Total Revenue

+3% " "

The 3% YoY increase from $10,541 million in Q2 2024 to $10,855 million in Q2 2025 " " indicates a rebound in overall organic performance. This improvement builds on earlier quarters where declines driven by reduced COVID‑19 related revenue, lower selling days, and currency headwinds " " were being addressed through operational adjustments and a more balanced revenue mix.

Life Sciences Solutions

+6% " "

Rising from $2,355 million to $2,499 million " " , the 6% increase reflects robust growth in key sub‐segments. Building on the modest 2% increase seen in Q1 2025 " " , strong performance in the bioproduction business and genetic sciences—including benefits from the Olink acquisition—has accelerated revenue gains.

Analytical Instruments

-3% " "

With revenue falling from $1,782 million to $1,728 million " " , the 3% decline appears linked to weak performance in certain sub‐segments such as chemical analysis in select geographies and an unfavorable product mix. This contrasts with previous periods where electron microscopy drove growth " " and highlights a current slowdown despite earlier momentum.

Specialty Diagnostics

+1.5% " "

The increase from $1,117 million to $1,134 million " " reflects tempered but steady growth. Consistent with Q1 2025 improvements—where the healthcare market channel, immunodiagnostics, and transplant diagnostics contributed " " —this moderate gain suggests that despite ongoing foreign exchange headwinds and unfavorable mix pressures, core market performance remains solid.

Laboratory Products and Biopharma Services

+4% " "

An increase from $5,758 million to $5,995 million " " marks a turnaround from prior declines. This 4% uptick likely stems from recovery in the pharma services and clinical research areas, which helped offset the earlier 1% decreases due to COVID‑19 revenue runoff. " " " " The rebound underscores an improving business mix after earlier challenges in the segment.

Eliminations

Absolute increase from ($470) million to ($501) million (approx. +6.6% in absolute terms) " "

Although specific drivers are not detailed, the increase in eliminations—rising by about 6.6% in absolute value—may reflect changes in intercompany transactions and consolidation adjustments. Similar unidentified consolidation impacts were noted in earlier periods " " " , suggesting ongoing structural adjustments within the organization.

Revenue

FY 2025

$43.3 billion to $44.2 billion " " "

$43.6 billion to $44.2 billion " "

raised

Organic Revenue Growth

FY 2025

1% to 3% " "

1% to 3% "

no change

Adjusted Operating Margin

FY 2025

22% to 22.6% "

22.5% to 22.7% "

raised

Adjusted EPS

FY 2025

$21.76 to $22.84 " " "

$22.22 to $22.84 " "

raised

FX Impact on Revenue

FY 2025

$50 million headwind "

$10 tailwind "

raised

FX Impact on Adjusted Operating Income

FY 2025

$90 million headwind "

$80 million headwind "

raised

FX Impact on Adjusted EPS

FY 2025

$0.19 headwind "

$0.27 headwind "

lowered

Adjusted Tax Rate

FY 2025

10.5% "

10.5% "

no change

Net Capital Expenditures

FY 2025

$1.4 billion to $1.7 billion "

$1.4 billion to $1.7 billion "

no change

Free Cash Flow

FY 2025

$7.0 billion to $7.4 billion "

$7.0 billion to $7.4 billion "

no change

Average Diluted Share Count

FY 2025

378 million to 379 million "

378 to 379 "

no change

Dividends

FY 2025

$600 million "

$600 "

no change

Net Interest Expense

FY 2025

no prior guidance

$360 million to $370 million "

no prior guidance

Share Buybacks

FY 2025

no prior guidance

$2.0 billion (completed in January 2025) "

no prior guidance

Organic Revenue Growth

Q3 2025

no prior guidance

1 percentage point higher than Q2 2025 "

no prior guidance

Adjusted EPS

Q3 2025

no prior guidance

$0.10 to $0.15 higher than Q2 2025 "

no prior guidance

Pharma/Biotech and Clinical Research Dynamics

Mentioned consistently across Q1 ( " " " ), Q4 ( " " ) and Q3 ( " " ) with discussions of low‐to–mid single‐digit growth, challenges from vaccine runoff, and early signs of sequential improvements.

Q2 2025 showed mid-single-digit growth in Pharma/Biotech with the best performance in nine quarters and slightly positive, high single-digit long-term growth in Clinical Research driven by strong authorizations and accelerated drug development solutions ( " " " ).

Improved sentiment and performance in Q2 relative to earlier periods, with a continued focus on broad-based growth and a more positive customer tone.

Cost Management, Pricing Strategies and Margin Expansion via the PPI Business System

Addressed in Q1 ( " " " " ), Q4 ( " " " ) and Q3 ( " " " " ) focusing on disciplined cost actions, productivity improvements and steady margin expansion despite macro challenges.

Q2 2025 emphasized aggressive cost actions with an additional $300 million reduction, leveraging AI-enabled improvements in its PPI Business System to achieve 100bps margin expansion despite tariffs and FX headwinds ( " " " ).

Focus remains strong with the addition of AI-enabled initiatives boosting productivity and margin performance under challenging operating environments.

Tariff and Trade Policy Uncertainty including US-China Tensions

Q1 highlighted significant headwinds with a $400 million revenue impact and added costs ( " " ); Q4 discussed cautious outlook and adaptive guidance ( " " ); Q3 did not mention it.

Q2 2025 noted tariffs causing a 5% headwind to adjusted operating income, but also reported a $75 million organic revenue beat due to milder effects, with active management through cost mitigations and guidance cushions ( " " " " ).

