Q2 2026 Agilent Technologies Inc Earnings Call

May 27, 2026

Operator: I will now hand the conference over to Tejas Savant, Vice President of Investor Relations. You may begin.

Speaker #1: Raise your hand. If you have dialed in to today's call, please press *9 to raise your hand, and *6 to unmute. I will now hand the conference over to Teja Savant.

Operator: Please raise your hand. If you have dialed in to today's call, please press star nine to raise your hand and star sic to unmute. I will now hand the conference over to Tejas Savant, Vice President of Investor Relations. You may begin.

Speaker #1: Vice President of Investor Relations, you may begin.

Speaker #2: Thank you, Karina, and welcome, everyone, to Agilent's conference call for the second quarter of fiscal year 2026. With me on the line are CEO Padraig McDonnell and CFO Adam Malinoff. Joining for the Q&A will be Simon May, President of the Life Sciences and Diagnostics Markets Group; Angelika Reimann, President of the Agilent CrossLab Group; and Mike Zhang, President of the Applied Markets Group.

Tejas Savant: Thank you, Karina, and welcome everyone to Agilent's conference call for the Q2 of fiscal year 2026. With me on the line are CEO Padraig McDonnell and CFO Adam S. Elinoff. Joining for the Q&A will be Simon May, President of the Life Sciences and Diagnostics Markets Group, Angelica Riemann, President of the Agilent CrossLab Group, and Mike Zhang, President of the Applied Markets Group. This presentation is being webcast live. The press release for our Q2 financial results, investor presentation, and information to supplement today's discussion, along with a recording of this webcast, are available on our website at investor.agilent.com. Today's comments will refer to non-GAAP financial measures. Non-GAAP measures are supplemental and should not be considered a substitute for GAAP results. You'll find the most directly comparable GAAP financial metrics and reconciliations in the press release and on our website.

Tejas Savant: Thank you, Karina, and welcome everyone to Agilent's Conference Call for the Q2 of Fiscal Year 2026. With me on the line are CEO Padraig McDonnell and CFO Adam Elinoff. Joining for the Q&A will be Simon May, President of the Life Sciences and Diagnostics Markets Group, Angelica Riemann, President of the Agilent CrossLab Group, and Mike Zhang, President of the Applied Markets Group. This presentation is being webcast live. The press release for our Q2 financial results, investor presentation, and information to supplement today's discussion, along with a recording of this webcast, are available on our website at investor.agilent.com. Today's comments will refer to non-GAAP financial measures. Non-GAAP measures are supplemental and should not be considered a substitute for GAAP results. You'll find the most directly comparable GAAP financial metrics and reconciliations in the press release and on our website.

Speaker #2: This presentation is being webcast live. The press release for our second quarter financial results, investor presentation, and information to supplement today's discussion, along with a recording of this webcast, are available on our website at investor.agilent.com.

Speaker #2: Today's comments will refer to non-GAAP financial measures. Non-GAAP measures are supplemental and should not be considered a substitute for GAAP results. You'll find the most directly comparable GAAP financial metrics and reconciliations in the press release and on our website.

Speaker #2: Unless otherwise noted, all references to increases or decreases in financial metrics are year over year, and references to revenue growth are on a core or organic constant currency basis.

Tejas Savant: Unless otherwise noted, all references to increases or decreases in financial metrics are year-over-year, and references to revenue growth are on a core or organic constant currency basis. All references to profitability metrics are on a non-GAAP basis. Core or organic constant currency revenue growth is adjusted for the impact of currency exchange rates and any acquisitions and divestitures completed within the past 12 months. Guidance is based on forecasted exchange rates. During this call, we will make forward-looking statements about the financial performance of the company. These statements are subject to risks and uncertainties and are only valid as of today. Agilent assumes no obligation to update them. Please refer to the company's recent SEC filings for a more detailed description of the risks and other factors that would cause our performance to differ from these forward-looking statements.

Speaker #2: All references to profitability metrics are on a non-GAAP basis. Core or organic constant currency revenue growth is adjusted for the impact of currency exchange rates and any acquisitions and divestitures completed within the past 12 months.

Speaker #2: Guidance is based on forecasted exchange rates. During this call, we will make forward-looking statements about the financial performance of the company. These statements are subject to risks and uncertainties and are only valid as of today.

Tejas Savant: These statements are subject to risks and uncertainties and are only valid as of today. Agilent assumes no obligation to update them. Please refer to the company's recent SEC filings for a more detailed description of the risks and other factors that would cause our performance to differ from these forward-looking statements. Now I'd like to turn the call over to Padraig.

Speaker #2: Agilent assumes no obligation to update them. Please refer to the company's recent SEC filings for a more detailed description of the risks and other factors that could cause our performance to differ from these forward-looking statements.

Speaker #2: And now, I'd like to turn the call over to Park.

Tejas Savant: Now I'd like to turn the call over to Padraig.

Speaker #3: Thanks, Teja, and welcome, everyone. We delivered an excellent second quarter with stronger-than-expected revenue growth, significant margin expansion, and double-digit EPS growth. Importantly, the quarter demonstrates that the operational and P&L benefits from our Ignite operating system are increasingly becoming structurally embedded in the business.

Padraig McDonnell: Thanks, Tejas, and welcome everyone. We delivered an excellent Q2 with stronger than expected revenue growth, significant margin expansion, and double-digit EPS growth. Importantly, the quarter demonstrates that the operational and P&L benefits from our Ignite Operating System are increasingly becoming structurally embedded in the business. For the Q2, Agilent reported $1.83 billion in revenue, growing 6.3% on a core basis and exceeding the high end of our guidance by 80 basis points. The strength was broad-based across our largest end markets and supported by continued replacement cycle momentum, innovation-led share gains, and improving operational execution. Operating margin of 26.4% for the quarter represents a year-over-year improvement of 130 basis points and 180 basis points on a sequential basis, well above our guidance despite the macro and geopolitical environment.

Speaker #3: For the second quarter, Agilent reported $1.83 billion in revenue, growing 6.3% on a core basis and exceeding the high end of our guidance by 80 basis points.

Speaker #3: The strength was broad-based across our largest end markets and supported by continued replacement cycle momentum, innovation-led share gains, and improving operational execution. Operating margin of 26.4% for the quarter represents a year-over-year improvement of 130 basis points, and 180 basis points on a sequential basis.

Speaker #3: Well above our guidance, despite the macro and geopolitical environment. Earnings per share of $1.49 represents 14% year-over-year growth, which also exceeded the top end of our guidance by 7 cents.

Padraig McDonnell: Earnings per share of $1.49 represents 14% year over year growth, which also exceeded the top end of our guidance by $0.07. We delivered at or above our long-term plan on all metrics, revenue growth, margin expansion, and EPS growth. As we enter H2, I want to highlight the key dimensions of our strategy that are driving our performance. First, we continue to build on the extraordinary level of customer intimacy and trust that we have worked hard to gain and differentiates us from the competition. This differentiation is increasingly translating into share gains across the key workflows and geographies. Second, that trust translates into insights that inform our innovation flywheel, leading to products and services that drive success for our customers and Agilent. That includes the exciting launches coming up next week at the 74th American Society for Mass Spectrometry Annual Conference in San Diego.

Speaker #3: We delivered at or above our long-term plan on all metrics: revenue growth, margin expansion, and EPS growth. As we enter the second half, I want to highlight the key dimensions of our strategy that are driving our performance.

Speaker #3: First, we continue to build on the extraordinary level of customer intimacy and trust that we have worked hard to gain, and that differentiates us from the competition.

Speaker #3: This differentiation is increasingly translating into share gains across the key workflows and geographies. Second, that trust translates into insights that inform our innovation flywheel, leading to products and services that drive success for our customers and Agilent.

Padraig McDonnell: Second, that trust translates into insights that inform our innovation flywheel, leading to products and services that drive success for our customers and Agilent. That includes the exciting launches coming up next week at the 74th American Society for Mass Spectrometry Annual Conference in San Diego.

Speaker #3: That includes the exciting launches coming up next week at the 74th American Society of Pharmaceutical Telemetry Annual Conference in San Diego. Next, we have increased capabilities and the level of talent throughout the organization, improving speed, agility, and operational discipline.

Padraig McDonnell: Next, we have increased capabilities and the level of talent throughout the organization, improving speed, agility, and operational discipline. This is driving a step function improvement in execution. Finally, the significant benefits of Ignite are increasingly plain to see. These include strategic pricing that is aiding our top-line momentum, productivity initiatives such as simplifying our structure, and generating greater value through strategic relationship management, a centralized focus on project outcomes that drives business results, and increasing supply chain agility and operational discipline that is strengthening margins and business resiliency while providing flexibility to fund our most critical innovation efforts. With our diversified and geographically balanced portfolio and healthy momentum across key end markets, the strong foundation we have built through Ignite provides us with the resiliency to compound our success and deliver results in any environment.

Speaker #3: This is driving a step-function improvement in execution. And finally, the significant benefits of Ignite are increasingly plain to see. These include strategic pricing that is aiding our top-line momentum, productivity initiatives such as simplifying our structure, and generating greater value through strategic relationship management.

Speaker #3: A centralized focus on project outcomes that drives business results. Increasing supply chain agility and operational discipline is strengthening margins and business resiliency, while providing flexibility to fund our most critical innovation efforts.

Speaker #3: With our diversified and geographically balanced portfolio, and healthy momentum across key end markets, the strong foundation we have built through Ignite provides us with the resiliency to compound our success and deliver results in any environment.

Speaker #3: Importantly, we expect these operational improvements to increasingly support higher-quality and durable earnings growth. Before getting into the specifics of our second-quarter results, I want to spend time on the key growth drivers going forward.

Padraig McDonnell: Importantly, we expect these operational improvements to increasingly support higher quality and durable earnings growth. Before getting into the specifics of our Q2 results, I want to spend time on the key growth drivers going forward. These include superior commercial execution combined with improvements we are seeing across our end markets, the instrument replacement cycle, our exciting slate of launches at ASMS, and our recent agreement to acquire Biocare Medical, and how Ignite is fueling Agilent's performance. We are seeing continued health in our key end markets aligned with our expectations at the start of the year. Combined with commercial execution, our differentiated portfolio, and best-in-class service, that health is driving our results. Pharma continues to deliver with 6% growth in the quarter. This includes another quarter of low double-digit growth in biotech led by large caps, while positive demand signals from small to mid caps begin to emerge.

Speaker #3: These include superior commercial execution combined with improvements we are seeing across our end markets, the instrument replacement cycle, our exciting slate of launches at ASMS, and our recent agreement to acquire BioCare.

Speaker #3: And how Ignite is fueling Agilent's performance. We are seeing continued health in our key end markets, aligned with our expectations at the start of the year. Combined with commercial execution, our differentiated portfolio, and best-in-class service, that health is driving our results.

Padraig McDonnell: Combined with commercial execution, our differentiated portfolio, and best-in-class service, that health is driving our results. Pharma continues to deliver with 6% growth in the quarter. This includes another quarter of low double-digit growth in biotech led by large caps, while positive demand signals from small to mid caps begin to emerge.

Speaker #3: Pharma continues to deliver with 6% growth in the quarter. This includes another quarter of low double-digit growth in biotech, led by large caps, while positive demand signals from small to mid-caps begin to emerge.

Speaker #3: Chemical and advanced materials grew a robust 8%. Growth was fueled by strong semiconductor demand and healthy chemical CAPEX investments in the Americas. Diagnostics and clinical grew 11%, driven by the strong performance of our expanding cancer and diagnostics offerings.

Padraig McDonnell: Chemical and advanced materials grew a robust 8%. It was fueled by strong semiconductor demand and healthy chemical CapEx investments in the Americas. Diagnostics and clinical grew 11%, driven by the strong performance of expanding cancer and diagnostics offerings. Finally, our unique technology is helping us win outsized shares of forensics, where we delivered greater than 50% growth in the quarter. That includes the TSA security contract we mentioned during the last call, as well as multiple competitive large tender wins in Asia and Europe. Regarding the TSA contract, we are delighted to be able to share more details, as you might have seen in our recent press release. The TSA would deploy our new bulk alarm resolution technology at airport security checkpoints at the FIFA World Cup host cities in the US. This unique technology provides the ability to screen larger quantities of liquids, powders, and solids.

Speaker #3: And finally, our unique technology is helping us win outsized shares of forensics, where we delivered greater than 50% growth in the quarter. That includes the TSA security contract we mentioned during the last call, as well as multiple competitive large tender wins in Asia and Europe.

Speaker #3: Regarding the TSA contract, we are delighted to be able to share more details, as you might have seen in our recent press release. The TSA will deploy our new bulk alarm resolution technology at airport security checkpoints in the FIFA World Cup host cities in the U.S.

Speaker #3: This unique technology provides the ability to screen larger quantities of liquids, powders, and solids. With the implementation going very well, we are excited about the opportunities to deploy this technology more broadly.

