WATERS CORP /DE/ — Call Transcript 2026

Good morning. Welcome to the Waters Corporation First Quarter 2026 Financial Results Conference Call. All participants will be in listen-only mode until the question and answer session begins. This call is being recorded. If anyone has objections, please disconnect at this time. It is now my pleasure to turn the call over to Mr. Caspar Tudor, Head of Investor Relations. Please go ahead, sir. Thank you, Layla. Good morning, everyone. Welcome to Waters Corporation's first quarter earnings call. Joining me today are Dr. Udit Batra, our President and Chief Executive Officer, and Amol Chaubal, our Senior Vice President and Chief Financial Officer. Before we begin, I will cover the cautionary language. In this conference call, we will make various forward-looking statements regarding future events or future financial performance of the company, including the financial and operational impact of Waters' combination with the Biosciences and Diagnostic Solutions business of Becton, Dickinson and Company, or BD. We will provide guidance regarding possible future results and commentary on the potential market and business conditions that may impact Waters Corporation over the second quarter of 2026 and full year 2026. These statements are only our present expectations and are subject to risks and uncertainties. Please see the risk factors included within our Form 10-K, our Form 10-Q, our other SEC filings, and the cautionary language included in this morning's earnings release. During today's call, we will refer to certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are attached to our earnings release or in the appendix of the slide presentation accompanying today's call. Unless stated otherwise, all organic revenue growth rates are presented on a constant currency basis and are in comparison to the first quarter of 2025. For acquired company revenue, unless stated otherwise, all results cover our period of ownership from the transaction closing date on February 9th, 2026, through to the end of the quarter. For acquired company revenue growth rates, unless stated otherwise, all growth rates are presented on an estimated as reported basis covering the period of ownership in comparison to the prior year equivalent period that predates Waters ownership. We do not intend to update our guidance, predictions, or projections except as part of a regularly scheduled earnings release or as otherwise required by law. On today's call, Udit will begin with our key messages and business highlights. Amol will review our financial results and outlook. We will open up the lines for questions. I'll turn the call over to Udit. Thank you, Caspar. Good morning, everyone. We delivered an excellent first quarter as a combined company, marking the start of a new powerful era of growth across our four divisions. We achieved double-digit organic growth in our legacy businesses, delivered meaningfully better than expected revenue for our newly acquired businesses, and grew adjusted earnings per share by 20%. We also took decisive steps towards building our new platform for sustained long-term growth, driving strong momentum and underpinning our raised full-year growth outlook. Before turning to the numbers, I want to recognize our teams for delivering this strong start to the year. They are enacting immediate operational improvements, continuing to deliver pioneering innovation and collaborating effectively to deliver revenue synergies already, all while ensuring a smooth transition from BD. It is a true privilege to work with my colleagues. I'm proud of what they have accomplished. In the first quarter, total company as-reported revenue was $1.267 billion, comprising of $747 million of organic revenue and $520 million of Biosciences and Diagnostic Solutions following the February 9th acquisition closing date. Organic revenue grew 13% as reported and 11% in constant currency, exceeding the high end of our constant currency guidance range by approximately 200 basis points. Orders, again, outpaced sales. Biosciences and Diagnostic Solutions revenue exceeded guidance by $40 million and grew an estimated 7% on a reported basis versus the prior year equivalent period, a strong opening performance for these businesses under Waters' leadership. On a full quarter pro forma basis, comparable revenue growth also exceeded expectations and improved meaningfully relative to fourth quarter trends. Execution initiatives launched at the close, at closing drove flat year-over-year reported growth despite a $20 million headwind in respiratory testing due to the weak flu season. Excluding these impacts, growth was approximately 3% for the full quarter. With our strong top-line performance, combined with disciplined cost management and operational excellence across the organization, adjusted EPS grew 20% year-over-year to $2.70 per share, exceeding the high end of our guidance range by $0.35. Let me now cover these drivers of strength in more detail. Beginning with our organic revenue performance, the Analytical Sciences Division grew 12% in constant currency, with instruments up 8%, chemistry up 13%, and service up 14%. In pharma, we grew mid-teens with sustained above-market performance supported by our unique exposure to idiosyncratic growth drivers. Continued strong instrument replacement and excellent adoption of new products in our high growth adjacencies. In academic and government, we grew high teens, driven by strength in Europe and broad-based demand for our revitalized high-resolution mass spec portfolio. In industrial, we grew low single digits, led by chemical analysis and continued momentum in PFAS testing applications. Thanks to the effective cross-divisional collaboration given our diligent integration planning, approximately 1 percentage point of Analytical Sciences growth was driven by tandem quadrupole mass spectrometry sales through the Biosciences channel, an early proof of revenue synergy realization. Within the Advanced Diagnostics Division, the clinical business unit previously reported within the Waters division grew 14% despite DRG weakness in China. Strength was led by double-digit growth in the Americas and Europe. The Materials Sciences Division grew low single digits, reflecting solid performance across core industrial and high growth applications given present macro conditions. Turning now to our newly acquired businesses. The Biosciences Division delivered $230 million of revenue, representing 7% estimated growth on an as-reported basis from the closing date of the transaction to the end of the quarter. Flow Research and Flow Clinical both grew 7%, reflecting improved execution and increased commercial activity. Reagents grew low double digits while instruments remained pressured due to U.S. academic and government trends and ongoing China-related constraints, including export restrictions of high parameter products and lack of a localized product portfolio. Meanwhile, overall demand for our recently launched FACSDiscover A8 and S8 systems remained strong. On a full quarter pro forma basis, Biosciences declined 1%, marking a significant improvement from the 10% decline in the fourth quarter of 2025. This inflection is further underscored by our ex-China growth, which was 4% for the full quarter. As we localize the China portfolio in the second half of this year, launch additional new products, and implement incremental new commercial actions as the year progresses, the business is poised for further acceleration throughout 2026. Within the Advanced Diagnostics Division, Diagnostic Solutions delivered $288 million of revenue, representing 8% estimated growth on an as-reported basis from the close date. Microbiology grew 10%, reflecting improved commercial momentum tied to the newly enacted KPI discipline ahead of our BACTEC FXI launch in blood culture. On a full quarter pro forma basis, Diagnostic Solutions business grew 1%, a clear acceleration from the high single-digit decline in the fourth quarter of 2025. Excluding respiratory testing headwinds, growth was 6% for the full quarter, reaching mid-single digit underlying growth sooner than expected. At the divisional level, including the clinical business unit, Advanced Diagnostics grew 3%. Excluding these same respiratory headwinds, the Advanced Diagnostics division grew 7.5% for the full quarter pro forma basis, reflecting strong underlying momentum. This inflection was delivered even ahead of the full benefit of our commercial execution initiatives and new product launches. Despite a 2% China DRG-related headwind that will annualize into the baseline in the second half of the year, positioning the business for continued acceleration as we enter the back half of the year. Less than 90 days post-close, we've already made notable progress after taking control of the Biosciences and Diagnostic Solution businesses, as is evident in our results. Immediately after the February 9th closing date, we launched a 180-day plan to reinvigorate growth centered on a focused set of rapid execution initiatives. Early results have been outstanding, driving a clear and meaningful step up in revenue performance relative to the pre-close performance trends. Our first priority was to instill focus, accountability, and urgency across our newly acquired businesses. We have since substantially increased the frequency and rigor of forecast and funnel reviews with deeper inspection of conversion rates, deal progression, and pipeline quality. This has driven greater visibility and transparency, faster decision-making, and improved commercial execution. In parallel, we have taken deliberate actions to increase commercial activity across the organization. We have raised expectations around customer engagement, driving our sales team to spend more time in the field, getting in front of the customers, and increasing outbound activity. This has been reinforced with clear KPIs and daily management, resulting in meaningful increases in call volume, customer visits, and pipeline generation, which is driving stronger funnel trends and overall commercial momentum. Our second near-term priority under our 180 day plan is pricing discipline. We have deployed our experienced Waters pricing team across Biosciences and Diagnostic Solutions, where we have conducted a comprehensive pricing review and are establishing two new deal desks. We're already seeing tangible results with pricing actions taken right away in the quarter, already beginning to augment revenue performance. In addition, we are actively reviewing reagent rental contracts and utilization data to identify commercial opportunities. Within U.S. Diagnostic Solutions alone, our initial review of 1,600 contracts has identified approximately 700 that are currently out of compliance, representing a double-digit million dollar shortfall annually. We see meaningful opportunity to improve operational follow-through on these contracts in the quarters ahead. Our third near-term priority is to regain share in Flow Research. We have already approved and initiated actions to localize manufacturing of flow instruments in China to improve market access and reduce export complexity, addressing a key source of share loss. We intend to begin manufacturing key products in China for China, starting in the third quarter, which is already providing our team a strong impetus to begin competing for tenders that require local manufacturing. We're applying the same playbook that has made our Analytical Sciences business a growth leader in China. Flow, for flow research reagents, we are improving product availability and speed to customer by adjusting our distribution strategy, leveraging new channels, and mobilizing Waters' existing distribution network. These actions are expected to begin resolving prior constraints that have impacted share beginning in the second half of this year. We remain the market leader in downstream high volume life science applications spanning LC-MS, light scattering, and precision chemistry workflows together with related service and informatics. In the first quarter, we launched our next generation micro flow LC chemistry columns with MaxPeak Premier technology, delivering up to twice the sensitivity of traditional microflow columns for use in high throughput bioseparations, DMPK, and omics applications. In light scattering, we also recently launched our omniDAWN Multi-Angle Light Scattering detector, which is an industry-first extended range detector for use in UPLC and meeting the rising throughput and resolution requirements of our customers. These new product launches increase our degree of differentiation when serving large molecule applications in our attractive end markets. In microbiology, we recently announced that our next generation blood culture system, the BACTEC FXI, has received CE marking under the European Union's In Vitro Diagnostic Regulation, representing a key milestone in our microbiology product roadmap and delivered ahead of schedule. BACTEC FXI is a groundbreaking new product that combines industry-leading automation, allows 60 sample loading, and offers a three-hour faster detection time than the current generation BACTEC, which was launched over a decade ago. This system is now available in Europe and Japan. We're pursuing additional regulatory approvals in other key global markets in the months ahead. In molecular, we recently received FDA clearance for our BD Onclarity HPV self-collection kit and BD Onclarity HPV assay, enabling at-home cervical cancer screening with extended genotyping for multiple high-risk strains. This solution allows patients to collect their own sample at home, which is then analyzed in the lab using the BD Onclarity HPV assay, removing barriers to the screening access. Cervical cancer is highly preventable, yet remains significantly under-screened. Nearly one in four women in the U.S. is not up to date with cervical cancer screening, despite HPV being the primary cause of nearly all cervical cancers. Screening gaps persist due to access challenges, discomfort, and patient avoidance of pelvic exams. Self-collection directly addresses these challenges by offering a less invasive and more convenient alternative with a proven ability to increase screening participation. As the most comprehensive at-home cervical cancer screening tool available, we are empowered by a mission to remove these barriers that prevent individuals from receiving routine screening. Our goals are aligned directly with the priorities established by the U.S. Department of Health and Human Services, which identified expanding at-home testing as a top public health priority last year. We have already begun to sign contracts with strategic partners as we bring this solution to market. Turning to the synergies. On cost synergies, we remain firmly on track to deliver our $55 million target for 2026, driven by organizational optimization, procurement savings, and network optimization with a clear line of sight to delivery. Since February 9th, we have moved quickly to enact our restructuring plan and are now in advanced stages of implementation. We expect these actions to improve cost efficiency by optimizing spans and layers, eliminating redundancy, and achieving a leaner, centralized cost structure as part of the integration. The associated savings will hit the P&L beginning in the third quarter of this year. We've also activated our centralized spend control tower, increasing visibility into indirect spend and driving more disciplined procurement execution. These actions are enabling us to capture savings across key categories while improving control and accountability. At the same time, we're also taking business-level cost actions separate from our synergy program and rightsizing cost in areas where there is clear opportunity to realign with the revenue base. Together with our growth outlook, these actions support solid margin progression in the second half of the year. Revenue synergies, as I mentioned earlier, we're already ahead of plan. We have moved quickly to activate cross-selling across the combined commercial organization, leveraging the biosciences channel to drive incremental demand for mass spec in pharma clinical settings. We expect further contribution as we continually scale these efforts throughout the year. As we progress through 2026, additional synergy levels will start to build across instrument replacement, service plan attachment, and e-commerce. In total, we remain well on track to deliver $50 million of expected revenue synergies this year. On instrument replacement, of the 22,000 ripe for replacement, 12,000 are BACTEC, with over 50% greater than five years old and over 25% greater than 10 years old. Since February 9th, we have accelerated the U.S. and European launch of BACTEC FXI by three to five months relative to the inherited business case, creating earlier revenue capture across the significant install base opportunity. On service plan attachment, we have completed the first-ever full coverage analysis of flow, microbiology, and molecular diagnostics installed bases. Beginning this quarter, we are assigning these opportunities to account-level representatives supported by clear KPIs and our Waters service leadership team, an effort we expect to drive at least $20 million of incremental revenue over the next five years. On e-commerce, we have scaled our digital capabilities team in recent weeks. We now have more than 100 full-time employees in our e-commerce team at our global capability center in Bangalore. This investment is a key enabler of a future best-in-class e-commerce platform, strengthening our competitive position and driving increased customer adoption of digital ordering channels, which is a key synergy. Turning now to 2026 guidance and our value creation roadmap. We have begun 2026 with significant momentum driven by the instrument replacement cycle, our idiosyncratic growth drivers, and accretion from our high growth adjacencies. As a result, we are raising our full year 2026 organic constant currency revenue guidance to 6.5%-8%, reflecting our strong first quarter performance and embedding $15 million of expected revenue synergies from cross-selling of Mass Spec. For the acquired businesses, we now expect Biosciences and Diagnostic Solutions to generate approximately $3.035 billion of reported revenue in 2026, which includes $35 million of expected revenue synergy contribution tied to the vectors I just covered, including instrument replacement, service plan attachment, and e-commerce. Together, total 2026 reported revenue is expected to be approximately $6.405 billion-$6.455 billion based on latest FX rates. Turning now to EPS. Given our strong first quarter results, updated FX assumptions, and the prudence embedded in our second half outlook, we are raising our full year adjusted EPS guidance by $0.10 to $14.40 per share to $14.60 per share, reflecting growth of 10%-11%. With our synergy levers now underway, we have an excellent platform for continued strong performance as a new powerful era of growth begins, unfolding in three phases over our midterm outlook. In phase I, where we are today, the incremental performance at our acquired businesses is tied to immediate operational improvements, such as those outlined in our 180-day plan, together with early revenue synergies from cross-selling. The strong Q1 results give us confidence that this foundation is being built at speed. In phase II, these operational improvements are then joined by our full first tranche of revenue synergy levers spanning instrument replacement, service plan attachment, and e-commerce. These are near-term, well-defined opportunities that are expected to begin contributing starting in the third quarter of this year. In phase III, the strategic power of this combination becomes most visible. New product launches in bioseparations, taking flow into QC in bioanalytical characterization, and our new platform launches, such as rapid stability testing, are expected to add further incremental growth vectors as we increasingly leverage our joint capabilities. Each of these phases takes us further up the growth curve from the mid-single digit pro forma growth rate, where our full year guidance sits today, progressively upwards into the high single digits over the next several years. This is very similar to what we have seen at our legacy Waters business over the last five years. At the same time, we expect to drive significant margin expansion augmented by our cost synergies and expect to achieve at least 100 basis points of adjusted operating margin expansion every year through the end of the decade. Together, this powerful equation yields a mid-teens adjusted EPS growth algorithm and one we are executing against with increased confidence. In summary, we are laser focused on delivering value through our execution and operational improvements, innovation launch excellence, and synergy realization. With this transformation already underway, this value creation journey is beginning now, and we are doing so at speed. With that, I will now turn the call over to Amol to cover our financial results and guidance in more detail. Thank you, Udit. Good morning, everyone. In the first quarter of 2026, we continued to deliver industry-leading growth. We delivered reported revenue of $1.267 billion, which was ahead of expectations. Momentum remained strong at Waters organically, and our newly acquired businesses delivered a strong start as our 180-day growth revitalization plan began to take hold. Organic revenue was $747 million, growing 13% as reported and 11% in constant currency, which was 200 basis points above the high end of our guidance range. Our newly acquired businesses delivered $520 million of revenue during our period of ownership, $40 million above guidance, and representing 7% estimated as reported growth versus the comparable prior year stub period. Importantly, performance was ahead of expectations on a full quarter pro forma basis as well. As reported, growth for the full quarter was flat, improving notably versus the prior quarter and underscoring the strength of our execution and growth revitalization initiatives. Excluding $20 million of respiratory testing headwind, growth was 3% for the full quarter. By geography, as reported, revenue was $505 million in the Americas, $412 million in Europe, and $350 million in Asia. We effectively managed our supply chain and mitigated elevated freight costs, tariff costs, and inflationary pressures while continuing to invest for the long term. Total company adjusted gross margin was 54.7%, approximately 200 basis points better than expected. Adjusted operating margin was 23.6%, also approximately 200 basis points better than expected. This reflects strong margin results in a dynamic macro environment and one achieved before the benefits of our cost synergies and broader cost actions start to flow through the P&L. Our operating tax rate came in at 15.6%, and net interest expense was $38 million. With our top line strength, disciplined cost management, and operational excellence, adjusted EPS grew 20% to $2.70. On a GAAP basis, we reported a diluted loss per share of $0.87, reflecting acquisition-related purchase accounting charges, including amortization of acquired intangibles and inventory step-up, as is typical following a transaction of this scale. Free cash flow for the quarter was $42 million outlay impacted by deal-related transaction costs and the timing of net cash settlement with BD. Turning to our results by operating segments. The Analytical Sciences Division, which is our legacy Waters division, excluding the clinical business unit, delivered as reported revenue of $607 million, up 14% as reported and 12% in constant currency. In constant currency, instruments grew 8%, chemistry grew 13%, and service grew 14%. Instrument strength was broad-based across both LC and MS, driven by robust replacement activity and our idiosyncratic growth drivers across GLP-1s, PFAS, India generics, and biologics. Leveraging the Biosciences sales channel, we also achieved strong mass spec results in pharma clinical settings, as Udit outlined. Chemistry growth was again led by MaxPeak Premier and new products within bioseparations, which have been a vertical success. Our service results reflect strong pull-through from recent expansion in service plan attachment levels. By end market, pharma grew 14%. Non-pharma grew 8% as academic and government grew 18%, and industrial grew 3%. Within pharma, spending trends remained strong across ethical pharma, CDMOs, and Chinese biotech. Growth was broad-based with high single-digit growth in Americas and Europe. Asia grew nearly 30%, led by over 50% growth in China, low teens growth in India, and low teens growth in Japan. Within academic and government, growth was driven by strong spending trends in Europe and solid demand globally for our revitalized high-resolution mass spectrometry portfolio, including Xevo MRT and Xevo CDMS. In China, we continued strong capture of stimulus standard opportunities. Within industrial, Asia grew mid-single digits, Europe grew low-single digits, and the Americas was flat. Growth was led by chemical analysis and PFAS applications. For PFAS, we sustained strong growth despite a tough prior year comparison, led by double-digit growth in both Europe and China. The Biosciences Division, which represents the former BD Biosciences business, delivered as-reported revenue of $232 million, representing 7% estimated as-reported growth from the closing date to the end of the quarter versus the comparable prior year stub period. Reagents grew low double digits, while instruments remained pressured due to U.S. academic and government trends and China-related constraints such as lack of localized product portfolio. Overall, flow research grew 7%, and flow clinical grew 7%, with stronger commercial execution driving increased activity levels across both business areas. Within flow research, performance was led by reagents and strength in our FACSDiscover A8 and S8 instruments, particularly in Europe. Within flow clinical, ex-China grew 13%, while China declined 25% due to DRG headwinds. By geography, Europe grew over 30%, the Americas grew 10%, and Asia declined high teens