Persistent macro headwinds continue to be managed proactively, with the impact appearing less severe and more contained than earlier expected.

Reshoring Initiatives and US Manufacturing Expansion

Q1 discussed significant interest and a $2 billion investment over four years with strong tailwinds from customer facility build-outs ( " " ); Q3 and Q4 did not mention it.

Q2 2025 reiterated its strategic partnership with Sanofi to acquire and expand a sterile fill-finish site in New Jersey, highlighting continued emphasis on expanding U.S. manufacturing capacity ( " " " ).

Emerging as a key long-term growth driver, with heightened focus in Q1 and Q2 compared to earlier quarters.

China Market Performance, Stimulus Opportunities and Ongoing Headwinds

Q1 reported mid-single-digit declines ( " ), Q4 showed mid-single-digit growth and noted stimulus contributions ( " " ), and Q3 described muted economic activity and pausing instrument spending ( " " ).

Q2 2025 noted a high single-digit revenue decline in China with less impact from tariffs than assumed, while noting ongoing economic challenges and no specific mention of stimulus opportunities ( " " " " ).

Challenges persist with volatile performance in China; while earlier periods saw mixed signals with stimulus effects, Q2 emphasizes sustained headwinds despite improved tariff impacts.

Analytical Instruments: Shifting Sentiment from Underperformance to Innovation

Q1 reported modest organic revenue gains and flat margins with new product introductions like the Vulcan automated lab ( " " ); Q4 highlighted strong revenue growth (7–8%) from breakthrough launches (e.g. Stellar, Orbitrap Astral) ( " " ); Q3 underscored product innovation with launches like the Iliad microscope and Orbitrap Astral driving market recognition ( " " " ).

Q2 2025 reported a 3% revenue decline and 4% lower organic growth but introduced breakthrough products (e.g. AstroZoom, Excedian Pro, Cryos5) that are being received as paradigm shifts in proteomics and drug development ( " " " " ).

The segment is transitioning from underperformance towards innovation-driven momentum, with breakthrough product launches poised to drive future gains.

Academic and Government Market Demand Challenges

Q1 highlighted low single-digit declines and policy-driven guidance cuts ( " " " " ); Q4 reported high single-digit growth globally despite uncertainties ( " ); Q3 mentioned slightly weaker-than-normal demand with a minor $10–$20 million impact ( " ).

Q2 2025 saw mid-single-digit revenue declines driven by cautious spending amid funding uncertainties, with customers waiting on budget clarifications for 2026 ( " " ).

Demand challenges remain consistent, with a persistently cautious tone amid funding uncertainties, though long-term fundamentals stay stable.

Macroeconomic and Policy Uncertainty Impacting Earnings

Q1 described significant impacts from U.S.-China tariffs, FX volatility, and policy changes leading to revenue and EPS guidance adjustments ( " " " ); Q4 conveyed cautious optimism and embedded modest policy adjustments ( " " ); Q3 pointed to muted economic conditions in China and uncertainty in customer spending ( " " ).

Q2 2025 detailed continued challenges from tariffs and FX, with proactive cost management measures capturing a $75 million beat and maintaining a stable outlook into 2026 ( " " " " ).

While macro and policy uncertainties persist, enhanced management actions and cautious guidance are supporting an improved near-term outlook.

Emergence of AI-Enabled Productivity Improvements in Cost Management

Q4 2024 noted the integration of generative AI into the PPI Business System to drive process streamlining and productivity ( " ); Q1 and Q3 did not mention AI-enabled initiatives.

Q2 2025 explicitly integrated AI into the PPI Business System for enhanced cost management and margin gains, delivering 100bps margin expansion even under headwinds ( " ).

An emerging focus on AI integration marks a positive innovation in cost management, building on earlier generative AI efforts in Q4.

Breakthrough Product Launches as a New Growth Driver

Q4 highlighted several breakthrough launches (e.g. Stellar, Orbitrap Astral, Dionex Inuvion, Iliad Microscope) driving innovation and market share ( " " ); Q3 emphasized product innovation with strong adoption of new instruments ( " " " ); Q1 mentioned other innovations like the Vulcan lab but did not showcase specific breakthrough names such as AstroZoom.

Q2 2025 prominently featured breakthrough launches (AstroZoom, Excedian Pro, Cryos5) with strong customer enthusiasm and paradigm-shifting potential in proteomic technology and clinical research ( " " ).

A renewed and enhanced focus on breakthrough product launches in Q2 is steering future growth, differentiating current sentiment from earlier periods.

Decline of Pandemic-Related Revenue Concerns

Q1 reported a 3% headwind from the runoff of pandemic-related revenue, significantly affecting growth ( " " ); Q4 detailed a major decline with a $520 million full-year impact and noted ongoing headwinds in clinical research ( " " " " ); Q3 indicated a 3% headwind though with offsetting growth drivers ( " " ).

Q2 2025 showed that pandemic-related revenue now only contributes a 1% headwind, reflecting its diminishing impact compared to earlier periods ( " " ).

The impact of pandemic-related revenue is steadily declining, signaling reduced reliance on and concern over this once-critical revenue stream.

Reduced Focus on NIH Funding Cuts and Export Controls

Q1 discussed NIH funding concerns and export controls with a focus on historical support and the potential for a one-time reset ( " " ); Q4 similarly addressed these topics with cautious optimism and a collaborative approach ( " " ); Q3 did not mention these issues.

Q2 2025 did not mention NIH funding cuts or export controls.

Attention on NIH funding cuts and export controls has diminished in Q2, suggesting these topics are no longer emphasized as primary concerns.