Padraig McDonnell: With the implementation going very well, we are excited about the opportunities to deploy this technology more broadly. We also had another very strong quarter of instrument revenue, resulting in high single-digit growth. This included market-leading low double-digit growth in LC and LC-MS and in GC. Our replacement site momentum continued. That, plus share gains driven by the customer-centric innovation that is embedded in our new Infinity III LC and our 8850 GC, are delivering exceptional growth. As customers are looking to upgrade their fleets, they see how new instruments solve their most challenging workflow problems while improving efficiencies. Looking ahead, we see continued instrument strength. Our commercial excellence delivered a book-to-bill above one again this quarter, marking the ninth consecutive quarter where instrument orders met or exceeded revenue.

Speaker #3: We also had another very strong quarter of instrument revenue, resulting in high single-digit growth. This included market-leading, low double-digit growth in LC and LCMS, and in GC.

Speaker #3: Our replacement cycle momentum continued. That, plus share gains driven by the customer-centric innovation that is embedded in our new InfinityTree LC and our 8850 GC.

Speaker #3: We are delivering exceptional growth. As customers look to upgrade their fleets, they see how new instruments solve their most challenging workflow problems while improving efficiencies.

Speaker #3: Looking ahead, we see continued instrument strength. Our commercial excellence delivered a book-to-bill above one again this quarter, marking the ninth consecutive quarter where instrument orders exceeded revenue.

Speaker #3: Even as recent launches like the Infinity Tree LC at Omnis Family continue to drive growth, we are looking forward to our next wave of innovations that will further support our durable growth.

Padraig McDonnell: Even as recent launches like the Infinity III LC and OMNIS family continue to drive growth, we are looking forward to our next wave of innovations that will further support our durable growth, strengthen our install base, and support recurring consumables and services pull-through. We will showcase these new launches at ASMS next week. I'll start in spectroscopy with a revolutionary new 9500 Triple Quadrupole ICP-MS. This launch brings advanced triple quad capabilities to a broader customer base by directly addressing key customer pain points around throughput, workflow complexity, and operating costs. The 9500 solves these challenges with a patented dual cell system that provides increased throughput, a revolutionary air mode that eliminates the need for dedicated oxygen gas, lowering operating costs, and intelligent OpenLab ICP-MS software that reduces complexity and automates method migration, lowering the technical expertise required to operate the system.

Speaker #3: We will strengthen our install base and support recurring consumables and services pull-through. We will showcase these new launches at ASMS next week, starting with our revolutionary new 9,500 triple-quad ICP-MS in spectroscopy.

Speaker #3: This launch brings advanced triple-quad capabilities to a broader customer base by directly addressing key customer pain points around throughput, workflow complexity, and operating costs.

Speaker #3: The 9,500 solves these challenges with a patented dual-cell system that provides increased throughput, a revolutionary air mode that eliminates the need for dedicated oxygen gas—lowering operating costs—and intelligent Overlap ICPMS software that reduces complexity and automates method migration, lowering the technical expertise required to operate the system.

Padraig McDonnell: The 9500 solves these challenges with a patented dual cell system that provides increased throughput, a revolutionary air mode that eliminates the need for dedicated oxygen gas, lowering operating costs, and intelligent OpenLab ICP-MS software that reduces complexity and automates method migration, lowering the technical expertise required to operate the system.

Speaker #3: This versatile instrument will be relevant across our customer base and advanced materials, mining, food, and environmental labs. Importantly, the innovations embedded in the 9,500 were a direct result of customer feedback about their most pressing problems and will serve as a differentiated architecture for ICP-MS growth well into the future.

Padraig McDonnell: This versatile instrument will be relevant across our customer base in advanced materials, mining, food, and environmental labs. Importantly, the innovations embedded in the 9500 were a direct result of customer feedback about their most pressing problems and will serve as a differentiated architecture for ICP-MS growth well into the future. Moving to our gas-based business, we are launching the upgraded flagship GCs. These launches further strengthen our position in high productivity analytical workflows, where our customers increasingly prioritize efficiency, automation, and total cost of ownership. Highlights of our new GCs include improved performance with up to 30% faster oven cool-down and higher throughput, built-in intelligence features to monitor performance, track parameters, and assist in proactive maintenance, and the technology to conserve or eliminate helium gas with real-time gas and power usage tracking. We have been a long-standing leader in providing helium alternatives for GCs in response to customer needs.

Speaker #3: Moving to our gas-based business, we are launching the upgraded flagship GCs. These launches further strengthen our position in high-productivity analytical workflows, as our customers increasingly prioritize efficiency, automation, and total cost of ownership.

Speaker #3: Highlights of our new GCs include improved performance, with up to 30% faster oven cooldown and higher throughput. Built-in intelligence features monitor performance, track parameters, and assist in proactive maintenance.

Speaker #3: And the technology to conserve or eliminate helium gas, with real-time gas and power usage tracking. We have been a longstanding leader in providing helium alternatives for GCs in response to customer needs.

Speaker #3: In the current helium supply environment, these productivity and resource efficiency benefits are becoming increasingly valuable for our customers. Turning to our consumables portfolio, our Altura Ultra Inert LC columns continue to see strong traction.

Padraig McDonnell: In the current helium supply environment, these productivity and resource efficiency benefits are becoming increasingly valuable for our customers. Turning to our consumables portfolio, our Altura ultra inert LC columns continue to see strong traction. They grew more than 50% sequentially, reaching 75% of the top 20 biopharma accounts. This rapid adoption reinforced the strength of innovation engine and unified commercial organization. We will continue to build on that strong initial momentum with additional waves of column launches. Our newest Altura columns debuting at ASMS are targeted to address workflows for protein and peptide therapeutics, large oligos, gene therapy, and vaccines. On a software front, we are also expanding our capabilities in OpenLab CDS with version 3.0. This important release provides a unified platform to support analysis for chromatography, mass spec, and spectroscopy systems across our portfolio, including for the first time, our high-resolution mass spec.

Speaker #3: They grew more than 50% sequentially, reaching 75% of the top 20 biopharma accounts. This rapid adoption reinforced the strength of our innovation engine and unified commercial organization.

Speaker #3: We will continue to build on that strong initial momentum with additional waves of column launches. Our newest Altura columns, debuting at ASMS, are targeted to address workflows for protein and peptide therapeutics, large oligos, gene therapy, and vaccines.

Speaker #3: On the software front, we're also expanding our capabilities and OpenLab CDS with version 3.0. This important release provides a unified platform to support analysis for chromatography, mass spec, and spectroscopy systems across our portfolio.

Padraig McDonnell: On a software front, we are also expanding our capabilities in OpenLab CDS with version 3.0. This important release provides a unified platform to support analysis for chromatography, mass spec, and spectroscopy systems across our portfolio, including for the first time, our high-resolution mass spec.

Speaker #3: Including, for the first time, our high-resolution mass spec. The continued expansion of OpenLab further strengthens workflow integration across our portfolio and enhances the strategic value of our installed base.

Padraig McDonnell: The continued expansion of OpenLab further strengthens workflow integration across our portfolio and enhances the strategic value of our install base. We are also delighted to announce that we are building upon our long history in China with the launch of our China Innovation Center. Leveraging the country's deep base of technical talent and a vibrant innovation ecosystem, we intend to strengthen our R&D capabilities across multiple emerging areas, including digital, AI, and automation to better support our customers. We are particularly excited about automation, where we see excellent potential to build on our in-house capabilities with the unique automation development expertise in China. Turning to the fourth pillar of our strategy, I want to provide an update on the impact of our Ignite Operating System that is building enterprise capabilities and driving a culture of accountability and execution excellence.

Speaker #3: We're also delighted to announce that we are building upon our long history in China with the launch of our China Innovation Center. Leveraging the country's deep base of technical talent and a vibrant innovation ecosystem, we intend to strengthen our R&D capabilities across multiple emerging areas.

Speaker #3: Including digital, AI, and automation to better support our customers. We are particularly excited about automation, where we see excellent potential to build on our in-house capabilities, with the unique automation development expertise in China.

Speaker #3: Turning to the fourth pillar of our strategy, I want to provide an update on the impact of our Ignite operating system that is building enterprise capabilities and driving a culture of accountability and execution excellence.

Speaker #3: Ignite had a significant impact on the business on both the top and bottom lines during the quarter and is poised to deliver compounding benefits in the years to come.

Padraig McDonnell: IGNITE had a significant impact on the business on both the top and bottom lines during the quarter and is poised to deliver compounding benefits in the years to come. Our strategic pricing capability delivered approximately 200 basis points of pricing in Q2, putting us on a path to exceed our initial full-year goal of 100 basis points. We also reached an important milestone during Q2, with the tariff task force achieving full mitigation of the incremental tariffs that began in late spring. The combination of strategic manufacturing moves and targeted price adjustments have now fully offset the operating profit impact of these tariffs. This task force also helps us build a playbook for addressing trade and geopolitical challenges, which has been a critical resource in navigating the current Middle East conflict.

Speaker #3: Our strategic pricing capability delivered approximately 200 basis points of pricing in Q2, putting us on a path to exceed our initial full-year goal of 100 basis points.

Speaker #3: We also reached an important milestone during Q2, with the tariff task force achieving full mitigation of the incremental tariffs that began in late spring.

Speaker #3: The combination of strategic manufacturing moves and targeted price adjustments has now fully offset the operating profit impact of these tariffs. This task force also helped us build a playbook for addressing trade and geopolitical challenges.

Speaker #3: This has been a critical resource in navigating the current Middle East conflict. Our digital initiative is driving accelerated growth of our e-commerce platform, delivering ease of use for customers and lower cost per transaction for adjuvant.

Padraig McDonnell: Our digital initiative is driving accelerated growth of our e-commerce platform, delivering ease of use for customers and lower cost per transaction for Agilent. In Q2, new digital orders grew 9%, including more than 20% ex-China. Ignite has transformed our supply chain capabilities, making it a competitive advantage. A recent example of this is our quick response to the logistics challenges and material shortages arising out of the conflict in the Middle East. Ignite is providing incremental procurement savings and supply chain resilience that gives us confidence as we work to absorb inflationary cost pressures during the remainder of the year. On the M&A front, we were excited to announce the Biocare acquisition in March. I am confident that the robust long-term growth, strong strategic fit, and opportunities for synergy realization make the financial returns on this transaction highly attractive.

Speaker #3: In Q2, new digital orders grew 9%, including more than 20% ex-China. Ignite has transformed our supply chain capabilities, making it a competitive advantage. A recent example of this is our quick response to the logistics challenges and material shortages arising out of the conflict in the Middle East.

Speaker #3: Ignite is providing incremental procurement savings and supply chain resilience that gives us confidence as we work to absorb inflationary cost pressures during the remainder of the year.

Speaker #3: On the M&A front, we're excited to announce the BioCare acquisition in March. I am confident that the robust long-term growth, strong strategic fit, and opportunities for synergy realization make the financial returns on this transaction highly attractive.

Speaker #3: Ignite is driving our pre-close preparations for the BioCare integration, ensuring we are ready to hit the ground running as soon as the transaction closes.

Padraig McDonnell: Ignite is driving our pre-close preparations for the Biocare integration, ensuring we are ready to hit the ground running as soon as the transaction closes. I look forward to welcoming our new colleagues to Agilent later this year. While it's been tremendously satisfying to see Ignite's impact to date, there's a lot more to come. This includes our push for manufacturing excellence, where we are being front-footed in building resilience across our business and setting up the organization to deliver durable long-term growth. We built our AI-enabled supply chain control tower to create greater prediction and adaptive calibration of our supply and demand plans, leading to inherent resiliency, faster issue response times, and much higher schedule attainment. After implementing this new capability, we have seen continued meaningful improvements in schedule plan attainment, order conversion ratios, and overall cycle times.

Speaker #3: I look forward to welcoming our new colleagues to Adjuvant later this year. While it's been tremendously satisfying to see Ignite's impact to date, there's a lot more to come.

Speaker #3: This includes our push for manufacturing excellence, where we are being proactive in building resilience across our business and setting up the organization to deliver durable, long-term growth.

Speaker #3: We built our AI-enabled supply chain control tower to create greater prediction and adaptive calibration of our supply and demand plans, leading to inherent resiliency, faster issue response times, and much higher schedule attainment.

Speaker #3: After implementing this new capability, we have seen continued, meaningful improvements in schedule plan attainment, order conversion ratios, and overall cycle times. We have also reconfigured our operations organization to add greater depth in planning, lean manufacturing, and digital engineering.