led by China. On a full quarter pro forma basis, Biosciences declined 1%, representing significant sequential improvement versus the fourth quarter trend tied to our commercial actions. On a ex-China basis, Biosciences growth for the full quarter was 4%. The Advanced Diagnostics Division comprises of the former BD Diagnostic Solutions business and the Mass Spec Diagnostics clinical business unit previously reported within Waters Division. Total as reported revenue for the division was $349 million. Diagnostic solutions delivered $288 million of as-reported revenue, representing 8% estimated underlying growth from the transaction closing date to the end of the quarter. The clinical business unit delivered $61 million of revenue, up 16% as reported and 14% in constant currency. On a as-reported basis, microbiology revenue was $203 million, reflecting 10% underlying growth for the own period, driven by improved commercial momentum as our execution initiatives began to take hold. Ex-China grew low double digits, while China declined 12% due to DRG headwinds, which was better than expected. Molecular diagnostics and point of care revenue was $84 million, reflecting 2% underlying growth for the owned period. On a full quarter pro forma basis at the divisional level, Advanced Diagnostics grew 3%, which includes a 4.5% headwind from respiratory and a 2% headwind from China. The acquired diagnostic solutions business grew 1%, reflecting a significant improvement in growth versus fourth quarter trends. Growth for the full quarter was driven by microbiology, which grew 5%, led by high single digit ex-China growth. Excluding the same respiratory headwind, Diagnostic Solutions grew 6%, setting us up well for the rest of the year as these headwinds are not expected to recur. The Materials Sciences Division delivered as-reported revenue of $79 million in the quarter, representing an increase of 6% as reported and 2% in constant currency. Growth was led by strength in high growth segments such as batteries and electronics testing, as well as aerospace. We saw continued momentum in electric vehicles and data center applications. This was partially offset by soft trends in core industrial applications such as chemicals and materials. I will share further commentary on our full year outlook and provide our second quarter guidance. Beginning with organic revenue, we have entered 2026 with significant momentum driven by instrument replacement cycle, our idiosyncratic growth drivers, and accretion from our high growth adjacencies. We are raising our full year 2026 organic constant currency revenue growth guidance to the range of 6.5%-8%, reflecting our strong first quarter performance and embedding $15 million of expected revenue synergy contribution. We now expect foreign exchange translation to have neutral effect on organic sales, which translates to organic reported revenue of $3.37 billion-$3.42 billion in 2026. Turning to our acquired businesses, we now expect Biosciences and Advanced Diagnostics Division businesses to generate approximately $3.035 billion of revenue in 2026, which includes $35 million of expected revenue synergies. Together, total reported 2026 revenue is expected to be approximately $6.405 billion-$6.455 billion based on latest FX rates. The restructuring actions tied to our cost synergies are taking place towards the end of the second quarter, together with business level cost realignment. This supports solid margin progression in the second half of the year. In addition, we have a range of operational initiatives in place to fully offset anticipated impact of elevated freight, raw materials and component costs due to ongoing conflict in the Middle East for the balance of the year. Together with our strong first quarter results, we now expect our full year adjusted EBIT margin to be 28.2% in 2026. Below the line net interest expense is now expected to be approximately $186 million. Given diligent work by our tax team, our full year tax rate is now expected to be approximately 16%, which we expect to persist in future years. This translates to a full year 2026 adjusted earnings per fully diluted share of $14.40-$14.60, which is a $0.10 raise in our guidance range, reflecting our strong first quarter results, partially offset by incremental prudence embedded in our second half assumptions and updated FX rates. For the second quarter of 2026, we expect organic constant currency revenue growth of 6%-8%. Foreign exchange represents a headwind of approximately 0.5% at current rates, resulting in organic reported revenue guidance of $814 million-$829 million. We expect revenues from the Biosciences and Diagnostic Solutions businesses to be approximately $802 million in the second quarter of 2026, which represents approximately 2.5% reported growth. Together, this results in a total reported second quarter 2026 revenue of $1.616 billion-$1.631 billion. Second quarter adjusted earnings per fully diluted share is expected to be in the range $2.95-$3.05, which is flat to 3.4% growth given the full burden of higher interest costs and newly issued shares and ahead of cost synergies and business-level cost action benefits that begin to flow through the P&L starting in the third quarter. Turning to our implied guidance assumptions for the second half of the year. Even with the full-year raise in organic growth guidance, our strong first quarter results and the second quarter guided midpoint of 7% implies a prudent 6% organic constant currency growth in the second half of the year. This is deliberately lower than what was implied in our prior guidance as it further de-risks our back-half organic growth outlook. For the Biosciences and Diagnostic Solutions, our strong first quarter performance and second quarter guidance also meaningfully de-risks our implied second-half outlook. Our second-half assumptions reflect a prudent growth rate of 1.5%, percentage points above our second quarter guidance, well supported by incremental commercial and operational actions already underway and a favorable prior year comparison. With that, I will now hand it back to Caspar. Thanks, Amol. That concludes our prepared remarks. We are now happy to open the lines and take your questions. We will now begin Q&A. If you would like to ask a question, please use the Raise Your Hand feature at the bottom of your screen. If you are dialed in by phone, press star nine to raise your hand and star six to unmute. Please accept the prompt and unmute your audio when called upon. As a reminder, we are allowing analysts one question and one follow-up. Our first question will come from Tycho Peterson with Jefferies. Hey, thanks. Maybe just starting with the guide here, you know, a number of moving pieces. Obviously the $40 million, you know, beat on the BD side. You've got, you know, the FX headwind you called out. You know, look, it looks like the base business is getting better by about $5 million on an organic basis. The $35 million in revenue synergies, though, can you maybe just touch on, you know, where you think those are coming from early? I know you gave a little bit of color, Udit. What's captured on pricing? I know you kind of flagged that as maybe showing up a little bit earlier. I mean, look, on the revenue synergies, the first phase of revenue synergies is around things such as instrument replacement, service plan attachment, and e-commerce, and that's what is embedded in that $35 million outlook. What's not embedded in that guide is the pricing actions that we are taking. What's not embedded in that guide is also how we've successfully neutralized the impact of tariffs on our legacy Waters business. What's not embedded in that guide is the benefits of being more disciplined on our reagent rental contracts. Tycho, just building on that, the revenue synergies that Amol outlined, the three levers we've talked about in the past, what's really new is the 180-day plan, right? We basically worked diligently to look at how we were doing funnel reviews, what the activity was in the field. In fact, in some cases, the weekly call rates have actually doubled, right? Especially in the U.S. Advanced Diagnostics Division. We also implemented pricing improvements with our deal desks both in Biosciences and Advanced Diagnostics. We're looking at reagent rental contracts across the Advanced Diagnostics Division. Having looked at roughly 1,700 or so accounts, close to half of them are out of compliance, and that's a double-digit, double-digit opportunity. These will start to now play out in starting Q2. Finally, we're localizing our portfolio in China, really using the same playbook that we did for the analytical solutions business, which has incredible growth this quarter, right? Really following that playbook. What's not really incorporated is the 180-day plan, which is having quite an early impact. Okay. For the follow-up, Udit, can you talk on microbiology? You know, obviously, there was a comp factor there, but, you know, 10% growth is notable. You know, upload double-digit ex-China. Just talk about, you know, your confidence in turning that business around. Obviously, the new BACTEC coming fairly soon. Yeah, maybe just talk about your confidence in recovery there. Tycho, maybe first just some contextual comments, right? Take a step back. I mean, Waters is focused on high-volume regulated applications, right? That's what we've done throughout our existence. We take sort of leading brands, and then with smart commercial execution, really meaningful new products, deliver what we are seeing as industry-leading growth for our Analytical Sciences business, both growth and margins, right? We intend to do the same with microbiology, where the unmet needs are very significant. We've gotten off to a fantastic start. Microbiology has the same characteristics, high volume, regulated applications with significant unmet needs. Really great start, about 5%-6% growth, in spite of the DRG headwinds. As you go into the back half of the year, the baseline becomes easier. The FXI launch, we're very excited about. That should augment not just the revenue synergies for from instrument replacement, but the underlying business itself. Really exciting times and significant unmet needs that excites our team. Expect to see that business grow nicely. Your next question will come from Patrick Donnelly with Citi. Hey, guys. Thanks for taking the question. Udit, maybe one on the core kind of legacy Waters instrumentation side. It seems like LC-MS, you had a pretty nice quarter. I know you called out pharma. It seemed like ACA gov actually improved a little bit. Can you just give a little more color on what you saw, how the biopharma conversations trended in the quarter? As well, just ACA gov, what you're seeing there. Sure, Patrick. Look, first on instruments overall, LC-MS was high single digits yet again. The replacement cycle is still underway, contributing nicely, especially in the U.S. and in Europe. It's augmented by the new products, Alliance iS, and now the Xevo MRT having a wonderful start, and chemistry doing a great job there as well. The idiosyncratic growth drivers, right? You see GLP-1 testing, focus on biologics, India generics, all contributing to the instrument growth rate. To your question on pharma itself, I mean, really pleased with what we see, right? To what I said to Tycho as well. We're a downstream high volume regulated player, right? We've seen terrific trends there. We've brought new products into that space. We're seeing mid-teens growth overall, high single digits in Americas and in Europe, where ethical pharma is leading the charge with instrument replacement. In China, we saw over 50% growth driven by biotech, CDMOs, and emerging innovative large pharma companies that are homegrown in China. India continued its track with generics. Feel extremely good about what's happening in pharma, and that remains one of our strengths. Really sort of looking forward to what the rest of the year brings in that category. Okay, that's helpful. Then maybe one on BD. You know, I guess in hindsight, now that you guys have been behind the curtain a little bit here for a few months, when you look back at the Q4 kind of underperformance, how much do you think was just kind of an air pocket as the transition of the management happened? You know, I guess what I'm asking is on the execution improvement versus the actual market improvement, what have you seen from Q4 to Q1, and then the expectations going forward? Thanks so much. Yeah, look, I mean, as we've come into the ownership, we've seen tremendous collaboration with amongst the teams. The integration plans were put together across the BD teams and the Waters teams. It was in some ways an advantage to have time between announcement and close. That diligence really got the quarter, the owned period of the quarter off to a fantastic start, right? I mean, the diligence that you've seen with Waters in the past with really sort of focusing on high-quality funnels. I mean, our funnels look better than they ever have. The forecast accuracy improved as a consequence. We've implemented the pricing initiatives across the two new businesses. Really incredible transparency and collaboration on looking at reagent rental contracts and also the China localization piece. The 180-day plan itself was put together in collaboration with the teams. To your question on air pockets, et cetera, it's very difficult to judge such things. I mean, it was a declining business, you see an advantage of just giving it focus. What I'll remind you is that these are two businesses that have leading brands, really sort of brands that define the category. They are in high-volume regulated settings, and our Waters playbook is very relevant there, and you're seeing the impact of that. Your next question will come from Vijay Kumar with Evercore ISI. Great. Udit and Amol, thank you for taking my questions. Congrats on a nice trend and thanks for all the detailed disclosures in the presentation. That was really helpful. Maybe my first one on this BD exec performance in Q1. When I look at the full quarter reported growth for BD, it looks like it was flattish, but for the period owned under Waters, it was up 5%. Maybe just talk over this delta between the full quarter versus period owned. Was there any timing of shipments, those kind of things that aided performance under Waters ownership? Is this because of extra days? I'm curious I think the prior guidance was, assume BD to grow, you know, maybe up low singles 2%. Has it changed at all? Yeah, I mean, look, when we put together our guidance, we factored in things such as there'll be few extra days because of the quarter, but also few days when the situation will be disturbed during the close. That's how we sort of prepared our guidance. The way the teams executed makes us feel really proud that, you know, things are working. The 180-day growth revitalization plan is starting to bear fruit, and that's what sort of resulted in this significant $40 million beat. What we've done with that is we've sort of de-risked our second half of the guide, and makes it far more palatable. We've sort of taken down sort of point of care in the second half of the year to not be at average, but significantly below average. That gives us a lot of room to outperform and puts us in a great spot for the remainder of the year. Understood. Maybe my follow-up on, you know, given that you mentioned that days impact share. When you look at core Waters, the 11% organic, what was underlying organic X days? When you say back half is 6%. Is that for core organic or pro forma organic inclusive BD? You know, giving a comment on order strength, I'm curious on why back half couldn't be better. Thank you. I mean, look, the extra days benefit our recurring revenue and, roughly we had four extra days in terms of working days, and that brings about 4% more recurring revenue, which is roughly 2% more total revenue for the legacy Waters business. Even if you strip that out, I mean, chemistry grew 13 and service grew 14%, so both of them, even after you take out 4%, flying at a meaningfully elevated levels versus their historical performance, and that's to do with how our teams are executing really well in the field. For the guidance perspective, our first half growth for the legacy business constant currency is roughly 9%, and we've de-risked the second half, one, for the four or so extra less working days that we have in Q4. Two, just because of the current macro, right? The second half embedded constant currency growth guidance is roughly 6%. That puts us in a really solid spot because we're not seeing any of that in our funnel. Funnel remains very strong and we continue to fly at the altitude that we are flying at. That gives us great confidence on the second half of the year. Yeah. Vijay, just to sort of conclude that thought, as you go into the remainder of the year, I mean, there's fantastic momentum on the base business. There's no two ways around it. The 180-day plan has sort of got off the acquired businesses to a great start. Remember, there's a lower baseline already starting in Q2 with the respiratory headwinds gone. For the latter half of the year, there is no DRG sort of headwinds anymore as well. You augment that with new launches, FXI BACTEC, as well as the A7 in our Biosciences business and the reagents, and the revenue synergies that start to play out as well. We are really sort of positive about the setup that we see for the balance of the year. Your next question will come from Doug Schenkel with Wolfe. Good morning, thank you for taking my questions. First, on competition, one, you know, I guess there's two here. Udit, your team's bringing a new level of discipline to the life science business. I'm just wondering if there's been any notable competitive responses worth calling out. The second question is, you know, there's two product areas where you are or will soon be competing with private equity-owned businesses. Generally speaking, how does competing with PE differ and, you know, does this create new opportunities for the business? Thank you. Yeah. Excellent questions, Doug, and good morning. Look, on Waters itself and competition, I mean, I'll repeat what I said earlier. We are diligent about being focused on high volume regulated settings, right? Where the drivers are very well understood and are consumption oriented, and that's allowed us to outpace the market over the last several years. In those setups, I mean, we have leading brands. We had it with the legacy Waters business. Now we have it with Biosciences, which defines the flow cytometry category and reagents, and with the Diagnostic Solutions business with microbiology. We feel very good about the brands we've inherited, and we're working hard on bringing the same execution discipline that has brought Waters to the top of the league table, both in growth and margins and free cash flow. As we start, and your question to sort of, I think the microbiology business that's been acquired by PE players, I mean, we think it's gonna be quite rational in terms of pricing. We are a pricing leader in the categories we compete in because we bring in tremendous innovation into the markets, and we expect something similar from the PE players. Not worried. I mean, I think we are now in a position where, as a team, we're more focused on unmet needs, on proof of principle of our new products, commercial execution, than anything else. Your next question will come from Evie Koslosky with Goldman Sachs. Hey, thanks for taking my questions. Starting with the core business, can you talk through the mid-teens growth in chemistry? I think it's well above the full year guidance that you previously gave of around 6%-7%. How durable is this growth moving forward, and what's the updated guide for chemistry in the full year? Let me start, then Amol can talk through the guide. I mean, you can say nothing more than just being ecstatic about what we're seeing with chemistry, right? I mean, this is a journey that started a few years ago when we took our R&D dollars and dedicated 70%-80% of them in bioseparations. The steady stream of new products is driving growth, right? I mean, that's what you saw in the latter part of the year last year. You see it now as virtually all new molecular entities, especially biologics, are first looking at Waters' offering and then going elsewhere. We feel very good about where we stand. As you look at the mid to long term, I mean, there is no reason to believe that all of this will not flow downstream. Chemistry on the mid to long term basis should now be instead of a 7% grower, a 9%-10% grower at least. I'll let Amol comment on the balance of this year and our guide assumptions. Yeah. I mean, look, in Q2, there was a little bit of pull forward, which we outlined in our last year's Q2 earnings call. In general, we're being cautious given we had such an amazing double-digit growth in Chemistry every quarter last year. We are sort of reducing the guide for this year to, like, 6.5% full year, just to be prudent. I mean, what we are seeing in Q1, 13% growth, that is real, and that we expect to continue. The only reason we are guiding at 6.5% is the baseline is pretty strong, and we're being prudent. Great. On the acquired asset, can you talk through the decision to localize the manufacturing in flow cytometry in China? How much of an investment does this represent? What's the local competition like? How durable are some of the market growth drivers, like MNC pharma funding in the region? Yeah. I mean, look, Evie, thanks for the question, but let me start sort of at the highest level. I mean, pharma in China is doing extremely well. I think we talked about this several quarters ago. Roughly 1/3 of all biotech molecules that are licensed by large pharma now come from China. That has then helped the CDMO industry grow, and also is giving birth to sort of fully integrated, innovative pharma companies in China. Pharma for us in China grew over 50%, right? Behind these trends and strong execution. This sort of result was only possible because we have a fantastic team in China that insisted that we localize our portfolio in China to be available to customers across the board, and we did that first for Analytical Sciences business. We intend to do the same for Biosciences, where at this point, not much of the portfolio is localized. We're doing that at rapid pace. We have our own site in Suzhou, where we'll start doing this. In Q3, you should start to see seeing the orders flow in from the localized portfolio. There is another headwind in China for the flow business, which relates to export controls, and there we've streamlined the process dramatically during integration planning and now since the close of the deal. In fact, we've seen the highest number of orders flow in in the last few days, ever since the ban went in place. It's the same playbook, Eve, that allowed the Analytical Sciences Solution business to now really set the standard for the industry's growth in China, and we expect to do the same for Biosciences. Your next question will come from Puneet Souda with Leerink. Yeah. Hi, Udit and Amol. Thanks for my questions here. First one on pricing versus volume. Could you talk a bit about how much of the growth was driven by volume in the quarter? You talked quite a bit about pricing initiatives. Wondering, you know, if you could drill down a bit and just give us some volume growth metrics in the BD business. How sustainable is the pricing tailwind, just given the competition and the, let's say, the microbiology business? Yeah. On the legacy Waters business, we did roughly a little over 200 basis points of price, and that's consistent with how we've been performing for last few years. On the BD business, we did just about half a percentage of price, which is in line with how BD has been doing historically. That's also what we've embedded in our full-year guide, nothing different from the historic performance. We do see a very meaningful opportunity to bring the BD business where our legacy Waters business is. As Udit outlined, we've already instituted to deal desk. We see tremendous areas of opportunity, not just in pricing, but also in tariff mitigation and also in reagent rental contract compliance. All those are opportunities we are pursuing, none of which are in our guide. Yeah. Just to sort of add one other comment on pricing. There are pockets already, Puneet, in the Bioscience and diagnostics where we see pricing similar to what we've been able to implement in the legacy Waters business. The reason we're not putting it, embedding it into the guide is simply because we want to see that play out and be sort of pervasive across all geographies. Really good starting starting point, and I expect that to be an upside as we go through the year. Got it. Then on the core, I mean, congrats on the momentum there. Wanted to get a sense of, in the LC-MS instrument replacement cycle, where do we stand? Are you seeing sort of a pull forward of that replacement cycle peak that I think you were expecting in 2027? Could we see that in 2026 now? Wanted to get a sense of where we stand in the replacement cycle. Yeah. I mean, the replacement cycle is going really well. As we outlined, right, I mean, it first started with large pharma, then the CDMOs stepped in. There are still some participants like the CROs and the Chinese branded generics and some of the biotechs that are still not replacing even when their fleets have significantly overaged. That gives us a good runway into 2027. Keep in mind, 2021, 2022 were very large instrument placement years, and those instruments then come up for replacement in 2029, 2030. One would say, "Hey, you may hit a bit of a air pocket as we go through 2028." That's exactly where the reshoring dynamic plays out because a lot of reshoring placements would likely happen second half of 2027, all of 2028. The setup is really good. We could move seamlessly from one instrument replacement cycle to another with the reshoring bridge in between. This concludes the Q&A portion of the call. I will now hand it back to Caspar. Thank you, Layla. This concludes our call. We look forward to connecting with many of you at upcoming events and conferences.

