Q2 2026 Qiagen NV Earnings Call

Operator 2: Ladies and gentlemen, thank you for standing by. I am Shelley, your GlobalMeet Operator. Welcome, and thank you for joining QIAGEN's Q2 2026 earnings conference call webcast. At this time, all participants are in a listen-only mode. Please be advised that the call is being recorded at QIAGEN's request and will be made available on their internet website. The prepared remarks will be followed by a question-and-answer session. If you would like to ask a question, you may press star followed by one on your touch-tone telephone keypad. Please press the star key followed by zero for operator assistance. At this time, I would like to introduce your host, Daniel Wendorff, Vice President, Head of Investor Relations at QIAGEN. Please go ahead.

Speaker #1: At this time, all participants are in a listen-only mode. Please be advised that the call is being recorded at QIAGEN's request and will be made available on their internet website.

Speaker #1: The prepared remarks will be followed by a question-and-answer session. If you would like to ask a question, you may press * followed by 1 on your touchstone telephone keypad.

Speaker #1: Please press the * key followed by 0 for operator assistance. At this time, I would like to introduce your host, Daniel Wendorf, Vice President, Head of Investor Relations at QIAGEN.

Speaker #1: Please go ahead.

Speaker #2: Thank you, second quarter of 2026. We appreciate your time and interest in QIAGEN. Joining the call today are Thierry Bernard, our Chief Executive Officer, and Roland Sackers, our Chief Financial Officer.

Daniel Wendorff: Thank you, Operator, and welcome to our call for Q2 2026. We appreciate your time and interest in QIAGEN. Joining the call today are Thierry Bernard, our Chief Executive Officer, and Roland Sackers, our Chief Financial Officer. Also joining us is Dr. Domenica Martorana from our investor relations team. As always, today's call is being webcast live and will be archived in the investor relations section of our website at www.qiagen.com, where you can find the press release and presentation accompanying this call. Please also note that this call will include forward-looking statements. Actual results may differ materially from those projected due to a number of factors outlined in our most recent Form 20-F and other filings with the U.S. Securities and Exchange Commission.

Speaker #2: Also, joining us is Dr. Dominika Matarana from our Investor Relations team. As always, today's call is being webcast live and will be archived in the Investor Relations section of our website at www.qiagen.com, where you can find the press release and presentation accompanying this call.

Speaker #2: Please also note that this call will include forward-looking statements. Actual results may differ materially from those projected due to a number of factors outlined in our most recent Form 20F and other filings with the U.S.

Speaker #2: Securities and Exchange Commission. We will also refer to certain financial measures not prepared in accordance with U.S. generally GAAP. That provide additional insights into our performance.

Daniel Wendorff: We will also refer to certain financial measures not prepared in accordance with U.S. generally accepted accounting principles or GAAP that provide additional insights into our performance. Reconciliations to the most directly comparable GAAP figures are in the release and presentation. All references to earnings per share refer to adjusted diluted EPS. With that, let me hand over the call to you, Thierry.

Speaker #2: Reconciliations to the most directly comparable GAAP figures are in the release and presentation. All references to earnings per share refer to adjusted diluted EPS.

Speaker #2: With that, let me hand over the call to you, let me hand over the call to you, Thierry.

Speaker #3: Thank you, Daniel. Hello, and good morning, good afternoon, or good evening, depending on where you are in the world. And thank you for joining us.

Thierry Bernard: Thank you, Daniel. Hello and good morning, good afternoon, or good evening, depending on where you are in the world, and thank you for joining us. Let me start by thanking again our teams across QIAGEN for their continued dedication and disciplined execution. Their focus enabled us to deliver results above our outlook while continuing to invest in our portfolio and focus on profitable growth. Let me now walk you through our key messages for today. First, we exceeded our outlook for both sales and adjusted EPS. Net sales were $535 million and unchanged on both a reported basis and at CER. This was ahead of our outlook for an approximately 2% decline CER. Adjusted diluted EPS was $0.62 on both a reported basis and at CER again, above our outlook of at least $0.60 at CER.

Speaker #3: Let me start by again thanking our teams across QIAGEN for their continued dedication and disciplined execution. Their focus enabled us to deliver results above our outlook, while continuing to invest in our portfolio and focus on profitable growth.

Speaker #3: Let me now walk you through our key messages for today. First, we exceeded our outlook for both sales and adjusted EPS. Net sales were $535 million and unchanged on both a reported basis and at CER.

Speaker #3: This was ahead of our outlook for an approximately 2% decline CER. Adjusted diluted EPS was $62 on both a reported basis and at CER again, above our outlook of at least $0.60 at CER.

Speaker #3: These results demonstrate the resilience of our business and provide further confidence in our outlook for the year. Second key message: our growth pillars delivered 5% growth at CER, probably above market growth.

Thierry Bernard: Those results demonstrate the resilience of our business and provide further confidence in our outlook for the year. Second key message. Our growth pillars delivered 5% growth at CER, probably above market growth. Sample Technologies led the quarter, reflecting continued demand for our sample preparation solutions. QIAcuity delivered another solid quarter driven by healthy consumables demand. QDI, our bioinformatics business, also performed well, led by our clinical applications. QuantiFERON returned to growth as solid demand across many testing groups more than offset the significant decline in US immigration testing demand. This US immigration testing demand decrease is what we highlighted at the end of our Q1 2026. QIAstat-Dx diagnostic was impacted by a challenging prior year comparison in respiratory testing, partially offset by continued strong growth in our gastrointestinal and meningitis encephalitis panels, with the gastrointestinal panel performing particularly well.

Speaker #3: Sample technologies led the quarter, reflecting continued demand for our sample preparation solutions. QIAQUITY delivered a noticeable quarter, driven by healthy consumables demand. QDI, our bioinformatics business, also performed well, led by our clinical application.

Speaker #3: Quantiferon returned to growth as solid demand across many testing groups more than offset the immigration testing demand, this U.S. immigration testing demand decrease is what we highlighted at the end of our Q1, 2026.

Speaker #3: QIASTAT diagnostic, was impacted by a challenging prior year comparison in respiratory testing, partially offset by continued strong growth in our gastrointestinal and meningitis encephalitis panels.

Speaker #3: With the gastrointestinal panel performing particularly well. Third key message: we maintain a very high level of profitability. This reflects our ability to improve efficiency, while continuing to invest for future growth.

Thierry Bernard: Third key message, we maintain a very high level of profitability. This reflects our ability to improve efficiency while continuing to invest for future growth. Fourth, we continue to generate strong cash flow, providing the financial flexibility to invest in the business while returning capital to shareholders. This financial strength enabled us to increase our annual dividend by 40% in 2026. This brings me to my final key message for today, our outlook for 2026. We are reaffirming our full-year outlook and remain confident in stronger growth during the second half of the year. The continued performance of our growth pillars and the progress we are making across our portfolio reinforce our confidence in delivering the outlook we have set for the year. With that, I turn over to Roland for more details on the financials.

Speaker #3: Fourth, we continue to generate strong cash flow, providing the financial flexibility to invest in the business while returning capital to shareholders. This financial strength enabled us to increase our annual dividend by 40% in 2026.

Speaker #3: And this brings me to my final key message for today: our outlook for 2026. We are reaffirming our full-year outlook and remain confident in stronger growth during the second half of the year.

Speaker #3: The continued performance of our growth pillars, and the progress we are making across our portfolio, reinforce our confidence in delivering the outlook we have set for the year. With that, I'll turn it over to Roland for more details on the financials.

Speaker #4: Thank you, Thierry, and hello everyone. As Thierry highlighted, we delivered a better-than-expected second quarter, exceeding our outlook for both sales and adjusted diluted EPS, while maintaining a high level of profitability.

Roland Sackers: Thank you, Thierry, and hello, everyone. As Thierry highlighted, we delivered a better than expected second quarter, exceeding our outlook for both sales and adjusted diluted EPS while maintaining a high level of profitability. Let me start with our sales performance across the four product groups. Sample Technologies was 9% CER, driven by automated consumables and higher instrument sales compared to the year-ago period. Diagnostic solutions declined 2% at CER. QuantiFERON returned to growth at 1% CER, as solid demand across most testing groups more than offset reduced immigration testing demand, primarily in US and Middle East. QIAstat-Dx sales declined 7% at constant exchange rates, despite growth in GI and meningitis panels. However, this was more than offset by lower respiratory panel sales against a challenging prior year comparison previously complicated. In PCR and nucleic acid amplification, sales declined 8% at CER.

Speaker #4: Let me start with our sales performance across the four product groups. Sample Technologies rose 9% CER, driven by automated consumables and higher instrument sales compared to the year-ago period.

Speaker #4: Diagnostic solutions declined 2% at CER. Quantiferon returned to growth at 1% CER, as solid demand across most testing groups more than offset reduced immigration testing demand, primarily in U.S.

Speaker #4: and Middle East. QIASTAT-TX sales declined 7% at constant exchange rates, despite growth in GI and meningitis panels. However, this was more than offset by lower respiratory panel sales against a challenging prior-year comparison previously communicated.

Speaker #4: In PCR and nucleic acid amplification, sales declined 8% at CER. Our digital PCR system, QIAcuity, delivered double-digit growth at CER, driven by strong consumables demand.

Roland Sackers: Our digital PCR system, QIAcuity, delivered double-digit growth at CER, driven by strong consumables demand. This is more than offset by weaker OEM demand.

