business.
Speaker #2: Yeah. So, Casey, when I think first globally, our assumption for academic and government embedded in our guidance is similar conditions to last year in aggregate.
Marc N. Casper: And so we'll continue to strengthen that business, and it's an important part of our company. That's helpful. And then relatedly, as we think about your analytical instrument end markets, the US academic market specifically there, Marc, at our conference a few weeks ago, you had talked about the expectation for US academic and government customers to really remain cautious until a finalized NIH budget is passed and then for spending to increase thereafter. I guess what's assumed for US academic and government growth in 2026, and really how quickly would you expect spending to pick up after that budget is finalized? Last year, we saw a bit of a discrepancy between fund appropriations and ultimate spending with tools. So just any further color on the expectations for US academic and government in 2026? Thanks. Yeah.
And so we'll continue to strengthen that business, and it's an important part of our company.
Casey Woodring: That's helpful. And then relatedly, as we think about your analytical instrument end markets, the US academic market specifically there, Marc, at our conference a few weeks ago, you had talked about the expectation for US academic and government customers to really remain cautious until a finalized NIH budget is passed and then for spending to increase thereafter. I guess what's assumed for US academic and government growth in 2026, and really how quickly would you expect spending to pick up after that budget is finalized? Last year, we saw a bit of a discrepancy between fund appropriations and ultimate spending with tools. So just any further color on the expectations for US academic and government in 2026? Thanks.
It's an important part of our company.
Speaker #2: Right? And when I think about the US environment, our assumption here is that there'll be a level of customer caution that will probably abate as the year goes down.
That's helpful and then Relatedly as we think about your analytical instrument end market.
The U S academic market, specifically there mark at a conference a few weeks ago, you had talked about the expectation for U S academic and government customers to really remain cautious until a finalized NIH budget is passed and then sort of spending to increase thereafter.
Speaker #2: But I would still assume in our guidance it'll be a more cautious environment as customers are navigating the landscape. It seems likely that we'll get a flat to slightly up NIH budget.
What's assumed for U S academic and government growth in 2026, and really how quickly would you expect spending to pick up after that budget was finalized last year, we saw a bit of a discrepancy between fund appropriations and ultimate spending with tools. So.
Speaker #2: That's going to be a good point in time, exactly when that happens, TBD. So, that should create tailwinds. When I think about over the next couple of years, I would expect that that will be one of the drivers of us higher in the range.
Marc N. Casper: Yeah.
Just any further color on the expectations for U S academic and government in slide 26.
Marc N. Casper: So, Casey, when I think first globally, our assumption for academic and government embedded in our guidance is similar conditions to last year in aggregate, right? And when I think about the US environment, our assumption here is that there'll be a level of customer caution that will probably abate as the year goes down. But I would still assume in our guidance it'll be a more cautious environment as customers are navigating the landscape. It seems likely that we'll get a flat to slightly up NIH budget. That's going to be a good point in time, exactly when that happens, TBD. So that should create tailwinds. When I think about over the next couple of years, I would expect that that will be one of the drivers of us higher in the range. But for now, our assumption is that relatively cautious for 2026. So thank you, Casey. Great.
So, Casey, when I think first globally, our assumption for academic and government embedded in our guidance is similar conditions to last year in aggregate, right? And when I think about the US environment, our assumption here is that there'll be a level of customer caution that will probably abate as the year goes down. But I would still assume in our guidance it'll be a more cautious environment as customers are navigating the landscape. It seems likely that we'll get a flat to slightly up NIH budget. That's going to be a good point in time, exactly when that happens, TBD. So that should create tailwinds. When I think about over the next couple of years, I would expect that that will be one of the drivers of us higher in the range. But for now, our assumption is that relatively cautious for 2026. So thank you, Casey. Great.
Speaker #2: But for now, our assumption is that relatively cautious for 2026. So, thank
Yeah, So Casey when I think let me first globally.
Our assumption for academic and government embedded in our guidance is similar conditions to last year in aggregate.
Speaker #10: Great. Operator, we
Speaker #4: have time for one more question.
Speaker #5: Thank you. Our last question comes from Dan Brennan from TD Cowan. Your line is now open, Dan. Please go ahead.