Speaker 5: Good morning. Welcome to the Waters Corporation First Quarter 2026 Financial Results Conference Call. All participants will be in listen-only mode until the question and answer session begins. This call is being recorded. If anyone has objections, please disconnect at this time. It is now my pleasure to turn the call over to Mr. Caspar Tudor, Head of Investor Relations. Please go ahead, sir. Good morning. good morning Welcome to the Waters Corporation First Quarter 2026 Financial Results Conference Call. welcome to the waters corporation first quarter 2026 financial results conference call All participants will be in listen-only mode until the question and answer session begins. all participants will be in listen-only mode until the question and answer session begins This call is being recorded. this call is being recorded If anyone has objections, please disconnect at this time. if anyone has objections please disconnect at this time It is now my pleasure to turn the call over to Mr. Caspar Tudor, Head of Investor Relations. it is now my pleasure to turn the call over to mr caspar tudor head of investor relations Please go ahead, sir. please go ahead sir

Speaker 2: Thank you, Layla. Good morning, everyone. Welcome to Waters Corporation's first quarter earnings call. Joining me today are Dr. Udit Batra, our President and Chief Executive Officer, and Amol Chaubal, our Senior Vice President and Chief Financial Officer. Before we begin, I will cover the cautionary language. In this conference call, we will make various forward-looking statements regarding future events or future financial performance of the company, including the financial and operational impact of Waters' combination with the Biosciences and Diagnostic Solutions business of Becton, Dickinson and Company, or BD. We will provide guidance regarding possible future results and commentary on the potential market and business conditions that may impact Waters Corporation over the second quarter of 2026 and full year 2026. Thank you, Layla. thank you layla Good morning, everyone. good morning everyone Welcome to Waters Corporation's first quarter earnings call. welcome to waters corporation's first quarter earnings call Joining me today are Dr. Udit Batra, our President and Chief Executive Officer, and Amol Chaubal, our Senior Vice President and Chief Financial Officer. joining me today are dr udit batra our president and chief executive officer and amol chaubal our senior vice president and chief financial officer Before we begin, I will cover the cautionary language. before we begin i will cover the cautionary language In this conference call, we will make various forward-looking statements regarding future events or future financial performance of the company, including the financial and operational impact of Waters' combination with the Biosciences and Diagnostic Solutions business of Becton, Dickinson and Company, or BD. in this conference call we will make various forward-looking statements regarding future events or future financial performance of the company including the financial and operational impact of waters' combination with the biosciences and diagnostic solutions business of becton dickinson and company or bd We will provide guidance regarding possible future results and commentary on the potential market and business conditions that may impact Waters Corporation over the second quarter of 2026 and full year 2026. we will provide guidance regarding possible future results and commentary on the potential market and business conditions that may impact waters corporation over the second quarter of 2026 and full year 2026 These statements are only our present expectations and are subject to risks and uncertainties. Please see the risk factors included within our Form 10-K, our Form 10-Q, our other SEC filings, and the cautionary language included in this morning's earnings release. During today's call, we will refer to certain non-GAAP financial measures. Reconciliations to the most directly comparable GAAP measures are attached to our earnings release or in the appendix of the slide presentation accompanying today's call. Unless stated otherwise, all organic revenue growth rates are presented on a constant currency basis and are in comparison to the first quarter of 2025. For acquired company revenue, unless stated otherwise, all results cover our period of ownership from the transaction closing date on February 9th, 2026, through to the end of the quarter. These statements are only our present expectations and are subject to risks and uncertainties. these statements are only our present expectations and are subject to risks and uncertainties Please see the risk factors included within our Form 10-K, our Form 10-Q, our other SEC filings, and the cautionary language included in this morning's earnings release. please see the risk factors included within our form 10-k our form 10-q our other sec filings and the cautionary language included in this morning's earnings release During today's call, we will refer to certain non-GAAP financial measures. during today's call we will refer to certain non-gaap financial measures Reconciliations to the most directly comparable GAAP measures are attached to our earnings release or in the appendix of the slide presentation accompanying today's call. reconciliations to the most directly comparable gaap measures are attached to our earnings release or in the appendix of the slide presentation accompanying today's call Unless stated otherwise, all organic revenue growth rates are presented on a constant currency basis and are in comparison to the first quarter of 2025. unless stated otherwise all organic revenue growth rates are presented on a constant currency basis and are in comparison to the first quarter of 2025 For acquired company revenue, unless stated otherwise, all results cover our period of ownership from the transaction closing date on February 9th, 2026, through to the end of the quarter. for acquired company revenue unless stated otherwise all results cover our period of ownership from the transaction closing date on february 9th 2026 through to the end of the quarter For acquired company revenue growth rates, unless stated otherwise, all growth rates are presented on an estimated as reported basis covering the period of ownership in comparison to the prior year equivalent period that predates Waters ownership. We do not intend to update our guidance, predictions, or projections except as part of a regularly scheduled earnings release or as otherwise required by law. On today's call, Udit will begin with our key messages and business highlights. Amol will review our financial results and outlook. We will open up the lines for questions. For acquired company revenue growth rates, unless stated otherwise, all growth rates are presented on an estimated as reported basis covering the period of ownership in comparison to the prior year equivalent period that predates Waters ownership. for acquired company revenue growth rates unless stated otherwise all growth rates are presented on an estimated as reported basis covering the period of ownership in comparison to the prior year equivalent period that predates waters ownership We do not intend to update our guidance, predictions, or projections except as part of a regularly scheduled earnings release or as otherwise required by law. we do not intend to update our guidance predictions or projections except as part of a regularly scheduled earnings release or as otherwise required by law On today's call, Udit will begin with our key messages and business highlights. on today's call udit will begin with our key messages and business highlights Amol will review our financial results and outlook. amol will review our financial results and outlook We will open up the lines for questions. we will open up the lines for questions I'll turn the call over to Udit. I'll turn the call over to Udit. i'll turn the call over to udit