Speaker #4: This is more than offset by weaker OEM demand.

Speaker #1: Ladies and gentlemen, we apologize for the pause in the presentation, please remain on the line, and you'll hear music until the presentation resumes. You may continue.

Operator 2: Ladies and gentlemen, we apologize for the pause in the presentation. Please remain on the line and you'll hear music until the presentation resumes. You may continue.

Roland Sackers: Okay. Thank you. Sorry for that. It looked like we had some technical difficulties, but I do think we are now back on the call. Let me continue. In PCR and nucleic acid amplifications, sales declined 8% at CER. Our digital PCR system, QIAcuity, delivered double-digit growth at CER, driven by strong consumables demand. This is more than offset by weaker OEM demand. In the genomics and NGS product group, sales rose 2% CER. QIAGEN Digital Insight delivered solid single-digit growth, while consumables for universal NGS panels used on third-party sequencers grew more than 20% CER. Lower sales of other genomics products moderated the overall growth rate. Regional performance was mixed during the quarter. Sales in the Americas rose 1% CER, led by 2% growth in North America, while sales declined in Brazil and Mexico. In the EMEIA region, sales declined 3% CER.

Speaker #3: So, okay, thank you. Sorry for that—I looked at it. We had some technical difficulties, but I do think we are now back on the call.

Speaker #3: So, let me continue. In PCR and nucleic acid amplifications, sales declined 8% at CER, our digital PCR system, QIAQUITY, delivered double-digit growth at CER, driven by strong consumables demand.

Speaker #3: This is more than offset by weaker OEM demand. In the genomics and NGS product group, sales rose 2% CER. QIAGEN Digital Insights delivered solid single-digit growth, while consumables for universal NGS panels used on third-party sequencers grew more than 20% CER.

Speaker #3: Lower sales of other genomics products, moderated to overall growth rate. Regional performance was mixed during the quarter. Sales in the Americas rose 1% CER, led by 2% growth in North America, while sales declined in Brazil and Mexico.

Speaker #3: In the EMEA region, sales declined 2% CER, while Spain, Belgium, and Poland were up in the quarter, Germany, France, and Italy were down. In the Asia-Pacific region, sales declined 2% CER, excluding China, the region grew at a low single-digit rate at constant exchange rates, supported by high teens growth in Japan, while China was down in the low teens.

Roland Sackers: While Spain, Belgium, and Poland were up in the quarter, Germany, France, and Italy were down. In the Asia Pacific region, sales declined 2% CER, excluding China. The region grew at a low single-digit rate at constant exchange rates, supported by high teens growth in Japan, while China was down in the low teens. Sequentially, sales in China improved at a double-digit percentage rate. Moving down the income statement, profitability remained at a high level. Adjusted operating income declined 2% and reached $157 million. The adjusted operating income margin was 29.4% compared with 29.9% in Q2 2025. Disciplined cost management and efficiency gains helped offset cost margin headwinds. The adjusted cost margin was 66.2% in the quarter, compared to 66.7% in the prior year period due to changes in product mix. Operating expenses remained broadly stable as a percentage of sales.

Speaker #3: Sequentially, sales in China improved at a double-digit percentage rate. Moving down the income statement, profitability remained at a high level. Adjusted operating income declined 2% and reached $157 million.

Speaker #3: The adjusted operating income margin was 29.4%, compared with 29.9% in the second quarter, as efficiency gains helped offset gross margin headwinds. The adjusted cost margin was 66.2% in the quarter, compared with 66.7% in the prior-year period, due to changes in product mix.

Speaker #3: Operating expenses remained broadly stable as a percentage of sales. Sequentially, the adjusted operating income margin increased by 200 basis points to 27.4% in the first quarter of '26, with higher operating leverage contributing to the improvement.

Roland Sackers: Sequentially, the adjusted operating income margin increased by 200 basis points from 27.4% in Q1 2026, with higher operating leverage contributing to the improvement. Adjusted diluted EPS was $0.62 at constant exchange rates, exceeding the outlook of at least $0.60 at CER. The adjusted tax rate was 18% in the quarter, in line with our target of 17% to 18%. The high level of profitability also translated into solid cash generation. Operating cash flow was $301 million for H1 2026, unchanged from the same period of 2025. This was achieved despite approximately $20 million of cash payments for efficiency and restructuring programs and a planned increase in inventory. Cash generation was supported by disciplined working capital management and a higher level of profitability. Improved receivables collection and other working capital movements helped offset the inventory build.

Speaker #3: Adjusted diluted EPS was 62 cents at constant exchange rates, exceeding the outlook of at least 60 cents at CER. The adjusted tax rate was 18% in the quarter, in line with our target of 17 to 18%.

Speaker #3: The high level of profitability also translated into solid cash generation. Operating cash flow was $301 million for the first six months of '26, unchanged from the same period of '25.

Speaker #3: This was achieved despite approximately $20 million of cash payments for efficiency and restructuring programs, as well as the planned increase in inventory. Cash generation was supported by disciplined working capital management and a higher level of profitability.

Speaker #3: Improved receivables collection and other working capital movements helped offset the inventory build. Day sales outstanding improved to approximately 55 days from approximately 57 days at the end of '25.

Roland Sackers: Days sales outstanding improved to approximately 55 days from approximately 57 days at the end of 2025. Days inventory outstanding increased to 153 days from 149 days at the end of 2025, reflecting inventory build in preparation for new product launches. Our high level of profitability and cash generation continues to support a strong balance sheet. This gives us the flexibility to invest in innovation, pursue targeted acquisitions, and return capital to shareholders. In line with this approach, we completed a $500 million synthetic share repurchase in January and paid our second annual dividend of around $72 million in July. The dividend per share increased by 40% to $0.35 from $0.25 in 2025. With that, let me hand back the call to Thierry.

Speaker #3: Day's inventory outstanding increased to 153 days from 149 days at the end of '25, reflecting inventory build in preparation for new product launches. Our high level of profitability and cash generation continues to support a strong balance sheet.

Speaker #3: This gives us the flexibility to invest in innovation, pursue targeted acquisitions, and return capital to shareholders. In line with this approach, we completed a 500 million dollar synthetic share repurchase in January and paid our second annual dividend of around 72 million dollars in July.

Speaker #3: The dividend per share increased by 40%, to 35 cents from 25 cents in '25. With that, let me hand back the call to Thierry.

Speaker #2: Thank you, Orlan, and let me now highlight some of the recent progress of our teams in our portfolio. Let's start with sample technologies. We continue to make good progress with our automation strategy, as more laboratories transition from manual to automated sample preparation.

Thierry Bernard: Thank you, Roland. Let me now highlight some of the recent progress of our teams in our portfolio. Let's start with Sample Technologies. We continue to make good progress with our automation strategy as more laboratories transition from manual to automated sample preparation. With the commercial launch of QIAsymphony Connect, our new IVD compliant automation system, we reached another important milestone in expanding our automation portfolio. We have started also placing QIAsprint Connect and are pleased with the number of placement, the high level of customer acceptance, and the very positive initial feedback, especially from pharma company. QIAmini, our third launch for this year, remains on track for launch this fall with beta field testing beginning in North America in the coming weeks. We are also making very good progress in single-cell analysis with Parse.

Speaker #2: With the commercial launch of QIAGEN Symphony Connect, our new IVD-compliant automation system, we reached another important milestone in expanding our automation portfolio. We have also started placing QIAGEN Print Connect and are pleased with the number of placements, the high level of customer acceptance, and the very positive initial feedback, especially from pharma companies.

Speaker #2: QIAGEN Mini, our third launch for this year, remains on track. Four will launch this fall, with beta field testing beginning in North America in the coming weeks.

Speaker #2: We are also making very good progress in single-cell analysis with PARS, we recently launched the next generation of immune profiling solutions, further expanding our single-cell offering.

Thierry Bernard: We recently launched the next generation of immune profiling solutions, further expanding our single-cell offering. Parse was also selected for a NASA-supported research program aboard the International Space Station, supporting research into new treatments for cartilage injuries. Together, those developments show how we are broadening our portfolio while enabling new areas of research. Turning to QuantiFERON. At our spotlight session in May, we outlined how we are preparing QuantiFERON for the next phase of growth in latent tuberculosis testing. As latent tuberculosis screening continues to expand, laboratories are looking for more efficient ways to manage growing testing volumes. Together with DiaSorin and our new automation partner, Inpeco, we plan to launch the first fully automated Sample to Insight workflow in H2 2027. This combines sample handling, incubation, and detection into one purpose-built automated workflow for QuantiFERON testing.

Speaker #2: PARS was also selected for a NASA-supported research program aboard the International Space Station, supporting research into new treatments for cartilage injuries. Together, those developments show how we are broadening our portfolio while enabling new areas of research.

Speaker #2: Turning to Quantiferon, at our spotlight session in May, we outlined how we are preparing Quantiferon for the next phase of growth in latent tuberculosis testing.

Speaker #2: As latent tuberculosis screening continues to expand, laboratories are looking for more efficient ways to manage growing testing volumes. Together with DiaTherin, and our new automation partner, IMPECO, we plan to launch the first fully automated sample-to-insight workflow in the second half of 2027.

Speaker #2: This combines sample handling, incubation, and detection into one purpose-built automated workflow for Quantiferon testing. We are also developing an AI-enabled tool to help assess the risk of progression to active TB, providing clinicians with additional insights beyond the detection of latent TB infections.