Padraig McDonnell: We have also reconfigured our operations organization to add greater depth in planning, lean manufacturing, and digital engineering. All of this contributes to improved delivery, greater agility, and optimized cost structure. That, in turn, reduced manufacturing overhead by more than 50 basis points versus last year. The 9500 ICP-MS we are featuring at ASMS is a great demonstration of how our Ignite Operating System is accelerating our innovation, expediting the launch by a full quarter. Our optimized approach to innovation enables faster decisions and more focused capital allocation. We clearly established the 9500 as the top priority and dynamically reallocated resources to accelerate timelines and outcomes. We reinforce this through focused discipline, cross-functional execution across sales, R&D, and manufacturing teams. The teams work closely to accelerate technology transfer and improve yields, pulling our production readiness forward. Last but not least, AI is a key FY2026 enterprise focus area for us.

Speaker #3: All of this contributes to improved delivery, greater agility, and an optimized cost structure. That, in turn, reduced manufacturing overhead by more than 50 basis points versus last year.

Speaker #3: The 9,500 ICP-MS we are featuring at ASMS is a great demonstration of how our Ignite operating system is accelerating our innovation, expediting the launch by a full quarter.

Speaker #3: Our optimized approach to innovation enabled faster decisions and more focused capital allocation. We clearly established the 9,500 as the top priority and dynamically reallocated resources to accelerate timelines and outcomes.

Speaker #3: We reinforced this through focused discipline and cross-functional execution across sales, R&D, and manufacturing teams. The teams work closely to accelerate technology transfer and improve yields, pulling our production readiness forward.

Padraig McDonnell: We reinforce this through focused discipline, cross-functional execution across sales, R&D, and manufacturing teams. The teams work closely to accelerate technology transfer and improve yields, pulling our production readiness forward. Last but not least, AI is a key FY2026 enterprise focus area for us.

Speaker #3: Last but not least, AI is a key FY26 enterprise focus area for us. AI has the potential to be a tremendous growth driver for the life sciences industry.

Padraig McDonnell: AI has the potential to be a tremendous growth driver for the life sciences industry. Pharma customers are leaning into AI to accelerate drug development and reduce the odds of expensive late-stage failures. There is a growing need for large-scale multimodal data sets to train AI models, which will require significant investments in the wet lab. By moving the needle on drug development ROI, AI holds the promise of putting our largest customer constituency on a better footing. A higher number of approvals coming through the drug pipeline should be a strong tailwind for us, given our leading position in downstream manufacturing QA/QC workflows. In light of the regulatory and patient safety aspects of commercial-scale drug manufacturing, we believe this part of the value chain will meaningfully benefit from AI use upstream.

Speaker #3: Pharma customers are leaning into AI to accelerate drug development and reduce the odds of expensive late-stage failures. There is a growing need for large-scale multimodal datasets to train AI models, which will require significant investments in the wet lab.

Speaker #3: By moving the needle on drug development ROI, AI holds the promise of putting our largest customer constituency on a better footing. And a higher number of approvals coming through the drug pipeline should be a strong tailwind for us, given our leading position in downstream manufacturing QA/QC workflows.

Speaker #3: In light of the regulatory and patient safety aspects of commercial-scale drug manufacturing, we believe this part of the value chain will meaningfully benefit from AI use upstream.

Speaker #3: Beyond being accretive to our top line in the medium term, we are also deploying AI within our own business. I look forward to sharing more details on our AI efforts very soon.

Padraig McDonnell: Beyond being accretive to our top line in the medium term, we are also deploying AI within our own business. I look forward to sharing more details on our AI efforts very soon. Let me share some additional details on our Q2 results, starting with our end markets. As I mentioned earlier, pharma grew 6% this quarter, marking the fifth consecutive quarter of growth in the mid-single digit to low-double digit range. Within pharma, biotech grew low double digits for the third consecutive quarter, while small molecule grew low single digits. Our GLP-1 momentum continues, delivering about 20% growth year to date, with a robust contribution from the analytical lab business in Q2. We also remain engaged with our large pharma customers about their plans to reshore operations to the US.

Speaker #3: Now, let me share some additional details on our Q2 results, starting with our end markets. As I mentioned earlier, Pharma grew 6% this quarter, marking the fifth consecutive quarter of growth in the mid-single-digit to low-double-digit range.

Speaker #3: Within Pharma, biotech grew by low double digits for the third consecutive quarter, while small molecule grew by low single digits. Our GLP-1 momentum continues, delivering approximately 20% growth year to date.

Speaker #3: With a robust contribution from the Analytical Lab business in the second quarter, we also remain engaged with our large pharma customers about their plans to reshore operations to the U.S.

Speaker #3: We continue to expect initial orders at the end of our fiscal year, with revenue starting in FY27. CAM grew 8%, and Diagnostics and Clinical grew 11%, both exceeding expectations.

Padraig McDonnell: We continue to expect initial orders at the end of our fiscal year, with revenue starting in FY27. Chem grew 8% and diagnostics and clinical grew 11%, both exceeding expectations. Environmental forensics delivered 13% growth compared to the low single-digit guide, with the upside in forensics, as I mentioned earlier. Environmental delivered low single-digit growth against a challenging double-digit year-over-year compare. Food, our second smallest end market, declined 3% with softer-than-expected results in Asia due to funding delays in China and India. Academic and Government, our smallest end market, declined 5% in line with expectations. Most importantly, our customer-centric approach is working, and we continue to win against the competition in all major geographies, with share expansion again validated by industry market share data. Turning to updated guidance.

Speaker #3: Environmental forensics delivered 13% growth compared to the low single-digit guide, with the upside in forensics, as I mentioned earlier. Environmental delivered low single-digit growth against a challenging double-digit year-over-year compare.

Speaker #3: Food, our second smallest end market, declined 3%, with softer-than-expected results in Asia due to funding delays in China and India. Academia and government, our smallest end market, declined 5%, in line with expectations.

Speaker #3: Most importantly, our customer-centric approach is working, and we continue to win against the competition in all major geographies, with share expansion again validated by industry market share data.

Speaker #3: Turning to updated guidance, building on an excellent second quarter and with the outlook for our end markets broadly consistent with our original expectations, we now expect core growth of 4.5% to 6% for the full year.

Padraig McDonnell: Building on an excellent Q2 and with the outlook for our end markets broadly consistent with our original expectations, we now expect core growth of 4.5% to 6% for the full year. At the midpoint, this represents an increase of 30 basis points versus our prior guide. We are also increasing our expectations on the bottom line with updated EPS guidance of $6 to $6.10 for the full year, an increase of $0.08 at the midpoint. With that, let me hand it over to Adam, who will provide additional details on the quarter and our financial outlook for the remainder of the year.

Speaker #3: At the midpoint, this represents an increase of 30 basis points versus our prior guide. We are also increasing our expectations on the bottom line.

Speaker #3: With updated EPS guidance of $6.00 to $6.10 for the full year, an increase of $0.08 at the midpoint. And with that, let me hand it over to Adam, who will provide additional details on the quarter and our financial outlook for the remainder of the year.

Speaker #2: Thanks, Padraig. And good afternoon, everyone. In my comments today, I will provide additional details on revenue in the quarter, as well as walk through the income statement and cover other key financial metrics.

Adam Elinoff: Thanks, Padraig. Good afternoon, everyone. In my comments today, I will provide additional details on revenue in the quarter as well as walk through the income statement and cover other key financial metrics. I'll then cover our updated full year and Q3 guidance. Starting with Q2, revenue was $1.83 billion. On a core or organic constant currency basis, we posted growth of 6.3%, while reported growth was 10%. Currency had a favorable impact of 3.7%, a slightly larger tailwind than our February guidance. At a business segment level, AMG revenue grew 11% in the quarter on a core basis, well ahead of expectations. Growth was again led by double-digit performance in spectroscopy. That business continues to see strong demand for its market-leading tools to support semiconductor production at the fabs and with their downstream supply chain.

Speaker #2: I'll then cover our updated full-year and third-quarter guidance. Starting with Q2, revenue was $1.83 billion. On a core or organic constant currency basis, we posted growth of 6.3%, while reported growth was 10%.

Speaker #2: Currency had a favorable impact of 3.7%, a slightly larger tailwind than our February guidance. At a business segment level, AMG revenue grew 11% in the quarter on a core basis, well ahead of expectations.

Speaker #2: Growth was again led by double-digit performance in spectroscopy. That business continues to see strong demand for its market-leading tools to support semiconductor production at the fabs and with their downstream supply chain.

Speaker #2: During the quarter, AMG also benefited from the TSA airport security contract that Padraig discussed earlier. LDG revenue grew 9% on a core basis, nicely ahead of expectations.

Adam Elinoff: During the quarter, AMG also benefited from the TSA airport security contract that Padraig discussed earlier. LDG revenue grew 9% on a core basis, nicely ahead of expectations. Low double-digit growth in LC and LC-MS and in our cancer diagnostics business drove the upside. We also saw high single-digit growth from specialty CDMO, which we recently rebranded as our Advanced Therapeutics Division. We continue to expect our Advanced Therapeutics Division to deliver mid-teens growth in fiscal year 2026, with our production schedule set up to deliver a pickup in growth in the H2. Notably, we recently achieved mechanical completion of our Train C build-out, positioning us well to begin revenue generation at the new facility next spring. Our cancer diagnostics business, including our clinical pathology products and companion diagnostic services, grew low double digits this quarter.

Speaker #2: Low double-digit growth in LC and LCMS, and in our cancer diagnostics business, drove the upside. We also saw high single-digit growth from specialty CDMO.

Speaker #2: Which we recently rebranded as our Advanced Therapeutics division. We continue to expect our Advanced Therapeutics division to deliver mid-teens growth in fiscal year 2026.

Speaker #2: With our production schedule set up to deliver a pickup in growth in the second half, notably, we recently achieved mechanical completion of our Train C build-out, positioning us well to begin revenue generation at the new facility next spring.

Speaker #2: Our cancer diagnostics business, including our clinical pathology products and companion diagnostic services, grew low double digits this quarter. This growth was led by the performance of our new OMNIS family, which continues to gain traction.

Adam Elinoff: This growth was led by the performance of our new Omnis family, which continues to gain traction. We also saw strong double-digit growth in pathology reagents driven by our expanding instrument installed base. This business is performing extremely well and will get even stronger with the addition of Biocare's clinically focused antibody menu. ACG grew 2% in the quarter on a core basis, in line with guidance, due to Lunar New Year timing and a challenging consumables compare driven by pre-tariff stocking in China last year. Ex-China, ACG grew at the high end of mid-single digits and consumables grew high single digits. On a geographic basis, we saw our strongest results in the Americas with 11% revenue growth. We saw broad high single-digit plus results in all end markets except Academic and Government.

Speaker #2: We also saw strong double-digit growth in pathology reagents, driven by our expanding instrument installed base. This business is performing extremely well and will get even stronger with the addition of BioCare's clinically focused antibody menu.

Speaker #2: ACG grew 2% in the quarter on a core basis, in line with guidance, due to Lunar New Year timing and a challenging consumables compare driven by pre-term stocking in China last year.

Speaker #2: Ex-China ACG grew at the high end of mid-single digits, and consumables grew at high single digits. On a geographic basis, we saw our strongest results in the Americas, with 11% revenue growth.

Speaker #2: We saw broad, high single-digit plus results in all end markets except academic and government. Europe and Asia ex-China revenue grew high single digits, with excellent diagnostics momentum in Europe, while pharma and semiconductor investments were strong in Asia ex-China.

Adam Elinoff: Europe and Asia ex-China revenue grew high single digits with excellent diagnostics momentum in Europe, while pharma and semiconductor investments were strong in Asia ex-China. China declined 9%, a bit more than we had expected. On a H1 basis, China was roughly flat, very much in line with our full-year guide. Q2 gross margins were 55%. On a year-over-year basis, gross margins increased by 90 basis points from nice leverage on incremental volumes, Ignite momentum, and favorable regional mix. Operating margin was 26.4%, an increase of 130 basis points year over year. Well ahead of guidance, driven by our healthy gross margin performance and continued realization of Ignite Operating System efficiencies. Moving below the line, we had $11 million of other income, while our tax rate of 14.5% was as expected. Finally, we had 283 million diluted shares outstanding in the quarter, in line with expectations.

Speaker #2: China declined 9%, a bit more than we had expected. On a first-half basis, China was roughly flat, very much in line with our full-year guide.

Speaker #2: Q2 gross margins were 55%. On a year-over-year basis, gross margins increased by 90 basis points from nice leverage on incremental volumes, Ignite momentum, and favorable regional mix.

Speaker #2: Operating margin was 26.4%, an increase of 130 basis points year-over-year. This was well ahead of guidance, driven by our healthy gross margin performance and continued realization of Ignite operating system efficiencies.

Speaker #2: Moving below the line, we had $11 million of other income. While our tax rate of 14.5% was as expected. Finally, we had 283 million diluted shares outstanding in the quarter, in line with expectations.

Adam Elinoff: Moving below the line, we had $11 million of other income, while our tax rate of 14.5% was as expected. Finally, we had 283 million diluted shares outstanding in the quarter, in line with expectations.

Speaker #2: Putting it all together, Q2 earnings per share were $1.49 and grew 14%, a reflection of our superior execution and operational excellence. Now, let me turn to cash flow and the balance sheet.