Speaker 9: Thank you, Caspar. Good morning, everyone. We delivered an excellent first quarter as a combined company, marking the start of a new powerful era of growth across our four divisions. We achieved double-digit organic growth in our legacy businesses, delivered meaningfully better than expected revenue for our newly acquired businesses, and grew adjusted earnings per share by 20%. We also took decisive steps towards building our new platform for sustained long-term growth, driving strong momentum and underpinning our raised full-year growth outlook. Before turning to the numbers, I want to recognize our teams for delivering this strong start to the year. They are enacting immediate operational improvements, continuing to deliver pioneering innovation and collaborating effectively to deliver revenue synergies already, all while ensuring a smooth transition from BD. It is a true privilege to work with my colleagues. I'm proud of what they have accomplished. Thank you, Caspar. thank you caspar Good morning, everyone. good morning everyone We delivered an excellent first quarter as a combined company, marking the start of a new powerful era of growth across our four divisions. we delivered an excellent first quarter as a combined company marking the start of a new powerful era of growth across our four divisions We achieved double-digit organic growth in our legacy businesses, delivered meaningfully better than expected revenue for our newly acquired businesses, and grew adjusted earnings per share by 20%. we achieved double-digit organic growth in our legacy businesses delivered meaningfully better than expected revenue for our newly acquired businesses and grew adjusted earnings per share by 20% We also took decisive steps towards building our new platform for sustained long-term growth, driving strong momentum and underpinning our raised full-year growth outlook. we also took decisive steps towards building our new platform for sustained long-term growth driving strong momentum and underpinning our raised full-year growth outlook Before turning to the numbers, I want to recognize our teams for delivering this strong start to the year. before turning to the numbers i want to recognize our teams for delivering this strong start to the year They are enacting immediate operational improvements, continuing to deliver pioneering innovation and collaborating effectively to deliver revenue synergies already, all while ensuring a smooth transition from BD. they are enacting immediate operational improvements continuing to deliver pioneering innovation and collaborating effectively to deliver revenue synergies already all while ensuring a smooth transition from bd It is a true privilege to work with my colleagues. it is a true privilege to work with my colleagues I'm proud of what they have accomplished. i'm proud of what they have accomplished In the first quarter, total company as-reported revenue was $1.267 billion, comprising of $747 million of organic revenue and $520 million of Biosciences and Diagnostic Solutions following the February 9th acquisition closing date. Organic revenue grew 13% as reported and 11% in constant currency, exceeding the high end of our constant currency guidance range by approximately 200 basis points. Orders, again, outpaced sales. Biosciences and Diagnostic Solutions revenue exceeded guidance by $40 million and grew an estimated 7% on a reported basis versus the prior year equivalent period, a strong opening performance for these businesses under Waters' leadership. On a full quarter pro forma basis, comparable revenue growth also exceeded expectations and improved meaningfully relative to fourth quarter trends. In the first quarter, total company as-reported revenue was $1.267 billion, comprising of $747 million of organic revenue and $520 million of Biosciences and Diagnostic Solutions following the February 9th acquisition closing date. in the first quarter total company as-reported revenue was $1.267 billion comprising of $747 million of organic revenue and $520 million of biosciences and diagnostic solutions following the february 9th acquisition closing date Organic revenue grew 13% as reported and 11% in constant currency, exceeding the high end of our constant currency guidance range by approximately 200 basis points. organic revenue grew 13% as reported and 11% in constant currency exceeding the high end of our constant currency guidance range by approximately 200 basis points Orders, again, outpaced sales. orders again outpaced sales Biosciences and Diagnostic Solutions revenue exceeded guidance by $40 million and grew an estimated 7% on a reported basis versus the prior year equivalent period, a strong opening performance for these businesses under Waters' leadership. biosciences and diagnostic solutions revenue exceeded guidance by $40 million and grew an estimated 7% on a reported basis versus the prior year equivalent period a strong opening performance for these businesses under waters' leadership On a full quarter pro forma basis, comparable revenue growth also exceeded expectations and improved meaningfully relative to fourth quarter trends. on a full quarter pro forma basis comparable revenue growth also exceeded expectations and improved meaningfully relative to fourth quarter trends Execution initiatives launched at the close, at closing drove flat year-over-year reported growth despite a $20 million headwind in respiratory testing due to the weak flu season. Excluding these impacts, growth was approximately 3% for the full quarter. With our strong top-line performance, combined with disciplined cost management and operational excellence across the organization, adjusted EPS grew 20% year-over-year to $2.70 per share, exceeding the high end of our guidance range by $0.35. Let me now cover these drivers of strength in more detail. Beginning with our organic revenue performance, the Analytical Sciences Division grew 12% in constant currency, with instruments up 8%, chemistry up 13%, and service up 14%. Execution initiatives launched at the close, at closing drove flat year-over-year reported growth despite a $20 million headwind in respiratory testing due to the weak flu season. execution initiatives launched at the close at closing drove flat year-over-year reported growth despite a $20 million headwind in respiratory testing due to the weak flu season Excluding these impacts, growth was approximately 3% for the full quarter. excluding these impacts growth was approximately 3% for the full quarter With our strong top-line performance, combined with disciplined cost management and operational excellence across the organization, adjusted EPS grew 20% year-over-year to $2.70 per share, exceeding the high end of our guidance range by $0.35. with our strong top-line performance combined with disciplined cost management and operational excellence across the organization adjusted eps grew 20% year-over-year to $2.70 per share exceeding the high end of our guidance range by $0.35 Let me now cover these drivers of strength in more detail. let me now cover these drivers of strength in more detail Beginning with our organic revenue performance, the Analytical Sciences Division grew 12% in constant currency, with instruments up 8%, chemistry up 13%, and service up 14%. beginning with our organic revenue performance the analytical sciences division grew 12% in constant currency with instruments up 8% chemistry up 13% and service up 14% In pharma, we grew mid-teens with sustained above-market performance supported by our unique exposure to idiosyncratic growth drivers. Continued strong instrument replacement and excellent adoption of new products in our high growth adjacencies. In academic and government, we grew high teens, driven by strength in Europe and broad-based demand for our revitalized high-resolution mass spec portfolio. In industrial, we grew low single digits, led by chemical analysis and continued momentum in PFAS testing applications. Thanks to the effective cross-divisional collaboration given our diligent integration planning, approximately 1 percentage point of Analytical Sciences growth was driven by tandem quadrupole mass spectrometry sales through the Biosciences channel, an early proof of revenue synergy realization. In pharma, we grew mid-teens with sustained above-market performance supported by our unique exposure to idiosyncratic growth drivers. Continued strong instrument replacement and excellent adoption of new products in our high growth adjacencies. in pharma we grew mid-teens with sustained above-market performance supported by our unique exposure to idiosyncratic growth drivers. continued strong instrument replacement and excellent adoption of new products in our high growth adjacencies In academic and government, we grew high teens, driven by strength in Europe and broad-based demand for our revitalized high-resolution mass spec portfolio. in academic and government we grew high teens driven by strength in europe and broad-based demand for our revitalized high-resolution mass spec portfolio In industrial, we grew low single digits, led by chemical analysis and continued momentum in PFAS testing applications. in industrial we grew low single digits led by chemical analysis and continued momentum in pfas testing applications Thanks to the effective cross-divisional collaboration given our diligent integration planning, approximately 1 percentage point of Analytical Sciences growth was driven by tandem quadrupole mass spectrometry sales through the Biosciences channel, an early proof of revenue synergy realization. thanks to the effective cross-divisional collaboration given our diligent integration planning approximately 1 percentage point of analytical sciences growth was driven by tandem quadrupole mass spectrometry sales through the biosciences channel an early proof of revenue synergy realization Within the Advanced Diagnostics Division, the clinical business unit previously reported within the Waters division grew 14% despite DRG weakness in China. Strength was led by double-digit growth in the Americas and Europe. The Materials Sciences Division grew low single digits, reflecting solid performance across core industrial and high growth applications given present macro conditions. Within the Advanced Diagnostics Division, the clinical business unit previously reported within the Waters division grew 14% despite DRG weakness in China. within the advanced diagnostics division the clinical business unit previously reported within the waters division grew 14% despite drg weakness in china Strength was led by double-digit growth in the Americas and Europe. strength was led by double-digit growth in the americas and europe The Materials Sciences Division grew low single digits, reflecting solid performance across core industrial and high growth applications given present macro conditions. the materials sciences division grew low single digits reflecting solid performance across core industrial and high growth applications given present macro conditions Turning now to our newly acquired businesses. The Biosciences Division delivered $230 million of revenue, representing 7% estimated growth on an as-reported basis from the closing date of the transaction to the end of the quarter. Flow Research and Flow Clinical both grew 7%, reflecting improved execution and increased commercial activity. Reagents grew low double digits while instruments remained pressured due to U.S. academic and government trends and ongoing China-related constraints, including export restrictions of high parameter products and lack of a localized product portfolio. Meanwhile, overall demand for our recently launched FACSDiscover A8 and S8 systems remained strong. Turning now to our newly acquired businesses. turning now to our newly acquired businesses The Biosciences Division delivered $230 million of revenue, representing 7% estimated growth on an as-reported basis from the closing date of the transaction to the end of the quarter. the biosciences division delivered $230 million of revenue representing 7% estimated growth on an as-reported basis from the closing date of the transaction to the end of the quarter Flow Research and Flow Clinical both grew 7%, reflecting improved execution and increased commercial activity. flow research and flow clinical both grew 7% reflecting improved execution and increased commercial activity Reagents grew low double digits while instruments remained pressured due to U.S. academic and government trends and ongoing China-related constraints, including export restrictions of high parameter products and lack of a localized product portfolio. reagents grew low double digits while instruments remained pressured due to u.s academic and government trends and ongoing china-related constraints including export restrictions of high parameter products and lack of a localized product portfolio Meanwhile, overall demand for our recently launched FACSDiscover A8 and S8 systems remained strong. meanwhile overall demand for our recently launched facsdiscover a8 and s8 systems remained strong On a full quarter pro forma basis, Biosciences declined 1%, marking a significant improvement from the 10% decline in the fourth quarter of 2025. This inflection is further underscored by our ex-China growth, which was 4% for the full quarter. As we localize the China portfolio in the second half of this year, launch additional new products, and implement incremental new commercial actions as the year progresses, the business is poised for further acceleration throughout 2026. Within the Advanced Diagnostics Division, Diagnostic Solutions delivered $288 million of revenue, representing 8% estimated growth on an as-reported basis from the close date. Microbiology grew 10%, reflecting improved commercial momentum tied to the newly enacted KPI discipline ahead of our BACTEC FXI launch in blood culture. On a full quarter pro forma basis, Biosciences declined 1%, marking a significant improvement from the 10% decline in the fourth quarter of 2025. on a full quarter pro forma basis biosciences declined 1% marking a significant improvement from the 10% decline in the fourth quarter of 2025 This inflection is further underscored by our ex-China growth, which was 4% for the full quarter. this inflection is further underscored by our ex-china growth which was 4% for the full quarter As we localize the China portfolio in the second half of this year, launch additional new products, and implement incremental new commercial actions as the year progresses, the business is poised for further acceleration throughout 2026. as we localize the china portfolio in the second half of this year launch additional new products and implement incremental new commercial actions as the year progresses the business is poised for further acceleration throughout 2026 Within the Advanced Diagnostics Division, Diagnostic Solutions delivered $288 million of revenue, representing 8% estimated growth on an as-reported basis from the close date. within the advanced diagnostics division diagnostic solutions delivered $288 million of revenue representing 8% estimated growth on an as-reported basis from the close date Microbiology grew 10%, reflecting improved commercial momentum tied to the newly enacted KPI discipline ahead of our BACTEC FXI launch in blood culture. microbiology grew 10% reflecting improved commercial momentum tied to the newly enacted kpi discipline ahead of our bactec fxi launch in blood culture On a full quarter pro forma basis, Diagnostic Solutions business grew 1%, a clear acceleration from the high single-digit decline in the fourth quarter of 2025. Excluding respiratory testing headwinds, growth was 6% for the full quarter, reaching mid-single digit underlying growth sooner than expected. At the divisional level, including the clinical business unit, Advanced Diagnostics grew 3%. Excluding these same respiratory headwinds, the Advanced Diagnostics division grew 7.5% for the full quarter pro forma basis, reflecting strong underlying momentum. This inflection was delivered even ahead of the full benefit of our commercial execution initiatives and new product launches. Despite a 2% China DRG-related headwind that will annualize into the baseline in the second half of the year, positioning the business for continued acceleration as we enter the back half of the year. On a full quarter pro forma basis, Diagnostic Solutions business grew 1%, a clear acceleration from the high single-digit decline in the fourth quarter of 2025. on a full quarter pro forma basis diagnostic solutions business grew 1% a clear acceleration from the high single-digit decline in the fourth quarter of 2025 Excluding respiratory testing headwinds, growth was 6% for the full quarter, reaching mid-single digit underlying growth sooner than expected. excluding respiratory testing headwinds growth was 6% for the full quarter reaching mid-single digit underlying growth sooner than expected At the divisional level, including the clinical business unit, Advanced Diagnostics grew 3%. at the divisional level including the clinical business unit advanced diagnostics grew 3% Excluding these same respiratory headwinds, the Advanced Diagnostics division grew 7.5% for the full quarter pro forma basis, reflecting strong underlying momentum. excluding these same respiratory headwinds the advanced diagnostics division grew 7.5% for the full quarter pro forma basis reflecting strong underlying momentum This inflection was delivered even ahead of the full benefit of our commercial execution initiatives and new product launches. this inflection was delivered even ahead of the full benefit of our commercial execution initiatives and new product launches Despite a 2% China DRG-related headwind that will annualize into the baseline in the second half of the year, positioning the business for continued acceleration as we enter the back half of the year. despite a 2% china drg-related headwind that will annualize into the baseline in the second half of the year positioning the business for continued acceleration as we enter the back half of the year Less than 90 days post-close, we've already made notable progress after taking control of the Biosciences and Diagnostic Solution businesses, as is evident in our results. Immediately after the February 9th closing date, we launched a 180-day plan to reinvigorate growth centered on a focused set of rapid execution initiatives. Early results have been outstanding, driving a clear and meaningful step up in revenue performance relative to the pre-close performance trends. Our first priority was to instill focus, accountability, and urgency across our newly acquired businesses. We have since substantially increased the frequency and rigor of forecast and funnel reviews with deeper inspection of conversion rates, deal progression, and pipeline quality. This has driven greater visibility and transparency, faster decision-making, and improved commercial execution. Less than 90 days post-close, we've already made notable progress after taking control of the Biosciences and Diagnostic Solution businesses, as is evident in our results. less than 90 days post-close we've already made notable progress after taking control of the biosciences and diagnostic solution businesses as is evident in our results Immediately after the February 9th closing date, we launched a 180-day plan to reinvigorate growth centered on a focused set of rapid execution initiatives. immediately after the february 9th closing date we launched a 180-day plan to reinvigorate growth centered on a focused set of rapid execution initiatives Early results have been outstanding, driving a clear and meaningful step up in revenue performance relative to the pre-close performance trends. early results have been outstanding driving a clear and meaningful step up in revenue performance relative to the pre-close performance trends Our first priority was to instill focus, accountability, and urgency across our newly acquired businesses. our first priority was to instill focus accountability and urgency across our newly acquired businesses We have since substantially increased the frequency and rigor of forecast and funnel reviews with deeper inspection of conversion rates, deal progression, and pipeline quality. we have since substantially increased the frequency and rigor of forecast and funnel reviews with deeper inspection of conversion rates deal progression and pipeline quality This has driven greater visibility and transparency, faster decision-making, and improved commercial execution. this has driven greater visibility and transparency faster decision-making and improved commercial execution In parallel, we have taken deliberate actions to increase commercial activity across the organization. We have raised expectations around customer engagement, driving our sales team to spend more time in the field, getting in front of the customers, and increasing outbound activity. This has been reinforced with clear KPIs and daily management, resulting in meaningful increases in call volume, customer visits, and pipeline generation, which is driving stronger funnel trends and overall commercial momentum. Our second near-term priority under our 180 day plan is pricing discipline. We have deployed our experienced Waters pricing team across Biosciences and Diagnostic Solutions, where we have conducted a comprehensive pricing review and are establishing two new deal desks. We're already seeing tangible results with pricing actions taken right away in the quarter, already beginning to augment revenue performance. In parallel, we have taken deliberate actions to increase commercial activity across the organization. in parallel we have taken deliberate actions to increase commercial activity across the organization We have raised expectations around customer engagement, driving our sales team to spend more time in the field, getting in front of the customers, and increasing outbound activity. we have raised expectations around customer engagement driving our sales team to spend more time in the field getting in front of the customers and increasing outbound activity This has been reinforced with clear KPIs and daily management, resulting in meaningful increases in call volume, customer visits, and pipeline generation, which is driving stronger funnel trends and overall commercial momentum. this has been reinforced with clear kpis and daily management resulting in meaningful increases in call volume customer visits and pipeline generation which is driving stronger funnel trends and overall commercial momentum Our second near-term priority under our 180 day plan is pricing discipline. our second near-term priority under our 180 day plan is pricing discipline We have deployed our experienced Waters pricing team across Biosciences and Diagnostic Solutions, where we have conducted a comprehensive pricing review and are establishing two new deal desks. we have deployed our experienced waters pricing team across biosciences and diagnostic solutions where we have conducted a comprehensive pricing review and are establishing two new deal desks We're already seeing tangible results with pricing actions taken right away in the quarter, already beginning to augment revenue performance. we're already seeing tangible results with pricing actions taken right away in the quarter already beginning to augment revenue performance In addition, we are actively reviewing reagent rental contracts and utilization data to identify commercial opportunities. Within U.S. Diagnostic Solutions alone, our initial review of 1,600 contracts has identified approximately 700 that are currently out of compliance, representing a double-digit million dollar shortfall annually. We see meaningful opportunity to improve operational follow-through on these contracts in the quarters ahead. Our third near-term priority is to regain share in Flow Research. We have already approved and initiated actions to localize manufacturing of flow instruments in China to improve market access and reduce export complexity, addressing a key source of share loss. We intend to begin manufacturing key products in China for China, starting in the third quarter, which is already providing our team a strong impetus to begin competing for tenders that require local manufacturing. In addition, we are actively reviewing reagent rental contracts and utilization data to identify commercial opportunities. in addition we are actively reviewing reagent rental contracts and utilization data to identify commercial opportunities Within U.S. within u.s Diagnostic Solutions alone, our initial review of 1,600 contracts has identified approximately 700 that are currently out of compliance, representing a double-digit million dollar shortfall annually. diagnostic solutions alone our initial review of 1,600 contracts has identified approximately 700 that are currently out of compliance representing a double-digit million dollar shortfall annually We see meaningful opportunity to improve operational follow-through on these contracts in the quarters ahead. we see meaningful opportunity to improve operational follow-through on these contracts in the quarters ahead Our third near-term priority is to regain share in Flow Research. our third near-term priority is to regain share in flow research We have already approved and initiated actions to localize manufacturing of flow instruments in China to improve market access and reduce export complexity, addressing a key source of share loss. we have already approved and initiated actions to localize manufacturing of flow instruments in china to improve market access and reduce export complexity addressing a key source of share loss We intend to begin manufacturing key products in China for China, starting in the third quarter, which is already providing our team a strong impetus to begin competing for tenders that require local manufacturing. we intend to begin manufacturing key products in china for china starting in the third quarter which is already providing our team a strong impetus to begin competing for tenders that require local manufacturing We're applying the same playbook that has made our Analytical Sciences business a growth leader in China. Flow, for flow research reagents, we are improving product availability and speed to customer by adjusting our distribution strategy, leveraging new channels, and mobilizing Waters' existing distribution network. These actions are expected to begin resolving prior constraints that have impacted share beginning in the second half of this year. We remain the market leader in downstream high volume life science applications spanning LC-MS, light scattering, and precision chemistry workflows together with related service and informatics. In the first quarter, we launched our next generation micro flow LC chemistry columns with MaxPeak Premier technology, delivering up to twice the sensitivity of traditional microflow columns for use in high throughput bioseparations, DMPK, and omics applications. We're applying the same playbook that has made our Analytical Sciences business a growth leader in China. we're applying the same playbook that has made our analytical sciences business a growth leader in china Flow, for flow research reagents, we are improving product availability and speed to customer by adjusting our distribution strategy, leveraging new channels, and mobilizing Waters' existing distribution network. flow for flow research reagents we are improving product availability and speed to customer by adjusting our distribution strategy leveraging