Thierry Bernard: We are also developing an AI-enabled tool to help assess the risk of progression to active TB, providing clinicians with additional insights beyond the detection of latent TB infections. This is how we continue to innovate around QuantiFERON, creating additional value for laboratories and clinicians. On QIAstat, we continue to expand the menu into new testing areas. Bloodstream infections require rapid treatment decisions. With the launch of our two new BCID panels, QIAstat now expands into bloodstream infection testing in Europe, providing laboratories with broad coverage across relevant pathogens and antimicrobial resistance markers. Together, those two panels detect 33 pathogens and 28 antimicrobial resistance markers in about one hour time to result. The next step is to bring those panels to the US, and we are confident to get our FDA approval by the end of the year.

Speaker #2: This is how we continue to innovate around Quantiferon, creating additional value for laboratories and clinicians. On QIAGEN Stat, we continue to expand the menu into new testing areas.

Speaker #2: Bloodstream infections require rapid treatment decisions. With the launch of our two new BCID panels, QIAGEN Stat now expands into bloodstream infection testing in Europe, providing laboratories with broad coverage across relevant pathogens and antimicrobial resistance markers.

Speaker #2: Together, those two panels detect 33 pathogens and 28 antimicrobial resistance markers in about one hour time to result. The next step is to bring those panels to the US, and we are confident we will get our FDA approval by the end of the year.

Speaker #2: We are also seeing the value of menu expansion for QIAGEN Stat in the field. An example is that during the ongoing cyclospora outbreak in the US, our large gastrointestinal panelists helping laboratories respond to increasing testing demand.

Thierry Bernard: We are also seeing the value of menu expansion for QIAstat in the field. An example is that during the ongoing Cyclospora outbreak in the US, our large gastrointestinal panel is helping laboratories respond to increasing testing demand. Turning to digital PCR and QIAcuity now. We continue to advance digital PCR across research, biopharma, and clinical application. As more customers are moving from qPCR to digital PCR, they are looking for workflows that are scalable, automated, and easy to standardize. This is why we continue to expand the QIAcuity portfolio. This year, in H2, we are launching new gene expression assays together with a high multiplex kit for the analysis of up to 12 RNA targets in a single reaction. We are also expanding our cell engine therapy offering with new software and broader workflow automation through our collaboration with Hamilton.

Speaker #2: Turning to digital PCR and QIAGEN QIAcuity now, we continue to advance digital PCR across research, biopharma, and clinical applications. As more customers are moving from qPCR to digital PCR, they are looking for workflows that are scalable, automated, and easy to standardize.

Speaker #2: This is why we continue to expand the QIAGEN Quanti portfolio. This year, in the second half of the year, we are launching new gene expression assays together with a high multiplex kit for the analysis of up to 12 RNA targets in a single reaction.

Speaker #2: We are also expanding our cell and gene therapy offering with new software and broader workflow automation through our collaboration with Hamilton. We recently demonstrated again the flexibility of QIAGEN Quity during the recent Ebola outbreak, where we rapidly introduced custom digital PCR assays to support infectious disease research and surveillance.

Thierry Bernard: We recently demonstrated again the flexibility of QIAcuity during the recent Ebola outbreak, where we rapidly introduced custom digital PCR assays to support infectious disease research and surveillance. Finally, let me touch on QIAGEN Digital Insights development. AI is becoming increasingly important in biomedical research as researchers work with growing amounts of data. AI is only as valuable as the scientific knowledge behind it. This is where QDI, QIAGEN Digital Insights, comes in. We combine more than 25 years of curated biomedical knowledge with AI to turn complex biological data into meaningful insights. We, for example, recently announced a new collaboration with NVIDIA. Together, we are combining our curated biomedical knowledge with accelerated computing and graph-based AI. This will help researchers all over the world accelerating drug discovery.

Speaker #2: Finally, let me touch on QIAGEN digital insights development. AI is becoming increasingly important in biomedical research, as researchers work with growing amounts of data.

Speaker #2: But AI is only as valuable as the scientific knowledge behind it. This is where QDI QIAGEN digital insights comes in. We combine more than 25 years of curated biomedical knowledge with AI to turn complex biological data into meaningful insights.

Speaker #2: We, for example, recently announced a new collaboration with NVIDIA, together we are combining our curated biomedical knowledge with accelerated computing and graph-based AI. This will help researchers all over the world accelerate drug discovery.

Speaker #2: With that, let me hand it back to Roland with the details of our outlook for the second half of the year.

Thierry Bernard: With that, let me hand it back to Roland with the details of our outlook for H2.

Speaker #1: Thank you, Thierry. Let me now provide an update on our outlook for 2026 and the third quarter. For the full year, we are reaffirming our outlook for total net sales growth of about 1 to 2 percentage points at CER.

Roland Sackers: Thank you, Thierry. Let me now provide an update on our outlook for 2026 and Q3. For the full year, we are reaffirming our outlook for total net sales growth of about 1 to 2 percentage points at CER. We also continue to expect adjusted diluted EPS of at least $2.43 at CER. For Q3, we expect total net sales growth of about 1% to 2% CER and adjusted diluted EPS of at least $0.62 at CER. I would like to give you some additional perspective on the expected performance in H2. We expect CER sales growth to improve from -1% in H1 to about 3% to 4% in H2. This represents a sequential improvement of approximately 4 to 5 percentage points. There are three main drivers behind this development.

Speaker #1: We also continue to expect adjusted diluted EPS of at least $2.43 at CER. For the third quarter, we expect total net sales growth of about 1 to 2 percent CER and adjusted diluted EPS of at least $62 at CER.

Speaker #1: I would like to provide some additional perspectives on our expected performance in the second half of the year. We expect CER sales growth to improve—from minus 1 percent in the first half—to about 3 to 4 percent in the second half.

Speaker #1: This represents a sequential improvement of approximately 4 to 5 percentage points. There are three main drivers behind this development. First, the end of the year on year headwinds from the discontinued pneumoniax and dynalytics portfolio is expected to contribute approximately 2 percentage points to the improvement in the second half.

Roland Sackers: First, the end of the year-on-year headwinds from the discontinued NeuMoDx and Dynalutics portfolio is expected to contribute approximately 2 percentage points to the improvement in H2. Second, we expect approximately another 2 percentage points from increasing contributions from new SARS tech systems and other recent and planned product launches. This includes QIAsymphony Connect and QIAsprint Connect in Sample Technologies, the rollout of our new BCID panels, continued momentum in companion diagnostics for QIAstat-Dx, and additional offerings for QIAcuity. As mentioned earlier, QuantiFERON delivered a stronger Q2. We continue to believe that we are tracking towards our $500 million target for 2026. This easier comparisons expected to support performance in Q1.

Speaker #1: Second, we expect approximately another 2 percentage points from increasing contributions from new sample tech systems and other recent and planned product launches. This includes QIAGEN Symphony Connect and QIAGEN Spind Connect in sample technologies.

Speaker #1: The rollout of our new BCID panels and continued momentum in companion diagnostics for QIAGEN Stat DX and additional offerings for QIAGEN Quity. As mentioned earlier, Quantiferon delivered a stronger second quarter.

Speaker #1: We continue to believe that we are tracking towards our 500 million dollar target for 2026. This easier comparison is expected to support performance in the fourth quarter.

Roland Sackers: Third, we expect approximately half a percentage point from the combined benefits of PATH, which is performing ahead of our original 2026 sales target of about $40 million, and modestly improving trends in the US life science environment. Within H2, growth is expected to be weighted towards Q1, which benefits from the incremental contributions from the previously mentioned product launches and an easier prior year comparison following the disruption caused by the US government shutdown in Q4 2025. The expected allocation towards H2 is also consistent with our historical sales phasing. Approximately 47% of our full year sales are generated in H1 and approximately 53% in H2. On the topic of tariff repayments, we foresee for the full year.

Speaker #1: Third, we expect approximately half a percentage point from the combined benefits of PAS, which is performing ahead of our original 2026 sales target of about 40 million US dollars, and modestly improving trends in the US life science environment.

Speaker #1: Within the second half, growth is expected to be weighted towards the fourth quarter, which benefits from the incremental contributions from the previously mentioned product launches, and an easier prior year comparison following the disruption caused by the US government shutdown in the fourth quarter of 2025.

Speaker #1: The expected allocation towards the second half is also consistent with our historical sales phasing. Approximately 47 percent of our full year sales are generated in the first half, and approximately 53 percent in the second half of the year.

Speaker #1: On the topic of tariffs repayments, we foresee for the full year. Net of customer refunds, this could be a benefit of about 2 cents EPS at CER.

Roland Sackers: Net of customer refunds, this could be a benefit of about $0.02 EPS at CER. This is already included in our outlook, and any additional benefit would be incremental also to our guidance. Finally, let me briefly address currency trends. For the full year, we currently expect a tailwind of about 1 percentage point on sales and a neutral impact on adjusted diluted EPS. This is unchanged from our previous assumptions. For Q3, currency is expected to have a negative impact of about 1 percentage point on net sales but be neutral on adjusted diluted EPS. With that, I'll now hand it back to Thierry.

Speaker #1: This is already included in our outlook, and any additional benefit would be incremental also to our guidance. Finally, let me briefly address currency trends.

Speaker #1: For the full year, we currently expect a tailwind of about 1 percentage points on sales and a neutral impact on adjusted diluted EPS. This is unchanged from our previous assumptions.