Adam Elinoff: Putting it all together, Q2 earnings per share were $1.49 and grew 14%, a reflection of our superior execution and operational excellence. Now let me turn to cash flow and the balance sheet. Operating cash flow was $277 million in the quarter, and we invested $76 million in CapEx. Q2 cash flow reflects a tax deposit that will largely be offset by a related refund anticipated around the end of the fiscal year. We purchased $65 million in shares and paid $72 million in dividends in Q2, and we ended the quarter with a net leverage ratio of 0.7 turns, maintaining our strong balance sheet. Now, let me share some additional details on the updated outlook for the year and the guidance for Q3.

Speaker #2: Operating cash flow was $277 million in the quarter, and we invested $76 million in capital expenditures. Q2 cash flow reflects a tax deposit that will largely be offset by a related refund anticipated around the end of the fiscal year.

Speaker #2: We purchased $65 million in shares and paid $72 million in dividends in Q2. And we ended the quarter with a net leverage ratio of 0.7 turns.

Speaker #2: Maintaining our strong balance sheet. Now let me share some additional details on the updated outlook for the year and the guidance for the third quarter.

Speaker #2: Based on the strong performance, we now expect fiscal year 2026 revenue to be in the range of $7.39 billion to $7.49 billion on a reported basis.

Adam Elinoff: Based on the strong performance, we now expect fiscal year 2026 revenue to be in the range of $7.39 to $7.49 billion on a reported basis. This range represents growth of 4.5% to 6% on a core or organic constant currency basis, an increase of 30 basis points at the midpoint versus the prior guide. Currency is now expected to be a 1.8% tailwind during the year. Turning to our end markets, business segment, and geographic growth assumptions. We continue to expect high single-digit growth in pharma and a low double-digit decline in Academic and Government. Based on strong results in H1 and our outlook for the remainder of the year, we are raising our expectations for chemicals and advanced materials as well as Diagnostics and Clinical from mid-single-digit to mid-to-high single-digit growth.

Speaker #2: This range represents growth of 4.5% to 6% on a core, or organic constant currency basis—an increase of 30 basis points at the midpoint versus the prior guide.

Speaker #2: Currency is now expected to be a 1.8% tailwind during the year. Turning to our end markets, business segment, and geographic growth assumptions, we continue to expect high single-digit growth in Pharma and a low single-digit decline in Academic and Government.

Speaker #2: Based on strong results in the first half and our outlook for the remainder of the year, we are raising our expectations for Chemicals and Advanced Materials, as well as Diagnostics and Clinical, from mid single-digit to mid to high single-digit growth.

Speaker #2: With our momentum in forensics providing upside, we are raising our guidance for Environmental and Forensics from low single-digit to low- to mid-single-digit growth. In Food, we are lowering our guide from roughly flat to a low single-digit decline due to delays in government funding in China and India.

Adam Elinoff: With our momentum in forensics providing upside, we are raising our guidance for environmental and forensics from low single-digit to low to mid-single-digit growth. In food, we are lowering our guide from roughly flat to a low single-digit decline due to delays in government funding in China and India and inflationary headwinds related to the Middle East conflict. We now expect mid-single-digit growth for all three business segments, increasing AMG from low single-digit to mid-single-digit to reflect the strong Q2 performance. Regionally, our only update to our prior full year guidance is in Asia ex China, where we are increasing our assumptions from mid-single-digit to mid to high single-digit growth. Moving down the P&L, we are also raising our full year operating margin expansion target to 85 basis points at the midpoint of our revenue guidance, driven by continued operational momentum.

Speaker #2: And inflationary headwinds related to the Middle East conflict. We now expect mid-single-digit growth for all three business segments, increasing AMG from low single-digit to mid-single-digit to reflect the strong Q2 performance.

Speaker #2: Regionally, our only update to our prior full-year guidance is in Asia ex-China, where we are increasing our assumptions from mid single-digit to mid to high single-digit growth.

Speaker #2: Moving down the P&L, we are also raising our full-year operating margin expansion target to 85 basis points at the midpoint of our revenue guidance.

Speaker #2: Driven by continued operational momentum, our expected tax rate is unchanged at 14.5%, and we now expect $31 million in other income, and 283 million diluted shares outstanding for the year.

Adam Elinoff: Our expected tax rate is unchanged at 14.5%. We now expect $31 million in other income, and $283 million diluted shares outstanding for the year. Fiscal year 2026 earnings per share are now expected to be between $6 and $6.10, an increase of $0.08 at the midpoint, representing earnings growth of 7% to 9%. For your modeling, let me share some additional expectations we have incorporated into our guidance for the year. While the Middle East conflict and the demand for memory chips puts upward pressure on our costs, we are confident that the Ignite Operating System will deliver meaningful efficiencies and help absorb those inflationary impacts within our H2 outlook. There is no change to our operating cash flow range of $1.6 to $1.7 billion. We are now expecting to invest approximately $450 million in capital expenditures, down $50 million versus our prior guidance.

Speaker #2: Fiscal year 2026 earnings per share are now expected to be between $6.00 and $6.10, an increase of $0.08 at the midpoint, representing earnings growth of 7% to 9%.

Speaker #2: For your modeling, let me share some additional expectations we have incorporated into our guidance for the year. While the Middle East conflict and the demand for memory chips put upward pressure on our costs, we are confident that the Ignite operating system will deliver meaningful efficiencies and help absorb those inflationary impacts within our H2 outlook.

Speaker #2: There is no change to our operating cash flow range of $1.6 to $1.7 billion. And we are now expecting to invest approximately $450 million in capital expenditures.

Adam Elinoff: There is no change to our operating cash flow range of $1.6 to $1.7 billion. We are now expecting to invest approximately $450 million in capital expenditures, down $50 million versus our prior guidance.

Speaker #2: Down $50 million versus our prior guidance. Now, moving to the third quarter, we expect our reported revenue to be in the range of $1.83 billion to $1.85 billion.

Adam Elinoff: Now moving to Q3. We expect our reported revenue to be in the range of $1.83 to 1.85 billion. This represents growth of roughly 4.4% to 5.9% on a core or organic constant currency basis. While currency is expected to be approximately a 0.6% tailwind, our guide assumes 283 million diluted shares outstanding in Q3. EPS guidance for the quarter is $1.48 to $1.50, representing growth of 8% to 9%. While our H2 core growth guidance is roughly similar to our H1 performance, it comes against the backdrop of increasingly tougher comps. The sequential quarterly 2-year stack growth implied by our guidance demonstrates our accelerating momentum through the year, as shown in slide 10 of our presentation. Finally, I want it to be clear that our guide does not include the impact of Biocare nor any benefit from potential tariff refunds.

Speaker #2: This represents growth of roughly 4.4% to 5.9% on a core or organic constant currency basis, while currency is expected to be approximately a 0.6% tailwind.

Speaker #2: Our guide assumes 283 million diluted shares outstanding in the third quarter. EPS guidance for the quarter is $1.48 to $1.50, representing growth of 8% to 9%.

Speaker #2: While our second-half core growth guidance is roughly similar to our first-half performance, it comes against the backdrop of increasingly tougher comps. The sequential quarterly two-year stack growth implied by our guidance demonstrates our accelerating momentum through the year.

Speaker #2: As shown on slide 10 of our presentation. Finally, I wanted to be clear that our guide does not include the impact of BioCare, nor any benefit from potential tariff refunds.

Speaker #2: With that, I'll turn the call back over to Padraig for closing comments.

Adam Elinoff: With that, I'll turn the call back over to Padraig for closing comments.

Speaker #1: Thanks, Adam. I couldn't be prouder of the way our team executed in the second quarter—once again demonstrating our ability to perform in all market environments.

Padraig McDonnell: Thanks, Adam. I couldn't be prouder of the way our team executed in the Q2, once again demonstrating our ability to perform in all market environments. In the near term, our improved full year outlook reflects healthy demand in our key end markets and stronger underlying operation performance across the business. That includes pricing realization, productivity gains, and replacement cycle momentum. Longer term, our broad and diverse portfolio across end markets and geographies provide differentiated resiliency and enables multiple avenues to success. With a market leading services team that cultivates unparalleled customer intimacy, a deep bench of talent, an impressive cadence of innovation launches, and our Ignite Operating System that has come into its own and is delivering compounding results, Agilent will continue to sustainably outperform the competition.

Speaker #1: In the near term, our improved full-year outlook reflects healthy demand in our key end markets and stronger underlying operational performance across the business. That includes pricing realization, productivity gains, and replacement cycle momentum.

Speaker #1: Longer term, our broad and diverse portfolio across end markets and geographies provides differentiated resiliency and enables multiple avenues to success. With a market-leading services team that cultivates unparalleled customer intimacy, a deep bench of talent, an impressive cadence of innovation launches, and our Ignite operating system that has come into its own and is delivering compounding results, Agilent will continue to sustainably outperform the competition.

Speaker #1: Before we close, I want to take a moment to thank our customers for their trust and express my gratitude to the Agilent team for delivering a fantastic result.

Padraig McDonnell: Before we close, I want to take a moment to thank our customers for their trust and express my gratitude to the Agilent team for delivering fantastic results. With that, I'll turn the call back to Tejas for the Q&A. Tejas.

Speaker #1: And with that, I'll turn the call back to Tejas for the Q&A. Tejas.

Speaker #3: Thanks, Parag. Karina, can you please share the instructions for the Q&A?

Tejas Savant: Thanks, Padraig. Karina, can you please share the instructions for the Q&A?

Speaker #4: Thank you. We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please raise your hand now.

Operator: Thank you. We will now begin the question and answer session. Please limit yourself to one question and one follow-up. If you would like to ask a question, please raise your hand now. If you have dialed in to today's call, please press star nine to raise your hand and star six to unmute. A kind reminder to ensure you are unmuted locally when asking your question. Please stand by while we compile the Q&A roster. Your first question comes from the line of Vijay Kumar with Evercore. Your line is open. Please go ahead.

Speaker #4: If you have dialed into today's call, please press star 9 to raise your hand, and star 6 to unmute. A kind reminder to ensure you are unmuted locally when asking your question.

Speaker #4: Please stand by while we compile the Q&A roster. Your first question comes from the line of Vijay Kumar with Evercore. Your line is open.

Speaker #4: Please go ahead.

Speaker #5: Hi guys. Thank you for taking my question, and Padraig, congrats on a fine print here. Maybe my first one—if you look at some of the momentum pieces here, in CAM, it was a standout for us.

Vijay Kumar: Hi, guys. Thank you for taking my question. Padraig, congrats on a fine print here. Maybe on my first one, if you look at some of the moving pieces here, CAM was a standout for us. On the instrument side, LC-MS, GC, double digits was standout. It looks like overall instruments, high singles implies your cell analysis was still down. Maybe talk about, is that A&G? What are you seeing in A&G trends? On the CAM side, I know with the Middle East situation, there's been some talks about end market concerns. Maybe talk about how CAM progressed and your confidence in that CAM outlook.

Speaker #5: On the instrument side, LCMS and GC, double digits was a standout. But it looks like overall instruments—high singles—implies your cell analysis was still down.

Speaker #5: So maybe talk about—is that ANG? What are you seeing in ANG trends and on the CAM side? I know with the Middle East situation, there have been some talks about end market concerns.

Speaker #5: Maybe talk about how CAM progressed and your confidence in that CAM outlook.

Speaker #1: Great, thanks, Vijay. First of all, we're delighted with the results—really strong results from the team—and we're taking share across the board.

Padraig McDonnell: Great. Thanks, Vijay. First of all, we're delighted with the results. Really strong results from the team where we're taking share across the board and Ignite really running on all cylinders. CAM was 8% growth in Q2. That beat our mid-single digit guide. We're mid-single digits in chemicals, high middle single digits, and low double digits in advanced materials. We had actually low teens CAM growth ex China. After a strong high single digit growth in H1, we're going to see how it plays out with the Middle East going forward on us. It's really driven by a number of things. I think increased CapEx spending likely returns late in the calendar year, but we're seeing that continue. Investment in the semiconductor space. That continues to be a real sweet spot for us.

Speaker #1: And Ignite really running on all cylinders. But CAM was 8% growth in Q2. That beat our mid-single-digit guide, plus mid-single-digit guide. We were mid-single digits in chemicals, by middle single digits.

Speaker #1: And low double digits in advanced materials. And we had actually low teens CAM growth ex-China. So, after strong high single-digit growth in H1, we're going to see how it plays out with the Middle East going forward on it.

Speaker #1: And it's really driven by a number of things. I think increased capex spending, likely returns late in the calendar year, but we're seeing that continue investment in the semiconductor space.

Speaker #1: That continues to be a real sweet spot for us. And what we're seeing is also is substantial leadership in our key platforms. Now, when you look ahead, when you look and see what our multiple factors, I think the chemical sector driven by demand from downstream material industries like semiconductors and batteries continued investment in semiconductor and investment in supply chains.

