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Luke Power, SVP, CFO & Chief Accounting Officer, explained that Q4 is typically a stronger quarter for the pharma business, leading to a back-half weighting. He confirmed the guidance assumes mid-to-high teens clinical volume growth. Dr. David Spetzler, President, detailed the heme strategy, stating they will initially target myeloid disorders covered by an existing MolDX LCD, leveraging their current sales channel and anticipating reimbursement similar to existing assays.

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CEO Damien McDonald stated that the back-half acceleration will be driven by the broader launch of the Nebula hip system and the ARG shoulder system, along with international cross-selling opportunities. CFO Ben Berry reaffirmed the company's commitment to transparent accounting, explaining that a recent royalty model shift was non-cash. He noted that free cash flow was positive in Q2 despite tariff pressures and expects a significant step-up toward 70-80% conversion as Lima integration and EMDR costs diminish next year.

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CEO Matthew Trerotola attributed strong bracing results to a healthy market environment and successful clinic conversions. He confirmed that Q1 U.S. surgical performance was in line with their expectations and poised to build momentum. CFO Phillip Berry explained that the robust gross margin was driven by a positive business mix from new products and extremities, stating the underlying performance is sustainable, excluding second-half tariff headwinds.

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CFO Phillip Berry explained that Q1 benefits from 2-3 extra selling days, which will be offset in Q4. CEO Matthew Trerotola added that Q4 U.S. Recon had a slow start but a strong finish, lapping integration headwinds. Berry clarified that the 2025 adjusted EBITDA margin is expected to expand by 60-70 basis points, driven by core leverage, mix, and Lima synergies.

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CEO Matthew Trerotola confirmed that early Q4 was impacted by storms and IV shortages, which is conservatively reflected in the guidance without assuming a full recovery. CFO Phillip Berry added that the company is very confident in its $40 million synergy target, with at least $10-15 million realized in 2024. Regarding cash flow, he noted heavy 2024 investments but expects positive free cash flow in 2025 and a return to 70-80%+ conversion over time.

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CFO & EVP Suketu Upadhyay explained the margin uplift was driven by four factors: a lower tariff headwind ($40M vs. $60-80M), lower interest expense from better cash flow and reduced borrowings, ongoing operational improvements, and a modest FX benefit. He noted the year-over-year decline is still primarily due to the Paragon 28 acquisition.

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CFO Lawrence Lin cited seasonal trends, NGS momentum, and a large C&I order as drivers for Q4 confidence, also noting a C&I funnel at 2.5x revenue. CEO John Marotta highlighted positive impacts from new commercial leadership in North America and SRS. Regarding M&A, Marotta stated the focus is on disciplined, accretive tuck-ins within core areas like biorepositories and automation.

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CEO John P. Marotta explained that the 1% NIH risk has been fully countermeasured by pivoting to Pharma and Biotech, supported by a dedicated "geopolitical war room." CFO Lawrence Lin added that NIH funding pressure creates an outsourcing opportunity for Azenta. Regarding cash flow, Lin noted it was driven by strong working capital execution but also a one-time tax refund. He confirmed the guidance contemplates tariff impacts and the second-half EBITDA comparison is tougher due to prior-year items like stock comp releases.

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CFO Lawrence Lin stated that the potential impact from increased China tariffs is immaterial and factored into guidance. CEO John P. Marotta explained the SMS result was due to the timing of large store projects, noting the backlog is robust with 75% of 2025 revenue secured. On margins, Marotta expressed confidence in the trajectory, citing operational efficiencies and favorable mix.

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CFO Herman Cueto confirmed the 25% NGS growth was driven by increased volume and price stabilization, with the NovaSeq X Plus transition nearly complete. He noted Gene Synthesis grew in the low single digits for the quarter. CEO John P. Marotta stated that due to their regional manufacturing strategy, they do not anticipate an impact from China tariffs. Marotta then outlined his strategic vision, which centers on portfolio optimization, operational excellence through simplification and KPIs, and a rigorous, returns-based approach to capital allocation.

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CFO Adam Laponis affirmed that the $5 million sequential step-down from one customer in Q4 is the key factor driving the NGS guidance for the quarter. He clarified that while some impact from this customer will persist into Q1, the company is committed to and expects overall sequential growth for the business in Q1.