And when I think about the U S environment, our assumption here is that there'll be a level of customer caution.
Speaker #11: Great. Thank you, thanks, Mark. Stephen, obviously, congrats. Nice working with you. Maybe just one housekeeping and then I'll follow up with more of a deeper question.
That will probably abate as the year goes down, but I would still assume in our guidance it'll be a more cautious environment as.
Speaker #11: Just on the housekeeping, so Stephen and Mark, you want investors to put 3%, start at 3% for 2026 and around 1% in the first quarter for organic.
As customers are navigating.
The landscape.
It seems likely that.
We will get a flat to slightly up NIH budget, that's going to be a good.
Speaker #11: Is that right?
At a point in time exactly when that happens TBD.
Speaker #4: That's what I indicated in my script. That's how I think about starting the year and then, yeah, as we yeah.
So that should create a tailwind so when I think about over the next couple of years I would expect that.
That will be one of the drivers of us higher in the range, but for now our assumption is that relatively cautious.
Speaker #11: Terrific. Okay. And then Mark, I just wanted to ask maybe one more follow-up just on biopharma, given it's your largest end market, obviously, and really strong growth to finish out the year.
Marc N. Casper: Operator. We have time for one more question. Thank you. Our last question comes from Dan Brennan from TD Cowen. Your line is now open, Dan. Please go ahead. Great. Thank you. Thanks, Marc. Stephen, obviously, congrats. Nice working with you. Maybe just one housekeeping, and then I'll follow up with more of a deeper question. Just on the housekeeping, so Stephen and Marc, you want investors to put 3%, start at 3% for 2026 and around 1% in Q1 for organic. Is that right? That's what I indicated in my script. That's how I think about the year. And then, yeah. Terrific. Okay. And then, Marc, I just wanted to ask maybe one more follow-up just on biopharma, given it's your largest end market, obviously, and really strong growth to finish out the year.
Rafael Tejada: Operator. We have time for one more question.
For 2026.
Operator: Thank you. Our last question comes from Dan Brennan from TD Cowen. Your line is now open, Dan. Please go ahead.
So thank you Casey great operator, we have time for questions.
Speaker #11: I know you've mentioned a couple of times the guide doesn't assume any change in end market conditions. And I know Dan asked this, but I think most of us are hoping or assuming that with all these deals in place and the level of, obviously, cautiousness we think is persisted, that there will be some increase in spending.
Thank you our last question comes from Dan Brennan from TD Cowen. Your line is now open. Please go ahead.
Dan Brennab: Great. Thank you. Thanks, Marc. Stephen, obviously, congrats. Nice working with you. Maybe just one housekeeping, and then I'll follow up with more of a deeper question. Just on the housekeeping, so Stephen and Marc, you want investors to put 3%, start at 3% for 2026 and around 1% in Q1 for organic. Is that right? That's what I indicated in my script. That's how I think about the year. And then, yeah. Terrific. Okay. And then, Marc, I just wanted to ask maybe one more follow-up just on biopharma, given it's your largest end market, obviously, and really strong growth to finish out the year.
Great. Thank you thanks, Mark Stephen obviously, congrats nice working with you.
Speaker #11: So, I'm just wondering and you obviously mentioned the commentary that you had with that one customer that was pretty favorable. So, is that just conservatism or maybe you were outpunching the market in 2025 so that for you, really, it is not going to be any change even if the environment gets better?
Maybe just one housekeeping and then ill follow up with more if I could.
A deeper question just on the housekeeping.
So.
Steve and Mark do you want investors to put like 3% start at 3% for 2026 and around 1% in the first quarter, if organic is that right.
Speaker #11: Just wondering if you can kind of maybe speak to that a little bit. Thank
Speaker #11: you. Dan, I truly
That's what I indicated in my script.
Speaker #2: appreciate the question. So, when I think about we've been consistently gaining share. So, I love creating difficult comparisons. That's our job. So, that's a good thing.
Think about productivity era, and then yes, we yes.
Yes.
Terrific great.
And then and then and Mark I just wanted to ask maybe one more follow up just on Biopharma given it's your largest end market, obviously really strong growth to finish out the year I know you've mentioned a couple of times. The guide doesn't assume any change in end market conditions and I know Dan asked this but I think most of us are hoping or assuming that with all these <unk>.