Padraig McDonnell: What we're seeing is also substantial leadership in our key platforms. When you look ahead, when you look and see what are multiple factors, I think the chemical sector driven by demand from downstream material industries like semiconductors and batteries. Continued investment in semiconductor and investment in supply chains. Overall, really strong across the board. We don't read too much into the Middle East in terms of what's happening. We're going to see how that goes. We're seeing good momentum in our funnels continue on the CAM side. I think on the Academic and Government side, I think you had a question in there. We expected a decline. We had a decline of -5% in Q2. Americas revenue was flat. Americas instruments comp start to ease, actually, and we see return to stability on that side.

Speaker #1: So overall, really strong across the board. And we don't read too much into the Middle East in terms of what's happening. We're going to see how that goes.

Speaker #1: But we're seeing good momentum in our funnels continuing on CAM side. And I think on the academia and government side, I think you had a question in there.

Speaker #1: We expected a decline. We had a decline of about minus 5% in Q2. America's revenue was flat. America's instruments comps are starting to ease, actually, and we see a return to stability on that side.

Speaker #1: And you see that the OMB requirement to fully redistribute appropriate funds is starting to happen. So, overall, we see a continuing, kind of a steady state.

Padraig McDonnell: You see that the OMB requirement to fully redistribute appropriate funds is starting to happen. Overall, we see it continuing as a kind of a steady state, and we see ongoing, I would say, ongoing muted in A&G, but overall, I think an extremely strong result.

Speaker #1: And we see ongoing, kind of—I would say, ongoing muted—in ANG, but overall, I think an extremely strong result.

Speaker #5: That's helpful. Maybe, Adam, one for you on the margins. Pretty impressive margin print here. It looks like volumes were slightly above the high end of your guidance, but the leverage was pretty impressive.

Vijay Kumar: That's helpful. Let me add one for you on the margins. Pretty impressive margin print here. It looks like volumes were slightly above the high end of your guidance, but the leverage was pretty impressive. How much was pricing? Maybe talk about what drove margins and how you're thinking about progression here. It looks like Q4, we're looking at a pretty big quarter for margins, maybe visibility into Q4 ramp.

Speaker #5: How much was pricing? Maybe talk about what drove margins and how you think about progression here. It looks like Q4—we're looking at a pretty big quarter for margins—maybe visibility into the Q4 ramp.

Speaker #1: Yeah, so thanks, Vijay. A couple of points. The margin beat this quarter was driven by a couple of things. One, Ignite—and I say that in the broadest sense of the word, so that includes the pricing.

Adam Elinoff: Thanks, Vijay. A couple of points. The margin beat this quarter was driven by a couple of things. One, Ignite, and I say that in the broadest sense of the word, so that includes the pricing. You heard over 200 bips of pricing in there, as well as execution excellence from the team and structural improvements we're seeing. We talked about in the script, specifically in operations as well as productivity from our procurement team. All of the Ignite savings you're really starting to see run through the P&L now. There's volume leverage. The other piece I would point out is the geographic mix, as we had a larger SKU in Q2 toward the Americas, which helps our margin. If we look ahead, what you see is two things.

Speaker #1: So you heard over 200 bps of pricing in there, as well as execution excellence from the team and structural improvements we're seeing. We talked about it in the script, specifically in operations, as well as productivity.

Speaker #1: From our procurement team, all of the Ignite savings are really starting to flow through the P&L now. Then there's volume leverage. The other piece I would point out is the geographic mix.

Speaker #1: As we had a larger skew in Q2 toward the Americas, which helps our margin. And then if we look ahead, what you see is two things.

Speaker #1: One, you see a flat, sequential Q2 to Q3, and that's really driven by a couple of pieces. One, you see the favorability that we have in Ignite—and once again, that's the broadest sense of the Ignite operating system there.

Adam Elinoff: One, you see a flat sequential Q2 to Q3. That's really driven by a couple of pieces. One, you see the favorability that we have in Ignite. Once again, that's the broadest sense of the Ignite Operating System there. That's partially offset by some inflationary pressures that we're seeing in geographic mix, kind of returning back to a little bit more of a normalized mix. What you see is the expansion happening again from Q3 to Q4 up about 220 basis points, which is very normal from what we've seen in previous quarters. When I look at it and take a step back, our H1 to H2 ramp is about 47.53 from an operating profit perspective. This is very much normalized to what we would normally see H1 to H2. The ramp here is fully in line with historical norms.

Speaker #1: And then that's partially offset by some inflationary pressures that we're seeing, and the geographic mix kind of returning back to a little bit more of a normalized mix.

Speaker #1: But then what you see is the expansion happening again from Q3 to Q4, up about 220 bips, which is very normal from what we've seen in previous quarters.

Speaker #1: And when I kind of look at it and take a step back, our H1 to H2 ramp is about 47.53, from an operating profit perspective.

Speaker #1: And this is very much normalized to what we would normally see, H1 to H2. So the ramp here is fully in line with historical norms.

Speaker #1: So feel very confident about it and really excited about the second half of the year.

Adam Elinoff: Feel very confident about it and really excited about the H2 of the year.

Speaker #5: Understood. Thank you.

Vijay Kumar: Understood. Thank you.

Speaker #4: Your next question comes from the line of Patrick Donnelly. With Citi, your line is open. Please go ahead.

Operator: Your next question comes from the line of Patrick Donnelly, Wolfe Research. Your line is open. Please go ahead.

Speaker #6: Hey guys. Thank you for taking the questions. Maybe one on the specialty CDMO. I guess it's advanced therapeutics now. It sounds like high single-digit growth in the quarter.

Patrick Donnelly: Hey, guys. Thank you for taking the questions. Maybe one on the specialty CDMO, I guess it's Advanced Therapeutics now. It sounds like high single-digit growth in the quarter, pretty healthy there. Obviously talking still about the mid-teens. I think you talked about the production schedule has this uptick in 2H. Can you just talk about the visibility? Is that all kind of contracted and covered at this point? It sounds like Train C next spring, so maybe not this year. Just talk about the visibility on the H2 uptick of that business, what you saw in the quarter, how much go forward revenue is covered by some of the contracts that you have in place here.

Speaker #6: Pretty healthy there. Obviously, still talking about the mid-teens. I think you mentioned the production schedule has this uptick in the second half. Can you just talk about the visibility?

Speaker #6: Is that all kind of contracted and covered at this point? It sounds like train C is next spring, so maybe not this year. But just talk about the visibility on the second-half uptick of that business—what you saw in the quarter, how much go-forward revenue is covered by some of the contracts that you have in place here.

Speaker #1: Yeah, thanks, Patrick, and thanks for the question. So, I'll start off, and I'll hand it over to Simon for more details. So just to kind of ground people, we're a specialty CDMO business focused on SRNA, peptides, GLP-1s, and, of course, high-potency APIs.

Padraig McDonnell: Yeah. Thanks, Patrick, and thanks for the question. I'll start off and I'll hand it over to Simon for more details. Just to kind of ground people, we're a specialty CDMO business focused on siRNA, peptides, GLP-1s, and of course, high potency APIs. The Q2 growth at the high end of high single digits was within expectations with batch cadence resulting in a normal quarter-to-quarter variance. We see that over and over again. We continue to expect to see mid-teens growth guide for FY2026 based on our production schedules and demand dynamics. If Simon, some more color on the trends, et cetera.

Speaker #1: And the Q2 growth at the high end of high single digits was within expectations with batch cadence resulting in a normal quarter-to-quarter variance. We see that over and over again.

Speaker #1: We continue to expect to see mid-teens growth guidance for FY26 based on our production schedules and demand dynamics. But Simon, can you provide some more color on the trends, etc.?

Speaker #5: Yeah. Thanks, Paul. This is Simon. Just to add a little bit more color there. The short answer to the question is we've got really strong visibility in the second half of the year.

Simon May: Thanks, Padraig. This is Simon. Just to add a little bit more color there. The short answer to the question is we've got really strong visibility in the H2 of the year, and the phasing of production schedules point towards very strong year-over-year growth in the Q3 and in the Q4. We've got a tough compare in the Q4, but it all adds up still to mid-teens growth for the year, is what we're projecting. Then, as you heard already in the script, we had a major milestone here in the Q2 with the mechanical completion of Train C. Very pleasing to see that, and we remain on schedule there for go live in the spring of 2027. We're a little further out there with demand into 2027, but some very encouraging signs already with Train C in particular.

Speaker #5: And the phasing of production schedules points towards very strong year-over-year growth in the third quarter. In the fourth quarter, we've got a tough compare, but it all adds up still to mid-teens growth for the year, which is what we're projecting.

Speaker #5: And then, as you heard already in the script, we had a major milestone here in the second quarter with the mechanical completion of Train C.

Speaker #5: Very pleasing to see that. And we remain on schedule there. For go live in the spring of 2027. And we're a little further out there with demand into 2027, but some very encouraging signs already with train C in particular.

Speaker #5: We've got strong line of sight to demand there for the bulk of FY27. But, as is always the case, the further out you get in the timing, the production schedules, and the bookings, they proceed accordingly.

Simon May: We've got strong line of sight to demand there for the bulk of FY27. As is always the case, the further out you get in the timing, the production schedules and the bookings, they proceed accordingly.

Speaker #1: Okay, no, that's really helpful. And then maybe one on the instrument strength, just following up there. Nice to see low double-digit growth in the LCL/CMS.

Patrick Donnelly: Okay. Yeah, that's really helpful. Padraig, maybe one of the instrument strengths, just following up there. Nice to see low double-digit growth in the LC-MS. Can you just talk about what markets you're seeing that strength in? I know you guys have the replacement cycle going. How much of it is replacement cycle, share gains? What are you hearing from the field on the instruments, and how durable is this kind of low double digits for the LC-MS program? Thanks.

Speaker #1: Can you just talk about which markets you're seeing that strength in? I know you have the replacement cycle going. How much of it is replacement cycle versus share gains?

Speaker #1: What are you hearing from the field on the instruments? And how durable is this kind of low double digits for the LCMS program? Thanks.

Padraig McDonnell: Yeah. Look, I think continue to see strong momentum on the LC-MS, and GC, low double-digits for both businesses. We expect the LC replacement cycle to be a 200 to 300 basis points tailwind to the LC growth. We've seen that normal trajectory of the replacement cycle, continued momentum, and funnels look really strong. I will say it was actually the best market share data I've seen in what we're seeing. Not only are we replacing, we're also taking share in competitive accounts, which again continues the momentum. If you break it down, I think it's really driven by three factors. I think underinvestment, fleets of age, you see US and Europe CapEx conditions are favorable. Of course, customer-focused innovations are compelling reasons to replace. We expect that to continue. We're seeing it across all markets.

Speaker #6: Yeah. So look, I think continue to see strong momentum on the LCMS and GC low double digits for both businesses. And we expect the LC replacement cycle to be a 200 to 300 bips tailwinds the LC growth.

Speaker #6: And we've seen that normal trajectory of the replacement cycle, but continued momentum and funnels look really strong. I will say it was actually the best market share data I've seen in what we're seeing.

Speaker #6: So, not only are we replacing, but we're also taking share in competitive accounts, which again continues the momentum. And if you kind of break it down, I think it's really driven by three factors.

Speaker #6: I think underinvestment means fleets are aging. You see U.S. and Europe capex conditions are favorable. And, of course, customer-focused innovations are a compelling reason to replace.

Speaker #6: So we expect that to continue, and we're seeing it across all markets. I really want to call out our GC replacement cycle as well.

Padraig McDonnell: I really want to call out our GC replacement cycle as well. It's sometimes under-talked about, but on our GC, we're low double-digit growth. It's a longer lived nature of the GC. You see a typical lifespan of 10 years. We see, relative to LC, the replacement cycle will drive more moderate annual uplift over a longer period of time, but very compounding. We expect that to be 100 bps of a tailwind. Instruments are really good. Funnel's really strong. CapExes are being released. None of this will be possible without a commercial team that can really execute on these innovations.

Speaker #6: It's sometimes under-talked about, but on our GC, we're seeing low double-digit growth. It's the longer-lived nature of the GC—you see a typical lifespan of 10 years.

Speaker #6: And we see, relatively, LC—the replacement cycle will drive more moderately. And you will see uplift over a longer period of time, but it will be very, very compounding.

Speaker #6: And we expect that to be 100 bps of a tailwind. So, instruments are really good, funnel's really strong, CapExes are being released, and none of this team that can really execute on these innovations.

Speaker #1: Great. Really appreciate it.

Patrick Donnelly: Great. Really appreciate it.

Speaker #4: Your next question comes from the line of Tycho Petersen with Jefferies. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Tycho Peterson with Jefferies. Your line is open. Please go ahead.

Speaker #7: Hey, thanks. Paul, I want to probe a little more on the semi strength. This is something you haven't talked a ton about, but maybe just quantify the size of the semi business today.