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CEO Emily Leproust stated that tariffs have had minimal impact and are viewed as a potential competitive tailwind. Regarding the academic market, she highlighted the strong 20% year-over-year growth and emphasized that Twist is significantly underpenetrated, presenting a large opportunity. She drew a parallel to Twist's past success in the budget-constrained biopharma space, where its value proposition drove growth.

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An executive, likely CFO Adam Laponis, confirmed there were no one-time items in the gross margin beat, attributing it to sustainable process improvements and revenue leverage. He explained the guidance raise reflects increased confidence and visibility in the Biopharma and SynBio segments, driven by order trends and new product traction, respectively.

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CEO Dr. Emily Leproust stated that NIH exposure is minimal at less than 1% and that budget constraints historically create opportunities to gain market share. She confirmed that 100% of Twist's DNA is made in the U.S., which is a competitive advantage. CFO Adam Laponis reported Q4 related-party revenue was approximately $12 million and confirmed that the analyst's implied Q4 2025 adjusted EBITDA loss range of $10 million to $13 million was 'not unreasonable'.

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CFO Shawn Vadala confirmed the $0.40 tariff impact is for 2025 and expressed confidence in fully mitigating the incremental costs for 2026. He expects the tax rate to remain around 19% in 2026 but noted a potential cash tax benefit. CEO Patrick Kaltenbach explained that the Q2 Service business softness was due to the timing of large projects and that he is confident it will return to strong growth in the second half, highlighting the solid 5% year-to-date growth.

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CFO Shawn Vadala explained that Q2 represents a low point due to short-term uncertainty, particularly in China, and that the second half does not assume a volume acceleration over the first. He clarified the fiscal 2025 net tariff headwind is approximately 2% to EPS growth and confirmed the guidance assumes tariff rates remain at their current levels.

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CEO Patrick Kaltenbach attributed the strong Q4 performance to product innovation and a likely budget flush in Europe, stating there were no clear indications of tariff-related pull-ins. He and CFO Shawn Vadala reiterated expectations for a more moderate start to 2025. Regarding China, Mr. Kaltenbach highlighted the company's 30-year local presence, broad portfolio, and in-country manufacturing as key mitigants against competitive and geopolitical pressures.

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CEO Patrick Kaltenbach confirmed that the Service business is expected to maintain mid-to-high single-digit growth. CFO Shawn Vadala provided a detailed breakdown of 2025 growth expectations by segment, noting that reported figures are impacted by a 1.5% headwind from prior-year shipping delays. Vadala explained that 2025 operating margins are projected to be flattish due to this timing effect, but underlying EPS growth would be approximately 4% higher without it.

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EVP & CFO R. Brent Jones explained that the Q3 guidance reflects consistent performance in the Lab segment, seasonality, and ongoing recovery from manufacturing headwinds in Bioscience. Jones attributed the Q2 margin decline primarily to strategic pricing actions in the Lab business to gain market share, with mix being a secondary factor. He deferred on 2026 margin guidance but noted that new contracts are expected to become accretive over time as volumes recover.

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CEO Michael Stubblefield attributed the controlled environment consumables weakness to customers optimizing usage amid macro pressures, but noted the revenue is sticky and recent commercial actions are showing positive effects. Regarding competitive intensity in the Lab segment, he linked it to the challenging macro backdrop, which has led to some volume shifts at a few accounts, but also highlighted important contract wins and extensions, such as with Regeneron. He emphasized that the company is taking decisive actions to strengthen the business regardless of the competitive environment.

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CEO Michael Stubblefield confirmed a strong finish to the year for bioprocessing with high single-digit growth, stating there was no evidence of a significant pull-forward. He highlighted that underlying market fundamentals remain strong, destocking has subsided, and a healthy order book with 2-3 month lead times supports a sustained recovery into 2025.

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President and CEO Michael Stubblefield specified the weakness was isolated to U.S. semiconductor manufacturing, where a recovery stalled in Q3. He expressed high confidence in the Q4 bioprocessing growth forecast of mid-to-high single digits, driven by strong order momentum and share gains, but did not commit to it as a 2025 baseline.

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CEO Jacob Thaysen highlighted very strong early feedback on new products like Constellation and spatial solutions, stating they are expected to contribute to growth starting in 2026. CFO Ankur Dhingra clarified the guidance update, noting that reduced expectations for instrument sales in the research market are being offset by stronger-than-expected consumables demand. He also pointed to favorable year-over-year comparisons for data services in the second half of the year.