Speaker #2: And we'll continue to build our momentum in pharma and biotech. I think the way we're viewing the year is we're starting out with market conditions or roughly the same as last year in aggregate.
Marc N. Casper: I know you've mentioned a couple of times, the guide doesn't assume any change in end market conditions. And I know Dan asked this, but I think most of us are hoping or assuming that with all these deals in place and the level of, obviously, cautiousness we think has persisted, that there will be some increase in spending. So I'm just wondering, and you obviously mentioned the commentary that you had with that one customer that was pretty favorable. So is that just conservatism, or maybe you were outpunching the market in 2025 so that for you, really, there's not going to be any change even if the environment gets better? Just wondering if you can kind of maybe speak to that a little bit. Thank you. Dan, I truly appreciate the question. So when I think about we've been consistently gaining share, so I love creating difficult comparisons.
I know you've mentioned a couple of times, the guide doesn't assume any change in end market conditions. And I know Dan asked this, but I think most of us are hoping or assuming that with all these deals in place and the level of, obviously, cautiousness we think has persisted, that there will be some increase in spending. So I'm just wondering, and you obviously mentioned the commentary that you had with that one customer that was pretty favorable. So is that just conservatism, or maybe you were outpunching the market in 2025 so that for you, really, there's not going to be any change even if the environment gets better? Just wondering if you can kind of maybe speak to that a little bit. Thank you.
Deals in place.
The level of obviously, you're cautious just rethink has persisted that there will be some increase in spending. So I'm. Just wondering I mean, obviously you mentioned the commentary that you had with that one customer that was some pretty favorable so is that just conservatism or maybe you out punching the market in 2025.
Speaker #2: And we don't have the repeat of the obviously, we wouldn't have the repeat of the roll-off of the effect of the pandemic last of the revenue, right?
Speaker #2: So, that's the starting assumption. And as Stephen said, our goal is to retire risk as the year goes on and work our way up in the range.
So that for you really there's not going to be any change even if the environment gets better just wondering if you can kind of maybe speak to that a little bit. Thank you.
Speaker #2: And when I think about what would be the factors that would drive that, it's largely going to be, as you said, pharma and biotech.
Marc N. Casper: Dan, I truly appreciate the question. So when I think about we've been consistently gaining share, so I love creating difficult comparisons.
Speaker #2: Biotech in particular, as funding flows, there is a lag between when funding flows and when money is spent. Usually, in roughly six months on average.
Dan I truly appreciate the question so when I think about <unk>.
Marc N. Casper: That's our job. So that's a good thing. And we'll continue to build our momentum in pharma and biotech. I think the way we're viewing the year is we're starting out with market conditions are roughly the same as last year in aggregate, and we don't have the repeat of the obviously, we wouldn't have the repeat of the roll-off of the effect of the pandemic will last to the revenue, right? So that's the starting assumption. And as Stephen said, our goal is to retire risk as the year goes on and work our way up in the range. And when I think about what would be the factors that would drive that, it's largely going to be, as you said, pharma and biotech, biotech in particular.
That's our job. So that's a good thing. And we'll continue to build our momentum in pharma and biotech. I think the way we're viewing the year is we're starting out with market conditions are roughly the same as last year in aggregate, and we don't have the repeat of the obviously, we wouldn't have the repeat of the roll-off of the effect of the pandemic will last to the revenue, right? So that's the starting assumption. And as Stephen said, our goal is to retire risk as the year goes on and work our way up in the range. And when I think about what would be the factors that would drive that, it's largely going to be, as you said, pharma and biotech, biotech in particular.
We have been consistently gaining share so I'd love, creating difficult comparisons and that's our job subsequent thing and.
Speaker #2: But that bodes for a strengthening environment. And one could envision that it continues to strengthen into the following year as well. But I think just we all learned a lot over the last couple of years.
And we will continue to.
Build our momentum in pharma biotech I think the way we're viewing the year.
As.
Speaker #2: I think starting out with a prudent set of assumptions to start the year is helpful. We're going to just deliver great earnings growth, right?
We're starting out with market conditions.
<unk> are roughly the same as last year in aggregate.
