TMO

This article first appeared on GuruFocus. Release Date: August 27, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Strong liquidity generation with approximately EUR111 million in distributions, equivalent to around 14% of net assets, despite a challenging market environment. Successful realizations, including the full sale of Clario to Thermo Fisher Scientific and full sell-down of Galderma, with last 12-month exits achieving a money multiple close to 3x invested capital. Younger vintages (2024-2025 investments) are performing well, with blended IRR around 20% and companies like Rosen and Velvet Care already close to 2x return on capital in under 2.5 years. Meaningful progress in AI initiatives across the portfolio, with an adoption rate of about 90% and $170 million of visible EBITDA opportunities for 2027, exemplified by Foundation Risk Partners' $10 million EBITDA impact. Robust pipeline of new investment opportunities, including the acquisition of Aromazone and a UK electricity grid service provider, supported by a strong balance sheet with EUR51 million cash and a fully undrawn EUR150 million credit facility. Commitment to shareholder returns with almost EUR36 million returned through dividends and share buybacks in H1 2026, plus a prospective dividend yield above 8%. NAV declined by 8.6% on a total return basis in H1 2026, primarily driven by portfolio developments and a limited number of underperforming assets. Four assets (USIC, Emeria, Pharmathen, and Amega) accounted for approximately two-thirds of the last 12-month portfolio decline, with Pharmathen written down to zero following FDA import alert and operational challenges. Last 12-month EBITDA growth for TOP20 companies slowed to mid-single-digit (4.5%), significantly below the historical 13-15% growth rates, reflecting a challenging macro environment. Mature vintages (pre-2021) experienced negative contributions due to share price volatility in listed holdings like Vishal and Ankinder Care, impacting overall performance. Investment activity was softer in H1 2026 due to macro volatility, with only EUR13 million deployed into new investments, limiting near-term growth potential. Debt trading concerns for Emeria and Amega, with maturities in 2028, requiring proactive work with lenders to find sustainable solutions. Warning! GuruFocus has detected 1 Warning Sign with LSE:PEY. Is LSE:PEY fairly valued? Test your thesis with our free DCF calculator. Q: What level of distributions do you expect to see from the portfolio in the next 6 to 12 months?A: Federica Cazzaniga, Head of Mandates Portfolio Management, stated that while it is difficult to put a precise number on it, the momentum has been very strong. After realizing over 20% of NAV in 2025 and over 14% of NAV in H1 2026, she expects the trend to continue at the margin towards the high teens for proceeds realized over the next 6 to 12 months. Q: Can you provide more context on the four main detractors (USIC, Emeria, Amega, and Pharmathen) and their impact on performance?A: Federica Cazzaniga explained that these four assets were the primary drivers of the portfolio's decline. USIC faced customer in-sourcing trends and operational headwinds. Emeria was impacted by a downturn in the French real estate market and higher financing costs. Amega navigated an extended industrial downturn and cost inflation. Pharmathen faced regulatory issues with the FDA, leading to a full write-down of the equity investment in April 2026. She noted that aside from Pharmathen, the other three remain fundamentally strong businesses with plans for stabilization and growth. Q: What is the current percentage of NAV in listed stocks, and will this remain stable?A: Federica Cazzaniga noted that listed holdings have been a natural source of liquidity and currently represent about 9% of the portfolio, down from the mid-teens. While new IPOs could offset some selldowns, the focus remains on monetizing these shares. She expects the percentage of listed holdings to remain in the 5% to 10% range, consistent with the historical average. Q: Can you comment on the trading of Emeria and Amega's debt and the plans to address it?A: Chris Mauss, Managing Director, Portfolio Solutions, acknowledged that both Emeria and Amega have debt maturities in 2028. He stated that the capital markets and investment teams are working proactively with lenders to find sustainable solutions. He noted that the trading levels are partly due to terms set at attractive market points, but addressing this is a top priority. Q: Are you able to comment on the EBITDA growth rate of 4.5%?A: Chris Mauss admitted that the 4.5% EBITDA growth for top positions is a low point and not something to be proud of, especially compared to the historical 13% to 15% growth rates. He attributed the current figure to exceptional circumstances and the specific detractors mentioned. However, he expressed reassurance from recent trends and outlooks for companies like Forterro, Premistar, Diversitech, and Breitling, expecting a return to more historical growth levels during 2027. Q: What is your view on the investment attractiveness of digital transformation, IT consulting, and software integration businesses?A: Chris Mauss stated that companies like Version 1 and Cloudflight are seeing a pickup in demand for AI transformation projects. They are also being used as partners to drive AI initiatives across the portfolio, creating synergies. While the firm is happy with its current exposure and actively leveraging these companies, it could consider new investments in the segment at the right time. Q: What is the timeline and process for the upcoming dual share class proposal?A: Andreea Mateescu, Investor Relations, clarified that a circular and prospectus providing additional details on the share class proposal will be sent to shareholders in early September for approval and election. She emphasized that the timelines will be shorter than for a regular AGM and urged shareholders to review the information and cast their votes as early as possible once available. Q: Can you provide examples of the early success of newer investments from the 2024 and 2025 vintages?A: Chris Mauss highlighted Rosen, a critical infrastructure inspection services company, and Velvet Care, a hygiene paper products leader, both owned for less than two and a half years and already close to 2x return on capital. He also mentioned 2025 investments like MPM, a premium cat food business successfully penetrating the US market, and Pest Control Partnership, a ground-up platform in the UK, France, and Germany, both showing strong early performance. Q: What are the signs of recovery in the broader portfolio, particularly among the "delayed" assets?A: Chris Mauss pointed to early indicators of recovery, such as the Swiss luxury watch industry, where Breitling has seen consistent growth with US markets growing above 10% year-on-year. He also cited Wedgwood Pharmacy, which has seen a consistent recovery in earnings by north of 20% since Q4 2025. He noted a tangible pickup in trading across several challenged and delayed assets in H1 2026, which is expected to support performance in the next 12 months. Q: How is the AI initiative impacting portfolio companies, and can you provide a tangible example?A: Chris Mauss explained that the firm has a systematic approach to rolling out AI use cases across its portfolio, with an adoption rate of about 90%. They are currently working on about $170 million of visible EBITDA opportunities for 2027. As a tangible example, he cited Foundation Risk Partners, which, with the help of Version 1, rolled out AI use cases that positively impacted EBITDA by $10 million and improved margins by 120 bps. One solution improved policy processing cycle times by 94%, leading to a doubling in close rates. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

A month has gone by since the last earnings report for Glaukos (GKOS). Shares have added about 8% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Glaukos due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. Glaukos reported a second-quarter 2026 adjusted loss of 14 cents per share, narrower than the Zacks Consensus Estimate of a loss of 28 cents by 50%. The figure also improved from the year-ago quarter’s adjusted loss of 24 cents per share. The GAAP loss per share was 31 cents compared with the prior-year quarter’s reported loss of 34 cents. Revenues of $185.6 million increased 50% year over year on a reported basis and 49% at constant currency (cc). The top line surpassed the Zacks Consensus Estimate by 24.1%. Growth was driven by increasing adoption and utilization of iDose TR, broader interventional glaucoma initiatives across U.S. and international markets, continued expansion of the company’s global commercial infrastructure and early contributions from the Epioxa launch. Better-than-expected sales growth led the management to raise its guidance for the full year. U.S. Glaucoma revenues reached a record $118.5 million, up 64% year over year on a reported basis. The increase reflected expanding iDose TR adoption, higher utilization among active surgeons and continued growth in trained physicians and accounts. International Glaucoma revenues were $36.6 million, up 17% year over year on a reported basis. Growth was broad-based, supported by international infrastructure investments and contributions from iStent infinite and PRESERFLO. Corneal Health revenues increased 48% year over year to $30.4 million. Epioxa contributed approximately $11 million in its first full quarter of commercial availability. Adjusted gross profit increased 52.3% year over year to $156.9 million. The adjusted gross margin expanded 150 basis points (bps) to 84.5%. Selling, general and administrative expenses rose 39.2% year over year to $116.1 million. Research and development expenses totaled $51.3 million, up 40.4% from the prior-year quarter. Total operating expenses were $168.9 million, up 40.8% year over year. The operating loss narrowed to $17.3 million from $22.7 million in the year-ago period. The adjusted operating loss was $7.6 million, narrower than the prior-year quarter’s adjusted operating loss of $16.6 million. Glaukos exited the second quarter with $286.2 million in cash, cash equivalents and short-term investments, up from $280.5 million at the end of the first quarter. The company reported no debt. Cumulative net cash provided by operating activities was $2.3 million against cumulative net cash used in operating activities of $11.5 million in the year-ago period. Glaukos raised its 2026 revenue guidance. Management now expects net sales in the range of $680 million to $700 million, up from its previous guidance of $620 million to $635 million. The Zacks Consensus Estimate for the same is pegged at $627.6 million. The loss per share estimate is pinned at 57 cents, implying a 36.7% improvement year over year. It turns out, fresh estimates have trended upward during the past month. The consensus estimate has shifted 25.93% due to these changes. Currently, Glaukos has a great Growth Score of A, a grade with the same score on the momentum front. However, the stock has a score of F on the value side, putting it in the fifth quintile for value investors. Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Glaukos has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Glaukos belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Thermo Fisher Scientific (TMO), has gained 9.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Thermo Fisher reported revenues of $11.99 billion in the last reported quarter, representing a year-over-year change of +10.5%. EPS of $6.03 for the same period compares with $5.36 a year ago. For the current quarter, Thermo Fisher is expected to post earnings of $6.40 per share, indicating a change of +10.