new channels and mobilizing waters' existing distribution network These actions are expected to begin resolving prior constraints that have impacted share beginning in the second half of this year. these actions are expected to begin resolving prior constraints that have impacted share beginning in the second half of this year We remain the market leader in downstream high volume life science applications spanning LC-MS, light scattering, and precision chemistry workflows together with related service and informatics. we remain the market leader in downstream high volume life science applications spanning lc-ms light scattering and precision chemistry workflows together with related service and informatics In the first quarter, we launched our next generation micro flow LC chemistry columns with MaxPeak Premier technology, delivering up to twice the sensitivity of traditional microflow columns for use in high throughput bio separations, DMPK, and omics applications. in the first quarter we launched our next generation micro flow lc chemistry columns with maxpeak premier technology delivering up to twice the sensitivity of traditional microflow columns for use in high throughput bio separations dmpk and omics applications In light scattering, we also recently launched our omniDAWN Multi-Angle Light Scattering detector, which is an industry-first extended range detector for use in UPLC and meeting the rising throughput and resolution requirements of our customers. These new product launches increase our degree of differentiation when serving large molecule applications in our attractive end markets. In microbiology, we recently announced that our next generation blood culture system, the BACTEC FXI, has received CE marking under the European Union's In Vitro Diagnostic Regulation, representing a key milestone in our microbiology product roadmap and delivered ahead of schedule. BACTEC FXI is a groundbreaking new product that combines industry-leading automation, allows 60 sample loading, and offers a three-hour faster detection time than the current generation BACTEC, which was launched over a decade ago. This system is now available in Europe and Japan. We're pursuing additional regulatory approvals in other key global markets in the months ahead. In light scattering, we also recently launched our omniDAWN Multi-Angle Light Scattering detector, which is an industry-first extended range detector for use in UPLC and meeting the rising throughput and resolution requirements of our customers. in light scattering we also recently launched our omnidawn multi-angle light scattering detector which is an industry-first extended range detector for use in uplc and meeting the rising throughput and resolution requirements of our customers These new product launches increase our degree of differentiation when serving large molecule applications in our attractive end markets. these new product launches increase our degree of differentiation when serving large molecule applications in our attractive end markets In microbiology, we recently announced that our next generation blood culture system, the BACTEC FXI, has received CE marking under the European Union's In Vitro Diagnostic Regulation, representing a key milestone in our microbiology product roadmap and delivered ahead of schedule. in microbiology we recently announced that our next generation blood culture system the bactec fxi has received ce marking under the european union's in vitro diagnostic regulation representing a key milestone in our microbiology product roadmap and delivered ahead of schedule BACTEC FXI is a groundbreaking new product that combines industry-leading automation, allows 60 sample loading, and offers a three-hour faster detection time than the current generation BACTEC, which was launched over a decade ago. bactec fxi is a groundbreaking new product that combines industry-leading automation allows 60 sample loading and offers a three-hour faster detection time than the current generation bactec which was launched over a decade ago This system is now available in Europe and Japan. this system is now available in europe and japan We're pursuing additional regulatory approvals in other key global markets in the months ahead. we're pursuing additional regulatory approvals in other key global markets in the months ahead In molecular, we recently received FDA clearance for our BD Onclarity HPV self-collection kit and BD Onclarity HPV assay, enabling at-home cervical cancer screening with extended genotyping for multiple high-risk strains. This solution allows patients to collect their own sample at home, which is then analyzed in the lab using the BD Onclarity HPV assay, removing barriers to the screening access. Cervical cancer is highly preventable, yet remains significantly under-screened. Nearly one in four women in the U.S. is not up to date with cervical cancer screening, despite HPV being the primary cause of nearly all cervical cancers. Screening gaps persist due to access challenges, discomfort, and patient avoidance of pelvic exams. Self-collection directly addresses these challenges by offering a less invasive and more convenient alternative with a proven ability to increase screening participation. In molecular, we recently received FDA clearance for our BD Onclarity HPV self-collection kit and BD Onclarity HPV assay, enabling at-home cervical cancer screening with extended genotyping for multiple high-risk strains. in molecular we recently received fda clearance for our bd onclarity hpv self-collection kit and bd onclarity hpv assay enabling at-home cervical cancer screening with extended genotyping for multiple high-risk strains This solution allows patients to collect their own sample at home, which is then analyzed in the lab using the BD Onclarity HPV assay, removing barriers to the screening access. this solution allows patients to collect their own sample at home which is then analyzed in the lab using the bd onclarity hpv assay removing barriers to the screening access Cervical cancer is highly preventable, yet remains significantly under-screened. cervical cancer is highly preventable yet remains significantly under-screened Nearly one in four women in the U.S. is not up to date with cervical cancer screening, despite HPV being the primary cause of nearly all cervical cancers. nearly one in four women in the u.s is not up to date with cervical cancer screening despite hpv being the primary cause of nearly all cervical cancers Screening gaps persist due to access challenges, discomfort, and patient avoidance of pelvic exams. screening gaps persist due to access challenges discomfort and patient avoidance of pelvic exams Self-collection directly addresses these challenges by offering a less invasive and more convenient alternative with a proven ability to increase screening participation. self-collection directly addresses these challenges by offering a less invasive and more convenient alternative with a proven ability to increase screening participation As the most comprehensive at-home cervical cancer screening tool available, we are empowered by a mission to remove these barriers that prevent individuals from receiving routine screening. Our goals are aligned directly with the priorities established by the U.S. Department of Health and Human Services, which identified expanding at-home testing as a top public health priority last year. We have already begun to sign contracts with strategic partners as we bring this solution to market. Turning to the synergies. On cost synergies, we remain firmly on track to deliver our $55 million target for 2026, driven by organizational optimization, procurement savings, and network optimization with a clear line of sight to delivery. Since February 9th, we have moved quickly to enact our restructuring plan and are now in advanced stages of implementation. We expect these actions to improve cost efficiency by optimizing spans and layers, eliminating redundancy, and achieving a leaner, centralized cost structure as part of the integration. As the most comprehensive at-home cervical cancer screening tool available, we are empowered by a mission to remove these barriers that prevent individuals from receiving routine screening. as the most comprehensive at-home cervical cancer screening tool available we are empowered by a mission to remove these barriers that prevent individuals from receiving routine screening Our goals are aligned directly with the priorities established by the U.S. our goals are aligned directly with the priorities established by the u.s Department of Health and Human Services, which identified expanding at-home testing as a top public health priority last year. department of health and human services which identified expanding at-home testing as a top public health priority last year We have already begun to sign contracts with strategic partners as we bring this solution to market. we have already begun to sign contracts with strategic partners as we bring this solution to market Turning to the synergies. turning to the synergies On cost synergies, we remain firmly on track to deliver our $55 million target for 2026, driven by organizational optimization, procurement savings, and network optimization with a clear line of sight to delivery. on cost synergies we remain firmly on track to deliver our $55 million target for 2026 driven by organizational optimization procurement savings and network optimization with a clear line of sight to delivery Since February 9th, we have moved quickly to enact our restructuring plan and are now in advanced stages of implementation. since february 9th we have moved quickly to enact our restructuring plan and are now in advanced stages of implementation We expect these actions to improve cost efficiency by optimizing spans and layers, eliminating redundancy, and achieving a leaner, centralized cost structure as part of the integration. we expect these actions to improve cost efficiency by optimizing spans and layers eliminating redundancy and achieving a leaner centralized cost structure as part of the integration The associated savings will hit the P&L beginning in the third quarter of this year. We've also activated our centralized spend control tower, increasing visibility into indirect spend and driving more disciplined procurement execution. These actions are enabling us to capture savings across key categories while improving control and accountability. At the same time, we're also taking business-level cost actions separate from our synergy program and rightsizing cost in areas where there is clear opportunity to realign with the revenue base. Together with our growth outlook, these actions support solid margin progression in the second half of the year. Revenue synergies, as I mentioned earlier, we're already ahead of plan. We have moved quickly to activate cross-selling across the combined commercial organization, leveraging the biosciences channel to drive incremental demand for mass spec in pharma clinical settings. The associated savings will hit the P&L beginning in the third quarter of this year. the associated savings will hit the p&l beginning in the third quarter of this year We've also activated our centralized spend control tower, increasing visibility into indirect spend and driving more disciplined procurement execution. we've also activated our centralized spend control tower increasing visibility into indirect spend and driving more disciplined procurement execution These actions are enabling us to capture savings across key categories while improving control and accountability. these actions are enabling us to capture savings across key categories while improving control and accountability At the same time, we're also taking business-level cost actions separate from our synergy program and rightsizing cost in areas where there is clear opportunity to realign with the revenue base. at the same time we're also taking business-level cost actions separate from our synergy program and rightsizing cost in areas where there is clear opportunity to realign with the revenue base Together with our growth outlook, these actions support solid margin progression in the second half of the year. together with our growth outlook these actions support solid margin progression in the second half of the year Revenue synergies, as I mentioned earlier, we're already ahead of plan. revenue synergies as i mentioned earlier we're already ahead of plan We have moved quickly to activate cross-selling across the combined commercial organization, leveraging the biosciences channel to drive incremental demand for mass spec in pharma clinical settings. we have moved quickly to activate cross-selling across the combined commercial organization leveraging the biosciences channel to drive incremental demand for mass spec in pharma clinical settings We expect further contribution as we continually scale these efforts throughout the year. As we progress through 2026, additional synergy levels will start to build across instrument replacement, service plan attachment, and e-commerce. In total, we remain well on track to deliver $50 million of expected revenue synergies this year. On instrument replacement, of the 22,000 ripe for replacement, 12,000 are BACTEC, with over 50% greater than five years old and over 25% greater than 10 years old. Since February 9th, we have accelerated the U.S. and European launch of BACTEC FXI by three to five months relative to the inherited business case, creating earlier revenue capture across the significant install base opportunity. On service plan attachment, we have completed the first-ever full coverage analysis of flow, microbiology, and molecular diagnostics installed bases. We expect further contribution as we continually scale these efforts throughout the year. we expect further contribution as we continually scale these efforts throughout the year As we progress through 2026, additional synergy levels will start to build across instrument replacement, service plan attachment, and e-commerce. as we progress through 2026 additional synergy levels will start to build across instrument replacement service plan attachment and e-commerce In total, we remain well on track to deliver $50 million of expected revenue synergies this year. On instrument replacement, of the 22,000 ripe for replacement, 12,000 are BACTEC, with over 50% greater than five years old and over 25% greater than 10 years old. in total we remain well on track to deliver $50 million of expected revenue synergies this year. on instrument replacement of the 22,000 ripe for replacement 12,000 are bactec with over 50% greater than five years old and over 25% greater than 10 years old Since February 9th, we have accelerated the U.S. and European launch of BACTEC FXI by three to five months relative to the inherited business case, creating earlier revenue capture across the significant install base opportunity. since february 9th we have accelerated the u.s and european launch of bactec fxi by three to five months relative to the inherited business case creating earlier revenue capture across the significant install base opportunity On service plan attachment, we have completed the first-ever full coverage analysis of flow, microbiology, and molecular diagnostics installed bases. on service plan attachment we have completed the first-ever full coverage analysis of flow microbiology and molecular diagnostics installed bases Beginning this quarter, we are assigning these opportunities to account-level representatives supported by clear KPIs and our Waters service leadership team, an effort we expect to drive at least $20 million of incremental revenue over the next five years. On e-commerce, we have scaled our digital capabilities team in recent weeks. We now have more than 100 full-time employees in our e-commerce team at our global capability center in Bangalore. This investment is a key enabler of a future best-in-class e-commerce platform, strengthening our competitive position and driving increased customer adoption of digital ordering channels, which is a key synergy. Beginning this quarter, we are assigning these opportunities to account-level representatives supported by clear KPIs and our Waters service leadership team, an effort we expect to drive at least $20 million of incremental revenue over the next five years. beginning this quarter we are assigning these opportunities to account-level representatives supported by clear kpis and our waters service leadership team an effort we expect to drive at least $20 million of incremental revenue over the next five years On e-commerce, we have scaled our digital capabilities team in recent weeks. on e-commerce we have scaled our digital capabilities team in recent weeks We now have more than 100 full-time employees in our e-commerce team at our global capability center in Bangalore. we now have more than 100 full-time employees in our e-commerce team at our global capability center in bangalore This investment is a key enabler of a future best-in-class e-commerce platform, strengthening our competitive position and driving increased customer adoption of digital ordering channels, which is a key synergy. this investment is a key enabler of a future best-in-class e-commerce platform strengthening our competitive position and driving increased customer adoption of digital ordering channels which is a key synergy Turning now to 2026 guidance and our value creation roadmap. We have begun 2026 with significant momentum driven by the instrument replacement cycle, our idiosyncratic growth drivers, and accretion from our high growth adjacencies. As a result, we are raising our full year 2026 organic constant currency revenue guidance to 6.5%-8%, reflecting our strong first quarter performance and embedding $15 million of expected revenue synergies from cross-selling of Mass Spec. For the acquired businesses, we now expect Biosciences and Diagnostic Solutions to generate approximately $3.035 billion of reported revenue in 2026, which includes $35 million of expected revenue synergy contribution tied to the vectors I just covered, including instrument replacement, service plan attachment, and e-commerce. Together, total 2026 reported revenue is expected to be approximately $6.405 billion-$6.455 billion based on latest FX rates. Turning now to 2026 guidance and our value creation roadmap. turning now to 2026 guidance and our value creation roadmap We have begun 2026 with significant momentum driven by the instrument replacement cycle, our idiosyncratic growth drivers , and accretion from our high growth adjacencies. we have begun 2026 with significant momentum driven by the instrument replacement cycle our idiosyncratic growth drivers and accretion from our high growth adjacencies As a result, we are raising our full year 2026 organic constant currency revenue guidance to 6.5%-8%, reflecting our strong first quarter performance and embedding $15 million of expected revenue synergies from cross-selling of Mass Spec. as a result we are raising our full year 2026 organic constant currency revenue guidance to 6.5%-8% reflecting our strong first quarter performance and embedding $15 million of expected revenue synergies from cross-selling of mass spec For the acquired businesses, we now expect Biosciences and Diagnostic Solutions to generate approximately $3.035 billion of reported revenue in 2026, which includes $35 million of expected revenue synergy contribution tied to the vectors I just covered, including instrument replacement, service plan attachment, and e-commerce. for the acquired businesses we now expect biosciences and diagnostic solutions to generate approximately $3.035 billion of reported revenue in 2026 which includes $35 million of expected revenue synergy contribution tied to the vectors i just covered including instrument replacement service plan attachment and e-commerce Together, total 2026 reported revenue is expected to be approximately $6.405 billion-$6.455 billion based on latest FX rates. together total 2026 reported revenue is expected to be approximately $6.405 billion-$6.455 billion based on latest fx rates Turning now to EPS. Given our strong first quarter results, updated FX assumptions, and the prudence embedded in our second half outlook, we are raising our full year adjusted EPS guidance by $0.10 to $14.40 per share to $14.60 per share, reflecting growth of 10%-11%. With our synergy levers now underway, we have an excellent platform for continued strong performance as a new powerful era of growth begins, unfolding in three phases over our midterm outlook. In phase I, where we are today, the incremental performance at our acquired businesses is tied to immediate operational improvements, such as those outlined in our 180-day plan, together with early revenue synergies from cross-selling. The strong Q1 results give us confidence that this foundation is being built at speed. Turning now to EPS. turning now to eps Given our strong first quarter results, updated FX assumptions, and the prudence embedded in our second half outlook, we are raising our full year adjusted EPS guidance by $0.10 to $14.40 per share to $14.60 per share, reflecting growth of 10%-11%. given our strong first quarter results updated fx assumptions and the prudence embedded in our second half outlook we are raising our full year adjusted eps guidance by $0.10 to $14.40 per share to $14.60 per share reflecting growth of 10%-11% With our synergy levers now underway, we have an excellent platform for continued strong performance as a new powerful era of growth begins, unfolding in three phases over our midterm outlook. with our synergy levers now underway we have an excellent platform for continued strong performance as a new powerful era of growth begins unfolding in three phases over our midterm outlook In phase I, where we are today, the incremental performance at our acquired businesses is tied to immediate operational improvements, such as those outlined in our 180-day plan, together with early revenue synergies from cross-selling. in phase i where we are today the incremental performance at our acquired businesses is tied to immediate operational improvements such as those outlined in our 180-day plan together with early revenue synergies from cross-selling The strong Q1 results give us confidence that this foundation is being built at speed. the strong q1 results give us confidence that this foundation is being built at speed In phase II, these operational improvements are then joined by our full first tranche of revenue synergy levers spanning instrument replacement, service plan attachment, and e-commerce. These are near-term, well-defined opportunities that are expected to begin contributing starting in the third quarter of this year. In phase III, the strategic power of this combination becomes most visible. New product launches in bioseparations, taking flow into QC in bioanalytical characterization, and our new platform launches, such as rapid stability testing, are expected to add further incremental growth vectors as we increasingly leverage our joint capabilities. Each of these phases takes us further up the growth curve from the mid-single digit pro forma growth rate, where our full year guidance sits today, progressively upwards into the high single digits over the next several years. This is very similar to what we have seen at our legacy Waters business over the last five years. In phase II, these operational improvements are then joined by our full first tranche of revenue synergy levers spanning instrument replacement, service plan attachment, and e-commerce. in phase ii these operational improvements are then joined by our full first tranche of revenue synergy levers spanning instrument replacement service plan attachment and e-commerce These are near-term, well-defined opportunities that are expected to begin contributing starting in the third quarter of this year. these are near-term well-defined opportunities that are expected to begin contributing starting in the third quarter of this year In phase III, the strategic power of this combination becomes most visible. in phase iii the strategic power of this combination becomes most visible New product launches in bio separations, taking flow into QC in bioanalytical characterization, and our new platform launches, such as rapid stability testing, are expected to add further incremental growth vectors as we increasingly leverage our joint capabilities. new product launches in bio separations taking flow into qc in bioanalytical characterization and our new platform launches such as rapid stability testing are expected to add further incremental growth vectors as we increasingly leverage our joint capabilities Each of these phases takes us further up the growth curve from the mid-single digit pro forma growth rate, where our full year guidance sits today, progressively upwards into the high single digits over the next several years. each of these phases takes us further up the growth curve from the mid-single digit pro forma growth rate where our full year guidance sits today progressively upwards into the high single digits over the next several years This is very similar to what we have seen at our legacy Waters business over the last five years. this is very similar to what we have seen at our legacy waters business over the last five years At the same time, we expect to drive significant margin expansion augmented by our cost synergies and expect to achieve at least 100 basis points of adjusted operating margin expansion every year through the end of the decade. Together, this powerful equation yields a mid-teens adjusted EPS growth algorithm and one we are executing against with increased confidence. In summary, we are laser focused on delivering value through our execution and operational improvements, innovation launch excellence, and synergy realization. With this transformation already underway, this value creation journey is beginning now, and we are doing so at speed. At the same time, we expect to drive significant margin expansion augmented by our cost synergies and expect to achieve at least 100 basis points of adjusted operating margin expansion every year through the end of the decade. at the same time we expect to drive significant margin expansion augmented by our cost synergies and expect to achieve at least 100 basis points of adjusted operating margin expansion every year through the end of the decade Together, this powerful equation yields a mid-teens adjusted EPS growth algorithm and one we are executing against with increased confidence. together this powerful equation yields a mid-teens adjusted eps growth algorithm and one we are executing against with increased confidence In summary, we are laser focused on delivering value through our execution and operational improvements, innovation launch excellence, and synergy realization. in summary we are laser focused on delivering value through our execution and operational improvements innovation launch excellence and synergy realization With this transformation already underway, this value creation journey is beginning now, and we are doing so at speed. with this transformation already underway this value creation journey is beginning now and we are doing so at speed With that, I will now turn the call over to Amol to cover our financial results and guidance in more detail. With that, I will now turn the call over to Amol to cover our financial results and guidance in more detail. with that i will now turn the call over to amol to cover our financial results and guidance in more detail