Tycho Peterson: Hey, thanks. Padraig, wanted to probe a little more on the semi strength. This is something you haven't talked a ton about, but maybe just quantify the size of the semi business today. I think you're more levered to logic than memory, if that's right. Just talk a little bit about sustainability of double-digit growth in spectroscopy, how we should think about new fab construction and pricing power. I think there seems to be a fair amount of pricing power in this market right now.

Speaker #7: I think you're more levered to logic than memory, if that's right. But just talk a little bit about sustainability of double-digit growth and spectroscopy.

Speaker #7: How we should think about new fab construction and pricing power. I think there seems to be a fair amount of pricing power in this market right now.

Speaker #1: Yeah. I mean, there's a really strong pricing power. And of course, we have a new system being released at ASMS that's going to start its own replacement cycle in this area, which is driven by the technology with new capabilities.

Padraig McDonnell: Yeah, there's a really strong pricing power. Of course, we have a new system being released at ASMS that's going to start its own replacement cycle in this area, which is driven by the technology with new capabilities. Our advanced materials market is, if you split it out on the chemical and advanced materials, semiconductor is about 30% of that market as we look at it. We're seeing continued growth on it. We're seeing it in the fabs, but also in the high purity chemical companies around fabs that need these systems as well to do it. We're seeing it across the board. We've actually saw that over a number of years, Tycho. As you see CapEx being deployed, our systems are being placed inside, of course, are qualified with the fabs going forward.

Speaker #1: Our advanced materials market, if you split it out on the chemical and advanced materials, semiconductor is about 30% of that market as we look at it.

Speaker #1: And we're seeing continued growth on it. We're seeing it in the fabs, but also in the high-purity chemical companies around fabs that need these systems as well to do it.

Speaker #1: So we're seeing it across the board. We've actually sought out over a number of years, Tycho, as you see, capex being deployed. Our systems are being placed inside and then, of course, our qualified with the fabs going forward.

Speaker #1: So, as that cycle continues to move, you're going to see that business continue to grow on it. So we're very optimistic.

Padraig McDonnell: As that cycle continues to move, you're going to see that business continue to grow on it. We're very optimistic.

Speaker #7: And then on chemical, you did kind of buck the trend here. I know Vijay kind of asked a question earlier, but are you kind of not seeing what others are on the chemical side because of the GC replacement cycle?

Tycho Peterson: On chemical, you did kind of buck the trend here. I know Vijay kind of asked a question earlier. Are you kind of not seeing what others are on the chemical side because of the GC replacement cycle? Is that the right way to think about it?

Speaker #7: Is that kind of the right way to think about it?

Speaker #1: Yeah, I think it's a mixture of both. I think we've seen strong capex demand with the GC replacement cycle. It's certainly a tailwind. We're seeing we're and very, very competitive with the new innovations that we bring across.

Padraig McDonnell: Yeah, I think it's a mixture of both. I think we've seen strong CapEx demand. The GC replacement cycle is certainly a tailwind we're seeing, and very competitive with the new innovations that we bring across. We haven't seen a slowdown in that area. People still have aging fleets to need them replaced and so on. Of course, it's kind of a bifurcation. Chemical sector is driven downstream on the materials on semiconductors, batteries, and advanced polymers. Of course, we continue to see that continue under replacement momentum after several years of under-investment in CapEx. We don't see that stopping anytime soon.

Speaker #1: But we haven't seen a slowdown in that area. People are still have aging fleets to need them replaced and so on. And of course, it's kind of a bifurcation.

Speaker #1: So chemical sector is driven downstream on the materials, on semiconductors, batteries, and advanced polymers. And of course, we continue to see that continue. And the replacement momentum after several years of underinvestment in capex.

Speaker #1: So we don't see any of that stopping anytime soon. Thanks, Tycho.

Tycho Peterson: Okay. Thank you.

Padraig McDonnell: Thanks, Tycho.

Speaker #4: Your next question comes from the line of Panit Sudha with Lyrink. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Puneet Souda with Leerink. Your line is open. Please go ahead.

Speaker #8: Yeah. Hi. All right. Thanks for taking my questions. First one, just given the if I could continue to follow up on the semi side and the cam side.

Puneet Souda: Yeah. Hi, Padraig. Thanks for taking my questions. First one, if I could continue to follow up on the Semi side and the CAM side. Can you elaborate how CAM improved throughout the quarter? Your confidence here, is this more Semi-driven or instrumentation versus the overall improvement in chemical? Obviously, the start of the conflict, but then the conflict has eased a bit. Maybe just talk about how the trend line has been and what gives you continued more confidence in that core oil and gas business as well.

Speaker #8: Can you elaborate on how CAM improved throughout the quarter? Your confidence here—is this more SEMI-driven or instrumentation, versus the overall improvement in Chemical?

Speaker #8: Obviously, there was a I mean, the start of the conflict, but then the conflict has eased a bit. Maybe just talk about how the trend line has been and what gives you continued more confidence in that core oil and gas business as well.

Speaker #1: Yeah. Look, our momentum has been really, really steady and increasing. And we are very, very pleased with the high single-digits in Q2. And if you think about it, our differentiation in terms of the technologies are driving share gains and advanced materials.

Padraig McDonnell: Yeah, look, our momentum has been really steady and increasing. We are very pleased with the high single digits in Q2. If you think about it, our differentiation in terms of the technologies are driving share gains in advanced materials, where we saw low double-digit growth. Of course, inflationary pressures from the Middle East may affect capital spend, but we expect a strong recovery to be even accelerated before that, but we're not seeing that on our numbers. Just to ground people, we're number one in the CAM market by far. We have substantial leadership positions in GC, GCMS, and spectroscopy, and we're pleased with the really strong performance. Now, CAM customers tend to be more cautious in a dynamic macro environment. We're watching closely on the inflationary pressures that may have on our customers.

Speaker #1: Where we saw low double-digit growth. And of course, inflationary pressures from the Middle East may affect capital spend, but we expect a strong recovery to be even accelerated before that.

Speaker #1: But we're not seeing that in our numbers. And just to kind of ground people, we're number one in the CAM market by far. We have substantial leadership positions.

Speaker #1: In GC and GCMS and spectroscopy, we're pleased with the really strong performance. Now, CAM customers tend to be more cautious in a dynamic macro environment.

Speaker #1: So we're watching closely on the inflationary pressures that may have on our customers. But I would say overall, if you pull it together, there's a degree of prudence embedded in our H2 outlook.

Padraig McDonnell: What I would say, overall, if you pull it together, there's a degree of prudence embedded in our H2 outlook. With growth accelerating from high single digits to mid-single digits in H2, but still very robust.

Speaker #1: We grow at accelerating from high single-digits to mid-single-digits in H2, but still very robust.

Speaker #8: And then a broader question for you on the Agilent differentiation. You were clearly outperforming versus the rest of the broader tools market, the diversified market.

Puneet Souda: Got it. A broader question for you on the Agilent differentiation. You are clearly outperforming versus the rest of the broader tools market, the diversified market. Your diversification beyond healthcare seems to be helping you. Could you take a minute and provide a view into the pharma and the biotech business, how you are serving those customers?From discovery versus more preclinical, are you positioned more into the later stages of drug development that is actually helping as capital funding is returning into the biotech? Maybe if you could, along those lines, talk a little bit about the biotech follow-on and capital raises. How is that flowing into your business? Thank you.

Speaker #8: You have diversification beyond healthcare. That seems to be helping you. But could you take a minute and provide a view into the pharma and the biotech business?

Speaker #8: How are you serving those customers from discovery versus more preclinical? Are you positioned more into the later stages of drug development—that is actually helping as capital funding is returning into biotech?

Puneet Souda: From discovery versus more preclinical, are you positioned more into the later stages of drug development that is actually helping as capital funding is returning into the biotech? Maybe if you could, along those lines, talk a little bit about the biotech follow-on and capital raises. How is that flowing into your business? Thank you.

Speaker #8: And maybe, if you could, along those lines, talk a little bit about the biotech follow-on and capital raises? How is that flowing into your business?

Speaker #8: Thank you.

Speaker #1: Yeah. So I'll take the first one in general. I mean, what's different? I think you see these numbers and you see the 130 BIPs year over year operating margin expansion, 14% EPS growth.

Padraig McDonnell: Yeah. I'll take the first one. In general, what's different, I think you see these numbers and you see the 130 bps year-over-year operating margin expansion, 14% EPS growth. You're really seeing, driven by a number of factors, replacement cycle continues to grow, but winning teams and being able to take market share in that environment. Innovations are really resonating, Infinity III, Pro iQ, LC-MS, and the upcoming launches at ASMS will only drive that forward. The share gains in this environment is really important, right? That drives a lot of capacity as well. I would say, services remains a key differentiator for us. Our scale around services is super important. When you look at our operating system at Ignite, I do want to take a minute on this one.

Speaker #1: You're really seeing driven by a number of factors. Replacement cycle continues to grow, but winning teams and being able to take market share in that environment.

Speaker #1: Innovations are really resonating. Infinity Tree Pro, IQ, LCMS, and the upcoming launches at AMS will only drive that forward. And the share gains in this environment are really important, right?

Speaker #1: So that drives a lot of capacity as well. And I would say services remains a key differentiator for us. Our scale around services is super important.

Speaker #1: But when you look at our kind of operating system at Ignite—and I do want to take a minute on this one—it’s a compounding effect that you see in the numbers this quarter.

Padraig McDonnell: It's a compounding effect that you see in the numbers this quarter, all three metrics above. This is not a coincidence. What happens when transformation is done right, when capabilities are not just piloted or incubated, but deeply embedded in the system, that's what you're going to see compound over time. On the pharma side, I think what you're seeing is really strong replacement cycle. You're seeing, of course, we have a tailwind with GLP-1s in those areas. Of course, the innovation's resonating. You look at the long-term drivers in pharma, you see redistribution of supply chains, expansion of biologics, and of course, you see many other factors really helping. What I would say is that we're very much downstream in QA/QC. We're in development as well.

Speaker #1: All three metrics above and this is not a coincidence. And what happens when transformation is done right, when capabilities are not just piloted or incubated, but deeply embedded in the system, that's what you're going to see compound over time.

Speaker #1: On the pharma side, I think what you're seeing is a really strong replacement cycle. You're seeing, of course, we have a tailwind with GLP-1s in those areas.

Speaker #1: And, of course, the innovations are resonating. When you look at the long-term drivers in pharma, you see redistribution of supply chains, expansion of biologics, and, of course, you see many other factors really helping.

Speaker #1: But what I would say is that we're very much downstream in QA, QC. We're in development as well, so we're right in that sweet spot for reshoring.

Padraig McDonnell: We're right in that sweet spot for reshoring replacement cycle and any capacity or supply chain resilience around. Feel really good about that. Of course, mid-size biotech is a little bit challenged, as you see, but you see the number of deals that are happening from an investment point of view, and we expect that to improve as well. Overall, really, really positive.

Speaker #1: Replacement cycle and any capacity or supply chain resilience around, so I feel really good about that. Of course, mid-sized biotech is a little bit challenged.

Speaker #1: As you see, you can see the number of deals that are happening from an investment point of view, and we expect that to improve as well.

Speaker #1: So overall, really, really positive.

Speaker #8: Thank you.

Adam Elinoff: Thank you.

Puneet Souda: Thank you.

Speaker #4: Your next question comes from the line of Dan Brennan with TD Cowen. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Dan Brennan with TD Cowen. Your line is open. Please go ahead.

Speaker #8: Thank you. Congrats on the quarter. Maybe just on Diagnostics—I mean, super strong quarter. You highlighted the Omni and some other things. I know you bumped the guide a bit, but it does imply a decel versus what you just printed.

Dan Brennan: Thank you. Congrats on the quarter. Maybe just on diagnostics. Super strong quarter. You highlighted the Omni and some other things. I know you bumped the guide a bit, but it does imply a decel versus what you just printed. Was there anything unusual in this quarter on the Omni that's not going to repeat? Just walk us through a little bit because it was so exceptional.

Speaker #8: Was there anything unusual in this quarter on the Omni that's not going to repeat? Or just kind of walk us through a little bit because it was so exceptional.

Speaker #1: Yeah, it was exceptional, Dan. Thanks for the question. We grew 11% in the quarter, well ahead of our mid- to high-single digit guidance on the side, and very durable in that way.

Padraig McDonnell: Yeah, it was exceptional, Dan. Thanks for the question. We grew 11% in the quarter, well ahead of mid to high digits guidance on the side and very durable in that way. I'm going to bring in Simon to give more color on what he's seeing on the Omnis, et cetera.

Speaker #1: But I'm going to bring in Simon to give more color on what he's seeing on the Omnis, etc.

Speaker #9: Thanks, Park. Simon again here. I think in diagnostics, we've got two or three dynamics going on. First and foremost, we've identified this as one of our enterprise growth opportunities.