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.3% over the last 30 days. Thermo Fisher has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Glaukos Corporation (GKOS) : Free Stock Analysis Report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The end of the earnings season is always a good time to take a step back and see who shined (and who didn’t). Let’s take a look at how research tools & consumables stocks fared in Q2, starting with Thermo Fisher (NYSE:TMO). The life sciences subsector specializing in research tools and consumables enables scientific discoveries across academia, biotechnology, and pharmaceuticals. These firms supply a wide range of essential laboratory products, ensuring a recurring revenue stream through repeat purchases and replenishment. Their business models benefit from strong customer loyalty, a diversified product portfolio, and exposure to both the research and clinical markets. However, challenges include high R&D investment to maintain technological leadership, pricing pressures from budget-conscious institutions, and vulnerability to fluctuations in research funding cycles. Looking ahead, this subsector stands to benefit from tailwinds such as growing demand for tools supporting emerging fields like synthetic biology and personalized medicine. There is also a rise in automation and AI-driven solutions in laboratories that could create new opportunities to sell tools and consumables. Nevertheless, headwinds exist. These companies tend to be at the mercy of supply chain disruptions and sensitivity to macroeconomic conditions that impact funding for research initiatives. The 9 research tools & consumables stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 1.7% while next quarter’s revenue guidance was in line. In light of this news, share prices of the companies have held steady as they are up 2% on average since the latest earnings results. With over 14,000 sales personnel and a portfolio spanning more than 2,500 technology manufacturers, Thermo Fisher Scientific (NYSE:TMO) provides scientific equipment, reagents, consumables, software, and laboratory services to pharmaceutical, biotech, academic, and healthcare customers worldwide. Thermo Fisher reported revenues of $11.99 billion, up 10.5% year on year. This print exceeded analysts’ expectations by 2.4%. Overall, it was a very strong quarter for the company with a solid beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates. Interestingly, the stock is up 11.4% since reporting and currently trades at $586.50. Is now the time to buy Thermo Fisher? Access our full analysis of the earnings results here, it’s free. With roots dating back to 1904 and embedded in virtually every stage of scientific research and production, Avantor (NYSE:AVTR) provides mission-critical products, materials, and services to customers in biopharma, healthcare, education, and advanced technology industries. Avantor reported revenues of $1.69 billion, flat year on year, outperforming analysts’ expectations by 4.9%. The business had an exceptional quarter with a solid beat of analysts’ organic revenue estimates and a solid beat of analysts’ full-year EPS guidance estimates. Avantor pulled off the biggest analyst estimate beat of the whole group. The market seems happy with the results as the stock is up 8.2% since reporting. It currently trades at $13.44. Is now the time to buy Avantor? Access our full analysis of the earnings results here, it’s free. With roots dating back to the pioneering days of nuclear magnetic resonance technology, Bruker (NASDAQ:BRKR) develops and manufactures high-performance scientific instruments that enable researchers and industrial analysts to explore materials at microscopic, molecular, and cellular levels. Bruker reported revenues of $838.5 million, up 5.2% year on year, falling short of analysts’ expectations by 1.9%. It was a slower quarter as it posted a slight miss of analysts’ organic revenue estimates and full-year revenue guidance slightly missing analysts’ expectations. Bruker delivered the weakest performance against analyst estimates and weakest full-year guidance update in the group. As expected, the stock is down 11.6% since the results and currently trades at $56.88. Read our full analysis of Bruker’s results here. With a critical role in ensuring the safety of millions of patients worldwide, Sotera Health (NASDAQGS:SHC) provides sterilization services, lab testing, and advisory services to ensure medical devices, pharmaceuticals, and food products are safe for use. Sotera Health Company reported revenues of $321.4 million, up 9.2% year on year. This print beat analysts’ expectations by 3.8%. It was a very strong quarter as it also produced a solid beat of analysts’ organic revenue estimates and a beat of analysts’ EPS estimates. The stock is up 2.9% since reporting and currently trades at $18.51. Read our full, actionable report on Sotera Health Company here, it’s free. With a catalog of hundreds of thousands of specialized biological products used in laboratories worldwide, Bio-Techne (NASDAQ:TECH) develops and manufactures specialized reagents, instruments, and services that help researchers study biological processes and enable diagnostic testing and cell therapy development. Bio-Techne reported revenues of $321.2 million, up 1.3% year on year. This number topped analysts’ expectations by 2%. Overall, it was a very strong quarter as it also logged an impressive beat of analysts’ organic revenue estimates and EPS in line with analysts’ estimates. The stock is flat since reporting and currently trades at $72.28. Read our full, actionable report on Bio-Techne here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Strong Momentum Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

LivaNova PLC recently reported second-quarter 2026 results showing sales rising to US$390.59 million and net income climbing to US$108.57 million, alongside higher earnings per share versus a year earlier. On the back of this performance, the company raised its 2026 constant-currency revenue growth guidance to a range of 8% to 9% and secured a long-term oxygenator supply agreement with Thermo Fisher Scientific to support manufacturing expansion. Now we’ll examine how the raised 2026 growth outlook and manufacturing investments may influence LivaNova’s existing investment narrative. Capitalize on the AI infrastructure supercycle with our selection of the 56 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. To own LivaNova, you need to believe its cardiopulmonary and neuromodulation franchises can keep converting procedure demand into profitable, recurring revenue while managing pricing and reimbursement pressure. The Q2 2026 beat and higher revenue outlook support the near term growth catalyst in cardiopulmonary, but also highlight the key risk that higher manufacturing and IT spending, if not carefully controlled, could squeeze margins even as volumes rise. The long term oxygenator supply agreement with Thermo Fisher Scientific is especially relevant here, because it directly addresses prior supply constraints in cardiopulmonary consumables. By securing critical components and supporting capacity expansion, LivaNova is trying to align its manufacturing footprint with the heightened 2026 guidance, which may help underpin the cardiopulmonary growth story while leaving execution and supplier dependence as issues to watch. Yet even with stronger guidance, investors should be aware that higher spending on capacity and IT could still pressure margins if... Read the full narrative on LivaNova (it's free!) LivaNova's narrative projects $1.8 billion revenue and $220.8 million earnings by 2029. Uncover how LivaNova's forecasts yield a $84.80 fair value, a 5% upside to its current price. Some of the lowest ranked analysts were assuming only about 5 percent annual revenue growth and US$177.7 million in earnings by 2029, so compared with today’s stronger guidance and supply agreement, their view reflects a far more cautious stance on supplier bottlenecks and margin pressure that you may want to compare with your own expectations. Explore 2 other fair value estimates on LivaNova - why the stock might be worth just $84.80! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your LivaNova research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision. Our free LivaNova research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate LivaNova's overall financial health at a glance. These stocks are moving-our analysis flagged them today. Act fast before the price catches up: Invest in the nuclear renaissance through our list of 90 elite nuclear energy infrastructure plays powering the global AI revolution. The future of work is here. Discover the 39 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. Outshine the giants: these 16 early-stage AI stocks could fund your retirement. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include LIVN. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Thermo Fisher Scientific Inc. TMO raised its 2026 outlook after second-quarter earnings and revenues exceeded expectations. The update reflects stronger customer activity, better acquisition performance and improved operating leverage. The key question is whether the higher forecast marks a durable recovery across end markets or a near-term improvement that could still be disrupted by currency swings, uneven regional demand and cost pressure. Over the past 12 months, TMO stock has gained 23.1%, outperforming the industry’s 8% decline. Image Source: Zacks Investment Research Adjusted earnings increased 13% year over year to $6.03 per share, topping the Zacks Consensus Estimate by 5.6%. Revenues rose 10% to $11.99 billion and beat the consensus mark by 2.7%, while organic revenue growth reached 5%. Growth was broad across end markets. Pharma and biotech, industrial and applied, and diagnostics and healthcare each advanced at a mid-single-digit rate, while academic and government demand increased in the low single digits. Management lifted its 2026 revenue forecast to $47.4 billion-$48.1 billion and adjusted earnings guidance to $24.93-$25.33 per share. The earnings range implies growth of 9%-11% from 2025. Thermo Fisher now expects organic revenue growth near the upper end of its 3%-4% range. The outlook includes all of the second-quarter outperformance and a modest improvement in the second half, supporting the view that customer activity is strengthening rather than merely shifting between quarters. Here's what the consensus estimates suggest for the company's earnings and revenues. Image Source: Zacks Investment Research Image Source: Zacks Investment Research Adjusted operating income increased 15% to $2.74 billion, and adjusted operating margin expanded 90 basis points to 22.8%. Productivity and volume leverage offset unfavorable mix while preserving investment in growth initiatives. Profitability improved across all four reporting segments. Analytical Instruments delivered the largest margin gain, with adjusted operating margin rising 420 basis points to 23%, helped by productivity, volume leverage, foreign exchange and favorable mix. Acquisitions are expected to contribute $1.6 billion to 2026 revenues and 32 cents to adjusted earnings per share. Clario added digital endpoint data capabilities, while the filtration and separation business expanded Thermo Fisher’s bioproduction offering across upstream and downstream workflows. Agilent Technologies Inc. A also operates across life sciences, diagnostics and applied markets, making it a relevant comparison for laboratory demand and instrument spending. Danaher Corporation DHR, with businesses spanning life sciences and diagnostics, provides another read on bioprocessing and healthcare-related customer activity. Foreign exchange remains a restraint. Management reduced the expected 2026 revenue benefit from currency movements by $100 million to $200 million, and recent rate changes created a 5-cent adjusted earnings headwind for the second half. Demand also remains uneven. North America and China each grew only in the low single digits during the quarter, while tariffs, inflation and geopolitical disruption could pressure costs, delay purchasing decisions and limit the volume leverage needed to achieve the planned margin expansion. The raised outlook improves the operating picture, but the investment case remains balanced. Better demand, acquisition contributions and margin expansion support earnings growth, while currency volatility, macroeconomic uncertainty, leverage and competition remain meaningful offsets. TMO currently carries a Zacks Rank #3 (Hold). Its Momentum Score of A points to favorable recent price and earnings-estimate trends, but the Value Score of C, Growth Score of C and VGM Score of C suggest a more measured setup across valuation and growth factors. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Danaher Corporation (DHR) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Thermo Fisher Scientific Inc. (NYSE:TMO) recently announced strong fiscal Q2 2026 results, with revenue growing 10% to $11.99 billion, GAAP diluted EPS rising 9% to $4.68, and adjusted EPS growing 13% to $6.03. The results prompted several analysts to raise their price targets, but after the post-earnings rally, investors must decide whether the recovery story still has room to run. During the quarter, the company expanded its portfolio with several new analytical instruments, including the Orbitrap Tribrid Apex Mass Spectrometer, Orbitrap Excedion Mass Spectrometer, and Applied Biosystems PowerFlex Thermal Cycler. Continued product innovation has historically supported Thermo Fisher Scientific Inc.’s (NYSE:TMO) pricing power and competitive positioning, particularly in premium laboratory equipment. The improving demand environment also translated into stronger profitability, with adjusted operating margin expanding to 22.8% during the quarter, demonstrating that earnings growth is being driven by both higher sales and operating leverage rather than revenue growth alone. The company's Life Sciences Solutions segment also reinforced the recovery narrative. Reported revenue climbed 13% year over year, while organic revenue rose 3%, led by continued strength in the high-margin bioproduction business. Healthy demand in this segment is particularly encouraging because it reflects ongoing investments and supports management's view that end-market conditions continue to improve. An even more encouraging development was the recovery in Thermo Fisher Scientific Inc.’s (NYSE:TMO) Analytical Instruments segment, which has faced muted demand over the past two years as biotech funding slowed. The business returned to growth during the quarter, reinforcing the view that laboratory spending is beginning to recover. Management also highlighted improving customer activity across pharmaceutical and biotech markets, suggesting the rebound is supported by strengthening end-market demand rather than a short-lived increase in orders. The stronger results also prompted analysts to become more constructive on the stock.. RBC Capital lifted its price target on Thermo Fisher Scientific Inc. (NYSE:TMO) to $580 from $490, stating that the rating suggests confidence in progressive end market improvement and company execution balanced against structural risks to the company’s 7% long-term organic growth aspiration. The firm also highlighted broad-based improvement across the business, although it cautioned that management's second-half outlook still appears appropriately conservative. Despite the strong quarter, investors should keep expectations in check. Organic revenue growth of 5% marks meaningful progress but remains well below the double-digit growth rates Thermo Fisher Scientific Inc. (NYSE:TMO) generated during the pandemic. As a result, investors expecting a rapid return to those levels may be disappointed. The recent recovery also remains closely tied to improving pharmaceutical and biotech spending. If funding conditions weaken again or customers scale back capital expenditures, demand for analytical instruments could soften, slowing the company's broader recovery. The earnings beat has also raised the bar for future quarters. Investors are now expecting continued margin expansion, accelerating organic growth, and additional guidance upgrades. Should the recovery lose momentum, the stock's premium valuation could come under pressure, resulting in multiple compression despite otherwise healthy financial performance. Hedge fund sentiment has also improved modestly. According to Insider Monkey's database of 1,022 hedge funds, ownership increased from 113 funds in the fourth quarter of 2025 to 115 funds in the first quarter of 2026, indicating that institutional investors continue to maintain confidence in the company's long-term outlook. The valuation, however, leaves less room for error. Thermo Fisher Scientific Inc. (NYSE:TMO) trades at roughly 22x forward earnings, representing a 15.45% premium to the sector. That premium reflects investor confidence that the company can sustain earnings growth and expand margins with its growth drivers. While the latest results support that optimism, any slowdown in demand or weaker-than-expected execution could weigh on the stock given its elevated expectations. Management's decision to raise full-year revenue guidance to $47.4 billion-$48.1 billion further strengthens the bullish case, as companies rarely increase guidance without confidence in underlying demand trends. Going forward, investors should closely monitor whether improving pharmaceutical and biotech spending continues to translate into stronger organic growth, particularly within the Analytical Instruments segment, as sustained execution will be key to justifying Thermo Fisher’s (NYSE:TMO) premium valuation. While we acknowledge the risk and potential of TMO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TMO and that has 10,000% upside potential, check out our report about this cheapest AI stock. READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow. Disclosure: None.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Thermo Fisher Scientific (TMO) is back in focus after reporting second quarter results that exceeded market expectations, supported by broad-based demand and fresh regulatory clearances across its diagnostics portfolio. See our latest analysis for Thermo Fisher Scientific. Thermo Fisher Scientific’s recent earnings beat and steady flow of product clearances have coincided with a 30-day share price return of 15.04% and a 22.92% 90-day share price return. The 1-year total shareholder return of 23.78% points to momentum building again after earlier year-to-date weakness. If Thermo Fisher’s mix of diagnostics and lab tools has your attention, this could be a good moment to widen your search and check out 41 healthcare AI stocks After a 15% jump in 30 days and a 1 year total return of 23.78%, Thermo Fisher Scientific is no longer unloved. The question now is whether to accept today’s price or wait and hope valuation resets lower. Thermo Fisher Scientific’s most followed narrative puts fair value at $590.77, only slightly above the latest close of $576.77. This keeps expectations firmly anchored in detailed forecasts rather than hype. Read the complete narrative. Curious what earnings path and margin profile support that fair value on Thermo Fisher Scientific? The core assumptions blend steady revenue expansion with richer profitability and a future valuation multiple that might surprise you. Result: Fair Value of $590.77 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, Thermo Fisher Scientific still faces pressures from softer academic and government funding, as well as ongoing China weakness, which could challenge the current earnings narrative. Find out about the key risks to this Thermo Fisher Scientific narrative. Thermo Fisher Scientific may look modestly appealing on discounted cash flows, yet its current P/E of 30.8x sits above a fair ratio of 27.7x. That gap suggests less room for error at today’s price, even though the stock trades well below peers at 37.1x and 43.4x. Which signal matters more for you right now? See what the numbers say about this price — find out in our valuation breakdown. With sentiment on Thermo Fisher Scientific now more balanced between optimism and caution, it makes sense to move quickly and review the data for yourself. You can weigh both the upside and the potential downsides in one place by checking the 2 key rewards and 1 important warning sign If you are serious about building a stronger portfolio, use the Simply Wall St Screener to quickly surface fresh ideas that match your style and risk tolerance. Target potential mispriced opportunities by reviewing companies on the 57 high quality undervalued stocks before the crowd pays attention. Strengthen your focus on stability by zeroing in on companies from the solid balance sheet and fundamentals stocks screener (46 results) that pair financial resilience with solid fundamentals. Get ahead of the market by scanning the screener containing 20 high quality undiscovered gems that may not yet be on most investors' radar. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TMO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Thermo Fisher’s second quarter saw a notable uptick in end-market activity, propelling results above Wall Street’s expectations and leading to a positive market reaction. Management pointed to stronger demand across pharmaceutical, biotech, industrial, and diagnostics markets, with CEO Marc Casper highlighting “broad-based momentum” and “excellent execution” in core segments such as Bioproduction and Clinical Research. Newly launched high-end instruments and AI-powered software were key contributors, helping the company capture greater market share and further embed itself as a partner of choice for scientific and healthcare customers. Is now the time to buy TMO? Find out in our full research report (it’s free). Revenue: $11.99 billion vs analyst estimates of $11.72 billion (10.5% year-on-year growth, 2.4% beat) Adjusted EPS: $6.03 vs analyst estimates of $5.71 (5.6% beat) Operating Margin: 17.4%, in line with the same quarter last year Organic Revenue rose 5% year on year (beat) Market Capitalization: $214.2 billion While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention. Michael Ryskin (Bank of America) asked about the drivers behind broad-based improvement across end markets. CEO Marc Casper pointed to stronger customer activity and a notable rebound in biotech, stating that “customer activity picked up across our end markets.” Tycho Peterson (JPMorgan) inquired about the performance of clinical research (including Clario and PPD) and Patheon. Casper explained that “clinical research really had an excellent quarter” and described improving market conditions, while modest growth in Patheon was in line with expectations. Jack Meehan (Nephron Research) sought detail on pharma and biotech spending, specifically inventory and reshoring effects. Casper described the quarter as “clean,” emphasizing broad-based momentum in bioproduction and research channels, and highlighted that “biotech recovery” was visible in results. Matthew Larew (William Blair) asked about Analytical Instruments and the impact of recent product launches. Casper attributed growth to “relevant innovation,” noting strong global adoption of new high-end instruments and AI-enabled offerings, and cited robust bookings in electron microscopy. Daniel Arias (Stifel) queried the performance of the Chemical Analysis segment and macro-sensitive businesses. Casper identified higher commodity prices and increased demand for safety and security applications, such as radiation detection, as primary growth drivers for the segment. In the coming quarters, the StockStory team will watch for (1) sustained improvement in pharma and biotech spending and whether this translates into continued organic growth, (2) successful integration and revenue realization from recent acquisitions like Clario, and (3) execution of the microbiology divestiture and redeployment of capital into innovation and shareholder returns. Progress on new product uptake and global market expansion will also be key indicators. Thermo Fisher currently trades at $573.25, up from $526.46 just before the earnings. Is the company at an inflection point that warrants a buy or sell? The answer lies in our full research report (it’s free for active Edge members). WHILE YOU’RE HERE: Top 9 Market-Beating Stocks. The best stocks don’t just beat the market once. They do it again. And again. Robust revenue growth, rising free cash flow, returns on capital that leave their competition in the dust. The market has already rewarded these businesses. But our AI platform says the party isn’t over. Find out which 9 stocks made the cut this week — FREE. Get Our Top 9 Market-Beating Stocks for Free HERE. Stocks that have made our list include now familiar names such as Nvidia (+1,460% between June 2020 and June 2025) as well as under-the-radar businesses like the once-micro-cap company Tecnoglass (+1,552% between June 2020 and June 2025). Find your next big winner with StockStory today.