Speaker #1: For Q3, currency is expected to have a negative impact of about 1 percentage points on net sales but be neutral on adjusted diluted EPS.

Speaker #1: With that, I'll now hand it back to Thierry.

Speaker #2: Thank you, Roland. Now let me briefly summarize before we move to the Q&A session. First, we delivered a quarter above our outlook for both sales and adjusted EPS.

Thierry Bernard: Thank you, Roland. Let me briefly summarize before we move to the Q&A session. First, we delivered a quarter above our outlook for both sales and adjusted EPS. At the same time, we maintained a high level of profitability while continuing to invest in our portfolio. Our growth pillars continued to perform well, delivering above-market growth led by Sample Technologies, QIAcuity, and QDI, while QuantiFERON returned to growth. We are making good progress in our product launches, supporting our growth ambition for the H2 of the year and beyond. Together, the performance of our growth pillars and the progresses on new launches reinforce our confidence in a stronger H2 of 2026. In closing, we remain focused on achieving the outlook we have set for this year and delivering solid, profitable growth.

Speaker #2: At the same time, we maintained a high level of profitability while continuing to invest in our portfolio. Our growth pillars continued to perform well, delivering above-market growth, led by sample tech, QIAGEN Quanti, and QDI, while QuantiFERON returned to growth.

Speaker #2: We are making good progress in our product launches, supporting our growth ambition for the second half of the year and beyond. Together, the performance of our growth pillars and the progress on new launches reinforce our confidence in a stronger second half of 2026.

Speaker #2: So, in closing, we remain focused on achieving the outlook we have set for this year and delivering solid, profitable growth. With that, I would now like to hand back to the operator for the Q&A session.

Thierry Bernard: With that, I would now like to hand back to the operator for the Q&A session. Thanks a lot once again for your attention.

Speaker #2: Thanks a lot once again for your attention.

Speaker #3: Ladies and gentlemen, at this time, we will begin the question and answer session. Anyone who wishes to ask a question, may press star followed by one on their touchtone telephone.

Operator 2: Ladies and gentlemen, at this time, we will begin the question and answer session. Anyone who wishes to ask a question may press star followed by one on their touch tone telephone. If you wish to withdraw your question, you may press star followed by two. To ensure that we can accommodate as many people as possible, please limit yourself to only one question and if necessary, one follow-up. Your microphone will also be muted after you are finished asking your questions. Anyone who has a question may press star one followed by one at this time. We will pause for just a moment to allow everyone to queue for questions. We will now take the first question, comes from your line of Casey Woodring with J.P. Morgan.

Speaker #3: If you wish to withdraw your question, you may press star followed by two, to ensure that we can accommodate as many people as possible.

Speaker #3: Please limit yourself to only one question and, if necessary, one follow-up. Your microphone will also be muted after you have finished asking your questions.

Speaker #3: Anyone who has a question may press *1 at this time. We'll pause for just a moment to allow everyone to queue for questions.

Speaker #3: We will now take the first question. It comes from the line of Casey Woodring with JP Morgan.

Speaker #4: Great. Thank you for taking my questions. Maybe just walk through the updated guide for us. You know, I think the back half you took down from 4 percent to 3 to 4 percent.

Casey Woodring: Great. Thank you for taking my questions. Maybe just walk through the updated guide for us. I think the H2 you took down, from 4% to 3% to 4%. Just maybe walk through kind of what's changed and then, any sort of seasonality that you are assuming from Q3 to Q4, the step-up that you talked about a little bit, Roland, in Q4. Maybe just walk us through the drivers there. Thank you.

Speaker #4: Just maybe walk through kind of what's changed and then any sort of seasonality that you're assuming from 3Q to 4Q, the step up that you talked about a little bit, Roland, in 4Q.

Speaker #4: Maybe just walk us through the drivers there. Thank you.

Speaker #1: Thanks, Casey. Again, take the first half of your question and in Roland's comments, we describe also the weight of H2 and the traditional seasonality beyond Q4.

Thierry Bernard: Thanks, Casey. I can take the first half of your question. In Roland's comments, we describe also the weight of H2 and the traditional seasonality beyond Q4. First of all, we believe in that acceleration for the reasons that we highlighted, and by the way, we also highlighted the same reason in our Q1 release. You have obviously some positive impact coming from the stop of headwinds coming from the discontinuation last year of NeuMoDx and DiaLinox. We expect also significant input from our new launches, especially in Sample Tech, but also the new panel that we described today for QIAstat. At the same time, we want to remain cautious. There is no doubt in our view, Casey, that, for example, funding, especially in the US, is improving sequentially. We see indeed an improved funding, especially for research and academia in Q2 compared to Q1.

Speaker #1: But so first of all, we believe in that acceleration for the reasons that we highlighted and, by the way, we also highlighted the same reason in our Q1 release.

Speaker #1: You have obviously some positive impact coming from the stop of headwinds coming from the discontinuation last year of Numodix and Dialynox. And we expected also we expect also a significant input from our new launches, especially in sample tech, but also the new panel that we described today for QIASTAT.

Speaker #1: But at the same time, we want to remain cautious; there is no doubt in our view, Casey, that, for example, funding, especially in the US, is improving sequentially.

Speaker #1: We see indeed an improved funding, especially for research and academia, in Q2 compared to Q1. At the same time, we need to highlight that if you consider, for example, the funding come coming from NIH in the US, it is still below in H1 of 2026 compared to H1 2025.

Thierry Bernard: At the same time, we need to highlight that if you consider, for example, the funding coming from NIH in the US, it is still below in H1 of 2026 compared to H1 2025. We see improvement, we remain also cautious because, as you know, the lack of funding sometimes reflects on capital sales and abilities from labs to invest into new instruments. At the same time, we will benefit definitely from an easier comp from Q4 2025 compared to Q4 2026. Remember that last year we started the year quite strong in Q1 2025 at 7% growth. We finished the year in Q4 2025 at 1% growth. This is why we have an easier comp. Roland, do you want to give more details on the weight of the different quarters?

Speaker #1: So we see improvement, but we also remain cautious because, as you know, the lack of funding sometimes affects capital sales and the ability of labs to invest in new instruments.

Speaker #1: At the same time, we will benefit definitely from a an easier comp from Q4 25 compared to Q4 26. Remember that last year we started the year quite strong in Q1 25 at 7 percent growth.

Speaker #1: We finished the year in Q4 25 at 1 percent growth. This is why we have an easier comp. Roland, do you want to give more details on the weight of the different quarters?

Speaker #2: Yeah, and probably a couple of different perspectives. First of all, just to go on some of the products, but what we just described, Casey, is again, you heard that sample prep is doing quite well, improving quarter by quarter.

Roland Sackers: Yeah, probably couple of different perspectives. First of all, just to run some of the products, what we just described, Casey, is, again, you heard that sample prep is doing quite well, improving quarter-over-quarter. We had now in H1 9% growth rate. Again, that will move double digits in H2. QIAstat, we just talked about that for H1, there was clearly significant headwind coming from the respiratory business last year. We do believe that business also, again, will turn probably high single, more likely low double-digit growth rate as well in H2. QIAsymphony is probably even accelerating while it's already high double digit in H1. I think there's a lot of things where we, I would say also have reasonable visibility in a given market environment.

Speaker #2: We're at now in the first half, 9 percent growth rate. Again, that will move double digit in the second half of the year, right?

Speaker #2: QIASTAT, we just talked about that for the first half, there was clearly significant headwind coming from the respiratory business last year. We do believe that business also, again, will turn probably high single more likely low double digit growth rate as well in the second half of the year.

Speaker #2: QIAGEN Quity is probably even accelerating wild already, high double digit in Q1. So in H1. So I think there's a lot of things where we, I would say, also have reasonable visibility in in a given market environment.

Speaker #2: So I would say there's things like that. But one thing you mentioned it before, that is the one thing this product launches, right? It takes sometimes, that's again, traction.

Roland Sackers: I would say there's things like that. One thing, Thierry, you mentioned it before, that is one thing, this product launch is right. It takes some time that, again, traction, sample prep, you see it, of course, every quarter having instruments on the market, customers getting used to that is being helpful. There is, I think, the natural reason that Q1 will be a stronger one. Have in mind also, QIAprep& is going to hit within Q3, the market. There's clearly also contribution coming in Q1 as well.

Speaker #2: Sample prep, you see it, but of course every quarter having instruments on the market, customers getting used to that is is being helpful. There is, I think, the natural reason that it first quarter will be a stronger one and have in mind also QIAMINI is going to hit within the third quarter.

Speaker #2: The market, so there's clearly also contribution coming in the first quarter as well.

Speaker #3: Will now take your next question coming from the line of Jack Meehan with Operon Research.

Operator 2: We'll now take your next question coming from the line of Jack Meehan with Nephron Research.

Speaker #4: Thank you. Hello everyone. For Thierry, so you've announced the strategic review and still have the CEO search going on. Was wondering how should we view the status of the strategic review when a new CEO is named?

Jack Meehan: Thank you. Hello, everyone. For Thierry, you've announced the strategic review and still have the CEO search going on. Was wondering how should we view the status of the strategic review? When a new CEO is named, does that mean the review stopped or could that continue as a separate topic? Any thoughts would be great. Thanks.

Speaker #4: Does that mean the reviews stopped or could that continue as a separate topic? Any thoughts would be great. Thanks.