Speaker 1: Thank you, Udit. Good morning, everyone. In the first quarter of 2026, we continued to deliver industry-leading growth. We delivered reported revenue of $1.267 billion, which was ahead of expectations. Momentum remained strong at Waters organically, and our newly acquired businesses delivered a strong start as our 180-day growth revitalization plan began to take hold. Organic revenue was $747 million, growing 13% as reported and 11% in constant currency, which was 200 basis points above the high end of our guidance range. Our newly acquired businesses delivered $520 million of revenue during our period of ownership, $40 million above guidance, and representing 7% estimated as reported growth versus the comparable prior year stub period. Importantly, performance was ahead of expectations on a full quarter pro forma basis as well. Thank you, Udit. thank you udit Good morning, everyone. good morning everyone In the first quarter of 2026, we continued to deliver industry-leading growth. in the first quarter of 2026 we continued to deliver industry-leading growth We delivered reported revenue of $1.267 billion, which was ahead of expectations. we delivered reported revenue of $1.267 billion which was ahead of expectations Momentum remained strong at Waters organically, and our newly acquired businesses delivered a strong start as our 180-day growth revitalization plan began to take hold. momentum remained strong at waters organically and our newly acquired businesses delivered a strong start as our 180-day growth revitalization plan began to take hold Organic revenue was $747 million, growing 13% as reported and 11% in constant currency, which was 200 basis points above the high end of our guidance range. organic revenue was $747 million growing 13% as reported and 11% in constant currency which was 200 basis points above the high end of our guidance range Our newly acquired businesses delivered $520 million of revenue during our period of ownership, $40 million above guidance, and representing 7% estimated as reported growth versus the comparable prior year stub period. Importantly, performance was ahead of expectations on a full quarter pro forma basis as well. our newly acquired businesses delivered $520 million of revenue during our period of ownership $40 million above guidance and representing 7% estimated as reported growth versus the comparable prior year stub period. importantly performance was ahead of expectations on a full quarter pro forma basis as well As reported, growth for the full quarter was flat, improving notably versus the prior quarter and underscoring the strength of our execution and growth revitalization initiatives. Excluding $20 million of respiratory testing headwind, growth was 3% for the full quarter. By geography, as reported, revenue was $505 million in the Americas, $412 million in Europe, and $350 million in Asia. We effectively managed our supply chain and mitigated elevated freight costs, tariff costs, and inflationary pressures while continuing to invest for the long term. Total company adjusted gross margin was 54.7%, approximately 200 basis points better than expected. Adjusted operating margin was 23.6%, also approximately 200 basis points better than expected. As reported, growth for the full quarter was flat, improving notably versus the prior quarter and underscoring the strength of our execution and growth revitalization initiatives. as reported growth for the full quarter was flat improving notably versus the prior quarter and underscoring the strength of our execution and growth revitalization initiatives Excluding $20 million of respiratory testing headwind, growth was 3% for the full quarter. excluding $20 million of respiratory testing headwind growth was 3% for the full quarter By geography, as reported, revenue was $505 million in the Americas, $412 million in Europe, and $350 million in Asia. by geography as reported revenue was $505 million in the americas $412 million in europe and $350 million in asia We effectively managed our supply chain and mitigated elevated freight costs, tariff costs, and inflationary pressures while continuing to invest for the long term. we effectively managed our supply chain and mitigated elevated freight costs tariff costs and inflationary pressures while continuing to invest for the long term Total company adjusted gross margin was 54.7%, approximately 200 basis points better than expected. total company adjusted gross margin was 54.7% approximately 200 basis points better than expected Adjusted operating margin was 23.6%, also approximately 200 basis points better than expected. adjusted operating margin was 23.6% also approximately 200 basis points better than expected This reflects strong margin results in a dynamic macro environment and one achieved before the benefits of our cost synergies and broader cost actions start to flow through the P&L. Our operating tax rate came in at 15.6%, and net interest expense was $38 million. With our top line strength, disciplined cost management, and operational excellence, adjusted EPS grew 20% to $2.70. On a GAAP basis, we reported a diluted loss per share of $0.87, reflecting acquisition-related purchase accounting charges, including amortization of acquired intangibles and inventory step-up, as is typical following a transaction of this scale. Free cash flow for the quarter was $42 million outlay impacted by deal-related transaction costs and the timing of net cash settlement with BD. This reflects strong margin results in a dynamic macro environment and one achieved before the benefits of our cost synergies and broader cost actions start to flow through the P&L. this reflects strong margin results in a dynamic macro environment and one achieved before the benefits of our cost synergies and broader cost actions start to flow through the p&l Our operating tax rate came in at 15.6%, and net interest expense was $38 million. our operating tax rate came in at 15.6% and net interest expense was $38 million With our top line strength, disciplined cost management, and operational excellence, adjusted EPS grew 20% to $2.70. with our top line strength disciplined cost management and operational excellence adjusted eps grew 20% to $2.70 On a GAAP basis, we reported a diluted loss per share of $0.87, reflecting acquisition-related purchase accounting charges, including amortization of acquired intangibles and inventory step-up, as is typical following a transaction of this scale. on a gaap basis we reported a diluted loss per share of $0.87 reflecting acquisition-related purchase accounting charges including amortization of acquired intangibles and inventory step-up as is typical following a transaction of this scale Free cash flow for the quarter was $42 million outlay impacted by deal-related transaction costs and the timing of net cash settlement with BD. free cash flow for the quarter was $42 million outlay impacted by deal-related transaction costs and the timing of net cash settlement with bd Turning to our results by operating segments. The Analytical Sciences Division, which is our legacy Waters division, excluding the clinical business unit, delivered as reported revenue of $607 million, up 14% as reported and 12% in constant currency. In constant currency, instruments grew 8%, chemistry grew 13%, and service grew 14%. Instrument strength was broad-based across both LC and MS, driven by robust replacement activity and our idiosyncratic growth drivers across GLP-1s, PFAS, India generics, and biologics. Leveraging the Biosciences sales channel, we also achieved strong mass spec results in pharma clinical settings, as Udit outlined. Chemistry growth was again led by MaxPeak Premier and new products within bioseparations, which have been a vertical success. Our service results reflect strong pull-through from recent expansion in service plan attachment levels. Turning to our results by operating segments. turning to our results by operating segments The Analytical Sciences Division, which is our legacy Waters division, excluding the clinical business unit, delivered as reported revenue of $607 million, up 14% as reported and 12% in constant currency. the analytical sciences division which is our legacy waters division excluding the clinical business unit delivered as reported revenue of $607 million up 14% as reported and 12% in constant currency In constant currency, instruments grew 8%, chemistry grew 13%, and service grew 14%. in constant currency instruments grew 8% chemistry grew 13% and service grew 14% Instrument strength was broad-based across both LC and MS, driven by robust replacement activity and our idiosyncratic growth drivers across GLP-1s, PFAS, India generics, and biologics. instrument strength was broad-based across both lc and ms driven by robust replacement activity and our idiosyncratic growth drivers across glp-1s pfas india generics and biologics Leveraging the Biosciences sales channel, we also achieved strong mass spec results in pharma clinical settings, as Udit outlined. leveraging the biosciences sales channel we also achieved strong mass spec results in pharma clinical settings as udit outlined Chemistry growth was again led by MaxPeak Premier and new products within bio separations, which have been a vertical success. chemistry growth was again led by maxpeak premier and new products within bio separations which have been a vertical success Our service results reflect strong pull-through from recent expansion in service plan attachment levels. our service results reflect strong pull-through from recent expansion in service plan attachment levels By end market, pharma grew 14%. Non-pharma grew 8% as academic and government grew 18%, and industrial grew 3%. Within pharma, spending trends remained strong across ethical pharma, CDMOs, and Chinese biotech. Growth was broad-based with high single-digit growth in Americas and Europe. Asia grew nearly 30%, led by over 50% growth in China, low teens growth in India, and low teens growth in Japan. Within academic and government, growth was driven by strong spending trends in Europe and solid demand globally for our revitalized high-resolution mass spectrometry portfolio, including Xevo MRT and Xevo CDMS. In China, we continued strong capture of stimulus standard opportunities. Within industrial, Asia grew mid-single digits, Europe grew low-single digits, and the Americas was flat. Growth was led by chemical analysis and PFAS applications. For PFAS, we sustained strong growth despite a tough prior year comparison, led by double-digit growth in both Europe and China. By end market, pharma grew 14%. by end market pharma grew 14% Non-pharma grew 8% as academic and government grew 18%, and industrial grew 3%. non-pharma grew 8% as academic and government grew 18% and industrial grew 3% Within pharma, spending trends remained strong across ethical pharma, CDMOs, and Chinese biotech. within pharma spending trends remained strong across ethical pharma cdmos and chinese biotech Growth was broad-based with high single-digit growth in Americas and Europe. growth was broad-based with high single-digit growth in americas and europe Asia grew nearly 30%, led by over 50% growth in China, low teens growth in India, and low teens growth in Japan. asia grew nearly 30% led by over 50% growth in china low teens growth in india and low teens growth in japan Within academic and government, growth was driven by strong spending trends in Europe and solid demand globally for our revitalized high-resolution mass spectrometry portfolio, including Xevo MRT and Xevo CDMS. within academic and government growth was driven by strong spending trends in europe and solid demand globally for our revitalized high-resolution mass spectrometry portfolio including xevo mrt and xevo cdms In China, we continued strong capture of stimulus standard opportunities. in china we continued strong capture of stimulus standard opportunities Within industrial, Asia grew mid-single digits, Europe grew low- single digits, and the Americas was flat. within industrial asia grew mid-single digits europe grew low- single digits and the americas was flat Growth was led by chemical analysis and PFAS applications. growth was led by chemical analysis and pfas applications For PFAS, we sustained strong growth despite a tough prior year comparison, led by double-digit growth in both Europe and China. for pfas we sustained strong growth despite a tough prior year comparison led by double-digit growth in both europe and china The Biosciences Division, which represents the former BD Biosciences business, delivered as-reported revenue of $232 million, representing 7% estimated as-reported growth from the closing date to the end of the quarter versus the comparable prior year stub period. Reagents grew low double digits, while instruments remained pressured due to U.S. academic and government trends and China-related constraints such as lack of localized product portfolio. Overall, flow research grew 7%, and flow clinical grew 7%, with stronger commercial execution driving increased activity levels across both business areas. Within flow research, performance was led by reagents and strength in our FACSDiscover A8 and S8 instruments, particularly in Europe. Within flow clinical, ex-China grew 13%, while China declined 25% due to DRG headwinds. By geography, Europe grew over 30%, the Americas grew 10%, and Asia declined high teens led by China. The Biosciences Division, which represents the former BD Biosciences business, delivered as-reported revenue of $232 million, representing 7% estimated as-reported growth from the closing date to the end of the quarter versus the comparable prior year stub period. the biosciences division which represents the former bd biosciences business delivered as-reported revenue of $232 million representing 7% estimated as-reported growth from the closing date to the end of the quarter versus the comparable prior year stub period Reagents grew low double digits, while instruments remained pressured due to U.S. academic and government trends and China-related constraints such as lack of localized product portfolio. reagents grew low double digits while instruments remained pressured due to u.s academic and government trends and china-related constraints such as lack of localized product portfolio Overall, flow research grew 7%, and flow clinical grew 7%, with stronger commercial execution driving increased activity levels across both business areas. overall flow research grew 7% and flow clinical grew 7% with stronger commercial execution driving increased activity levels across both business areas Within flow research, performance was led by reagents and strength in our FACSDiscover A8 and S8 instruments, particularly in Europe. within flow research performance was led by reagents and strength in our facsdiscover a8 and s8 instruments particularly in europe Within flow clinical, ex-China grew 13%, while China declined 25% due to DRG headwinds. within flow clinical ex-china grew 13% while china declined 25% due to drg headwinds By geography, Europe grew over 30%, the Americas grew 10%, and Asia declined high teens led by China. by geography europe grew over 30% the americas grew 10% and asia declined high teens led by china On a full quarter pro forma basis, Biosciences declined 1%, representing significant sequential improvement versus the fourth quarter trend tied to our commercial actions. On a ex-China basis, Biosciences growth for the full quarter was 4%. The Advanced Diagnostics Division comprises of the former BD Diagnostic Solutions business and the Mass Spec Diagnostics clinical business unit previously reported within Waters Division. Total as reported revenue for the division was $349 million. Diagnostic solutions delivered $288 million of as-reported revenue, representing 8% estimated underlying growth from the transaction closing date to the end of the quarter. The clinical business unit delivered $61 million of revenue, up 16% as reported and 14% in constant currency. On a full quarter pro forma basis, Biosciences declined 1%, representing significant sequential improvement versus the fourth quarter trend tied to our commercial actions. on a full quarter pro forma basis biosciences declined 1% representing significant sequential improvement versus the fourth quarter trend tied to our commercial actions On a ex-China basis, Biosciences growth for the full quarter was 4%. on a ex-china basis biosciences growth for the full quarter was 4% The Advanced Diagnostics Division comprises of the former BD Diagnostic Solutions business and the Mass Spec Diagnostics clinical business unit previously reported within Waters Division. the advanced diagnostics division comprises of the former bd diagnostic solutions business and the mass spec diagnostics clinical business unit previously reported within waters division Total as reported revenue for the division was $349 million. total as reported revenue for the division was $349 million Diagnostic solutions delivered $288 million of as-reported revenue, representing 8% estimated underlying growth from the transaction closing date to the end of the quarter. diagnostic solutions delivered $288 million of as-reported revenue representing 8% estimated underlying growth from the transaction closing date to the end of the quarter The clinical business unit delivered $61 million of revenue, up 16% as reported and 14% in constant currency. the clinical business unit delivered $61 million of revenue up 16% as reported and 14% in constant currency On a as-reported basis, microbiology revenue was $203 million, reflecting 10% underlying growth for the own period, driven by improved commercial momentum as our execution initiatives began to take hold. Ex-China grew low double digits, while China declined 12% due to DRG headwinds, which was better than expected. Molecular diagnostics and point of care revenue was $84 million, reflecting 2% underlying growth for the owned period. On a full quarter pro forma basis at the divisional level, Advanced Diagnostics grew 3%, which includes a 4.5% headwind from respiratory and a 2% headwind from China. The acquired diagnostic solutions business grew 1%, reflecting a significant improvement in growth versus fourth quarter trends. Growth for the full quarter was driven by microbiology, which grew 5%, led by high single digit ex-China growth. On a as-reported basis, microbiology revenue was $203 million, reflecting 10% underlying growth for the own period, driven by improved commercial momentum as our execution initiatives began to take hold. on a as-reported basis microbiology revenue was $203 million reflecting 10% underlying growth for the own period driven by improved commercial momentum as our execution initiatives began to take hold Ex-China grew low double digits, while China declined 12% due to DRG headwinds, which was better than expected. ex-china grew low double digits while china declined 12% due to drg headwinds which was better than expected Molecular diagnostics and point of care revenue was $84 million, reflecting 2% underlying growth for the owned period. molecular diagnostics and point of care revenue was $84 million reflecting 2% underlying growth for the owned period On a full quarter pro forma basis at the divisional level, Advanced Diagnostics grew 3%, which includes a 4.5% headwind from respiratory and a 2% headwind from China. on a full quarter pro forma basis at the divisional level advanced diagnostics grew 3% which includes a 4.5% headwind from respiratory and a 2% headwind from china The acquired diagnostic solutions business grew 1%, reflecting a significant improvement in growth versus fourth quarter trends. the acquired diagnostic solutions business grew 1% reflecting a significant improvement in growth versus fourth quarter trends Growth for the full quarter was driven by microbiology, which grew 5%, led by high single digit ex-China growth. growth for the full quarter was driven by microbiology which grew 5% led by high single digit ex-china growth Excluding the same respiratory headwind, Diagnostic Solutions grew 6%, setting us up well for the rest of the year as these headwinds are not expected to recur. The Materials Sciences Division delivered as-reported revenue of $79 million in the quarter, representing an increase of 6% as reported and 2% in constant currency. Growth was led by strength in high growth segments such as batteries and electronics testing, as well as aerospace. We saw continued momentum in electric vehicles and data center applications. This was partially offset by soft trends in core industrial applications such as chemicals and materials. I will share further commentary on our full year outlook and provide our second quarter guidance. Beginning with organic revenue, we have entered 2026 with significant momentum driven by instrument replacement cycle, our idiosyncratic growth drivers, and accretion from our high growth adjacencies. Excluding the same respiratory headwind, Diagnostic Solutions grew 6%, setting us up well for the rest of the year as these headwinds are not expected to recur. excluding the same respiratory headwind diagnostic solutions grew 6% setting us up well for the rest of the year as these headwinds are not expected to recur The Materials Sciences Division delivered as-reported revenue of $79 million in the quarter, representing an increase of 6% as reported and 2% in constant currency. the materials sciences division delivered as-reported revenue of $79 million in the quarter representing an increase of 6% as reported and 2% in constant currency Growth was led by strength in high growth segments such as batteries and electronics testing, as well as aerospace. growth was led by strength in high growth segments such as batteries and electronics testing as well as aerospace We saw continued momentum in electric vehicles and data center applications. we saw continued momentum in electric vehicles and data center applications This was partially offset by soft trends in core industrial applications such as chemicals and materials. this was partially offset by soft trends in core industrial applications such as chemicals and materials I will share further commentary on our full year outlook and provide our second quarter guidance. i will share further commentary on our full year outlook and provide our second quarter guidance Beginning with organic revenue, we have entered 2026 with significant momentum driven by instrument replacement cycle, our idiosyncratic growth drivers, and accretion from our high growth adjacencies. beginning with organic revenue we have entered 2026 with significant momentum driven by instrument replacement cycle our idiosyncratic growth drivers and accretion from our high growth adjacencies We are raising our full year 2026 organic constant currency revenue growth guidance to the range of 6.5%-8%, reflecting our strong first quarter performance and embedding $15 million of expected revenue synergy contribution. We now expect foreign exchange translation to have neutral effect on organic sales, which translates to organic reported revenue of $3.37 billion-$3.42 billion in 2026. Turning to our acquired businesses, we now expect Biosciences and Advanced Diagnostics Division businesses to generate approximately $3.035 billion of revenue in 2026, which includes $35 million of expected revenue synergies. Together, total reported 2026 revenue is expected to be approximately $6.405 billion-$6.455 billion based on latest FX rates. We are raising our full year 2026 organic constant currency revenue growth guidance to the range of 6.5%-8%, reflecting our strong first quarter performance and embedding $15 million of expected revenue synergy contribution. we are raising our full year 2026 organic constant currency revenue growth guidance to the range of 6.5%-8% reflecting our strong first quarter performance and embedding $15 million of expected revenue synergy contribution We now expect foreign exchange translation to have neutral effect on organic sales, which translates to organic reported revenue of $3.37 billion-$3.42 billion in 2026. we now expect foreign exchange translation to have neutral effect on organic sales which translates to organic reported revenue of $3.37 billion-$3.42 billion in 2026 Turning to our acquired businesses, we now expect Biosciences and Advanced Diagnostics Division businesses to generate approximately $3.035 billion of revenue in 2026, which includes $35 million of expected revenue synergies. turning to our acquired businesses we now expect biosciences and advanced diagnostics division businesses to generate approximately $3.035 billion of revenue in 2026 which includes $35 million of expected revenue synergies Together, total reported 2026 revenue is expected to be approximately $6.405 billion-$6.455 billion based on latest FX rates. together total reported 2026 revenue is expected to be approximately $6.405 billion-$6.455 billion based on latest fx rates The restructuring actions tied to our cost synergies are taking place towards the end of the second quarter, together with business level cost realignment. This supports solid margin progression in the second half of the year. In addition, we have a range of operational initiatives in place to fully offset anticipated impact of elevated freight, raw materials and component costs due to ongoing conflict in the Middle East for the balance of the year. Together with our strong first quarter results, we now expect our full year adjusted EBIT margin to be 28.2% in 2026. Below the line net interest expense is now expected to be approximately $186 million. Given diligent work by our tax team, our full year tax rate is now expected to be approximately 16%, which we expect to persist in future years. The restructuring actions tied to our cost synergies are taking place towards the end of the second quarter, together with business level cost realignment. the restructuring actions tied to our cost synergies are taking place towards the end of the second quarter together with business level cost realignment This supports solid margin progression in the second half of the year. this supports solid margin progression in the second half of the year In addition, we have a range of operational initiatives in place to fully offset anticipated impact of elevated freight, raw materials and component costs due to ongoing conflict in the Middle East for the balance of the year. in addition we have a range of operational initiatives in place to fully offset anticipated impact of elevated freight raw materials and component costs due to ongoing conflict in the middle east for the balance of the year Together with our strong first quarter results, we now expect our full year adjusted EBIT margin to be 28.2% in 2026. together with our strong first quarter results we now expect our full year adjusted ebit margin to be 28.2% in 2026 Below the line net interest expense is now expected to be approximately $186 million. below the line net interest expense is now expected to be approximately $186 million Given diligent work by our tax team, our full year tax rate is now expected to be approximately 16%, which we expect to persist in future years. given diligent work by our tax team our full year tax rate is now expected to be approximately 16% which we expect to persist in future years This translates to a full year 2026 adjusted earnings per fully diluted share of $14.40-$14.60, which is a $0.10 raise in our guidance range, reflecting our strong first quarter results, partially offset by incremental prudence embedded in our second half assumptions and updated FX rates. For the second quarter of 2026, we expect organic constant currency revenue growth of 6%-8%. Foreign exchange represents a headwind of approximately 0.5% at current rates, resulting in organic reported revenue guidance of $814 million-$829 million. We expect revenues from the Biosciences and Diagnostic Solutions businesses to be approximately $802 million in the second quarter of 2026, which represents approximately 2.5% reported growth. This translates to a full year 2026 adjusted earnings per fully diluted share of $14.40-$14.60, which is a $0.10 raise in our guidance range, reflecting our strong first quarter results, partially offset by incremental prudence embedded in our second half assumptions and updated FX rates. this translates to a full year 2026 adjusted earnings per fully diluted share of $14.40-$14.60 which is a $0.10 raise in our guidance range reflecting our strong first quarter results partially offset by incremental prudence embedded in our second half assumptions and updated fx rates For the second quarter of 2026, we expect organic constant currency revenue growth of 6%-8%. for the second quarter of 2026 we expect organic constant currency revenue growth of 6%-8% Foreign exchange represents a headwind of approximately 0.5% at current rates, resulting in organic reported revenue guidance of $814 million-$829 million. foreign exchange represents a headwind of approximately 0.5% at current rates resulting in organic reported revenue guidance of $814 million-$829 million We expect revenues from the Biosciences and Diagnostic Solutions businesses to be approximately $802 million in the second quarter of 2026, which represents approximately 2.5% reported growth. we expect revenues from the biosciences and diagnostic solutions businesses to be approximately $802 million in the second quarter of 2026 which represents approximately 2.5% reported growth Together, this results in a total reported second quarter 2026 revenue of $1.616 billion-$1.631 billion. Second quarter adjusted earnings per fully diluted share is expected to be in the range $2.95-$3.05, which is flat to 3.4% growth given the full burden of higher interest costs and newly issued shares and ahead of cost synergies and business-level cost action benefits that begin to flow through the P&L starting in the third quarter. Turning to our implied guidance assumptions for the second half of the year. Even with the full-year raise in organic growth guidance, our strong first quarter results and the second quarter guided midpoint of 7% implies a prudent 6% organic constant currency growth in the second half of the year. Together, this results in a total reported second quarter 2026 revenue of $1.616 billion-$1.631 billion. together this results in a total reported second quarter 2026 revenue of $1.616 billion-$1.631 billion Second quarter adjusted earnings per fully diluted share is expected to be in the range $2.95-$3.05, which is flat to 3.4% growth given the full burden of higher interest costs and newly issued shares and ahead of cost synergies and business-level cost action benefits that begin to flow through the P&L starting in the third quarter. second quarter adjusted earnings per fully diluted share is expected to be in the range $2.95-$3.05 which is flat to 3.4% growth given the full burden of higher interest costs and newly issued shares and ahead of cost synergies and business-level cost action benefits that begin to flow through the p&l starting in the third quarter Turning to our implied guidance assumptions for the second half of the year. turning to our implied guidance assumptions for the second half of the year Even with the full-year raise in organic growth guidance, our strong first quarter results and the second quarter guided midpoint of 7% implies a prudent 6% organic constant currency growth in the second half of the year. even with the full-year raise in organic growth guidance our strong first quarter results and the second quarter guided midpoint of 7% implies a prudent 6% organic constant currency growth in the second half of the year This is deliberately lower than what was implied in our prior guidance as it further de-risks our back-half organic growth outlook. For the Biosciences and Diagnostic Solutions, our strong first quarter performance and second quarter guidance also meaningfully de-risks our implied second-half outlook. Our second-half assumptions reflect a prudent growth rate of 1.5%, percentage points above our second quarter guidance, well supported by incremental commercial and operational actions already underway and a favorable prior year comparison. This is deliberately lower than what was implied in our prior guidance as it further de-risks our back-half organic growth outlook. this is deliberately lower than what was implied in our prior guidance as it further de-risks our back-half organic growth outlook For the Biosciences and Diagnostic Solutions, our strong first quarter performance and second quarter guidance also meaningfully de-risks our implied second-half outlook. for the biosciences and diagnostic solutions our strong first quarter performance and second quarter guidance also meaningfully de-risks our implied second-half outlook Our second-half assumptions reflect a prudent growth rate of 1.5%, percentage points above our second quarter guidance, well supported by incremental commercial and operational actions already underway and a favorable prior year comparison. our second-half assumptions reflect a prudent growth rate of 1.5% percentage points above our second quarter guidance well supported by incremental commercial and operational actions already underway and a favorable prior year comparison With that, I will now hand it back to Caspar. With that, I will now hand it back to Caspar. with that i will now hand it back to caspar