Interested in Thermo Fisher Scientific Inc.? Here are five stocks we like better. Thermo Fisher posted stronger-than-expected Q2 2026 results, with revenue up 10% to $11.99 billion and adjusted EPS up 13% to $6.03, driven by broad-based growth and recent acquisitions. The company said customer activity improved across end markets, especially in pharma and biotech, while all four business segments contributed to growth and margins generally expanded. Thermo Fisher raised its full-year outlook, now expecting 2026 revenue of $47.4 billion to $48.1 billion and adjusted EPS of $24.93 to $25.33, while also noting continued benefits from acquisitions and capital returns. The Market Is Selling Everything, but These 5 Stocks Aren't Breaking Down Thermo Fisher Scientific (NYSE:TMO) reported stronger-than-expected second-quarter 2026 results and raised its full-year outlook, citing improving customer activity across end markets, broad-based growth and contributions from recent acquisitions. Chairman and Chief Executive Officer Marc Casper said the company delivered an “outstanding quarter,” with revenue rising 10% to $11.99 billion. Adjusted operating income increased 15% to $2.73 billion, while adjusted operating margin expanded 90 basis points to 22.8%. Adjusted earnings per share grew 13% to $6.03. → Could Truth API Become Trump Media’s First Meaningful Revenue Driver? The Often-Missed Corner of Healthcare That Wall Street Is Loving Chief Financial Officer Jim Meyer said the results were meaningfully ahead of the company’s prior assumptions. Revenue was about $300 million above previous guidance, helped by stronger organic growth, acquisitions and foreign exchange. Adjusted EPS was $0.30 ahead of prior guidance, which Meyer attributed to revenue pull-through, cost productivity and acquisition performance, including Clario. Thermo Fisher reported 5% organic revenue growth in the quarter. Casper said customer activity continued to improve across the company’s end markets, with particular strength in pharma and biotech, the company’s largest end market. → 3 Photonics Companies Making Quantum Tech Possible Sector Rotation: 2 Smart Money Moves for 2026 In pharma and biotech, revenue grew in the mid-single digits, led by bioproduction, clinical research and the research and safety market channel. Casper said biotech spending improved and began translating into revenue after earlier signs of increased activity. Academic and government revenue grew in the low single digits, driven by chromatography and mass spectrometry. Casper said the market is stabilizing, with strong adoption of new instruments globally and U.S. academic and government revenue returning to growth, though he cautioned that the company is not yet calling it a sustained new trend. → AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off Industrial and applied revenue grew in the mid-single digits, led by electron microscopy, chemical analysis and the research and safety market channel. Diagnostics and healthcare also grew in the mid-single digits, driven by the healthcare market channel and immunodiagnostics. Meyer said all four business segments contributed to the quarter’s performance. In Life Sciences Solutions, reported revenue increased 13%, while organic revenue grew 3%. Growth was led by bioproduction, which Meyer said had another quarter of excellent organic growth. Adjusted operating margin in the segment rose 20 basis points to 37.0%. Analytical Instruments posted 7% growth on both a reported and organic basis. Meyer said all three businesses in the segment grew, led by electron microscopy. Adjusted operating income increased 30%, and adjusted operating margin expanded 420 basis points to 23.0%. Specialty Diagnostics revenue increased 6% on a reported basis and 5% organically. Growth was led by the healthcare market channel, immunodiagnostics and transplant diagnostics. Adjusted operating margin rose 70 basis points to 27.7%. Laboratory Products and Biopharma Services reported 12% revenue growth and 5% organic revenue growth. The research and safety market channel and clinical research business led growth. Adjusted operating margin increased 20 basis points to 14.0%. Casper highlighted several product launches during the quarter, including next-generation Orbitrap platforms and AI-driven capabilities introduced at the American Society for Mass Spectrometry conference. He pointed to the Thermo Scientific Orbitrap Tribrid Apex Mass Spectrometer and Orbitrap Excedion Mass Spectrometer as tools designed to support research and drug development applications. The company also launched the Thermo Scientific Vanquish Amplify UHPLC system and the Applied Biosystems PowerFlex Thermal Cycler. Casper said customer adoption of recent innovations has been strong, particularly in analytical instruments. Thermo Fisher also discussed progress integrating recent acquisitions. Casper said the Clario acquisition, completed in late March, delivered a strong second quarter, with integration progressing smoothly and revenue synergy opportunities building. He said the filtration and separation business also continues to perform well, with positive customer feedback and strong demand. The company also expects to close the divestiture of its microbiology business in the third quarter. Meyer said the transaction is expected to reduce 2026 revenue by about $200 million, net of the retained channel business, and reduce 2026 adjusted EPS by $0.05. Thermo Fisher used anticipated net proceeds from the transaction to repurchase $1 billion of shares in the second quarter. Thermo Fisher raised its 2026 revenue guidance to a range of $47.4 billion to $48.1 billion, representing 6% to 8% reported revenue growth over 2025. The company now expects full-year organic revenue growth of about 4%, at the upper end of its 3% to 4% guidance range. The company also increased adjusted EPS guidance to a range of $24.93 to $25.33, representing 9% to 11% growth over 2025 and a $0.25 increase at the midpoint from prior guidance. Meyer said the revised EPS midpoint reflects $0.30 from second-quarter outperformance and $0.05 from a higher second-half revenue outlook, partially offset by a $0.05 impact from the microbiology divestiture and a $0.05 foreign exchange headwind in the second half. Thermo Fisher now expects acquisitions to contribute $1.6 billion of revenue and $0.32 of adjusted EPS for the year. The company continues to expect free cash flow of $6.9 billion to $7.4 billion and net capital expenditures of $1.9 billion to $2.1 billion. During the question-and-answer session, Casper said the improved second-half outlook is primarily driven by pharma and biotech. He said clinical research had an excellent quarter, with strong organic revenue growth and authorizations, while pharma services delivered modest growth in line with expectations and is expected to strengthen in the second half based on production schedules and customer campaigns. Casper also said China, which represents about 7.5% of company revenue, returned to low-single-digit growth. He said growth there was driven by pharma and biotech as well as industrial and applied markets, while academic and government demand in China remained muted. On bioproduction, Casper said Thermo Fisher’s position across upstream and downstream workflows supported the strong quarter. He noted leadership in cell culture media and single-use technologies, a growing purification position and added filtration capabilities from the Solventum filtration and separation acquisition. Casper closed the call by saying Thermo Fisher is “on track to deliver a strong year” as it continues to execute its growth strategy and manage the business through innovation, acquisitions and capital returns. Thermo Fisher Scientific (NYSE: TMO) is a global provider of scientific instrumentation, reagents and consumables, software, and services that support research, clinical, and industrial laboratories. The company supplies analytical instruments and laboratory equipment, life sciences reagents and kits, specialty diagnostics, and a broad range of consumables used by researchers, clinicians, and manufacturers. Its offerings also include laboratory information management and data-analysis software, as well as service solutions such as instrument maintenance, validation, and logistics that help customers run complex workflows efficiently. Thermo Fisher operates through multiple business areas that broadly cover life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services, including contract development and manufacturing for pharmaceutical and biotechnology companies. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Thermo Fisher Scientific Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Image source: The Motley Fool. Thursday, July 23, 2026 at 8:30 a.m. ET Vice President, Investor Relations - Rafael Tejada Chairman and Chief Executive Officer - Marc Casper Senior Vice President and Chief Financial Officer - Jim Meyer Need a quote from a Motley Fool analyst? Email [email protected] Operator: Good morning, ladies and gentlemen, and welcome to the Thermo Fisher Scientific 2026 Second Quarter Conference Call. [Operator Instructions] I would like to introduce our moderator for the call, Mr. Rafael Tejada, Vice President, Investor Relations. Mr. Tejada, you may begin the call. Rafael Tejada: Good morning, and thank you for joining us. On the call with me today is Marc Casper, our Chairman and Chief Executive Officer; and Jim Meyer, Senior Vice President and Chief Financial Officer. Please note this call is being webcast live and will be archived on the Investors section of our website thermofisher.com under the heading News Events and Presentations until October 20, 2026. A copy of the press release of our second quarter earnings is available in the Investors section of our website under the heading Financials. So before we begin, let me briefly cover our safe harbor statement. Various remarks that we may make about the company's future expectations, plans and prospects constitute forward-looking statements within the meaning of applicable securities laws. Actual results may differ materially from those indicated by these forward-looking statements as a result of various risks and uncertainties including those discussed in the company's most recent reports on Form 10-K and Form 10-Q under the heading Risk Factors. These forward-looking statements are based on our current expectations and speak only as of the date they are made. While we may like to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so even in the event of new information, future developments or otherwise. Also, during this call, we will be referring to certain financial measures not prepared in accordance with Generally Accepted Accounting Principles or GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures is available in the press release of our second quarter earnings, and also in the Investors section of our website under the heading Financials. So with that, I'll now turn the call over to Marc. Marc Casper: Thank you, Raf. Good morning, everyone, and thanks for joining us today for our second quarter call. As you saw in our press release, we delivered an outstanding quarter. Customer activity across our end markets continue to strengthen. Our proven growth strategy is enhancing our capabilities, further advancing our trusted partner status with customers and continuing to drive share gain. And we're continuing to actively manage the company, leveraging our global scale and strength of our PPI business system to create value for our stakeholders and build an even brighter future for our company. To start, let me recap the second quarter financial results. Our revenue grew 10% to $11.99 billion. Adjusted operating income grew 15% to $2.73 billion. Adjusted operating margin expanded by 90 basis points to 22.8%, and we grew adjusted EPS by 13% to $6.03 per share. Turning to our performance by end market. It was good to see customer activity continue to strengthen across our end