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CEO Jacob Thaysen clarified that headwinds from China and NIH funding were already anticipated in the March forecast. CFO Ankur Dhingra provided a detailed breakdown for the rest of the world, explaining that a ~3 percentage point (~$90M) reduction from research/tariffs is being partially offset by a ~1 point lift from stronger clinical demand and another ~1 point contribution from pricing actions.

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CEO Jacob Thaysen stated that the China situation is very new and that the company is in dialogue with relevant parties. He contextualized that China represents approximately 7% of total revenue but declined to provide further business details. CFO Ankur Dhingra confirmed that the full-year revenue growth is expected to be skewed towards the second half, driven by the NovaSeq X transition.

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CFO Ankur Dhingra confirmed the price-per-GB impact was near -25% due to accelerated NovaSeq X adoption. He affirmed that the 500 basis point margin expansion goal should be viewed from the new, higher 2024 base of ~21%, expressing confidence in achieving it. CEO Jacob Thaysen added this performance is a strong proof point of their commitment.

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VP of Finance & IR Jason Beach affirmed the capital environment remains strong with an elevated backlog. Chair & CEO Kevin Lobo added that the LifePak 35 launch is doing very well with a strong order book and will have a long tailwind. Regarding Knees, Beach stated there were no material concerns, noting July started strong and that quarterly fluctuations are normal.

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CFO Preston Wells expects a relatively even flow of margin improvement to reach the full-year target of 100 bps, with mitigation efforts offsetting the back-half-loaded tariff impact. CEO Kevin Lobo reported that the LIFEPAK 35 launch is going very well with a strong order book, and it was a significant growth contributor in Q1 despite some supply challenges in the Medical division.

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CFO Glenn Boehnlein confirmed the Inari op margin dilution would be a maximum of 20 basis points and the spine impact was absorbed in the EPS guidance. Group President Andy Pierce added that Stryker conducted deep due diligence on the investigation and felt comfortable proceeding with the transaction.

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VP of Finance and IR Jason Beach stated that specific Mako utilization statistics would be provided in the annual update in January but confirmed the rates continue to progress positively. CEO Kevin Lobo commented on the macro environment, noting that procedure wait times remain healthy at roughly double pre-pandemic levels (around 4 months), which provides visibility for continued market strength.

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EVP & COO Heather Knight explained that changing hospital practices takes time and that Baxter is actively working with customers, highlighting a new Visient partnership to build supply confidence. Regarding Novum, she stressed the pause was voluntary and temporary to address issues in a small subset of workflows, differentiating it from more severe historical recalls, with a goal to resume shipments before year-end.

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EVP & COO Heather Knight explained that changing hospital practices takes time but they are actively working with customers to resume normal usage, supported by new supply programs. She differentiated the current voluntary Novum pause, which addresses a small subset of workflows, from more severe historical recalls. EVP & CFO Joel Grade attributed the lower operating margin guidance primarily to the volume impact on manufacturing absorption and unfavorable product mix, partially offset by a reduced tariff impact.

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EVP & CFO Joel Grade attributed the Q2 revenue slowdown to IV fluid conservation by hospitals and conservatism in the HST outlook. He confirmed the operating margin guidance change was due to tariffs and FX impacts. COO Heather Knight stated that Novum has already gained low single-digit market share and has a strong pipeline, which should positively impact related consumables as customer confidence and inventory levels normalize.

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Executive Joel Grade provided a bridge for the adjusted operating margin, detailing a path from 13.9% in 2024 to a guided 16.5% in 2025, attributing the increase to factors like the reversal of Helene's impact, operational improvements, and stranded cost offsets, partially reduced by MSA dilution. An executive confirmed Helene's Q4 impact was approximately $110 million in sales and $0.10 in EPS. An executive identified as Heather highlighted the Nova IQ infusion pump platform as a key driver, with its business growing 50% in 2024 and gaining significant market share.

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CEO José Almeida outlined 2025 growth drivers, including new product launches and the Novum IQ pump, expecting a restocking of IV solutions to balance any early-year hurricane impact. CFO Joel Grade explained the 2024 continuing ops margin is not a clean comparison to the 2025 target because it includes stranded costs without offsetting TSA income. He confirmed Baxter is committed to a dividend but will resize it for the new organization.

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CFO Karleen Oberton confirmed that the discontinued Fluoriscan product should be excluded from organic growth calculations and that excluding COVID is now inconsequential. CEO Stephen MacMillan explained that Endomagnetics' strong performance was driven by solid commercial execution after Hologic took over direct U.S. distribution, not by any one-off factors.