Speaker #1: Yeah. So I think you need to consider that those are two complementary but also independent processes. The CEO search, obviously, is one of the highest duty of the board, we are progressing, we confirm that the transition will happen in H2 of 2026.

Thierry Bernard: Yeah. I think you need to consider that those are two complementary but also independent processes. The CEO search, obviously, is one of the highest duty of the board. We are progressing. We confirm that the transition will happen in H2 of 2026. At the same time, we have always outlined, Jack, that our company is always open to consider options to increase shareholder value and stakeholder value. The board and management are also fully aware of their fiduciary responsibilities when such discussions might happen. It's a constant process at QIAGEN, where we are constantly looking at the best way to improve value for our shareholders. I think this is why I continue to say that those processes are natural, long-lasting processes, and the transition with a new CEO should not be viewed as an obstacle to constant improvement of shareholders' value. Obviously not.

Speaker #1: But at the same time, we have always outlined Jack that our company is always open to consider options to increase shareholder value and stakeholder value.

Speaker #1: And the Board and management are also fully aware of their fiduciary responsibilities. When such discussions might happen, it's a constant process at QIAGEN, where we are continuously looking at the best way to improve value for our shareholders.

Speaker #1: So I think this is why I continue to say that those processes are natural long-lasting processes and the transition with the new CEO should not be viewed as an obstacle to constant improvement of shareholders value.

Speaker #1: Obviously not. So the two processes are going together.

Thierry Bernard: The two processes are going together.

Speaker #3: Your next question comes from the line of Taiko Peterson with Jefferies.

Operator 2: Your next question comes from the line of Tycho Peterson with Jefferies.

Speaker #4: Hey, thanks. I want to start with Quantiferon. You know, you came ahead this quarter, but then you did soften the language on the full year target to, you know, quote unquote, working towards 500 million.

Tycho Peterson: Hey, thanks. I want to start with QuantiFERON. You came ahead this quarter, you did soften the language on the full-year target to, quote unquote, working towards $500 million. Are you baking in incremental headwinds from competition here in the back half of the year? I guess what's changing in the guide on QuantiFERON? The follow-up, just to follow up on Jack's question. On the strategic review, what's really on the table here? Is this portfolio changes? Is it restructuring? Is it a different mix of capital allocation? You've done a lot. You've gotten rid of NeuMoDx. You're paying a dividend. You have good margins. I'm just curious, how you think about the option set as you do the strategic review. Thank you.

Speaker #4: Are you baking in incremental headwinds from competition here in the back half of the year? I guess what's changing in the guide on Quantiferon?

Speaker #4: And then the follow up, just to follow up on Jack's question on the strategic review, what's what's really on the table here? Is this portfolio changes?

Speaker #4: Is it restructuring? Is it a different mix of capital allocation? I mean, you've done a lot. You've, you know, gotten rid of pneumatics. You're paying a dividend.

Speaker #4: You have good margins. So I'm just curious, you know, how you think about the option set as you, you know, do the strategic review.

Speaker #4: Thank you.

Speaker #1: Let me start with the second part of your question, Taiko, and and then I will move to Quantiferon. We are having constant broad strategic reviews.

Thierry Bernard: Let me start with the second part of your question, Tycho, I will move to QuantiFERON. We are having constant broad strategic reviews. First of all, as you know, we have always said that this company should focus, we focus where we can gain the most market shares and when we can establish leadership position. This is why we are constantly reviewing the profitability and the return on investment of our different developments in R&D. It does include the constant assessment, obviously, of our different pillars of growth. Second, it involves also, as I said before, to be always open for discussion as long as we see that it can create value in the long term for our shareholders, for our stakeholders, and also when we see a feasibility to a potential, basically, alliance with another company.

Speaker #1: First of all, as you know, we have always said that this company should focus and we focus where we can gain the most market shares and when we can establish leadership position.

Speaker #1: This is why we are constantly reviewing the profitability and the return on different developments in R&D. So it does include the constant assessment, obviously, of our different pillars of growth.

Speaker #1: Second, it involves also as I said before, to be always open for discussion as long as we see that it it can create value on the long term for our shareholders for our stakeholders and also when we see a feasibility to a potential basically alliance for another with another company.

Speaker #1: So it's basically a very thorough analysis on everywhere we can make progresses to create more share shareholder values. On Quantiferon itself, I believe we took the right decision at the end of Q1 when we saw the real decrease of migrant testing to take out 35 million of revenues.

Thierry Bernard: It's basically a very thorough analysis on everywhere we can make progresses to create more shareholder values. On QuantiFERON itself, I believe we took the right decision at the end of Q1 when we saw the real decrease of migrant testing to take out $35 million of revenues. We said at the end of Q1 that we don't believe that this situation will change drastically in the coming months, the H2 2026, or even beyond that. That was a right decision to be taken. At the same time, Tycho, we continue to very much make progress in other application and the development of market shares. First, we continue to convert TST customers to blood test with our latent TB testing. Second, we continue to enter into new applications. We told you 2 years ago, for example, that diabetes was becoming an interesting testing field for latent TB.

Speaker #1: We said at the end of Q1 that we don't believe that this situation will change drastically in the coming month, the second half of 2026, or even beyond that.

Speaker #1: That was a right decision to be taken. At the same time, Taiko, we continue to very much make progress in other application and the development of market shares.

Speaker #1: First, we continue to convert TST customers to blood test with our latent TB testing. Second, we continue to enter into new applications we told you two years ago, for example, that diabetes was becoming an interesting testing field for latent TB.

Speaker #1: And if you remember, we said in 2025 that we believe that patients ongoing dialysis were also a significant application potential for latent TB testing.

Thierry Bernard: If you remember, we said in 2025 that we believe that patients ongoing dialysis were also a significant application potential for latent TB testing. We are starting to implement that, for example, with significant testing labs, in the US with the group DaVita, for example. As regard to competition, the fact that new competitors are coming to the market is showing that QIAGEN was right many years ago to decide to invest into latent TB testing, because I remind you, there is a significant need worldwide for this kind of testing. We showed clearly in our IR session last year that 2 billion people in the world are impacted by latent TB. The fact that new competitors are entering the market can be seen also positively because it will increase or continue to increase awareness for this kind of testing.

Speaker #1: We are starting to implement that. For example, we significant testing labs in the US with the group DAVITA, for example. As regard to competition, the fact that new competitors are coming to the market is showing that QIAGEN was right many years ago to decide to invest into latent TB testing because I remind you there is a significant need worldwide for this kind of testing.

Speaker #1: We showed clearly in our IR session last year that 2 billion people in the world are impacted by latent TB. So the fact that new competitors are entering the market can be seen also positively because it will increase or continue to increase awareness for this kind of testing and therefore for me it probably going to increase the total available market for latent TB testing worldwide.

Thierry Bernard: Therefore, for me, it probably going to increase the total available market for latent TB testing worldwide. For H2 now, more precisely to your questions. The first thing, first of all, to highlight is as we highlighted with Roland, Q2 returns to positive growth. We also highlighted in our press release that in Q3 we are going to be slightly impacted by a very strong comp of Q3 2025, especially in the US. Overall, we believe that H2 will return to growth, then we can achieve our target to keep $500 million revenues for QuantiFERON overall. Growth will strengthen as we move into 2027 with our two new major development, the partnership with Inpeco and the AI scored results that we are going to launch towards the end of the year next year. Competition has always existed, Tycho. Our main competitor is the traditional skin test.

Speaker #1: For H2, now more precisely to your questions, the first thing, for example, first of all to highlight is as we highlighted with Roland, Q2 returns to positive growth.

Speaker #1: We also highlighted in our press release that in Q3 we are going to be slightly impacted by a very strong comp of Q3 2025, especially in the US.

Speaker #1: But overall, we believe that H2 will return to growth and then we can achieve our target to keep a 500 million revenues for Quantiferon overall.

Speaker #1: Growth will strengthen as we move into 2027 with our two new major development, the partnership with IMPECO and the AI scored results that we are going to launch towards the end of the year next year.

Speaker #1: Competition has always existed Taiko. Our main competitor is the traditional skin test. We had an existing competitions for many years with Revity and we have seen the market new entrants.

Thierry Bernard: We had an existing competition for many years with Revvity. We have seen the market new entrants. At the moment, we do not see an impact on our market shares. We are prepared to compete commercially and product-wise against any new entrants. I repeat, the main competitor remain the TST. Our main objective remains to continue to convert more TST customers to blood testing.

Speaker #1: At the moment, we do not see an impact on our market shares. We are prepared to compete commercially and product wise against any new entrants but I repeat the main competitor remain the TST and our main objective remains to continue to convert more TST customers to blood testing.

Speaker #4: Next, your next question comes from the line of Michael Reisgen with Bank of America.

Operator 2: Your next question comes from the line of Michael Ryskin with Bank of America.

Speaker #5: Great. Thanks for taking the question. First, I want to ask real quick on capital deployment. You know, you had a share share authorization at the at the AGM.

Michael Ryskin: Great. Thanks for taking the question. First, I want to ask real quick on capital deployment. You had a share authorization at the AGM. Yet it doesn't look like you bought back any shares in Q2. Just curious why. Does this have something to do with the strategic review, where you want to get that finalized before you deploy capital? Is there some reason you kind of held back? I'll throw in a second one if I can, at the same time. On the sample tech business, that continues to do really well, both organic and Parse. You talked about some of the upside to Parse. Obviously you've got a lot of the automation coming and the new products that you talked about.