Simon May: Thanks, Padraig. Simon again here. I think in diagnostics, we've got two or three dynamics going on. First and foremost, we've identified this as one of our enterprise growth opportunities, and we've been focusing and investing there accordingly over the past 12, 18 months now. The Dako Omnis family continues to ramp very well. We're very pleased with the trajectory that we're seeing there across all regions, and we're also now starting to see similar growth in our assay attachments. It was a very pleasing quarter from that perspective because we saw double-digit growth in both instruments and assays. We also continue to do very well in companion diagnostics. We've got great capabilities there, and we're seeing a lot of demand in modalities like antibody drug conjugates. Across the spectrum of our pathology and companion diagnostics business, I think we've got a strong execution.

Speaker #9: And we've been focusing and investing there accordingly over the past 12 to 18 months now. The Omnis family continues to ramp very well. We're very pleased with the trajectory that we're seeing there.

Speaker #9: Across all regions. And we're also now starting to see similar growth in our assay attachments. It was a very pleasing quarter from that perspective because we saw double-digit growth in both instruments and assays.

Speaker #9: We also continue to do very well in companion diagnostics. We've got great capabilities there, and we're seeing a lot of demand in modalities like antibody-drug conjugates.

Speaker #9: So across the spectrum of our pathology and companion diagnostics business, I think we've got strong execution. And as Parekh mentioned, we've got durable market dynamics and a bit of a tailwind right now.

Simon May: As Padraig mentioned, we've got durable market dynamics and a bit of a tailwind right now.

Speaker #8: Perfect. And maybe, as a follow-up, Parekh, you highlighted that slide in the deck—maybe it's slide 10 on the comps. So, you're bumping the guide, but you're saying, "Hey, comps get harder, but we're up against that and we feel good." Can you just elaborate a little bit on what's within the guide?

Dan Brennan: Perfect. Maybe as a follow-up, Padraig, you highlighted that slide in the deck, maybe it's slide 10 on the comps. You're bumping the guide, but you are saying, hey, comps get harder, but we're up against that and we feel good. Can you just elaborate a little bit on within the guide? Because people stare at that. Where do you think ideally you've left a little cushion because the comps are getting more difficult and Wall Street's intoxicated on beats. Just walk us through a little bit more on the guide and how we should think about the back half of the year. Thank you.

Speaker #8: Because people stare at that. Where do you think, ideally, you've left a little cushion? Because the comps are getting more difficult and Wall Street’s intoxicated on beats.

Speaker #8: So, just walk us through a little bit more on the guide, and how we should think about the back half of the year. Thank you.

Speaker #1: Yeah, I'm going to start off and then hand it over to Adam. When you see the top-line strength, the confidence in Ignite drives incremental outlook for revenue growth and margin expansion in EPS.

Padraig McDonnell: Yeah. I am going to start off and hand it over to Adam. When you see the top-line strength, the confidence in Ignite drives incremental outlook for revenue growth and margin expansion in EPS. 30 bps increase in the core growth side, 10 bps increase on the year-over-year margin expansion, and EPS up $0.08. I think the strong H2 results are really creating momentum out of it. Adam, do you want to give some more detail about what we are seeing and what we are taking into account?

Speaker #1: So, 30 basis points increase on the core growth side, 10 basis points increase on the year-over-year margin expansion, and EPS up $0.08. So, I think the strong H2 results are really creating momentum out of it.

Speaker #1: But Adam, do you want to give some more detail about what we're seeing and what we're taking into account?

Speaker #10: Yeah, so thanks for the question. I would look at it a couple of ways. So, first of all, as you said, the compares get more challenging in H2.

Adam Elinoff: Yeah. Thanks for the question. I would look at it a couple ways. First of all, one, as you said, the compares get more challenging in H2. You do have to look at that stacked growth view. When I think about it, the four drivers that give me confidence going into it is, one, the execution excellence. Two, you see we have market momentum. Three, the structural improvements that we've embedded through Ignite, they're in place and they're going to continue to compound. Four is innovation, and you see that coming out shortly. Those four are going to help drive us through the H2 of the year and what gives me confidence. When I think about the guide, I'll just give you how I think about potential upsides and downsides for the full year of the guide.

Speaker #10: But you do have so you do have to look at that stacked growth view. But then when I think about it, the four kind of drivers that are going to that give me confidence going into it is one, the execution, excellence.

Speaker #10: Two, you see we have market momentum. Three, the structural improvements that we've embedded through Ignite are in place, and they're going to continue to compound.

Speaker #10: And then, four is innovation. And you’ll see that coming out shortly. So those four are going to help drive us through the second half of the year and are what give me confidence.

Speaker #10: And then, when I think about the guide, I'll just give you kind of how I think about potential upsides and downsides for the full year of the guide.

Speaker #10: Recall the last time we talked about it, there were kind of three. The first being small and mid-cap, the second being academia and government.

Adam Elinoff: Recall the last time we talked about it, there were three, the first being small and mid-cap, the second being academia and government, and the third being a China stimulus. Well, China stimulus is now looking like the orders will happen toward the end of the year, but the revenue will come in the first part of next year. We're taking that as an upside or a downside off the table. What we would be left with is a small and mid-cap, and what Padraig had talked about is we're seeing all the green shoots there, and it just has to convert into revenue. Second is academia and government continuing to stabilize. We saw it in the US. We see the right signs there, so we're cautiously optimistic as well there.

Speaker #10: And the third being a China stimulus. Well, China stimulus is now looking like the orders will happen toward the end of the year, but the revenue will come in the first part of next year.

Speaker #10: So we're taking that as an upside or a downside off the table. And then what we would be left with is small and mid-cap.

Speaker #10: And like Parekh had talked about, we're seeing all the green shoots there, and it just has to convert into revenue. Second is academia and government continuing to stabilize.

Speaker #10: We saw it in the U.S. We see the right signs there, so we're cautiously optimistic as well there. And then you see the Middle East start to normalize.

Padraig McDonnell: You see the Middle East start to normalize. That's a potential source for upside as well as tariff refunds. They're not embedded in our guide right now, but if we get tariff refund, that can also help. Overall, I just want to say we're confident going into the H2 of the year and the stat comps kind of tell the story.

Adam Elinoff: You see the Middle East start to normalize. That's a potential source for upside as well as tariff refunds. They're not embedded in our guide right now, but if we get tariff refund, that can also help. Overall, I just want to say we're confident going into the H2 of the year and the stat comps kind of tell the story.

Speaker #10: That's a potential source for upside, as well as tariff refunds. So, they're not embedded in our guide right now, but if we get a tariff refund, that can also help.

Speaker #10: So overall, I just want to say we're confident going into the second half of the year, and the stacked comps kind of tell the story.

Speaker #8: Terrific. Thank you.

Dan Brennan: Terrific. Thank you.

Speaker #4: Your next question comes from the line of Michael Riskin with Bank of America. Kind reminder to press star six to unmute. Mr. Riskin, your line is open.

Operator: Your next question comes from the line of Michael Ryskin with Bank of America. Mr. Ryskin, your line is open. Please go ahead.

Speaker #4: Please go ahead.

Speaker #11: Hey, hey. Hopefully, you guys can hear me. Thanks for the question. I want to follow up on China. I think you called out a 9% decline in the quarter.

Michael Ryskin: Hey. Hopefully you guys can hear me. Thanks for the question. I want to follow up on China. I think you called out a 9% decline in the quarter. Maybe H1 is in line, but just anything specific to call out. You talked about slower funding, delays in funding in China. Anything more specific than that or is it really that focused?

Speaker #11: Maybe the first half is in line, but is there anything specific to call out? You talked about slower funding and delays in funding in China—anything more specific than that?

Speaker #11: Or is it really that focused?

Speaker #1: Yeah. Thanks, Michael. So first of all, I think we see the China market as stable, doing around $300 million a quarter. We saw larger-than-expected softness due to Lunar New Year.

Padraig McDonnell: Yeah. Thanks, Michael. First of all, I think we see the China market as stable, doing around $300 million a quarter. We saw larger than expected softness due to the Lunar New Year, H1 was flattish. We remain confident in our flattish guide. I think when you look at it, I think we are under indexed to DX and pharma and over indexed to applied as a company in China. I think biotech is still a small share of the overall China pharma market, but nicely growing in high teens, which was a really bright spot for us, which shows the innovation that's happening in pharma, et cetera on it. When you look at China overall, we're making investments in innovation. We're very highly committed to China. The speed of innovation there is really important.

Speaker #1: But H1 was flattish. We remain confident in our flattish guide. I think when you look at it, we are under-indexed to DX and Pharma and over-indexed to Applied.

Speaker #1: As a company in China, I think biotech is still, overall, a small share of the overall China pharma market. But it's nicely growing, in the high teens, which was a really bright spot for us. This shows the innovation that's happening in pharma.

Speaker #1: Etcetera, on it. And when you look at China overall, we're making an investment in innovation. We're very highly committed to China. The speed of innovation there is really important.

Speaker #1: And of course, the stimulus will come in at the start of next year. And I think, overall, we continue to be optimistic.

Padraig McDonnell: Of course, the stimulus will come in at the start of next year. Overall, I think we continue to be optimistic. We expect mid singles to high singles digit growth for the long term. The reasons why we feel that actually is not just because what we're seeing currently, but we have the largest install base, the pace of innovation, everybody can read the details on that, and we're fully aligned with the China 15th Five-Year Plan around AI, healthcare, green and sustainable developments, and of course, new regulations around PFAS. Overall, I would say pretty muted in the quarter, but I would say very stable and we're continuing to have a great team and really working with our customers there.

Speaker #1: We expect mid-single- to high-single-digit growth for the long term. And the reason why we feel that actually is not just because of what we're seeing currently, but because we have the largest installed base.

Speaker #1: The pace of innovation—everybody can read the details on that. And we're fully aligned with the China 15 five-year plan around AI, healthcare, green and sustainable developments, and, of course, new regulations around PFAS.

Speaker #1: So overall, I would say pretty muted in the quarter, but I would say very, very stable. And we're continuing to have a great team and are really working with our customers there.

Speaker #11: Okay. Okay. And maybe for my follow-up—I think on the last question, you were kind of talking about U.S. academic stabilizing, if I understood correctly, as one of the areas of upside for the year.

Michael Ryskin: Okay. Maybe for my follow-up, I think on the last question, you kind of talking about US academic stabilizing, if I understood correctly, as one of the areas of upside for the year. Maybe you could talk about A&G a little bit more globally, including China, just sort of what you are seeing there and what the assumptions for the rest of the year are? Thanks.

Speaker #11: Maybe you could talk about ANG a little bit more globally, including China—just sort of what you're seeing there, and what the assumptions for the rest of the year are.

Speaker #11: Thanks.

Speaker #1: Yeah, I mean, China ANG is very soft in the quarter—on tightened and delayed government spend, leading to lower academia stimulus. So, I think that's what we're seeing.

Padraig McDonnell: Yeah. China A&G is very soft in the quarter on tightened and delayed government spend leading to lower academia stimulus. I think that's what we're seeing. As I said, Americas was roughly flat. I think everywhere else is reasonably muted. In Europe, actually recovering on key markets. We're seeing reasonable business out of Germany, UK, Spain. I think the Ukraine war impact is now budgeted in. Overall, I think, just to put it into context, US is about 3% to 4% of sales. There's a lot of uncertainty around multi-year grants and higher concentration of funding. Of course, you can see that we're working through that at the moment.

Speaker #1: As I said, the Americas were roughly flat. I think everywhere else is reasonably muted. In Europe, actually recovering on key markets, we're seeing reasonable business in Germany, the UK, and Spain.

Speaker #1: And then I think the Ukraine war impact is now budgeted in. And I think overall, just to put it into context, the U.S. is about 3% to 4% of sales.

Speaker #1: And there's a lot of uncertainty around multi-year grants and a higher concentration of funding. But, of course, you can see that we're working through that at the moment.

Speaker #11: Okay. Thanks.

Michael Ryskin: Yeah. Thanks.

Speaker #4: A kind reminder: if you would like to ask a question, please raise your hand now. If you have dialed into today's call, please press star followed by the number nine.

Operator: Your next question comes from the line of Dan Leonard with RBC. Your line is open. Please go ahead.

Speaker #4: On your telephone keypad, at this time, please limit yourself to one question per person. Your next question comes from the line of Dan Leonard with RBC.

Operator: Your next question comes from the line of Dan Leonard with RBC. Your line is open. Please go ahead.

Speaker #4: Your line is open. Please go ahead.

Dan Leonard: Thank you very much. I'll keep it to one. I have a question on spectroscopy. What does a replacement cycle look like there, especially on the back of a double-digit growth rate? You have a new product launching. You expect it's going to drive a replacement cycle. Is that going to accelerate the growth rate further? What would be just the framing around that? Thank you.

Speaker #8: Thank you very much. I'll keep it to one. I have a question on spectroscopy. What does a replacement cycle look like there, especially on the back of a double-digit growth rate?