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CFO Karleen Oberton confirmed that the organic decline for Breast Health would be in the mid-single digits, with Q2 performance similar to Q1 before improving in the second half, culminating in strong year-over-year growth in Q4. For Surgical, she noted that while the Q1 IV fluid shortage has resolved, Q2 is seasonally softer due to deductible resets, with growth expected to improve in the back half of the year, aided by the Gynesonics acquisition.

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Chief Financial Officer Karleen Oberton explained the guidance gap is due to transitory headwinds in the first half, including the Skeletal stop ship, respiratory conservatism, and IV fluid shortages, with growth expected to accelerate in the back half. Chairman, President and CEO Stephen MacMillan and CFO Karleen Oberton confirmed they are seeing the impact of the fluid shortage, noting Hologic's highly elective surgical procedures are more susceptible to hospital prioritization and that other medtech companies have also cited this issue.

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President & CEO Peter Arduini highlighted a robust replacement cycle in the U.S. and recovery in Europe, while noting China's recovery is slower. VP & CFO James Saccaro confirmed a strong equipment book-to-bill above 1.1x and detailed a two-pronged tariff mitigation strategy: immediate 'no-regrets' moves and longer-term supply chain restructuring to reduce the impact in 2026 and beyond.

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CFO James Saccaro explained that bilateral China tariffs account for about $375 million of the impact and that a hypothetical rollback could benefit EPS by approximately $0.40. CEO Peter Arduini noted GEHC is a significant exporter to China. Saccaro confirmed the free cash flow reduction was exclusively due to tariff payments and the timing of inventory liquidation.

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CFO Jay Saccaro explained that while Q4 orders were very encouraging, many of the deliveries are scheduled for the second half of 2025 or later, thus not impacting near-term revenue. For Q1 margins, he cited increased OpEx investments in R&D for crucial programs and in SG&A to support new product launches like Flyrcado, which will offset gross margin gains in the quarter. CEO Peter Arduini added that the 2025 plan assumes about $30 million in revenue from Flyrcado.

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CEO Peter Arduini identified the primary hurdle for Flyrcado adoption as the availability of PET systems in the right clinical locations, noting that installing new systems takes 6-12 months. He affirmed that Flyrcado and other new agents will be a growth driver for the entire PET category and that GE HealthCare is well-positioned with a scalable, integrated platform of agents, equipment, and digital tools to capture this opportunity and strengthen its systems position.

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CEO Prahlad Singh confirmed the guidance change was predominantly driven by the DRG policy in China impacting multiplex tests. CFO Max Krakowiak established a baseline 28% operating margin for 2026, with further expansion of 50-75 basis points contingent on achieving mid-to-high single-digit organic growth.

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CEO Prahlad Singh clarified the $135 million figure was a hypothetical 'do nothing' scenario and that proactive measures have mitigated most of it. CFO Maxwell Krakowiak projected a Q2 gross margin near 60% due to the headwind but noted mitigation comes from supply chain changes and temporary cost actions. Krakowiak stated that pharma/biotech is roughly 35% of total revenue, and Singh added that activity in preclinical reagents has stabilized.

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CFO Max Krakowiak explained that for 2025, Diagnostics growth is expected to be above the company average (upper end of mid-single digits) while Life Sciences will be in the low single-digit range. He characterized the guidance as balanced and prudent, not assuming any significant market improvement. CEO Prahlad Singh attributed the strong reagents performance to innovation and portfolio strength, suggesting share gains over time. He confirmed the 2025 outlook for reagents is for growth faster than the overall Life Sciences Solutions unit.

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CEO Prahlad Singh clarified that market conditions are sequentially improving, not worsening, but the recovery is more gradual than anticipated. CFO Maxwell Krakowiak projected a mid-single-digit decline for Life Sciences instruments and roughly flat performance for Applied Genomics in Q4. Singh noted the new $1 billion buyback reflects strong confidence in the company's future.

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CFO Scott Ullem confirmed that a mid-20% operating margin is the correct assumption for the second half, incorporating the expected GenaValve impact and deferred spending. He clarified that while double-digit growth is an annual average target, it was not specific guidance for 2026, but did reaffirm the target of 50-100 bps of annual operating margin expansion starting that year.