Speaker 2: Thanks, Amol. That concludes our prepared remarks. We are now happy to open the lines and take your questions. Thanks, Amol. thanks amol That concludes our prepared remarks. that concludes our prepared remarks We are now happy to open the lines and take your questions. we are now happy to open the lines and take your questions

Speaker 5: We will now begin Q&A. If you would like to ask a question, please use the Raise Your Hand feature at the bottom of your screen. If you are dialed in by phone, press star nine to raise your hand and star six to unmute. Please accept the prompt and unmute your audio when called upon. As a reminder, we are allowing analysts one question and one follow-up. Our first question will come from Tycho Peterson with Jefferies. We will now begin Q&A. we will now begin q&a If you would like to ask a question, please use the Raise Your Hand feature at the bottom of your screen. if you would like to ask a question please use the raise your hand feature at the bottom of your screen If you are dialed in by phone, press star nine to raise your hand and star six to unmute. if you are dialed in by phone press star nine to raise your hand and star six to unmute Please accept the prompt and unmute your audio when called upon. please accept the prompt and unmute your audio when called upon As a reminder, we are allowing analysts one question and one follow-up. as a reminder we are allowing analysts one question and one follow-up Our first question will come from Tycho Peterson with Jefferies. our first question will come from tycho peterson with jefferies

Speaker 8: Hey, thanks. Maybe just starting with the guide here, you know, a number of moving pieces. Obviously the $40 million, you know, beat on the BD side. You've got, you know, the FX headwind you called out. You know, look, it looks like the base business is getting better by about $5 million on an organic basis. The $35 million in revenue synergies, though, can you maybe just touch on, you know, where you think those are coming from early? I know you gave a little bit of color, Udit. What's captured on pricing? I know you kind of flagged that as maybe showing up a little bit earlier. Hey, thanks. hey thanks Maybe just starting with the guide here, you know, a number of moving pieces. maybe just starting with the guide here you know a number of moving pieces Obviously the $40 million, you know, beat on the BD side. obviously the $40 million you know beat on the bd side You've got, you know, the FX headwind you called out. you've got you know the fx headwind you called out You know, look, it looks like the base business is getting better by about $5 million on an organic basis. you know look it looks like the base business is getting better by about $5 million on an organic basis The $35 million in revenue synergies, though, can you maybe just touch on, you know, where you think those are coming from early? the $35 million in revenue synergies though can you maybe just touch on you know where you think those are coming from early I know you gave a little bit of color, Udit. i know you gave a little bit of color udit What's captured on pricing? what's captured on pricing I know you kind of flagged that as maybe showing up a little bit earlier. i know you kind of flagged that as maybe showing up a little bit earlier

Speaker 1: I mean, look, on the revenue synergies, the first phase of revenue synergies is around things such as instrument replacement, service plan attachment, and e-commerce, and that's what is embedded in that $35 million outlook. What's not embedded in that guide is the pricing actions that we are taking. What's not embedded in that guide is also how we've successfully neutralized the impact of tariffs on our legacy Waters business. What's not embedded in that guide is the benefits of being more disciplined on our reagent rental contracts. I mean, look, on the revenue synergies, the first phase of revenue synergies is around things such as instrument replacement, service plan attachment, and e-commerce, and that's what is embedded in that $35 million outlook. i mean look on the revenue synergies the first phase of revenue synergies is around things such as instrument replacement service plan attachment and e-commerce and that's what is embedded in that $35 million outlook What's not embedded in that guide is the pricing actions that we are taking. what's not embedded in that guide is the pricing actions that we are taking What's not embedded in that guide is also how we've successfully neutralized the impact of tariffs on our legacy Waters business. what's not embedded in that guide is also how we've successfully neutralized the impact of tariffs on our legacy waters business What's not embedded in that guide is the benefits of being more disciplined on our reagent rental contracts. what's not embedded in that guide is the benefits of being more disciplined on our reagent rental contracts

Speaker 9: Tycho, just building on that, the revenue synergies that Amol outlined, the three levers we've talked about in the past, what's really new is the 180-day plan, right? We basically worked diligently to look at how we were doing funnel reviews, what the activity was in the field. In fact, in some cases, the weekly call rates have actually doubled, right? Especially in the U.S. Advanced Diagnostics Division. We also implemented pricing improvements with our deal desks both in Biosciences and Advanced Diagnostics. We're looking at reagent rental contracts across the Advanced Diagnostics Division. Having looked at roughly 1,700 or so accounts, close to half of them are out of compliance, and that's a double-digit, double-digit opportunity. These will start to now play out in starting Q2. Tycho, just building on that, the revenue synergies that Amol outlined, the three levers we've talked about in the past, what's really new is the 180- day plan, right? tycho just building on that the revenue synergies that amol outlined the three levers we've talked about in the past what's really new is the 180- day plan right We basically worked diligently to look at how we were doing funnel reviews, what the activity was in the field. we basically worked diligently to look at how we were doing funnel reviews what the activity was in the field In fact, in some cases, the weekly call rates have actually doubled, right? in fact in some cases the weekly call rates have actually doubled right Especially in the U.S. especially in the u.s Advanced Diagnostics Division. advanced diagnostics division We also implemented pricing improvements with our deal desks both in Biosciences and Advanced Diagnostics. we also implemented pricing improvements with our deal desks both in biosciences and advanced diagnostics We're looking at reagent rental contracts across the Advanced Diagnostics Division. we're looking at reagent rental contracts across the advanced diagnostics division Having looked at roughly 1,700 or so accounts, close to half of them are out of compliance, and that's a double-digit, double-digit opportunity. having looked at roughly 1,700 or so accounts close to half of them are out of compliance and that's a double-digit double-digit opportunity These will start to now play out in starting Q2. these will start to now play out in starting q2 Finally, we're localizing our portfolio in China, really using the same playbook that we did for the analytical solutions business, which has incredible growth this quarter, right? Really following that playbook. What's not really incorporated is the 180-day plan, which is having quite an early impact. Finally, we're localizing our portfolio in China, really using the same playbook that we did for the analytical solutions business, which has incredible growth this quarter, right? finally we're localizing our portfolio in china really using the same playbook that we did for the analytical solutions business which has incredible growth this quarter right Really following that playbook. really following that playbook What's not really incorporated is the 180-day plan, which is having quite an early impact. what's not really incorporated is the 180-day plan which is having quite an early impact

Speaker 8: Okay. For the follow-up, Udit, can you talk on microbiology? You know, obviously, there was a comp factor there, but, you know, 10% growth is notable. You know, upload double-digit ex-China. Just talk about, you know, your confidence in turning that business around. Obviously, the new BACTEC coming fairly soon. Yeah, maybe just talk about your confidence in recovery there. Okay. okay For the follow-up, Udit, can you talk on microbiology? for the follow-up udit can you talk on microbiology You know, obviously, there was a comp factor there, but, you know, 10% growth is notable. you know obviously there was a comp factor there but you know 10% growth is notable You know, upload double-digit ex-China. you know upload double-digit ex-china Just talk about, you know, your confidence in turning that business around. just talk about you know your confidence in turning that business around Obviously, the new BACTEC coming fairly soon. obviously the new bactec coming fairly soon Yeah, maybe just talk about your confidence in recovery there. yeah maybe just talk about your confidence in recovery there

Speaker 9: Tycho, maybe first just some contextual comments, right? Take a step back. I mean, Waters is focused on high-volume regulated applications, right? That's what we've done throughout our existence. We take sort of leading brands, and then with smart commercial execution, really meaningful new products, deliver what we are seeing as industry-leading growth for our Analytical Sciences business, both growth and margins, right? We intend to do the same with microbiology, where the unmet needs are very significant. We've gotten off to a fantastic start. Microbiology has the same characteristics, high volume, regulated applications with significant unmet needs. Really great start, about 5%-6% growth, in spite of the DRG headwinds. Tycho, maybe first just some contextual comments, right? tycho maybe first just some contextual comments right Take a step back. take a step back I mean, Waters is focused on high-volume regulated applications, right? i mean waters is focused on high-volume regulated applications right That's what we've done throughout our existence. that's what we've done throughout our existence We take sort of leading brands, and then with smart commercial execution, really meaningful new products, deliver what we are seeing as industry-leading growth for our Analytical Sciences business, both growth and margins, right? we take sort of leading brands and then with smart commercial execution really meaningful new products deliver what we are seeing as industry-leading growth for our analytical sciences business both growth and margins right We intend to do the same with microbiology, where the unmet needs are very significant. we intend to do the same with microbiology where the unmet needs are very significant We've gotten off to a fantastic start. we've gotten off to a fantastic start Microbiology has the same characteristics, high volume, regulated applications with significant unmet needs. microbiology has the same characteristics high volume regulated applications with significant unmet needs Really great start, about 5%-6% growth, in spite of the DRG headwinds. really great start about 5%-6% growth in spite of the drg headwinds As you go into the back half of the year, the baseline becomes easier. The FXI launch, we're very excited about. That should augment not just the revenue synergies for from instrument replacement, but the underlying business itself. Really exciting times and significant unmet needs that excites our team. Expect to see that business grow nicely. As you go into the back half of the year, the baseline becomes easier. as you go into the back half of the year the baseline becomes easier The FXI launch, we're very excited about. the fxi launch we're very excited about That should augment not just the revenue synergies for from instrument replacement, but the underlying business itself. that should augment not just the revenue synergies for from instrument replacement but the underlying business itself Really exciting times and significant unmet needs that excites our team. really exciting times and significant unmet needs that excites our team Expect to see that business grow nicely. expect to see that business grow nicely

Speaker 5: Your next question will come from Patrick Donnelly with Citi. Your next question will come from Patrick Donnelly with Citi. your next question will come from patrick donnelly with citi

Speaker 6: Hey, guys. Thanks for taking the question. Udit, maybe one on the core kind of legacy Waters instrumentation side. It seems like LC-MS, you had a pretty nice quarter. I know you called out pharma. It seemed like ACA gov actually improved a little bit. Can you just give a little more color on what you saw, how the biopharma conversations trended in the quarter? As well, just ACA gov, what you're seeing there. Hey, guys. hey guys Thanks for taking the question. thanks for taking the question Udit, maybe one on the core kind of legacy Waters instrumentation side. udit maybe one on the core kind of legacy waters instrumentation side It seems like LC-MS, you had a pretty nice quarter. it seems like lc-ms you had a pretty nice quarter I know you called out pharma. i know you called out pharma It seemed like ACA gov actually improved a little bit. it seemed like aca gov actually improved a little bit Can you just give a little more color on what you saw, how the biopharma conversations trended in the quarter? can you just give a little more color on what you saw how the biopharma conversations trended in the quarter As well, just ACA gov, what you're seeing there. as well just aca gov what you're seeing there

Speaker 9: Sure, Patrick. Look, first on instruments overall, LC-MS was high single digits yet again. The replacement cycle is still underway, contributing nicely, especially in the U.S. and in Europe. It's augmented by the new products, Alliance iS, and now the Xevo MRT having a wonderful start, and chemistry doing a great job there as well. The idiosyncratic growth drivers, right? You see GLP-1 testing, focus on biologics, India generics, all contributing to the instrument growth rate. To your question on pharma itself, I mean, really pleased with what we see, right? To what I said to Tycho as well. We're a downstream high volume regulated player, right? We've seen terrific trends there. We've brought new products into that space. Sure, Patrick. sure patrick Look, first on instruments overall, LC-MS was high single digits yet again. look first on instruments overall lc-ms was high single digits yet again The replacement cycle is still underway, contributing nicely, especially in the U.S. and in Europe. the replacement cycle is still underway contributing nicely especially in the u.s and in europe It's augmented by the new products, Alliance iS, and now the Xevo MRT having a wonderful start, and chemistry doing a great job there as well. it's augmented by the new products alliance is and now the xevo mrt having a wonderful start and chemistry doing a great job there as well The idiosyncratic growth drivers, right? the idiosyncratic growth drivers right You see GLP-1 testing, focus on biologics, India generics, all contributing to the instrument growth rate. you see glp-1 testing focus on biologics india generics all contributing to the instrument growth rate To your question on pharma itself, I mean, really pleased with what we see, right? to your question on pharma itself i mean really pleased with what we see right To what I said to Tycho as well. to what i said to tycho as well We're a downstream high volume regulated player, right? we're a downstream high volume regulated player right We've seen terrific trends there. we've seen terrific trends there We've brought new products into that space. we've brought new products into that space We're seeing mid-teens growth overall, high single digits in Americas and in Europe, where ethical pharma is leading the charge with instrument replacement. In China, we saw over 50% growth driven by biotech, CDMOs, and emerging innovative large pharma companies that are homegrown in China. India continued its track with generics. Feel extremely good about what's happening in pharma, and that remains one of our strengths. Really sort of looking forward to what the rest of the year brings in that category. We're seeing mid-teens growth overall, high single digits in Americas and in Europe, where ethical pharma is leading the charge with instrument replacement. we're seeing mid-teens growth overall high single digits in americas and in europe where ethical pharma is leading the charge with instrument replacement In China, we saw over 50% growth driven by biotech, CDMOs, and emerging innovative large pharma companies that are homegrown in China. in china we saw over 50% growth driven by biotech cdmos and emerging innovative large pharma companies that are homegrown in china India continued its track with generics. india continued its track with generics Feel extremely good about what's happening in pharma, and that remains one of our strengths. feel extremely good about what's happening in pharma and that remains one of our strengths Really sort of looking forward to what the rest of the year brings in that category. really sort of looking forward to what the rest of the year brings in that category

Speaker 6: Okay, that's helpful. Then maybe one on BD. You know, I guess in hindsight, now that you guys have been behind the curtain a little bit here for a few months, when you look back at the Q4 kind of underperformance, how much do you think was just kind of an air pocket as the transition of the management happened? You know, I guess what I'm asking is on the execution improvement versus the actual market improvement, what have you seen from Q4 to Q1, and then the expectations going forward? Thanks so much. Okay, that's helpful. okay that's helpful Then maybe one on BD. then maybe one on bd You know, I guess in hindsight, now that you guys have been behind the curtain a little bit here for a few months, when you look back at the Q4 kind of underperformance, how much do you think was just kind of an air pocket as the transition of the management happened? you know i guess in hindsight now that you guys have been behind the curtain a little bit here for a few months when you look back at the q4 kind of underperformance how much do you think was just kind of an air pocket as the transition of the management happened You know, I guess what I'm asking is on the execution improvement versus the actual market improvement, what have you seen from Q4 to Q1, and then the expectations going forward? you know i guess what i'm asking is on the execution improvement versus the actual market improvement what have you seen from q4 to q1 and then the expectations going forward Thanks so much. thanks so much

Speaker 9: Yeah, look, I mean, as we've come into the ownership, we've seen tremendous collaboration with amongst the teams. The integration plans were put together across the BD teams and the Waters teams. It was in some ways an advantage to have time between announcement and close. That diligence really got the quarter, the owned period of the quarter off to a fantastic start, right? I mean, the diligence that you've seen with Waters in the past with really sort of focusing on high-quality funnels. I mean, our funnels look better than they ever have. The forecast accuracy improved as a consequence. We've implemented the pricing initiatives across the two new businesses. Really incredible transparency and collaboration on looking at reagent rental contracts and also the China localization piece. Yeah, look, I mean, as we've come into the ownership, we've seen tremendous collaboration with amongst the teams. yeah look i mean as we've come into the ownership we've seen tremendous collaboration with amongst the teams The integration plans were put together across the BD teams and the Waters teams. the integration plans were put together across the bd teams and the waters teams It was in some ways an advantage to have time between announcement and close. it was in some ways an advantage to have time between announcement and close That diligence really got the quarter, the owned period of the quarter off to a fantastic start, right? that diligence really got the quarter the owned period of the quarter off to a fantastic start right I mean, the diligence that you've seen with Waters in the past with really sort of focusing on high-quality funnels. i mean the diligence that you've seen with waters in the past with really sort of focusing on high-quality funnels I mean, our funnels look better than they ever have. i mean our funnels look better than they ever have The forecast accuracy improved as a consequence. the forecast accuracy improved as a consequence We've implemented the pricing initiatives across the two new businesses. we've implemented the pricing initiatives across the two new businesses Really incredible transparency and collaboration on looking at reagent rental contracts and also the China localization piece. really incredible transparency and collaboration on looking at reagent rental contracts and also the china localization piece The 180-day plan itself was put together in collaboration with the teams. To your question on air pockets, et cetera, it's very difficult to judge such things. I mean, it was a declining business, you see an advantage of just giving it focus. What I'll remind you is that these are two businesses that have leading brands, really sort of brands that define the category. They are in high-volume regulated settings, and our Waters playbook is very relevant there, and you're seeing the impact of that. The 180-day plan itself was put together in collaboration with the teams. the 180-day plan itself was put together in collaboration with the teams To your question on air pockets, et cetera, it's very difficult to judge such things. to your question on air pockets et cetera it's very difficult to judge such things I mean, it was a declining business, you see an advantage of just giving it focus. i mean it was a declining business you see an advantage of just giving it focus What I'll remind you is that these are two businesses that have leading brands, really sort of brands that define the category. what i'll remind you is that these are two businesses that have leading brands really sort of brands that define the category They are in high-volume regulated settings, and our Waters playbook is very relevant there, and you're seeing the impact of that. they are in high-volume regulated settings and our waters playbook is very relevant there and you're seeing the impact of that