Speaker #5: But yeah, it doesn't look like you bought back any shares in the second quarter. Just curious why. Is this have something to do with the strategic review or you kind of want to get that finalized before you deploy capital or is there is there some reason you kind of held back?

Speaker #5: And I'll throw in a second one if I can. At the same time, on the sample tech business, you know, that that continues to do really well.

Speaker #5: Both organic and parse. You kind of talked about some of the upset to parse. And obviously you've got a lot of the automation coming and the new products that you talked about.

Speaker #5: Just want to, you know, maybe get a sense of of your thoughts on that, how that plays out in the second half as you got a little bit tougher comps and and beyond both on the organic and new launches and also on on what the upset from parse could be.

Michael Ryskin: Just want to maybe get a sense of your thoughts on that, how that plays out in H2, as you got a little bit tougher comps and beyond, both on the organic and new launches and also on what the upside from Parse could be. Thanks.

Speaker #5: Thanks.

Speaker #1: So thanks Michael. And I will take the first part and I will ask Roland to chime in on the capital develop deployment strategy. As you noticed, you're right Michael, it's going very well but it's a proof that our our automation strategy that we started back in 2021 is paying off.

Thierry Bernard: Thanks, Michael. I will take the first part, I will ask Roland to chime in on the capital deployment strategy. As you noticed, you're right, Michael, it's going very well. It's a proof that our automation strategy that we started back in 2021 is paying off. I remind you, we started to upgrade some of our existing instruments. QIAcube became QIAcube Connect, EZ1 became EZ2, and this year we have those three new launches. Organically, this is the proof that this strategy is paying off. We continue to see good growth in automated sample tech. We are absolutely convinced that more customers will move from manual sample tech to automation. We are having the good set of answers.

Speaker #1: I remind you we started to upgrade some of our existing instrument, QIAQ became QIAQ Connect, is it one became is it two. And this year we have those three new launches.

Speaker #1: So organically this is the proof that this strategy is paying off. We continue to see good growth in automated sample text and we are absolutely convinced that more customers will move from manual sample tech to automation.

Speaker #1: So we are having the good set of answers. This is strengthened by the acquisition of parse. Because it allows our sample tech portfolio to move into single cells and we invested and acquired parse for two main reasons.

Thierry Bernard: This is strengthened by the acquisition of Parse, because it allows our sample tech portfolio to move into single cells. We invested and acquired Parse for two main reasons. First of all, because the solution of Parse is very highly differentiated compared to existing competition. First, as you know, it's an instrument-free solution, so the ease of use is incomparable. At the same time, to address the large volume needs, we can offer also solution with what we call our Giga lab with Parse. We see that activity also growing very well. The second main differentiation is the number of cells that we can cover with the Parse solutions, which is also incomparable. This is, for example, behind the fact that we have been chosen by NASA, as we highlighted during this call.

Speaker #1: First of all, because the solution of parse is very highly differentiated compared to existing competition. First, as you know, it's an instrument free solution.

Speaker #1: So the ease of use is uncomparable. But at the same time, to address the large volume needs, we can offer also solution with what we call our Gigalab with parse.

Speaker #1: And we see that activity also growing very well. The second main differentiation is the number of cells that we can cover with the parse solutions which is also uncomparable.

Speaker #1: This is for example behind the fact that we have been chosen by NASA as we highlighted during the those this call. We told you last year and at the beginning of this year that the contribution of parse into our revenues for 26 should be around 40 million.

Thierry Bernard: We told you last year and at the beginning of this year that the contribution of Path into our revenues for 2026 should be around $40 million. With the development of Q1 and Q2, we believe that we have this number into control, and we can probably exceed it. Now going to Roland for the capital allocation strategy for the coming month.

Speaker #1: With the development of Q1 and Q2, we believe that we have this number into control and we can probably exceed it. And now going to Roland for the capital allocation strategy for the coming month.

Speaker #2: Yeah, Mike, there are always a lot of reasons when to do and when not to do a share buyback at the end of the day.

Roland Sackers: Yeah, Mike. There's always a lot of reasons when to do and when not to do a shareback at the end of the day. One thing you have to have in mind, after an AGM, typically debt holders have an opposition period, and that takes somewhere between two and three months. It's more technical. Typically, there's never any feedback, you have to wait for that.

Speaker #2: But one thing you have to have in mind after an AGM typically debt told us have an opposition period and Europe takes somewhere between two and three months.

Speaker #2: It's more technical. Typically there's never any feedback but you have to wait for that.

Speaker #4: Your next question will come from the line of Odyssey's Minnesota's with BNP Paribas.

Operator 2: Your next question will come from the line of Odysseas Menisotos with BNP Paribas.

Odysseas Menisotos: Hi. Thank you for taking my questions. I've got two. Firstly, on the organic growth acceleration implied by your Q3 guide. Specifically, on the midpoint, organically, I'm getting around 50 basis points acceleration. Wouldn't it be fair to assume improving growth in sample tech, QIAstat-Dx, and PCR nucleic acids given your instrument launches is in res comps and improving funding releases here? Could you help us piece out the divisional growth here relative to Q2 in Q3? Secondly, looking at QIAstat-Dx Q2 growth underperformed most of your peers here. I understand you're relatively more reliant on respiratory, given you're still early on with the GI launches and meningitis, you held up relatively better in Q4 and Q1. Could you give us some additional color on the Q2 weakness, please? Have you started seeing more US wins since the RISE launch? Thank you.

Speaker #5: Hi, thank you for taking my questions. I've got two. Firstly on the organic growth acceleration implied by your Q3 guide. Specifically, I mean on the midpoint organically I'm getting around 50 bips acceleration.

Speaker #5: Wouldn't it be fair to assume improving growth in sample tech QIASTA and PCR and nucleic acids given your instrument launches is in rest comps and improving funding releases here?

Speaker #5: Could you help us piece out the divisional growth here relative to Q2 in Q3? And and secondly, could you I mean looking at QIASTA Q2 growth underperform most of your peers here and I understand you're relatively more reliant on respiratory given you're still early on with the GI launches.

Speaker #5: And meningitis, but you held up relatively better in Q4 and Q1. Could you give us some additional color on the Q2 weakness, please? And have you started seeing more US wins since the RISE launch?

Speaker #5: Thank you.

Speaker #1: So different questions I will start with QIASTA and then move to Q3 and versus Q4. QIASTA, I wouldn't say this year that we are more exposed to respiratory panels than our competitors.

Thierry Bernard: Different questions. I will start with QIAstat-Dx and then move to Q3 versus Q4. QIAstat-Dx, I wouldn't say, Odysseas, that we are more exposed to respiratory panels than our competitors. Respiratory panels in syndromic testing account for roughly 65% of the total volume of testing. It is clear that everybody is sensitive to a stronger flu season or a weaker flu season. Q2 is never, if you look at our trends in testing for QIAstat-Dx over the last years, a very strong quarter for respiratory. Why? Because you are coming out of winter, but that is in the Northern Hemisphere, and at the same time, you are not completely in winter in many other parts of the world. This explains the weaker numbers on respiratory. It is true that for the last 12 months, us, but also our competitors, are seeing weaker flu season.

Speaker #1: Respiratory panels in syndromic testing account for roughly 65% of the total volume of testing. So it is clear that everybody is sensitive to a stronger flu season or a weaker flu season.

Speaker #1: Q2 is never if you look at our trends in testing for QIASTA over the last years a very strong quarter for respiratory. Why? Because you are coming out of winter but at this in the northern hemisphere and at the same time you are not completely in winter in many other parts of the world.

Speaker #1: So this explains the weaker numbers on respiratory. It is true that for the last 12 months us but also our competitors are seeing weaker flu season.

Speaker #1: At the same time, and this is the objective of our strategic vision of developing the menu of QIASTA, we are extremely pleased by the very good growth of GI, the relevance also you have seen the cyclospora example that I give I gave today.

Thierry Bernard: At the same time, this is the objective of our strategic vision of developing the menu of QIAstat-Dx, we are extremely pleased by the very good growth of GI. The relevance also, you have seen the Cyclospora example that I gave today. We have meningitis developing very well, especially in Northern Europe, but also starting in the US. We will have for the H2 of the year the BCID panel. Because as we said today, blood infections are a key issues for customers. We now have that blood culture panel CE marked. We expect to have it FDA approved during the Q4 of this year. This will help the growth. The second good factor that will help the growth in end of Q3 and Q4 is that there will be a winter again in the northern hemisphere.

Speaker #1: We have meningitis developing very well especially northern Europe but also starting in the US. And we will have for the second half of the year the BCID panel.

Speaker #1: Because as we said today blood infections are a key key issues for customers. We now have that blood culture panel CE marked. We expect to have it.

Speaker #1: FDA approve. During the fourth quarter of this year. This will help the growth. A second good factor that will help the growth in end of Q3 and Q4 is that there will be a winter again in the northern hemisphere.

Speaker #1: The problem is not that much to know whether it's going to be a strong flu a weak flu. There will be flu. And here we will be relevant.

Thierry Bernard: The problem is not that much to know whether it's going to be a strong flu or weak flu. There will be flu, here we will be relevant. Here you will see an acceleration of our respiratory testing. In the US, which remains the main market for syndromic testing, as you know, we have taken significant decisions from an organization standpoint, new salespeople on the field, more specialized, new leadership. This is starting to pay off. Indeed, to your point, where we have the largest volumes of customers, we start to see a good uptake of our QIAstat-Dx Rise instrument in North America. That's the context for QIAstat-Dx, and this is why we are confident in a double-digit growth for the H2 of the year for QIAstat-Dx. Now, coming back to your point on Q3 versus Q4. I mean, in Q3, we will continue.