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CFO Scott Ullem confirmed that a mid-20% operating margin is the correct assumption for the second half, reflecting deferred spending and the GenaValve acquisition, which is expected to close in Q3. He also corrected a premise, stating the company targets an *average* of double-digit growth annually, not specifically for 2026, and confirmed the goal of 50-100 bps of EBIT margin expansion starting in 2026.

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CFO Scott Ullem responded that it is premature to specify where EPS will land within the $2.40-$2.50 range, as it depends on the timing of the JenaValve acquisition close. CEO Bernard Zovighian acknowledged that results in Japan were disappointing due to a weaker procedure environment and competition, but stated the company is enhancing its capabilities there and remains optimistic long-term.

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CFO Scott Ullem clarified that Q4 headwinds were not exceptionally noteworthy, while Larry Wood, Global Group President of TAVR, reiterated that a slow start to January is typical. Regarding the NCD, CEO Bernard Zovighian and Daveen Chopra, Global Leader of TMTT, stated the proposed language was in line with expectations, with the CED and heart team requirements seen as positive for enabling timely and safe patient access.

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CFO Scott Ullem clarified the China impact is a one-time $5 million distributor rebate adjustment with no lingering operational effect. He noted Q4 has three fewer selling days than Q3, but daily procedure volume is expected to grow sequentially. He confirmed the implied Q4 operating margin is in the mid-20s, with a 2025 target of 27-28%.

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Executive Chairman William Doyle described the ASCO reception as the most exciting in 25 years, highlighting that the discussant called the therapy a new standard of care. CEO Ashley Cordova added that the positive momentum continued at ESMO GI. CFO Christoph Brackmann clarified that recognizing revenue from prior periods is a recurring feature, typically in the 3-5% range, and was in line with that this quarter.

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CEO Ashley Cordova affirmed the NSCLC prescription numbers were positive and in line with their controlled launch strategy. She explained German reimbursement would begin on a case-by-case basis. CFO Christoph Brackmann reiterated the full-year low-to-mid-single-digit revenue growth guidance and stated that the low-70s gross margin outlook for 2025 remains unchanged, as HFE array cost reductions are expected to offset tariff impacts.

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CEO Ashley Cordova stated that while prescription numbers should grow, it's too soon to give specific targets, and commercial payer coverage would be the focus in 2025. She attributed the China revenue dip to the timing of purchases and the roll-off of royalty amortization. CFO Christoph Brackmann projected gross margins would temporarily dip to the low 70s due to the HFE array rollout and at-risk lung launch, with moderate OpEx increases.

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President & CEO Rainer Blair and EVP & CFO Matt McGrew clarified that they expect steady high single-digit growth in both Q3 and Q4, with the Q4 increase driven by normal seasonality rather than a fundamental acceleration. Blair stated they have not seen any meaningful customer pull-forward and reiterated confidence in high single-digit long-term growth for bioprocessing, deferring specific 2026 commentary to the October call.

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EVP and CFO Matt McGrew clarified that the Q2 margin decline is driven by normal Cepheid seasonality, not tariffs. He stated the $350 million tariff impact is for the remainder of 2025 and is split between U.S.-to-China and U.S.-from-Europe trade. President and CEO Rainer Blair noted that overall pharma R&D exposure is less than 10% of sales, with the bioprocessing business being roughly 75% commercial.

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President and CEO Rainer Blair identified the Q1 headwind as a difficult comparison at Pall, which had a very large energy project in Q1 2024. EVP and CFO Matt McGrew confirmed the repurchase of 8 million shares for approximately $1.9 billion across Q4 and Q1. On M&A, Mr. Blair noted that activity is increasing, valuations are improving in some areas, and Danaher will remain disciplined with its established criteria.

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President and CEO Rainer Blair explained that the gene reading (sequencing) market remains softer due to cautious spending from smaller biotechs, while gene editing is performing well. He expressed excitement for the new Rapid Genes product, expecting it to provide tailwinds over time. EVP and CFO Matt McGrew attributed the Q4 margin outlook to lower anticipated respiratory revenue, timing of bioprocessing revenue, and planned investments. He noted that 2025 margins will depend on volume and mix.

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Angelica Riemann, President of the CrossLab Group, attributed the Q3 ACG guidance to normalizing for the Q2 consumables pull-forward, while affirming strong fundamentals for the full year. CFO Bob McMahon explained the overall Q3 guidance reflects a tougher year-over-year comparison and a prudent stance amid macro uncertainty. He noted Q2 gross margin was impacted by tariffs and mix, and clarified the restructuring charge was a GAAP-only item related to the 'Ignite' program.