markets during the second quarter. Our team's excellent execution enabled us to capitalize on these opportunities and deliver outstanding performance in the quarter. Let me provide some additional details. Starting with Pharma and Biotech. We delivered mid-single-digit growth during the quarter. Performance was led by our Bioproduction and Clinical Research businesses as well as our Research and Safety Market channel. In Academic and Government, we grew low single digits in the second quarter, driven by our Chromatography and Mass Spectrometry business. In Industrial and Applied, we delivered mid-single-digit growth during the quarter. Performance was led by our Electron Microscopy and Chemical Analysis business as well as the Research and Safety Market channel. Finally, in Diagnostics and Health Care, we grew in the mid-single digits in the quarter driven by our Health Care market channel and the Immunodiagnostics business. Overall, it was great to see both sequential improvement and strong revenue growth across each of our end markets. Let me now provide some highlights on the execution of our growth strategy this quarter. As a reminder, our growth strategy consists of three pillars: high-impact innovation, our trusted partner status with customers and our unparalleled commercial engine. Starting with the first pillar of our growth strategy. It was another excellent quarter of high-impact innovation. Our innovation enables customers to accelerate scientific discovery and advance their important work. During the quarter, we launched a number of new technologies across our business that strengthened our industry leadership. At this year's American Society of Mass Spectrometry conference, we launched next-generation Orbitrap platforms and AI-driven capabilities that enable new scientific discoveries and deeper insights. These will help scientists solve increasingly complex analytical challenges with greater speed and confidence. This was highlighted by the launch of our Thermo Scientific Orbitrap Tribrid Apex mass spectrometer. It enables scientists to study complex biology across multiomics, structural biology, biopharmaceutical characterization and small molecule analysis to help accelerate research across a broad range of scientific applications. We also introduced the Thermo Scientific Orbitrap Excedion mass spectrometer which enables scientists to reduce drug development risk and accelerate time to market for our pharma and biotech customers. Another highlight this quarter was the launch of our Thermo Scientific [ Vanquish Amplify UHPLC system ], which helps scientists analyze highly sensitive biological molecules with less sample loss and better reproducibility, enabling greater confidence in mess development through quality control. This is an important addition to our liquid [ hematography ] offering. These innovations are complemented by our expanding suite of AI-powered software, including new solutions that deliver smarter workflows and accelerate proteomics research. Another example of our high-impact innovation is in Life Science Solutions, where we introduced the Applied Biosystems PowerFlex thermal cycler, a next-generation PCR platform that helps molecular biology laboratories improve workflow flexibility, increase productivity and enhance reproducibility. It was an outstanding quarter of innovation, and we're pleased with the adoption we're seeing from our customers. Let me now cover the remaining two pillars of our growth strategy, our industry-leading commercial capabilities and trusted partner status that enable our customer success. During the quarter, we continued to strengthen our position in both of these areas. In April, we opened our flagship U.S. bioprocess design center in Massachusetts. This new facility expands our global network of collaborative innovation centers, where we work side by side with pharma and biotech customers to accelerate drug development, optimize manufacturing processes and help bring life-changing therapies to patients faster. To advance population scale research, we announced a strategic collaboration with Precision Health Research Singapore to support their population health study. By combining our integrated proteomics capabilities, including our Olink technology with our Orbitrap Astral mass spectrometry platform, we're continuing to help advance precision medicine through one of the world's leading biobank initiatives. These examples provide a unique opportunity for us to engage with our customers, helping them solve current challenges, accelerate innovation and move science forward. Wrapping up on the growth strategy, we made great products during the quarter, continuing to strengthen our leadership position. Turning to capital deployment. We continue to successfully execute our disciplined approach to capital deployment, which is a combination of strategic M&A and returning capital to our shareholders. Let me start with an update on our recently closed acquisitions. First, we're very pleased with the progress we're making since completing the acquisition of [ Clario ] in late March. [ Clario's ] market-leading digital endpoint data solutions enhance our ability to deliver even deeper clinical insights to our pharma and biotech customers. This outstanding strategic fit further strengthens our position as the trusted partner to our foreign biotech customers delivering important benefits that enable their success and help improve the productivity of the drug development process. The business delivered a strong second quarter. The integration is progressing smoothly, and the funnel of revenue synergies is building nicely. We also continue to see great performance from our Filtration and Separation business. The integration continues to progress well. Customer feedback has been very positive, and we're excited about the long-term impact these capabilities will have for our customers and for our company. Both of these acquisitions demonstrate how our disciplined M&A strategy is creating value for our customers and shareholders. And finally, you saw our announcement in late April that we entered into an agreement to divest our microbiology business. This transaction, which we expect to close in the third quarter reflects our active management of the company. We deployed the anticipated net proceeds from this transaction to repurchase $1 billion of our shares in the second quarter. As you know, our capital deployment strategy continues to prioritize strategic M&A complemented by a return of capital to our shareholders. We continue to have an active pipeline of M&A opportunities in our highly fragmented industry. Now let me spend a few minutes on our PPI Business System, which engages and inspires our colleagues to find a better way every day. PPI enabled another quarter of outstanding execution, which you can see in our strong profitability and free cash flow. Through PPI, we're continually improving quality, productivity and customer allegiance while creating capacity to invest in innovation and strengthen leadership position. We are actively deploying AI across the company to further accelerate PPI's impact. PPI enables outstanding execution today and positions us to create even greater value over the long term. Before I turn to guidance, I'd like to highlight the latest updates to our CSR efforts and they're now available. I encourage you to visit our website to learn more about our performance and the progress we're making towards our long-term goals. As you'll see on the website, we continue to execute our Net Zero road map increasing the use of renewable electricity. We also increased the number of Zero Waste certified sites as well as expanded the reach of our STEM education programs. These programs benefit more than 185,000 students annually and help to inspire the next generation of innovators. Now I'd like to review our updated 2026 guidance at a high level. We are raising our guidance for the full year on the top and bottom line, reflecting our strong operational performance in the second quarter and increased outlook for the second half of the year and we're also incorporating the expected impact of the pending divestiture of our microbiology business. We're raising our revenue guidance to a new range of $47.4 million to $48.1 billion, representing 6% to 8% reported revenue growth over 2025. Our expectation for full year organic revenue growth has increased to about 4%, our guidance range remains 3% to 4%, and we now expect to deliver at the upper end of that range. We're also increasing our adjusted earnings per share guidance to be in the range of $24.93 to $25.33, which now represents 9% to 11% growth over 2025 and a $0.25 increase from our previous guidance at the midpoint. Jim will take you through the details in his remarks. So to summarize our key takeaways. We delivered outstanding performance in Q2 and with a clean top and bottom line beat with organic revenue growth of 5% and adjusted EPS growth of 13%. It's great to see customer activity continue to strengthen across our end markets. We're raising our full year revenue and adjusted EPS guidance. Our proven growth strategy is resonating more than ever with our customers and driving meaningful share gain. Our recently closed acquisitions are performing very well and at the halfway point in the year, we are well positioned to deliver a great 2026 and build an even brighter future for our company. With that, I'll turn the call over to Jim. James Meyer: Thank you, Marc, and good morning, everyone. I'll take you through an overview of our second quarter results for the total company and then provide color on our four business segments and conclude with details on our updated guidance for the year. Before I get into the specifics of our financial performance, I'll provide a high-level view of how the second quarter played out versus our expectations at the time of our last earnings call. As you saw in our press release, we delivered an outstanding quarter with 5% organic revenue growth and 13% growth in adjusted earnings per share. These results are significantly ahead of the assumptions included in our previous guidance on both the top and bottom line. This reflects excellent execution by our team and stronger customer activity across our end markets. Q2 revenue was approximately $300 million ahead of our previous guidance, including 2% stronger organic revenue growth, a higher contribution from acquisitions and favorability from foreign exchange. Adjusted EPS was $0.30 ahead of our previous guidance, driven by the expected pull-through from our revenue beat, strong cost productivity and excellent performance from our acquisitions, including [ Clario ]. So a very strong quarter of execution by the team, delivering results well ahead of our guidance and positioning us incredibly well at the halfway point of the year. Let me now provide you with some details on our performance. Starting with earnings per share. In the quarter, adjusted EPS grew by 13% to $6.03. GAAP EPS in the quarter was $4.68 and up 9% from Q2 last year. On the top line, Q2 reported revenue grew 10% year-over-year. The components of our reported revenue change included 5% organic growth, a 5% contribution from acquisition and a slight tailwind from foreign exchange. Turning to our organic revenue performance by geography. In Q2, North America grew low single digits, Europe grew high single digits and Asia Pacific grew high single digits, with China growing low single digits. With respect to our operational performance, we delivered $2.73 billion of adjusted operating income in the quarter, an increase of 15% year-over-year and adjusted operating margin was 22.8%, 90 basis points higher than Q2 last year. In the quarter, we continued to deliver strong productivity and generated favorable volume leverage, this enabled us to offset the impact of unfavorable mix and fund strategic investments to further advance our industry leadership. Total company adjusted gross margin in the quarter was 41.4%. Moving on to the