Speaker #8: So, you have a new product launching. You expect it's going to drive a replacement cycle. Is that going to accelerate the growth rate further?

Speaker #8: And what would be the, just kind of, the framing around that? Thank you.

Speaker #1: Yeah, I'm going to bring in Mike Zhang here to talk about that spectroscopy business.

Padraig McDonnell: Yeah. I'm going to bring in Mike Zhang here to talk about that spectroscopy with us.

Speaker #8: Yeah, Parekh. Again, thank you, Dan, for the great question. You see tremendous momentum within the business from multiple firms. First of all, obviously, the momentum in semiconductors.

Mike Zhang: Yeah. Padraig. Again, thank you, Dan, for the great question. You're seeing tremendous momentum. We're seeing the momentum come from multiple fronts. First of all, obviously, the momentum in semiconductors and also data center. A lot of capacity build up. This is global based, very excited. There's also, think about the very diverse upstreams, downstream applications. A lot of capacity. There's also a lot of demand because we know in the last several years, the replace cycle, it's kind of muted. We're seeing now because of the new demand, we're seeing accelerations. I think this is just the beginning. I think we have a lot of momentum ahead. I think there's a lot for us to expect. We also really want to highlight, we're very trusted partner by the customer. We are the absolute leader in the market.

Speaker #8: And also, data center. A lot of capacity built up. This is on a global base, so very, very excited. There's also—think about the very diverse upstream and downstream applications.

Speaker #8: So, a lot of capacity. But there's also a lot of demand because we know, in the last several years, the replacement cycle has been kind of muted.

Speaker #8: But we see now, because of the new demands, we see the accelerations. I think this is just the beginning. I think we have a lot of momentum moving ahead.

Speaker #8: I think there's a lot for us to expect. And we also really want to highlight that we're a very trusted partner for the customer.

Speaker #8: We're the absolute leader in the market, and also now with the new innovation in the product coming out. So, multiple firms—very exciting momentum.

Mike Zhang: Also now with the new innovation of product coming out. Multiple fronts, very exciting momentum, and I think this will continue on.

Speaker #8: And I think this will continue on. Got it. Thanks, Mike.

Dan Leonard: Got it. Thanks, Mike Zhang.

Operator: Your next question comes from the line of Luke Sergott from Barclays. Mr. Sergott, your line is open. Please go ahead.

Speaker #4: Your next question comes from the line of Luke Sergot from Barclays. A kind reminder to please press star-six to unmute. Mr. Sergot, your line is open.

Speaker #4: Please go ahead.

Speaker #1: Great, thanks. This is a pretty complicated area with that star six. Just a follow-up here on the margin commentary. You guys had a really strong quarter.

Luke Sergott: Great. Thanks. This is pretty complicated there with that star six. Just follow up here on the margin commentary. You guys had a really strong quarter, like Doc was talking about on gross margin. You're getting the volume leverage, then you're talking about some increased investment there or pull forward on the ICP-MS launch. Can you just talk about how much you're being?Pull forward on these investments and how that kind of shakes out. Just trying to think about from an exit rate margin opportunity, and then as you kind of roll forward into a more normalized business environment through next year.

Speaker #1: Like Doc was talking about on gross margin, you're getting the volume leverage, but then you're talking about some increased investment there, or a pull-forward on the ICPMS launch.

Speaker #1: Can you just talk about where and how much you're being pulled forward on these investments, and how that kind of shakes out? I'm just trying to think about it from an exit rate margin opportunity.

Luke Sergott: Pull forward on these investments and how that kind of shakes out. Just trying to think about from an exit rate margin opportunity, and then as you kind of roll forward into a more normalized business environment through next year.

Speaker #1: And then, as you kind of roll forward into a more normalized business environment through next year.

Speaker #9: Yeah, so let me take this one, Luke. I think the pull forward in investment that you're talking about—really, it was a pull forward in the innovation.

Adam Elinoff: Yeah. Let me take this one, Luke. I think the pull forward in investment that you're talking about, it really was a pull forward in the innovation and in how we focused our investment. It wasn't necessarily a pull forward in investment. The investments were always planned. As we talked about at the beginning of the year, we were going to take some of our margin improvement, invest in innovation. It really wasn't a timing issue around the investment itself. If you think about for the full year, we're guiding a full-year increase of about 85 basis points at the midpoint. Once again, that incorporates several things. It's the structural improvements from Ignite, the volume leverage that we expect to get offset by inflation.

Speaker #9: And how we focused our investment. So, it wasn't necessarily a pull-forward in investment. The investments were always planned, as we talked about at the beginning of the year.

Speaker #9: We were going to take some of our margin improvement and invest in innovation, so it really wasn't a timing issue around the investment itself. And then, if you think about the full year, we're guiding a full-year increase of about 85 basis points at the midpoint.

Speaker #9: And once again, that incorporates several things. It's the structural improvements from Ignite, the volume leverage that we expect to get, offset by inflation. And that's inflation kind of in the broad sense, as well as some of the logistical, Middle East costs, and the AI and chip costs that we're seeing.

Adam Elinoff: That's inflation kind of in the broad sense, as well as some of the logistical Middle East costs and the AI and chip costs that we're seeing, as well as then those growth investments. To your question, it was always incorporated into our initial guide and we're raising our margin guide for the full year up 10 bps at the midpoint.

Speaker #9: As well as those growth investments. And so, to your question, it was always incorporated into our initial guidance, and we're raising our margin guide for the full year up 10 basis points at the midpoint.

Speaker #8: Great. Thanks.

Luke Sergott: Great. Thanks.

Speaker #4: Your next question comes from the line of Catherine Schulte with Baird. Your line is open. Please go ahead.

Operator: Our next question comes from the line of Catherine Schulte with Baird. Your line is open. Please go ahead.

Speaker #10: Hey, guys. Thanks for the questions. On Food, just given that was the one part of the guide that came down, you talked about delays in China and India.

Catherine Schulte: Hey, guys. Thanks for the questions. On food, just given that was the one part of the guide that came down, you talked about delays in China and India. Can you just unpack a bit what you're seeing there and how you expect that to play out going forward?

Speaker #10: Can you just unpack a bit what you're seeing there, and how you expect that to play out going forward?

Speaker #1: Yeah, no. So I think—thanks for the question. The food market business declined minus 3% in Q2. And that was against the mid-single-digit guide.

Padraig McDonnell: Yeah. Thanks for the question. The food market business declined -3 in Q2, and that was against mid-single-digit guide. Really around delayed government spending in Asia was the primary driver of the shortfall versus expectations. America and Europe grew together in high single digits during the quarter. For FY 2026 to reduce guidance from flat to -low single digits, we're set up, I think, in FY 2027 to see the China stimulus. The China stimulus from last year really set up a tough comp for us in FY 2026 and slower government funding. Of course, pressure from the Middle East conflict on food shipments and testing in Asia is an incremental challenge. I would say overall, what you're seeing driving this market for us is that we're ever-changing food safety regulations. They're not going to change.

Speaker #1: Really, the primary driver of the shortfall versus expectations was delayed government spending in Asia. America and Europe grew together in high single digits during the quarter.

Speaker #1: And for FY26, the reduced guidance—from flat to low single digits to negative low single digits—we were set up by thinking in FY27 to see that China stimulus, but the China stimulus from last year really set up a tough comp for us in FY26, and slower government funding.

Speaker #1: And of course, pressure from the Middle East conflict on food shipments and testing in Asia is an incremental challenge. But I would say overall, what you're seeing driving this market for us is that we're seeing ever-changing food safety regulations.

Speaker #1: They're not going to change. You're going to see customer demand continue for healthier, sustainable alternative foods—and, of course, contract labs seeing increased sample volumes.

Adam Elinoff: You're going to see customer demand continue for healthier, sustainable alternative foods and, of course, contract labs seeing increased sample volumes. I think that's where we're right in our sweet spot with verified workflows. Emerging PFAS in food is going to continue. It's actually a really strong growth area over time. Of course, protection of core food safety and quality testing. Overall, a challenging quarter, but I think the long term looks very strong.

Padraig McDonnell: You're going to see customer demand continue for healthier, sustainable alternative foods and, of course, contract labs seeing increased sample volumes. I think that's where we're right in our sweet spot with verified workflows. Emerging PFAS in food is going to continue. It's actually a really strong growth area over time. Of course, protection of core food safety and quality testing. Overall, a challenging quarter, but I think the long term looks very strong.

Speaker #1: So, I think that's where we're right in our sweet spot with verified workflows. Emerging PFAS in food is going to continue as actually a really strong growth area over time.

Speaker #1: And of course, protection of food safety and quality testing. So overall, a challenging quarter, but I think the long term looks very strong.

Speaker #10: All right. Thank you.

Catherine Schulte: All right. Thank you.

Speaker #4: Your next question comes from the line of Casey Woodring with JPMorgan. Your line is open. Please go ahead.

Operator: Your next question comes from the line of Casey Woodring with J.P. Morgan. Your line is open. Please go ahead.

Speaker #8: Great. Thank you for taking my questions, and congrats on the quarter. I'll just ask my two up front. First, I would be curious to hear how much that forensic TSA one-timer you called out was in the quarter.

Casey Woodring: Great. Thank you for taking my questions and congrats on the quarter. Yeah, I'll just ask my two up front. First is just would be curious to hear how much that forensic TSA one-timer you called out was in the quarter, and was that baked into the guide? Second, on chemical within CAM, not to beat a dead horse, but would also be curious to hear if the strong CapEx in chemical is limited to the US or if that's more broad-based in Europe and Asia as well, and maybe just unpack what you're seeing ex-US in that business and what your chemical exposure is ex-US. Thank you.

Speaker #8: And was that baked into the guide? And then second, on chemical within CAM—not to beat a dead horse—but would also be curious to hear if the strong CapEx in chemical is limited to the U.S., or if that's more broad-based in Europe and Asia as well.

Speaker #8: And maybe just unpack what you're seeing ex-US in that business, and what your chemical exposure is ex-US. Thank you.

Speaker #1: Yeah. So, first of all, I'm going to bring Mike in to talk about the TSA business because it's something that we're really, really excited about.

Padraig McDonnell: First of all, I'm going to bring Mike in to talk about the TSA business because it's something that we're really, really excited about, and I'll come back and I'll talk about CAM.

Speaker #1: And I'll come back, and I'll talk about CAM.

Speaker #8: Yeah, definitely. TSA, the solution, is highly differentiated. It provides unprecedented precision as well as efficient throughput. We have been successfully working with TSA.

Mike Zhang: Yeah, definitely. TSA, this solution is highly differentiated and it provide unprecedented positions, but also the efficient throughput. We have been successfully working with TSA, and we have successfully deployed the first contract ahead of the FIFA World Cup 2026. The successful deployment of the first contract and a continuous collaboration really position us in very strong position for future tenders. Overall, I think this exciting new opportunity for us.

Speaker #8: And we have successfully deployed the first contractor ahead of the FIFA World Cup 2026. The successful deployment of the first contract, and the continuous collaboration, really positioned us in a very strong position for the future in the tenders.

Speaker #8: So overall, I think this is an exciting new opportunity for us.

Speaker #1: Yeah. And we called out a $9 million TSA win last quarter with forensics. We recognized $5 million of that this quarter. And we're really well positioned to continue to secure larger aviation security tenders as we go forward.

Adam Elinoff: Yeah. We called out $9 million TSA win last quarter with forensics. We recognized $5 million of that this quarter. We're really well positioned to continue to secure larger aviation security tenders as we go forward. It's important to also kind of continue that that's going to have continued tech refresh in it as well. When you go back to CAM as well, it's not one region. We're seeing it across all regions. I think we feel really strong about our performance as well geographically too.

Padraig McDonnell: Yeah. We called out $9 million TSA win last quarter with forensics. We recognized $5 million of that this quarter. We're really well positioned to continue to secure larger aviation security tenders as we go forward. It's important to also kind of continue that that's going to have continued tech refresh in it as well. When you go back to CAM as well, it's not one region. We're seeing it across all regions. I think we feel really strong about our performance as well geographically too.

Speaker #1: And it’s important to also kind of continue that. That’s going to have continued tech refresh in it as well. When you go back to CAM as well—it's not one region.

Speaker #1: We're seeing it across all regions, so I think we feel really strong about our phones as well, geographically too.

Speaker #8: All right. Great. Thank you.

Casey Woodring: All right, great. Thank you.

Operator: This is all the time we have for questions today. I will turn the call back over to Mr. Tejas for closing remarks.

Speaker #4: This is all the time we have for questions today. I will turn the call back over to Mr. Tejas for closing remarks.

Speaker #8: Thank you, everyone, for joining us. We look forward to speaking with many of you in the weeks ahead.

Tejas Savant: Thank you everyone for joining us. We look forward to speaking with many of you in the weeks ahead.

Operator: This concludes today's call. Thank you for attending. You may now disconnect.

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