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CFO Bob McMahon clarified the strong book-to-bill was a sign of continued recovery in instrumentation, led by LC and LC/MS. CEO Padraig McDonnell noted the installed base is older than the median. President of the Agilent CrossLab Group Angelica Riemann added that the replacement cycle provides an opportunity to increase the attach rate of services and consumables.

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CFO Robert McMahon explained that the second-half growth step-up is predicated on continued market recovery, particularly in China (aided by stimulus), pharma (driven by the Infinity III launch), and the small biotech sector. He noted the guided step-down in free cash flow is due to a peak in CapEx for the NASD expansion in FY25. For margins, Q1 will be seasonally lower, with benefits from the Ignite transformation program expected to materialize more significantly in the second half of the year.

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CEO Padraig McDonnell and CFO Bob McMahon responded. Mr. McDonnell stated an expectation for all challenged markets to improve next year, with the Q4 guidance reflecting the start of that trend. Both executives confirmed the Q4 sequential step-up is in line with historical seasonality and is supported by the current order book. Mr. McDonnell explicitly stated that the guidance does not include any potential year-end budget flush.

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CFO Thierry Pieton attributed the back-loaded earnings to lower Q1 factory absorption, front-loaded R&D and S&M investments in growth areas, and an FX headwind in Q1. CEO Geoffrey Martha committed to delivering leveraged EPS growth independent of currency fluctuations, citing structural changes like dynamic pricing to create natural hedges.

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CFO Thierry Pieton attributed the back-loaded earnings to front-loaded investments in R&D and sales for new launches, typical Q1 factory absorption, and an FX headwind that eases through the year. CEO Geoff Martha affirmed a commitment to leveraged EPS growth independent of FX, highlighting structural changes like dynamic pricing and natural hedges to reduce currency exposure.

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CEO Geoff Martha attributed the Surgical softness to two large distributors reducing inventory, a dynamic expected to resolve by Q1 '26, and confirmed that end-customer purchase data shows stable demand. Interim CFO Gary Corona stated the gross margin strength was driven by COGS efficiency, pricing, and some FX favorability, not one-timers. Mike Marinaro, EVP & President of the Medical Surgical Portfolio, then detailed progress on the Hugo robot, a key future growth driver for the segment.

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Chairman and CEO Geoff Martha attributed the temporary slowdown to a third-party component supplier interruption that has since been resolved with expanded capacity. He expressed confidence in strong double-digit growth for Q3, driven by the ramp of PulseSelect and the new Sphere-9 launch. Sean Salmon, EVP & President of the Cardiovascular Portfolio, clarified that while Affera increases revenue per case, it is not a 3x increase over cryoablation.

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CFO Ken McGrath confirmed the $4 million headwind for the "Together Take Me Home" program would be realized over the first three quarters of 2025 and that alternatives are being explored. CEO Carrie Eglinton Manner stated they expect no revenue from the large SMS customer in Q2 and have no further visibility, but noted the rest of the SMS business grew year-over-year. She clarified the Q1 PEPFAR/NIH headwind was approximately $1 million as expected, and the positive update is that the impact is projected to remain at a similar level in Q2 rather than worsening.

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CFO Ken McGrath guided for Q4 gross margins and OpEx to be consistent with Q3, suggesting a mid-40s percentage is a more appropriate baseline for future modeling than the recent results, which were affected by a high international mix. He confirmed the exit from the slightly unprofitable risk assessment business would be accretive to margins. CEO Carrie Eglinton Manner deferred specifics on Saphris until the next call but highlighted its significant potential, with Ken McGrath adding that such deals are expected to be accretive on an operating basis.

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CEO Udit Batra explained that despite the strong Q1, the guidance for the rest of the year prudently assumes a more moderate 4-5% instrument growth, while recurring revenues are expected to grow 6-7%. CFO Amol Chaubal clarified that the higher share count assumption and lower net interest expense assumption were net neutral to the EPS guidance.

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President and CEO Dr. Udit Batra expressed confidence, citing strong Q4 momentum, a robust product portfolio, and the beginning of an instrument replacement cycle. He confirmed expectations of 30 basis points of growth accretion from both GLP-1 and PFAS, and 70-100 basis points from India. SVP and CFO Amol Chaubal added that pricing is expected to contribute close to 200 basis points.