details of the P&L. Adjusted SG&A in the quarter was 15.6% of revenue. R&D expense was $360 million in Q2, reflecting our ongoing investments in high-impact innovation, R&D as a percent of our manufacturing revenue was 6.9% in the quarter. Looking at our results below the line, Q2 net interest expense was $190 million. The adjusted tax rate in Q2 was 11.6%, and average diluted shares were $371 million in Q2, $7 million lower year-over-year, driven by share repurchases, net of option dilution. Turning to free cash flow and the balance sheet. Year-to-date cash flow from operations was $3.3 billion and free cash flow was $2.5 billion after investing $800 million of net capital expenditures. In Q2, we also deployed $1.2 billion of capital to shareholders through $1 billion of share buybacks and approximately $175 million of dividends. We ended the quarter with $4.1 billion of cash and equivalents and $42.5 billion of total debt. Our leverage ratio at the end of the quarter was 3.6x gross debt to adjusted EBITDA and 3.3x on a net debt basis. Concluding my comments on our total company performance, adjusted ROIC was 10.9%. Now I'll provide some color on the performance of our four business segments. In Life Sciences Solutions, Q2 reported revenue increased 13% versus the prior year quarter and organic revenue growth was 3%. Growth in this segment was led by our bioproduction business, which had another quarter of excellent organic growth. Q2 adjusted operating income for Life Sciences Solutions increased 13% and adjusted operating margin was 37.0%, up 20 basis points versus the prior year quarter. During Q2, we delivered very strong productivity, which was partially offset by the expected impact from the acquisition of our filtration and separation business and unfavorable mix. In the Analytical Instruments segment, both reported revenue, organic revenue increased 7% versus the prior year quarter. We delivered good growth across all three businesses, led by our Electron Microscopy business. In this segment, Q2 adjusted operating income increased 30%, and adjusted operating margin was 23.0%, up 420 basis points versus the year ago quarter. In the quarter, we delivered strong productivity generated good volume leverage and benefited from the impact of foreign exchange and favorable mix. Turning to Specialty Diagnostics. In Q2, reported revenue grew 6% year-over-year and organic revenue grew 5%. Growth in this segment was led by our health care market channel as well as our Immunodiagnostics and Transplant Diagnostics businesses. Q2 adjusted operating income for Specialty Diagnostics increased 9% and adjusted operating margin was 27.7%, 70 basis points higher than Q2 2025. During the quarter, favorable volume leverage and good productivity were partially offset by unfavorable mix. Finally, in the Laboratory Products and Biopharma Services segment, reported revenue increased 12% and organic revenue growth was 5%. In Q2, growth in this segment was led by our Research and Safety Market channel and our Clinical Research business. Q2 adjusted operating income in the segment increased 13% and adjusted operating margin was 14.0%, 20 basis points higher than the prior year quarter. In the quarter, good productivity and strong performance from the recently acquired [ Clario ] business were partially offset by unfavorable mix and strategic investments. Turning to guidance. As Marc outlined, we're raising our 2026 full year guidance to reflect the strength of our performance in Q2 and an improved outlook for the second half of the year, while also incorporating the expected impact of the announced divestiture of our microbiology business. We now expect revenue to be in the range of $47.4 million to $48.1 billion and adjusted EPS to be in the range of $24.93 to $25.33, now representing 9% to 11% adjusted EPS growth. Let me walk through key assumptions underlying our updated full year guidance. For organic revenue growth, our expectation has increased to about 4% for the year. Our guidance range remains 3% to 4%, and we now expect to deliver at the upper end of that range. The increase in our full year organic revenue growth outlook includes all of the Q2 overperformance plus a modest improvement to the second half. Updating for FX, we now expect a $200 million revenue tailwind from foreign exchange, which is $100 million lower than our previous guidance. Our updated guidance also incorporates the expected impact of the pending divestiture of our microbiology business, which we expect to close in the third quarter. As a reminder, the business had revenue of $645 million in 2025 with roughly 1/4 of that revenue selling through our channel businesses. We'll retain our channel relationship and continue selling these products after the divestiture. With an expected Q3 close, the divestiture reduces 2026 revenue by approximately $200 million, net of the retained channel business and reduces 2026 adjusted EPS by $0.05. We continue to expect the transaction to be dilutive to adjusted EPS by approximately $0.15 in the first full year following the close. In aggregate for adjusted EPS, we are increasing the midpoint of our full year guidance by $0.25 comprised of the following: $0.30 from the strong performance in Q2, $0.05 from an increase to our revenue outlook for the second half of the year, partially offset by the impact of the divestiture of our microbiology business of $0.05 and a second half headwind from recent changes in FX rates of $0.05. Embedded in the guide is stronger performance from our acquisitions on both the top and bottom line compared to our previous guidance. Acquisitions are now expected to contribute $1.6 billion of revenue and $0.32 of adjusted EPS for the year. In terms of adjusted operating income margins, our guide has increased to 80 basis points of expansion. We are continuing to actively manage the company and drive excellent operational performance, enabling us to increase our top and bottom line guidance for the year. To help you with your modeling, here are a few additional assumptions within the updated guide. We continue to expect approximately $660 million of net interest expense in 2026. We continue to assume that the adjusted income tax rate will be 11.5%. In terms of free cash flow, we continue to expect that to be in the range of $6.9 billion to $7.4 billion for the year, including between $1.9 billion and $2.1 billion of net capital expenditures. In terms of capital deployment, we're assuming $4 billion of share buybacks with $3 billion completed in January and an additional $1 billion completed in the second quarter. The second quarter share repurchase represents the use of expected net proceeds from the pending microbiology divestiture. We elected to use the proceeds for share repurchases and to complete the repurchase ahead of the transaction closed based on an assessment of our valuation at that time. And we're assuming that we'll return approximately $700 million of capital to shareholders this year through dividends. We estimate that full year average diluted share count will be between 370 million and 373 million shares. Now let me provide some color on phasing for the remainder of the year. We grew 3% organically in the first half in total and expect that to step up to 4% for the second half with both quarters being similar in terms of organic revenue growth. And we expect Q3 adjusted EPS to be $0.35 to $0.40 higher than in Q2. So to conclude, we executed very well to deliver an outstanding second quarter and we are raising our full year outlook on the top and bottom line. With that, I'll turn the call back to Raf. Rafael Tejada: Thank you, Jim. Operator, we're ready for the Q&A portion of the call. . Michael Ryskin: Great. And congrats on a very strong front. Marc, maybe I'll start with a high-level one to you. You called out a couple of times in the prepared remarks, customer activity continues to strengthen, end markets continue to strengthen, you called out share gains a few times. It seems like it was a pretty broad-based beat in the quarter, across segments, across end markets. But maybe if you could just throw in on one or two things that are maybe driving that, whether it's farm on biotech or a little bit more stability in academic markets, we just love to get a better sense on where you saw some of the big improvement from where we stood 3 months ago, especially as you look into the second half of the year? Marc Casper: Yes, Mike, thanks for the question. It's good to have a good quarter behind us and a strong first half. So when I think about our end markets, as the way you described, the customer activity actually picked up across our end markets. And if you recall what we said during the course of this year is we expected that activity would pick up from the 2025 levels as this year progressed. And we saw that getting to that level in Q2 with a much better set of activity. Very encouraging to see the continued progression in pharma and biotech customer base definitely good momentum continues in pharma, but also biotech, clearly, we saw spending pick up. We've talked a lot about how activity has been picking up, but now it's good to see that's translating into the revenue as well. And across the various segments, you saw that trend across broadly. But our biggest end market, about 60% of our revenue is really progressing in a nice direction. Michael Ryskin: Okay. And Jim, maybe just drilling in a little bit on the guide, Encouraging to see the full year organic raise and you kind of bumped up the second half a little bit, but I kind of comment towards the end there where you said you expect kind of similar organic growth between 3Q and 4Q. I think we were expecting 4Q to be a little bit higher previously because of the days tailwind. Is this just some conservatism as you kind of looking out for the rest of the year, keeping something in the back pocket? Or is there anything else that's notable in terms of phasing we should be keeping in mind? James Meyer: Yes, Mike, thanks for the question. So we look at it, we grew 3% in the first half, and we're stepping it up to 4% in the second half, and that includes a modest improvement to the outlook for the second half. And right now, we've outlined the way we see the quarterly phasing playing out, which is really not meaningfully changed versus our original assumption. Tycho Peterson: Nice quarter. Maybe just starting on the services side, I'm curious, any incremental color you can provide on [ PPD ]. We've obviously seen pretty strong book-to-bill from some of the peers. And it sounds like maybe some of the biotech funding starting to really convert there. So any metrics on [ PPD ], anything on [ Clario ] that you can give us a little more specifically? And then similarly with Patheon, just curious what you saw in the quarter. Marc Casper: Tycho, thanks for the question. So clinical research really had an excellent quarter. Strong organic growth and revenue, strong organic growth in authorizations. Business is doing very well in the market. And the market conditions are improving. So you have really both good results in the quarter and encouraging progression going forward, which is largely as we expect it would be playing out. So it's good to see that translating. [ Clario ] had a very good quarter. Obviously, it doesn't show up in our organic results. But our first full quarter of ownership of the business was very strong. We had good performance on its authorization, its revenue growth, earnings, so really a nice contribution. It was good to see both that and with our combination with our filtration and separation business, we were able to raise our contribution from acquisitions for the full year on both the revenue and earnings line. So that's very positive. When I think about a couple of other highlights within our broader services business, accelerated drug development incredibly well received. And that really shows up in our biotech customers where you have -- where a customer can get their arms around the whole