And we don't have the repeat of the should we wouldn't have the repeat of the roll off of the effect of the pandemic will last and the revenue right. So that's the starting assumption and as Stephen said our goal is to retire risk as the year goes on and work our way up in the range.
Speaker #2: I mean, we're not looking at what the market's going to be. We have a plan to deliver 6 to 8% growth plus the benefits of capital deployment.
Speaker #2: And we're excited about Clario. So, we're setting ourselves up for the right way to start the year. And ultimately, 26 will be another year of excellent performance for Thermo Fisher Scientific.
And when I think about what would be the factors that would drive that is largely going to be as you said pharma and biotech biotech in particular.
Marc N. Casper: As funding flows, there is a lag between when funding flows and when money is spent, usually in roughly six months on average. But that bodes for a strengthening environment. And one could envision that it continues to strengthen into the following year as well. But I think just we all learned a lot over the last couple of years. I think starting out with a prudent set of assumptions to start the year is helpful. We're going to just deliver great earnings growth, right? I mean, we're not looking at what the market's going to be. We have a plan to deliver 6% to 8% growth plus the benefits of capital deployment. And we're excited about Clario. So we're setting ourselves up for the right way to start the year. And ultimately, 2026 will be another year of excellent performance for Thermo Fisher Scientific.
As funding flows, there is a lag between when funding flows and when money is spent, usually in roughly six months on average. But that bodes for a strengthening environment. And one could envision that it continues to strengthen into the following year as well. But I think just we all learned a lot over the last couple of years. I think starting out with a prudent set of assumptions to start the year is helpful. We're going to just deliver great earnings growth, right? I mean, we're not looking at what the market's going to be. We have a plan to deliver 6% to 8% growth plus the benefits of capital deployment. And we're excited about Clario. So we're setting ourselves up for the right way to start the year. And ultimately, 2026 will be another year of excellent performance for Thermo Fisher Scientific.
Speaker #2: So, Dan, thank you for the questions. And let me from here just wrap up with thanks everyone for participating in the call today. And I think you got a sense from our enthusiasm.
As funding flows theres a lag.
Between when funding close and when money is spent usually in roughly six months on average but that.
Speaker #2: We ended this year in a great position to deliver an excellent 2026. Of course, thank you for your support of Thermo Fisher Scientific. And we look forward to updating you as the year progresses.
Bodes for a strengthening environment.
And one could envision that it continues to strengthen into the following year as well, but I think just we all learned a lot over the last couple of years I think starting out.
Speaker #2: Thanks, everyone.
With.
<unk>.
Prudent to set of assumptions to start the year is helpful. We're going to just deliver great earnings call. So I mean, we're not looking at what the market is going to be where we have a plan to deliver 6% to 8% growth plus the benefits of capital deployment.
Excited about carrier, so we're setting ourselves up for.
The right way to start the year and ultimately 26 will be another year of excellent performance with Thermo Fisher scientific so Dan. Thank you for the questions and let me from here I'm just wrap up with.
Marc N. Casper: So, Dan, thank you for the questions. And let me from here, I'll just wrap up with thanks to everyone for participating in the call today. And I think you got a sense from our enthusiasm. We entered this year in a great position to deliver an excellent 2026. Of course, thank you for your support of Thermo Fisher Scientific. And we look forward to updating you as the year progresses. Thanks, everyone. Thank you. This now concludes today's call. Thank you all for joining. You may now disconnect your line.
So, Dan, thank you for the questions. And let me from here, I'll just wrap up with thanks to everyone for participating in the call today. And I think you got a sense from our enthusiasm. We entered this year in a great position to deliver an excellent 2026. Of course, thank you for your support of Thermo Fisher Scientific. And we look forward to updating you as the year progresses. Thanks, everyone.
Thanks, everyone for participating in the call today.
I think <unk> got a central our enthusiasm we entered this year in a great position to deliver an excellent 2026.
Of course, thank you for your support of Thermo Fisher scientific and we look forward to updating you.
Operator: Thank you. This now concludes today's call. Thank you all for joining. You may now disconnect your line.
As the year progresses, thanks, everyone.
Yeah.
Thank you. This now concludes today's call. Thank you all for joining you may now disconnect your lines.