Speaker #1: And here you will see an acceleration of our respiratory testing. In the US which remains the main market for syndromic testing as you know we have taken significant decisions from an organization standpoint new salespeople salespeople on the field more specialized new leadership.

Speaker #1: This is starting to pay off. And, indeed, to your point, where we have the largest volumes of customers, we are starting to see a good uptake of our QIAstat-Dx Rise instrument in North America.

Speaker #1: So that's the the the the context for QIASTA. And this is why we are confident in a double digit growth for the second half of the year for QIASTA.

Speaker #1: Now coming back to your point on Q3 versus Q4. I mean in Q3 we will continue we have no reasons to consider that for example sample tech will slow down.

Thierry Bernard: We have no reasons to consider that, for example, Sample Technologies will slow down. We believe that Sample Technologies will continue to perform well because, again, in Q3, we will see more uptake of our new launches, and we see the continuous development of Parse. Digital PCR will continue to perform well. Overall, between Q3 and Q4, you will see a continuing good development of capital sales and consumables, and this will be also strengthened by the launch of our new set of panels around gene expression. As we disclosed today, we know that Q3 will be impacted by a very strong comp on QuantiFERON, especially on North America from Q3 of 2025. This is how we see the development of Q3 versus Q4. Obviously, if we can beat our target for Q3, we will do it.

Speaker #1: We believe that Sample Tech will continue to perform well because, again, in Q3 we expect to see more uptake of our new launches, and we see the continuous development of parts.

Speaker #1: Digital PCR will continue to perform well. Overall between Q4 Q3 and Q4 you will see a continuing good developments of capital sales and consumables and this will be also strengthened by the launch of our new set of panels around gene expression.

Speaker #1: At the same time as we disclose today we know that Q3 will be impacted by the by a very strong comp on quantiferon especially on North America from Q3 of 20205.

Speaker #1: This is how we see the development of Q3 versus Q4. Obviously if we can beat our target for Q3 we will do it. But it's I think a very mature and realistic analysis to set that guidance for Q3 and also that acceleration for Q4.

Thierry Bernard: It's, I think, a very mature and realistic analysis to set that guidance for Q3 and also that acceleration for Q4.

Roland Sackers: Just one incremental comment to that because I do think while everybody has it somewhere, I just want to put it also plain on the table, right? We shouldn't forget that, again, there's $35 million of immigration sales for QuantiFERON, which are, as a market, not accessible for us anymore, for anybody. If you just put that in a percentage growth rate, that is more or less already 67% growth rate. Again, at the end of the day, that is what we have to compensate. Again, last year, as Thierry just mentioned, Q3 was an 11% growth rate for QuantiFERON. This is very strong comparable quarter. The rest of the business is actually, as I said, hard to complain. Sample prep, double digits H2. QIAstat-Dx, double digits H2. QIAcuity, double digit. Again, I don't think that we can complain too much.

Speaker #2: And just one just one incremental comment to that because I do think while everybody has it somewhere I just want to put it also plain on the table right.

Speaker #2: We shouldn't forget that again there's a 35 million dollar of immigration sales for quantiferon which are as a market not accessible for us anymore for anybody.

Speaker #2: And if you just put that in the percentage growth rate that's that is more or less already 6 to 7% growth rate. So again at the end of the day that is what we have to compensate and again last year Thierry just mentioned Q3 was an 11% growth rate for quantiferon.

Speaker #2: So this is a very strong comparable quarter to the rest of the business is actually as I said hard to complain sample prep double digit second half QIASTA double digit second half QIACUITY double digit.

Speaker #2: Again I don't think that we can complain too much and also again the headwind Q1 next year on quantiferon is history.

Roland Sackers: Also, again, the headwind Q1 next year on QuantiFERON is history.

Speaker #3: Your next question will come from the line of Dan Arias with Stifel.

Operator 2: Your next question will come from the line of Dan Arias with Stifel.

Speaker #4: Yeah hi guys thanks for the questions here. Thierry on the fully automated quantiferon solution that you're bringing to market. I know none of this product development is easy so I don't mean to trivialize the effort but why a year and a half to get that product to market.

Dan Arias: Yeah. Hi, guys. Thanks for the questions here. Thierry, on the fully automated QuantiFERON solution that you're bringing to market, I know none of this product development is easy, so I don't mean to trivialize the effort. Why a year and a half to get that product to market? What are the major steps or hurdles to getting that to customers, maybe ahead of another competitive option getting into the market?

Speaker #4: What are the major steps or hurdles to getting that to customers maybe ahead of another competitive option getting into the market.

Speaker #1: Well because first of all you need to develop two new instruments. And I just them to the specific workflow of quantiferon. Those two new system are a dedicated aliquoter and a dedicated incubator.

Thierry Bernard: Well, because, first of all, you need to develop two new instruments and adjust them to the specific workflow of QuantiFERON. Those two new system are a dedicated aliquoter and a dedicated incubator. You have to make sure that you can connect all those pieces together to build that first fully automation sample in, result out. To your question, developing and adapting two new instruments in, I would say something like a year, it's quite a performance. Obviously, we need to test it with customers. It will be an investment on their side, and we will need to make sure that it is perfectly adapted to their workflow. There will be some customization.

Speaker #1: And then you have to make sure that you can connect all those pieces together to build that first fully automation sampling result out. So to your question developing and adapting two new instruments in I would say something like a year it's quite a performance.

Speaker #1: It's quite a performance. And then obviously we need to test it with customers. It will be an investment on their side. And we will need to make sure that it is perfectly adapted to their workflow.

Speaker #1: So there will be some customization. We will work and we have started to work especially with our key accounts on making sure that that workflow from a footprint from a volume is going to be completely adjusted to their needs.

Thierry Bernard: We will work, and we have started to work, especially with our key accounts, on making sure that that workflow from a footprint, from a volume, is going to be completely adjusted to their needs. What makes me very confident is that we have started introducing this workflow with a fairly deep level of details to our main customers. Main key accounts in the US, main key accounts in Europe. The acceptance, the interest, the welcoming of this presentation is even beyond our expectation, with many sites indeed asking to be the pilot site for this fully integrated workflow. You still need to develop those instruments. You still need to make sure that the workflow is seamless, and I believe that a year to a year and a half is not that long. You need to validate also the workflow. You need to push it to regulatory approval.

Speaker #1: What makes me very confident is that we have started introducing this workflow with a fairly deep level of details to our main customers. Main key accounts in the US main key accounts in Europe.

Speaker #1: And the acceptance the interest the welcoming of this presentation is even beyond our expectation with many sites indeed asking to be the pilot site for this fully integrated workflow.

Speaker #1: But you still need to develop those instruments. You still need to make sure that the workflow is seamless. And I believe that a year to a year and a half is not that long.

Speaker #1: You need to validate also the workflow. You need to push it to regulatory approval. So second half of 27 is a realistic timeline and I continue to believe that there will be first installation in that time frame.

Thierry Bernard: H2 of 2027 is a realistic timeline, and I continue to believe that there will be first installation in that timeframe.

Speaker #3: Next question will come from come from the line of Dan Brennan with TD Cowan.

Operator 2: Next question will come from the line of Dan Brennan with TD Cowen.

Speaker #4: Taking the questions. Maybe I'll just ask two and then kind of mute and listen. Maybe on the first one Thierry I think you mentioned upfront to I think Jack's question on the strategic plan both internal efficiency gains and also looking at you know potential strategic acquirers to maximize value.

Dan Brennan: Taking the questions. Maybe I'll just ask two and then kind of mute and listen. Maybe on the first one, Thierry, I think you mentioned upfront to, I think, Jack's question on the strategic plan, both internal efficiency gains and also looking at potential strategic acquirers to maximize value. Could you just comment how management and/or the board think about private equity versus strategic acquirers? Are they the same? Are they different, given PE will typically look at deals and be more cost-cut driven versus strategic corporates are going to be probably more growth interested? I guess, B, maybe as we look ahead, kind of when we turn the page, I think consensus right now sits at 5% CER for 2027. A decent little rebound on easy comp.

Speaker #4: Could you just comment how management and/or the board think about private equity versus strategic acquirers? Are they the same? Are they different given PE will typically look at deals and be more cost cut driven versus you know strategic corporates are going to be probably more growth interested?

Speaker #4: And then I guess B you know maybe as we look ahead kind of when we turn the page I think consensus right now sits at 5% CER for 2027.

Speaker #4: So a decent little rebound on easy comp. Just wondering if you guys can offer any initial thoughts about how you're looking to exit this year and you.

Dan Brennan: Just wondering if you guys can offer any initial thoughts about how you're looking to exit this year and kind of what that sets up for next year. Thank you.

Speaker #1: Well I would say on the first one first I will I will highlight something because I heard twice in that call the end of a process.

Thierry Bernard: What I would say on the first one, first, I will highlight something because I heard twice in that call the end of a process, and this is not the message that I want to leave with you guys. There is not a date end of a process of continuously assessing the best pathways forward for QIAGEN. It's a continuous project. Very regularly during the year, management is reviewing and assessing those options with our board, and we are not going to stop that at a given point. I think it's management's responsibility to constantly present to the board options for better shareholder value. That's the first thing. Now, on your question, PE versus strategic. First of all, as you know, Dan, I won't comment into many details. There are pros and cons on both sides. This is not what is our main driver.