program from how they outsource their development of the actual medicine through the scale-up of that medicine as well as designing the clinical trials and the interplay between those activities allows you to save time and cost. And that's been very compelling and has really helped us drive very strong authorizations. When I think about the performance of our pharma services or what you call the Patheon business, we had modest growth in the quarter, in line with our expectations. The second half, as we've talked about all year, will be stronger for that business just based on when we're actually shipping the activity and that business obviously has benefited earlier in the year from a number of wins around reshoring that has been embedded in the outlook for the business. So I feel very good about the position for Pharma Services in terms of how we execute commercially and what the outlook looks like for the coming quarters and years ahead. Tycho Peterson: And then just a follow-up on the revised outlook for the back half of the year. I guess where else are you feeling better across the portfolio? What's kind of leading to the incremental uptake? Marc Casper: Yes. So when I think about the quarter, right, we took all of the beat in Q2, embedded that in our outlook. And then we increased our organic revenue growth modestly but did increase it. It's really driven by that -- the forward look is really driven by pharma biotech. It was nice to see in the quarter that academic and government return to growth. And we saw the U.S. slightly positive, and those things are very good. But we still think the market is going through a stabilization period. So we didn't change the outlook for academic and government. We really focused it on pharma and biotech. And then obviously, we'll see if we see the very positive trends in academic and government sustain, and that would obviously be an upside over time. Jack Meehan: Thank you. Good morning, guys. I wanted to get a little bit more color on your thoughts on pharma biotech spending patterns. I got a lot of questions this week about inventory levels, trade tariff, reshoring dynamics, as you look at your customer class and product portfolio, how are those things progressing? Anything that stands out? Marc Casper: Yes, Jack, thanks for the question. Clean quarter, right? When I think about business progressed nicely, and as we look to the second half for pharma biotech, we actually think it will be a little better, even though we saw a nice step-up in quarter. For us, we had broad-based momentum. And the bioproduction had a really excellent quarter. It was nice to see the continued momentum in that business. Very strong growth. Obviously, we talked about clinical research with Tycho's question. And in addition, research and safety market channel had a very strong performance. So there really was not a lot of -- as you parse through all of the details, it was just a clean good quarter and actually quite encouraging to see biotech picking up as well. Again, we're not surprised by it. And I think Jim articulated in our Investor Day, the progression for the stepping up of growth in our business, the big drivers are recovery in Biotech and recovery in Academic and Government, you saw the real signs of the Biotech recovery in the results. You saw a good quarter in Academic and Government. We're not calling yet that, that's the new level yet, but it's progressing in a nice direction. Jack Meehan: Can you dig a little bit more into the channel for me on the research and safety side? It seems like it stepped up. How much of that do you think is just market versus share? And on the health care market side, it seems like that rebounded versus what you put up in the first quarter. Just anything you would call there was it timing or something else? Marc Casper: Yes. So if I think about to health care first. The first half of the year was representative for the health care market channel. The first quarter had very specific headwinds. The second quarter was incredibly strong. I actually I think the average of the two is the right way to think about health care market channel. They are doing a good job the business is well positioned. So I feel good about the performance there. So that one is really just take the average of the 2 quarters when we report our results in the [ Q ]. When I think about research and safety market channel, you see really two dynamics, really, very strong competitive position, serving pharma and biotech. And as demand picks up there, that's good, wins also -- with account wins also drives some of that performance. So I think it's the wins are really the share gain part, the market improvement shows up broadly. So that business is doing quite well in a better quarter in academic and government helps that business but not really the big driver, if you will, of the step. Matthew Larew: The biggest delta versus our model was on Analytical Instruments and acknowledging that the comparable was easy that certainly stood out. You've had a number of product launches across the category in the last 12 months. You also have referenced interest on sort of the autonomous lab, lab and the loop side. But then perhaps as biotech activity or just farm activities picked up, maybe that's an area that dollars have been allocated to. Just curious if you think through the various moving pieces, how do all those kind of play into the performance in the quarter? Marc Casper: Thanks for the question. So in terms of analytical instruments, really a very nice quarter, high single-digit growth. All three businesses delivered strong growth in the quarter. So it was really nice to see that. When I think about the drivers, innovation is the most important driver. We launched a suite of products. We had a great American Society of Mass Spectrometry conference in June with two mass spectrometers, a number of AI-enabled software offerings that really help customers have greater insights into their research. We saw a strong adoption of our high-end instrumentation broadly and especially actually globally in the academic customer set. So -- you've heard me say in the past that irrespective of funding environments, if you have really relevant innovation, customers get money. And we saw that show very nicely. We also had a very important launch in our UHPLC product offering, which bodes well for the future. And those are really the biggest drivers. And then within electron microscopy, another really good quarter semiconductor, we play a key enabling role there and as well as advanced materials, and we saw very strong growth in our business, and very strong booking growth as well. So very nice performance for analytical instruments in Q2. Matthew Larew: Okay. Great. And then China was up low single digits and it has obviously been down for some time. But Marc, you've been in China in March, and I know you left more positive, just would be curious if you could dig a little bit to what you've seen there and how much you think maybe you've kind of been a turning or inflection point for that geography. Marc Casper: Yes. So when I think about China, as a reminder, it's about 7.5% of our revenue. It grew in the low single digits, great to return to growth in the business, really driven by a blend of pharma and biotech and industrial and applied markets. So those were both very strong. Academic and Government within China remains quite muted, not different than what we've seen, but not improving either. And -- so what we're doing is capitalizing on where the money is. And it's nice to see the team deliver growth, and that obviously helped contribute to our overall growth in the overall performance of the company. I'll be spending more time again in China in the second half of the year. I'm looking forward to that and spending a lot of time with customers, some government relations topics as well. And continue to stay close to what's going on there. But team is doing a good job, and I feel good about that progressing a little bit better, but still not it's not accretive to our organic growth as a company yet, but we're taking the steps to put ourselves in a good position. Daniel Arias: Marc, you called out Chemical Analysis is doing well. That's been one of the areas that people have just had some concern broadly across the space. Can you maybe just touch on that, what's doing well? And then how do you feel about the macro sensitive parts of the business at this point? Obviously, still choppy out there globally. Marc Casper: Yes. So Dan, thanks for the question. I have got a Chemical Analysis question a long time so it makes it happy. It's to have a good quarter in the business. It's not a huge business, but we have some really key technologies. The two drivers of the growth were I would say the higher commodity prices, you saw that in the demand for industrial customers that are commodity sensitive. So that was good. And we also saw an increase in demand for safety and security applications as well given the amount of conflict going on in the world, not surprised that's picked up. For us, it's largely radiation and explosive detection, and we saw good demand there. So market conditions are getting better, and the team is doing a good job. Daniel Arias: Okay. And then maybe back on Pharma Services, Patheon specifically. Is it right to say that the stronger back half also includes some sequential strengthening each quarter just based on the booking timing? I mean it sounded like 4Q could end up being the strongest quarter of the year just given the way that revenues are expected to fall. I just want to make sure that, that's the right assumption. James Meyer: Yes, Dan, I wouldn't reach that assumption. We've been saying all along the second half steps up versus the first half. First half was low single-digit growth, and then it steps up meaningfully in the second half. It's all aligned to production schedules and with customer campaigns. -- but it doesn't necessarily imply that this fourth quarter grows over the third quarter. Daniel Brennan: Congrats on the quarter. Maybe just on the bioproduction business. You've had a few really good organic growth quarters there from the [ Qs ], which we could see you're growing above market and peers. So just any color about where that above-market growth is coming from. And obviously, your largest peer saw some customer delays. I'm wondering did you see any delays at all this quarter or anything expected in the back half? Marc Casper: Dan, thanks for the question. The business had a really strong quarter. It's performing well. It's a very well-positioned business, right? And we have differentiated set of capabilities that span the upstream and downstream workflow. And as a reminder, we're a leader in cell [indiscernible] for media and single-use technologies. We have a growing position in purification and obviously through the acquisition of Solventum filtration and separation business, we have a nice position in filtration as well. So when I think about the quarter, we had good strength in our business, and the team did a good job broadly across. While it doesn't show up in our organic growth in the quarter, filtration and separation business is doing very well. And demand has been strong, and we're actually increasing capacity, which will bode well for the future of that business. So broad-based very good, and we're looking forward to our competitive position and doing a great job for our customers and serving that market. Daniel Brennan: Great. Maybe I'll just stick on pharma. Just kind of large pharma. Could you just zoom out a little bit, Marc? I mean, there's been so much noise the past few years with [ IRA, MFN ], lease shoring now AI. Can you just kind of speak maybe just broadly across your business, kind of what you saw in the quarter maybe versus first craft? Are things changing there? Is the tone getting better? Like did you update a guy leave room for upside potentially depending upon what the trends are there? Marc Casper: A good multipart