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President and CEO Dr. Udit Batra stated that while precise data is unavailable, he is confident Waters is 'winning more than we're losing,' citing strong execution and a leading portfolio. CFO Amol Chaubal confirmed the Q4 guidance is intentionally 'prudent,' modeling a sequential ramp similar to last year's weaker Q4 despite having two extra days. Batra explicitly denied any Q4 revenue was pulled forward, highlighting that order growth outpaced sales, leading to a build in backlog.

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On TAVR, CEO Michael Mahoney stated there was no new update on the U.S. submission but hopes for more clarity in Q2. Regarding WATCHMAN, CMO Dr. Ken Stein reiterated a H1 2026 data readout for CHAMPION-AF, which he believes could triple the addressable market and support 20%+ growth. He stressed that the ability to get off blood thinners is highly attractive to patients, suggesting strong demand if the trial is positive.

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CEO Mike Mahoney and CMO Dr. Ken Stein reiterated the company's commitment to an open platform strategy. They noted that mapping is heavily used in the U.S., Japan, and China, but less so in Europe. While they believe their OPAL platform offers the most efficient workflow with FARAPULSE, they will continue to support competitor systems to accommodate physician preference. They declined to speculate on future market share for their mapping system but confirmed it is a significant area of investment.

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CEO Michael Mahoney confirmed the ACURATE neo2 trial data will be presented on October 30th and that the company will hold an investor meeting that day to discuss the data and the broader cardiology portfolio plan. He highlighted the valve's continued above-market growth in Europe and the recent launch of the next-generation ACURATE Prime. He did not commit to a specific filing timeline for the FDA.

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Brian Baranick, GM of Precision Oncology, explained the algorithm was validated and then applied to the Beta-CORRECT study, which will confirm performance and extend its use. He stated the data is promising and will be shared at ASCO in June. He highlighted competitive advantages including the ExactNexus platform, the strong Oncotype brand, and a tenured sales team to drive the launch.

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Brian Baranick, GM of Precision Oncology, clarified that the algorithm was validated and then applied to the Beta-CORRECT study. He stated the data is under embargo but looks "very promising" and will be presented at ASCO in June. He highlighted key competitive advantages for the launch, including the ExactNexus platform, the trusted Oncotype brand, and a deep, tenured sales team.

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CEO Kevin Conroy did not provide specific regional or age-group breakdowns but emphasized that the upcoming Cologuard Plus launch will provide the sales force with greater access to providers. CFO Aaron Bloomer added that the 45-49 cohort remains a large, underpenetrated opportunity and that rescreens are a growing, high-margin revenue source, now representing 25% of screening revenue, up from 20% in 2023.

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CEO Kevin Conroy did not provide specific demographic or regional breakdowns but reiterated that the company can improve execution across the board. He highlighted the launch of Cologuard Plus as a key tool that will provide the sales force with new data and greater access to providers. CFO Aaron Bloomer added that the 45-49 cohort remains a large, underpenetrated opportunity where the company knows it can grow faster, partly through care gap programs.

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CFO Aaron Bloomer confirmed there were no significant one-offs in adjusted OpEx and advised to expect consistency in G&A, with sequential step-ups in Sales & Marketing and R&D in the back half. CEO Kevin Conroy addressed the pricing question, stating that payers are adept at managing costs and will use tools like prior authorization to ensure the right test is used. He believes payers will recognize the performance differences between tests and that a test not included in quality measures will have a more limited, appropriate role.

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CFO Aaron Freidin explained that cash burn is expected to decrease in subsequent years as revenues grow and investments in key programs, like the PMA submission and new test version, begin to roll off. Regarding the new Galleri assay's impact on costs, Freidin noted there will be an immediate benefit on the variable cost front. However, the full cost and margin benefits will only be realized once test volumes increase significantly. He indicated that more specific guidance on margins would be available after the new test has been operational for several quarters.

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Chairman, CEO, and President Tom Polen explained that the guidance prudently assumes a mid-single-digit decline in China and a continuation of FY24 trends for the bioscience pharma space, despite seeing a slight uptick in Q4. He noted no significant hurricane impact is currently anticipated. EVP and CFO Chris DelOrefice added that the Q1 revenue growth rate will be impacted by tougher prior-year comparisons and market dynamics, but the full-year earnings growth profile is expected to be balanced at around 10%.

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