Speaker #1: And this is not the message that I want to leave with you guys. There is not a date end of a process of continuously assessing the best pathways forward for QIAGEN.

Speaker #1: It's a continuous project. Very regularly during the year management is reviewing and assessing those options with our board and we are not going to stop that at a given point.

Speaker #1: I think it's management's responsibility to constantly present to the board options for better shareholder value. So that's the first thing. Now on your question PE versus strategic first of all as you know Dan I won't comment into many details there are pros and cons on both sides.

Speaker #1: This is not what is our main driver. Our main driver is to decide is it better for QIAGEN with our midterm plan with our objective of sales profitability return to shareholders is it better to continue organically and independently would that make sense to have a strategic partner or would that make sense to have a more financial driven partner.

Thierry Bernard: Our main driver is to decide, is it better for QIAGEN with our mid-term plan, with our objective of sales, profitability, return to shareholders, is it better to continue organically and independently? Would that make sense to have a strategic partner, or would that make sense to have a more financially driven partner? What of those solutions is driving the main shareholder value for our shareholders, but also for our stakeholders, the QIAGENers, the legacy that we have built for more than 40 years now? Regarding the consensus, Roland, feel free to chime in on this. We are not in the midterm call here, Dan, so I will clearly say our ambition as management for the moment is to deliver on Q3, is to deliver on Q4, to deliver the full guidance that we gave at the beginning of this year, and to continue to improve profitability.

Speaker #1: What of those solution is driving the main shareholder value. For our shareholders but also for our stakeholders the QIAGENers the legacy that we have built for more than 40 years now.

Speaker #1: Now regarding the consensus and Roland feel free to chime in on this. We are not in a midterm call here Dan. So I will clearly say our ambition as management for the moment is to deliver on Q3 is to deliver on Q4 to deliver the full guidance that we gave at the beginning of this year and to continue to improve profitability.

Speaker #1: The market has not become easier around us and despite this this company to continue to deliver profitable growth. You have seen that in Q2.

Thierry Bernard: The market has not become easier around us. Despite this company continues to deliver profitable growth. You have seen that in Q2. That's my main target. We have a target set since our capital market day in June 2024. We are still working towards that. That's what I can say at this moment.

Speaker #1: That's my main target. We have a target set since our capital market day in June 2024. We are still working towards that. That's what I can say at this moment.

Speaker #3: The last question comes from the line of Yan Ka with Deutsche Bank.

Operator 2: The last question comes from the line of Jan Koch with Deutsche Bank.

Speaker #4: Good afternoon. Thanks for taking my two questions. My first one is on instruments. You reported a low-teens decline in Q2, despite mid-single-digit growth in sample tech instruments.

Jan Koch: Good afternoon. Thanks for taking my two questions. My first one is on instruments. You reported a low teens decline in Q2, despite missing the growth in Sample Tech instruments. In which product category specifically have you seen the highest declines? Most life science companies have actually highlighted improving order trends in lab instruments in Q2, so are you seeing similar trends? Secondly, on QIAstat-Dx, how's the development of the complicated UTI panel progressing and when could you launch this test? Based on the high clinical need for this solution, how do you see the financial opportunity?

Speaker #4: In which product category specifically have you seen the highest declines? And most life science companies have actually highlighted improving order trends in lab instruments.

Speaker #4: In Q2. So are you seeing similar trends? And secondly on QIASTET. How's the development of the complicated UTI panel progressing and when could you yeah when could you launch this test?

Speaker #4: Based on the high clinical need for this solution, how do you see the financial opportunity?

Speaker #1: So let's start we start and the CAUTI and then I'll go to the instrument trends and capital sales. The reason why we have extremely good expectation on this complicated UTI panels are mainly twofold.

Thierry Bernard: Let's start with STAT and the cUTI, then I'll go to the instrument trends and capital sales. The reason why we have extremely good expectation on these complicated UTI panels are mainly twofold. First of all, because Jan, as you highlighted yourself, this is a significant unmet need for clinicians and for labs all over the world. Once again, you need to understand we are not talking traditional UTI. This is covered by many cheap solutions. We are talking about complicated UTI, life-threatening UTI, and there, this is where we have a significant unmet need. This is a good segue to the second reason to be optimistic, is that none of our competitors will have this panel. To date, none of our competitors have announced that they are developing such a panel.

Speaker #1: First of all because Yan as you highlighted yourself this is a significant unmet need for clinicians and for labs all over the world. And once again you need to understand we are not talking traditional UTI.

Speaker #1: This is covered by many cheap solutions. We are talking about complicated UTIs. Life threatening UTI. And there this is where we have a significant unmet need.

Speaker #1: And this is a good segue to the second reasons to be optimistic. Is that none of our competitors will have this panel. And today none of our competitors have announced that they are developing such a panel.

Speaker #1: The development progresses very well and we are still confident that this test will be available for Europe Europe first in the second half of 2027.

Thierry Bernard: The development progresses very well. We are still confident that this test will be available for Europe first, in H2 2027. When I say that, I mean, obviously, CE mark, then we will move to the US. You need to understand, Jan, that any time you launch such an innovative panel, there is a period of time where you will have to do clinical and medical education. I have no doubt that our prospect will immediately see the value of the panel, but you need basically to help them changing their testing habit. It always takes time. We will have to invest in medical education. The potential of that test, given the unmet need that I highlighted at the beginning, is significant.

Speaker #1: And when I mean when I say that I mean obviously CE mark. And then we will move to the to the US. You need to understand Yan that anytime you launch such an innovative panel there is a period of time where you will have to do clinical and medical education.

Speaker #1: I have no doubt that our prospect will immediately see the value of the panel but you need basically to help them changing their testing habit.

Speaker #1: It always takes time. So we will have to invest in medical education. But the potential of that test given the unmet need that I highlighted at the beginning is significant.

Speaker #1: And this will be a very good tool as we said before to also help mitigating the respiratory panel going high or going low depending on the strength of a respiratory season.

Thierry Bernard: This will be a very good tool, as we said before, to also help mitigating the respiratory panel going high or going low, depending on the strength of the respiratory system. It's a very good development. It's a very good strategic development. Now on capital sales. We have said, we continue to say, we have said this even starting in 2025, we do see indeed a sequential improvement of funding for research and academia, this obviously helps capital sales. At the same time, we also highlight that despite that sequential improvement in Q2, for example, compared to Q1 2026, the NIH outlay year-to-date 2026 is still lower than 2025. We remain cautious. We see good progresses, we remain cautious.

Speaker #1: So it's a very good development. It's a very good strategic development. Now on capital sales. We have said and we continue to say and we have said this even starting in 25 we do see indeed a sequential improvement of funding for research and academia.

Speaker #1: And this also obviously help capital sales. At the same time we also highlight that despite that sequential improvement in Q2 for example compared to Q1 of 26 the NIH outlay year to date 26 is still lower than 25.

Speaker #1: So we remain cautious. We see good progress, but we remain cautious. And as Roland highlighted in his comments, when you launch a new instrument—such as QIA Symphony Connect or QIA Sprint, for example—you need to spend some time with customers to validate the new instrument and adjust it to their own needs.

Thierry Bernard: As Roland highlighted in his comments, when you launch a new instrument such as QIAsymphony Connect, such as QIAsprint, for example, Jan, you need to spend some time with customers to validate the new instrument to adjust it to their own needs. That takes a bit of time. This is why we see that performance of Q2 for capital sales at QIAGEN, still lower funding and at the same time, progressive uptake of our new launches. This is how you should see that. Those are good investments for the future. You will see a significant level of QIAsprint placement when we will disclose the numbers at the end of 2026. This is creating growth for the future. You will see good placement of QIAsymphony Connect. This will create consumables for the coming years. As Roland highlighted as well, we will launch also the QIAmini.

Speaker #1: That takes a bit of a of a of a time. So this is why we see that performance of of Q2 for capital sales at QIAGEN.

Speaker #1: Still lower funding and at the same time progressive uptake of our of our new launches. This is how you see you you should see that.

Speaker #1: But those are good investments for the future. You will see a significant level of QIA Sprint placement when we will disclose the numbers at the end of 26.

Speaker #1: This is creating growth for the future. You will see good placement of QIA Symphony Connect. This will created consumables for the coming years. And as Roland highlighted as well we will launch also the QIA Mini.

Speaker #1: So if you combine those two factors new systems plus sequential improvement of funding this gives us good reasons to be optimistic.

Thierry Bernard: If you combine those two factors, new systems plus sequential improvement of funding, this gives us good reasons to be optimistic.

Speaker #4: Perfect. Thank you.

Jan Koch: Okay. Thank you.

Speaker #3: This is now. There will be no more. This is the end of the Q&A session. I will now turn it back to Daniel for any closing remarks.

Operator 2: This is the end of the Q&A session. I will now turn it back to Daniel for any closing remarks.

Speaker #4: Thank you. I would like to close this conference call and thank you for your participation. If you have any questions or comments please do not hesitate to contact us.

Daniel Wendorff: Thank you. I would like to close this conference call, and thank you for your participation. If you have any questions or comments, please do not hesitate to contact us. Thank you very much.

Speaker #4: Thank you very much.

Operator 2: Ladies and gentlemen, this concludes the conference call. Thank you for joining, and have a pleasant day. Goodbye.