question, Dan. So what I would say is when I think about large pharma, I interact with these executives regularly and I was thinking I said breakfast yesterday with one of our key customers. And just there's a lot of excitement about our pipelines, right? And the discussion is about what's the strategy to help them accelerate their innovation? How do they do it productively, why are we investing, where we're investing, how do they can deploy our capabilities to help them? Our trusted partner status, I mean, it sounds cool, but the reality is that's how we work with these customers every single day to help them be successful. And there's quite a positive tone. For those customers that have larger exclusivity cliffs that come up, they're really working their pipeline, and we're helping them with that. So it's really quite an encouraging time. They have their arms around the macro, right, in terms of things like the [ IRA and MFNs ] and tariffs and these different factors. And we've said for a while that our customers felt like they were going to navigate that successfully. And I think they feel very good about what the outlook is. And so it's an exciting time in serving that customer base. Patrick Donnelly: Marc, maybe one for you. You touched a little bit on the academic government market, but I wanted to drill in a bit. How would you characterize where we are in that cycle? It sounds like things have improved at least a little bit. What are you seeing and how those customer conversations are evolving? Is it certain areas of instrumentation more than others? I would love to dive into that [indiscernible] piece a bit more? Marc Casper: Sure. So let me start at a high level, and then I'll click down a little bit, right? So Patrick, when I think about it, we had low single-digit growth in the quarter. So it was nice to have a positive quarter, really driven most significantly by chromatography and mass spectrometry. And the launches of products over the last year, we saw a strong adoption globally for those products. So very important set of research tools. And as you know, if you're an academic restructure, if you don't have the best tools, then effectively, it's very hard to have the cutting-edge publications and breakthrough research because another scientist elsewhere has a better tool. So you've seen money deployed in that area. From a geographic perspective, we actually had a very strong quarter in Europe. U.S. return to growth. China, as I mentioned on the timing commentary, was more muted environment, not relative to the past, but kind of at the same level. And when I think about the second half, we're not calling a new trend based on Q2. We were encouraged by it. but we'd like to see the activity continue to be more broad-based before we say that, that one is behind us. There's good support in the government. I spend enough time with Congress to know that in the U.S. around supporting academic research is very good support for that. So I feel good about the market stabilizing. And I think our customers are getting their arms around. It's less about the headlines, and it is actually about funding flow and the funding flow is improving. So I feel good about the slow stabilization of that end market. Patrick Donnelly: Okay. That's helpful. And then maybe just a follow-up on [ PPD ]. It sounds like things are trending pretty well there. Can you just talk about, I guess, the visibility given the recent bookings, how you're thinking about the second half improvement there? And are you starting to see that early stage biotech pick up? Obviously, something has been healthier for a good stretch here. It would seem to be lagging in terms of when it shows up for the group overall. Are you starting to see any signals that, that piece could pick up and just the [ PPD ] visibility overall? Marc Casper: So harder for me to comment on the group overall. We've seen biotech activity pick up for a few quarters now actually in our authorization. So that's actually been strong for us. And there's -- for simplicity, a 6-month lag or so from authorizations to revenue, and it varies a little bit. But -- so that's picked up authorizations have been strong for a while now in the business. And actually, the business is performing as we expected, and that's a good thing. We expected this to have a really good year in clinical research and that's actually playing out that way. So that's very encouraging. And there'll be a lot of excitement around the [ Clario ] capabilities of our endpoint data business and that's gone well in the first full quarter of ownership. And there's a lot of customer interest in that because whether you're using our CRO or anybody else as CRO, it's really a great set of capabilities that can enable great clinical research. So a good time for that business. Rafael Tejada: Operator, we'll take one more question. Luke Sergott: I just want to kind of touch back on the bioprocessing piece. So I mean, like the -- especially given what we've seen from the larger peers right now on the downstream side and issues with resins and pushouts. I know that you guys are have a bunch of launches coming up. You're underappreciated there on the downstream side. Can you just talk about what the competitive dynamic looks like? Any early wins or increased interest on some of the newer portfolio you have on that side? Marc Casper: Yes. There are a number of fine players in the bioproduction space. The bioproduction space is a great space, right? It's a key enabling technology, especially moving more towards single-use for the pharmaceutical and biotech industry. And we play a key role. We've launched a number of innovative technologies, whether it's our [ DynaDrive ] single-use bioreactors, which is getting more and more standardized across the CDMO landscape. That's a super important indicator because it basically says that it drives efficient production of medicines, right? It's also being adopted in the innovative pharmaceutical companies, but CDMOs that they make all their money, including our own on how well you run your operations, [ DynaDrive ] is quickly becoming the favorite technology, and that bodes well for the follow-on consumables for that comes from that as well. So that's gone well. And our resin business is doing well, right? It's a smaller business. It's won a lot of new molecules over time. And we're doing well there. That's another area where technology has driven differentiation. And from a filtration perspective, kind of a different strategy. Legacy [ 3M ] business was always well respected as a very good technology business, but our commercial reach to this customer base and the relationships that we have has been allowing for a lot of trials of the technology. Effectively, customers want to see it. They're aware of it, but now they're interested because they -- our customers know us as a really reliable supplier, and we'll help them enable their success. So let me wrap up the call. First, I'd like to thank everyone for participating today, and we're pleased to deliver an outstanding quarter. We're on track to deliver a strong year as we continue to create value for our stakeholders and build an even brighter future for our company. We look forward to updating you as the year progresses. And as always, thank you for your support of Thermo Fisher Scientific. Have a good day, everyone. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Thermo Fisher Scientific, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Thermo Fisher Scientific wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $369,577!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,301,557!* That performance is why people listen. 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TMO Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

This article first appeared on GuruFocus. Revenue: Increased by 10% to $11.99 billion. Adjusted Operating Income: Grew 15% to $2.73 billion. Adjusted Operating Margin: Expanded by 90 basis points to 22.8%. Adjusted EPS: Increased by 13% to $6.03 per share. Organic Revenue Growth: 5% for the quarter. Free Cash Flow: Year-to-date free cash flow was $2.5 billion. Share Buybacks: $1 billion repurchased in the second quarter. Full-Year Revenue Guidance: Raised to $47.4 billion to $48.1 billion. Full-Year Adjusted EPS Guidance: Increased to $24.93 to $25.33. Net Interest Expense: $190 million in Q2. Adjusted Tax Rate: 11.6% in Q2. Cash and Equivalents: $4.1 billion at the end of the quarter. Total Debt: $42.5 billion at the end of the quarter. Adjusted ROIC: 10.9%. Warning! GuruFocus has detected 5 Warning Signs with TMO. Is TMO fairly valued? Test your thesis with our free DCF calculator. Release Date: July 23, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Thermo Fisher Scientific Inc (NYSE:TMO) reported a 10% increase in revenue to $11.99 billion for the second quarter. Adjusted operating income grew by 15% to $2.73 billion, with an operating margin expansion of 90 basis points to 22.8%. The company launched several new technologies, including next-generation Orbitrap platforms and AI-driven capabilities, enhancing their industry leadership. Thermo Fisher Scientific Inc (NYSE:TMO) raised its full-year revenue guidance to a range of $47.4 billion to $48.1 billion, reflecting strong operational performance. The company successfully executed strategic acquisitions, such as Clareo, which are performing well and contributing to revenue and earnings growth. The academic and government market showed only low single-digit growth, indicating a stabilization period rather than robust recovery. The divestiture of the microbiology business is expected to reduce 2026 revenue by approximately $200 million and adjusted EPS by $0.05. Foreign exchange rates posed a $100 million lower revenue tailwind than previously expected. Despite growth in China, the academic and government sectors remain muted, not contributing significantly to overall growth. The company's leverage ratio remains relatively high at 3.6 times gross debt to adjusted EBITDA. Q: Can you provide insights into the strengthening customer activity and share gains across segments? A: Marc Casper, CEO, noted that customer activity picked up across all end markets, with significant momentum in pharma and biotech. The company saw increased spending in biotech, translating into revenue growth. The largest end market, comprising 60% of revenue, showed positive progression. Q: Could you elaborate on the guidance for the second half of the year, particularly regarding organic growth expectations? A: James Meyer, CFO, explained that the company expects organic revenue growth to step up from 3% in the first half to 4% in the second half. The quarterly phasing remains consistent with original assumptions, with no significant changes anticipated. Q: How is the Clinical Research segment performing, and what are the expectations for PPD and Clario? A: Marc Casper, CEO, highlighted that Clinical Research had an excellent quarter with strong organic growth in revenue and authorizations. Clario also performed well in its first full quarter under Thermo Fisher, contributing positively to revenue and earnings. Q: What are the drivers behind the strong performance in the Analytical Instruments segment? A: Marc Casper, CEO, attributed the high single-digit growth in Analytical Instruments to innovation, including new product launches and AI-enabled software. Strong adoption of high-end instrumentation, particularly in the academic sector, also contributed to the segment's success. Q: Can you discuss the dynamics in the bioproduction business and any competitive advantages? A: Marc Casper, CEO, stated that the bioproduction business had a strong quarter, driven by differentiated capabilities across upstream and downstream workflows. The company is a leader in cell-culture media and single-use technologies, with growing positions in purification and filtration. For the complete transcript of the earnings call, please refer to the full earnings call transcript.