Speaker 5: Your next question will come from Vijay Kumar with Evercore ISI. Your next question will come from Vijay Kumar with Evercore ISI. your next question will come from vijay kumar with evercore isi

Speaker 10: Great. Udit and Amol, thank you for taking my questions. Congrats on a nice trend and thanks for all the detailed disclosures in the presentation. That was really helpful. Maybe my first one on this BD exec performance in Q1. When I look at the full quarter reported growth for BD, it looks like it was flattish, but for the period owned under Waters, it was up 5%. Maybe just talk over this delta between the full quarter versus period owned. Was there any timing of shipments, those kind of things that aided performance under Waters ownership? Is this because of extra days? Great. great Udit and Amol, thank you for taking my questions. udit and amol thank you for taking my questions Congrats on a nice trend and thanks for all the detailed disclosures in the presentation. congrats on a nice trend and thanks for all the detailed disclosures in the presentation That was really helpful. that was really helpful Maybe my first one on this BD exec performance in Q1. maybe my first one on this bd exec performance in q1 When I look at the full quarter reported growth for BD, it looks like it was flattish, but for the period owned under Waters, it was up 5%. when i look at the full quarter reported growth for bd it looks like it was flattish but for the period owned under waters it was up 5% Maybe just talk over this delta between the full quarter versus period owned. maybe just talk over this delta between the full quarter versus period owned Was there any timing of shipments, those kind of things that aided performance under Waters ownership? was there any timing of shipments those kind of things that aided performance under waters ownership Is this because of extra days? is this because of extra days I'm curious I think the prior guidance was, assume BD to grow, you know, maybe up low singles 2%. Has it changed at all? I'm curious I think the prior guidance was, assume BD to grow, you know, maybe up low singles 2%. i'm curious i think the prior guidance was assume bd to grow you know maybe up low singles 2% Has it changed at all? has it changed at all

Speaker 1: Yeah, I mean, look, when we put together our guidance, we factored in things such as there'll be few extra days because of the quarter, but also few days when the situation will be disturbed during the close. That's how we sort of prepared our guidance. The way the teams executed makes us feel really proud that, you know, things are working. The 180-day growth revitalization plan is starting to bear fruit, and that's what sort of resulted in this significant $40 million beat. What we've done with that is we've sort of de-risked our second half of the guide, and makes it far more palatable. Yeah, I mean, look, when we put together our guidance, we factored in things such as there'll be few extra days because of the quarter, but also few days when the situation will be disturbed during the close. yeah i mean look when we put together our guidance we factored in things such as there'll be few extra days because of the quarter but also few days when the situation will be disturbed during the close That's how we sort of prepared our guidance. that's how we sort of prepared our guidance The way the teams executed makes us feel really proud that, you know, things are working. the way the teams executed makes us feel really proud that you know things are working The 180-day growth revitalization plan is starting to bear fruit, and that's what sort of resulted in this significant $40 million beat. the 180-day growth revitalization plan is starting to bear fruit and that's what sort of resulted in this significant $40 million beat What we've done with that is we've sort of de-risked our second half of the guide, and makes it far more palatable. what we've done with that is we've sort of de-risked our second half of the guide and makes it far more palatable We've sort of taken down sort of point of care in the second half of the year to not be at average, but significantly below average. That gives us a lot of room to outperform and puts us in a great spot for the remainder of the year. We've sort of taken down sort of point of care in the second half of the year to not be at average, but significantly below average. we've sort of taken down sort of point of care in the second half of the year to not be at average but significantly below average That gives us a lot of room to outperform and puts us in a great spot for the remainder of the year. that gives us a lot of room to outperform and puts us in a great spot for the remainder of the year

Speaker 10: Understood. Maybe my follow-up on, you know, given that you mentioned that days impact share. When you look at core Waters, the 11% organic, what was underlying organic X days? When you say back half is 6%. Is that for core organic or pro forma organic inclusive BD? You know, giving a comment on order strength, I'm curious on why back half couldn't be better. Thank you. Understood. understood Maybe my follow-up on, you know, given that you mentioned that days impact share. maybe my follow-up on you know given that you mentioned that days impact share When you look at core Waters, the 11% organic, what was underlying organic X days? when you look at core waters the 11% organic what was underlying organic x days When you say back half is 6%. when you say back half is 6% Is that for core organic or pro forma organic inclusive BD? is that for core organic or pro forma organic inclusive bd You know, giving a comment on order strength, I'm curious on why back half couldn't be better. you know giving a comment on order strength i'm curious on why back half couldn't be better Thank you. thank you

Speaker 1: I mean, look, the extra days benefit our recurring revenue and, roughly we had four extra days in terms of working days, and that brings about 4% more recurring revenue, which is roughly 2% more total revenue for the legacy Waters business. Even if you strip that out, I mean, chemistry grew 13 and service grew 14%, so both of them, even after you take out 4%, flying at a meaningfully elevated levels versus their historical performance, and that's to do with how our teams are executing really well in the field. For the guidance perspective, our first half growth for the legacy business constant currency is roughly 9%, and we've de-risked the second half, one, for the four or so extra less working days that we have in Q4. I mean, look, the extra days benefit our recurring revenue and, roughly we had four extra days in terms of working days, and that brings about 4% more recurring revenue, which is roughly 2% more total revenue for the legacy Waters business. i mean look the extra days benefit our recurring revenue and roughly we had four extra days in terms of working days and that brings about 4% more recurring revenue which is roughly 2% more total revenue for the legacy waters business Even if you strip that out, I mean, chemistry grew 13 and service grew 14%, so both of them, even after you take out 4%, flying at a meaningfully elevated levels versus their historical performance, and that's to do with how our teams are executing really well in the field. even if you strip that out i mean chemistry grew 13 and service grew 14% so both of them even after you take out 4% flying at a meaningfully elevated levels versus their historical performance and that's to do with how our teams are executing really well in the field For the guidance perspective, our first half growth for the legacy business constant currency is roughly 9%, and we've de-risked the second half, one, for the four or so extra less working days that we have in Q4. for the guidance perspective our first half growth for the legacy business constant currency is roughly 9% and we've de-risked the second half one for the four or so extra less working days that we have in q4 Two, just because of the current macro, right? The second half embedded constant currency growth guidance is roughly 6%. That puts us in a really solid spot because we're not seeing any of that in our funnel. Funnel remains very strong and we continue to fly at the altitude that we are flying at. That gives us great confidence on the second half of the year. Two, just because of the current macro, right? two just because of the current macro right The second half embedded constant currency growth guidance is roughly 6%. the second half embedded constant currency growth guidance is roughly 6% That puts us in a really solid spot because we're not seeing any of that in our funnel. that puts us in a really solid spot because we're not seeing any of that in our funnel Funnel remains very strong and we continue to fly at the altitude that we are flying at. funnel remains very strong and we continue to fly at the altitude that we are flying at That gives us great confidence on the second half of the year. that gives us great confidence on the second half of the year

Speaker 9: Yeah. Vijay, just to sort of conclude that thought, as you go into the remainder of the year, I mean, there's fantastic momentum on the base business. There's no two ways around it. The 180-day plan has sort of got off the acquired businesses to a great start. Remember, there's a lower baseline already starting in Q2 with the respiratory headwinds gone. For the latter half of the year, there is no DRG sort of headwinds anymore as well. You augment that with new launches, FXI BACTEC, as well as the A7 in our Biosciences business and the reagents, and the revenue synergies that start to play out as well. We are really sort of positive about the setup that we see for the balance of the year. Yeah. yeah Vijay, just to sort of conclude that thought, as you go into the remainder of the year, I mean, there's fantastic momentum on the base business. vijay just to sort of conclude that thought as you go into the remainder of the year i mean there's fantastic momentum on the base business There's no two ways around it. there's no two ways around it The 180-day plan has sort of got off the acquired businesses to a great start. the 180-day plan has sort of got off the acquired businesses to a great start Remember, there's a lower baseline already starting in Q2 with the respiratory headwinds gone. remember there's a lower baseline already starting in q2 with the respiratory headwinds gone For the latter half of the year, there is no DRG sort of headwinds anymore as well. for the latter half of the year there is no drg sort of headwinds anymore as well You augment that with new launches, FXI BACTEC , as well as the A7 in our Biosciences business and the reagents, and the revenue synergies that start to play out as well. you augment that with new launches fxi bactec as well as the a7 in our biosciences business and the reagents and the revenue synergies that start to play out as well We are really sort of positive about the setup that we see for the balance of the year. we are really sort of positive about the setup that we see for the balance of the year

Speaker 5: Your next question will come from Doug Schenkel with Wolfe. Your next question will come from Doug Schenkel with Wolfe. your next question will come from doug schenkel with wolfe

Speaker 3: Good morning, thank you for taking my questions. First, on competition, one, you know, I guess there's two here. Udit, your team's bringing a new level of discipline to the life science business. I'm just wondering if there's been any notable competitive responses worth calling out. The second question is, you know, there's two product areas where you are or will soon be competing with private equity-owned businesses. Generally speaking, how does competing with PE differ and, you know, does this create new opportunities for the business? Thank you. Good morning, thank you for taking my questions. good morning thank you for taking my questions First, on competition, one, you know, I guess there's two here. first on competition one you know i guess there's two here Udit, your team's bringing a new level of discipline to the life science business. udit your team's bringing a new level of discipline to the life science business I'm just wondering if there's been any notable competitive responses worth calling out. i'm just wondering if there's been any notable competitive responses worth calling out The second question is, you know, there's two product areas where you are or will soon be competing with private equity-owned businesses. the second question is you know there's two product areas where you are or will soon be competing with private equity-owned businesses Generally speaking, how does competing with PE differ and, you know, does this create new opportunities for the business? generally speaking how does competing with pe differ and you know does this create new opportunities for the business Thank you. thank you

Speaker 9: Yeah. Excellent questions, Doug, and good morning. Look, on Waters itself and competition, I mean, I'll repeat what I said earlier. We are diligent about being focused on high volume regulated settings, right? Where the drivers are very well understood and are consumption oriented, and that's allowed us to outpace the market over the last several years. In those setups, I mean, we have leading brands. We had it with the legacy Waters business. Now we have it with Biosciences, which defines the flow cytometry category and reagents, and with the Diagnostic Solutions business with microbiology. We feel very good about the brands we've inherited, and we're working hard on bringing the same execution discipline that has brought Waters to the top of the league table, both in growth and margins and free cash flow. Yeah. yeah Excellent questions, Doug, and good morning. excellent questions doug and good morning Look, on Waters itself and competition, I mean, I'll repeat what I said earlier. look on waters itself and competition i mean i'll repeat what i said earlier We are diligent about being focused on high volume regulated settings, right? we are diligent about being focused on high volume regulated settings right Where the drivers are very well understood and are consumption oriented, and that's allowed us to outpace the market over the last several years. where the drivers are very well understood and are consumption oriented and that's allowed us to outpace the market over the last several years In those setups, I mean, we have leading brands. in those setups i mean we have leading brands We had it with the legacy Waters business. we had it with the legacy waters business Now we have it with Biosciences, which defines the flow cytometry category and reagents, and with the Diagnostic Solutions business with microbiology. now we have it with biosciences which defines the flow cytometry category and reagents and with the diagnostic solutions business with microbiology We feel very good about the brands we've inherited, and we're working hard on bringing the same execution discipline that has brought Waters to the top of the league table, both in growth and margins and free cash flow. we feel very good about the brands we've inherited and we're working hard on bringing the same execution discipline that has brought waters to the top of the league table both in growth and margins and free cash flow As we start, and your question to sort of, I think the microbiology business that's been acquired by PE players, I mean, we think it's gonna be quite rational in terms of pricing. We are a pricing leader in the categories we compete in because we bring in tremendous innovation into the markets, and we expect something similar from the PE players. Not worried. I mean, I think we are now in a position where, as a team, we're more focused on unmet needs, on proof of principle of our new products, commercial execution, than anything else. As we start, and your question to sort of, I think the microbiology business that's been acquired by PE players, I mean, we think it's gonna be quite rational in terms of pricing. as we start and your question to sort of i think the microbiology business that's been acquired by pe players i mean we think it's gonna be quite rational in terms of pricing We are a pricing leader in the categories we compete in because we bring in tremendous innovation into the markets, and we expect something similar from the PE players. we are a pricing leader in the categories we compete in because we bring in tremendous innovation into the markets and we expect something similar from the pe players Not worried. not worried I mean, I think we are now in a position where, as a team, we're more focused on unmet needs, on proof of principle of our new products, commercial execution, than anything else. i mean i think we are now in a position where as a team we're more focused on unmet needs on proof of principle of our new products commercial execution than anything else

Speaker 5: Your next question will come from Evie Koslosky with Goldman Sachs. Your next question will come from Evie Koslosky with Goldman Sachs. your next question will come from evie koslosky with goldman sachs

Speaker 4: Hey, thanks for taking my questions. Starting with the core business, can you talk through the mid-teens growth in chemistry? I think it's well above the full year guidance that you previously gave of around 6%-7%. How durable is this growth moving forward, and what's the updated guide for chemistry in the full year? Hey, thanks for taking my questions. hey thanks for taking my questions Starting with the core business, can you talk through the mid-teens growth in chemistry? starting with the core business can you talk through the mid-teens growth in chemistry I think it's well above the full year guidance that you previously gave of around 6%-7%. i think it's well above the full year guidance that you previously gave of around 6%-7% How durable is this growth moving forward, and what's the updated guide for chemistry in the full year? how durable is this growth moving forward and what's the updated guide for chemistry in the full year

Speaker 9: Let me start, then Amol can talk through the guide. I mean, you can say nothing more than just being ecstatic about what we're seeing with chemistry, right? I mean, this is a journey that started a few years ago when we took our R&D dollars and dedicated 70%-80% of them in bioseparations. The steady stream of new products is driving growth, right? I mean, that's what you saw in the latter part of the year last year. You see it now as virtually all new molecular entities, especially biologics, are first looking at Waters' offering and then going elsewhere. We feel very good about where we stand. Let me start, then Amol can talk through the guide. let me start then amol can talk through the guide I mean, you can say nothing more than just being ecstatic about what we're seeing with chemistry, right? i mean you can say nothing more than just being ecstatic about what we're seeing with chemistry right I mean, this is a journey that started a few years ago when we took our R&D dollars and dedicated 70%-80% of them in bio separations. i mean this is a journey that started a few years ago when we took our r&d dollars and dedicated 70%-80% of them in bio separations The steady stream of new products is driving growth, right? the steady stream of new products is driving growth right I mean, that's what you saw in the latter part of the year last year. i mean that's what you saw in the latter part of the year last year You see it now as virtually all new molecular entities, especially biologics, are first looking at Waters' offering and then going elsewhere. you see it now as virtually all new molecular entities especially biologics are first looking at waters' offering and then going elsewhere We feel very good about where we stand. we feel very good about where we stand As you look at the mid to long term, I mean, there is no reason to believe that all of this will not flow downstream. Chemistry on the mid to long term basis should now be instead of a 7% grower, a 9%-10% grower at least. I'll let Amol comment on the balance of this year and our guide assumptions. As you look at the mid to long term, I mean, there is no reason to believe that all of this will not flow downstream. as you look at the mid to long term i mean there is no reason to believe that all of this will not flow downstream Chemistry on the mid to long term basis should now be instead of a 7% grower, a 9%-10% grower at least. chemistry on the mid to long term basis should now be instead of a 7% grower a 9%-10% grower at least I'll let Amol comment on the balance of this year and our guide assumptions. i'll let amol comment on the balance of this year and our guide assumptions

Speaker 1: Yeah. I mean, look, in Q2, there was a little bit of pull forward, which we outlined in our last year's Q2 earnings call. In general, we're being cautious given we had such an amazing double-digit growth in Chemistry every quarter last year. We are sort of reducing the guide for this year to, like, 6.5% full year, just to be prudent. I mean, what we are seeing in Q1, 13% growth, that is real, and that we expect to continue. The only reason we are guiding at 6.5% is the baseline is pretty strong, and we're being prudent. Yeah. yeah I mean, look, in Q2, there was a little bit of pull forward, which we outlined in our last year's Q2 earnings call. i mean look in q2 there was a little bit of pull forward which we outlined in our last year's q2 earnings call In general, we're being cautious given we had such an amazing double-digit growth in Chemistry every quarter last year. in general we're being cautious given we had such an amazing double-digit growth in chemistry every quarter last year We are sort of reducing the guide for this year to, like, 6.5% full year, just to be prudent. we are sort of reducing the guide for this year to like 6.5% full year just to be prudent I mean, what we are seeing in Q1, 13% growth, that is real, and that we expect to continue. i mean what we are seeing in q1 13% growth that is real and that we expect to continue The only reason we are guiding at 6.5% is the baseline is pretty strong, and we're being prudent. the only reason we are guiding at 6.5% is the baseline is pretty strong and we're being prudent

Speaker 4: Great. On the acquired asset, can you talk through the decision to localize the manufacturing in flow cytometry in China? How much of an investment does this represent? What's the local competition like? How durable are some of the market growth drivers, like MNC pharma funding in the region? Great. great On the acquired asset, can you talk through the decision to localize the manufacturing in flow cytometry in China? on the acquired asset can you talk through the decision to localize the manufacturing in flow cytometry in china How much of an investment does this represent? how much of an investment does this represent What's the local competition like? what's the local competition like How durable are some of the market growth drivers, like MNC pharma funding in the region? how durable are some of the market growth drivers like mnc pharma funding in the region

Speaker 9: Yeah. I mean, look, Evie, thanks for the question, but let me start sort of at the highest level. I mean, pharma in China is doing extremely well. I think we talked about this several quarters ago. Roughly 1/3 of all biotech molecules that are licensed by large pharma now come from China. That has then helped the CDMO industry grow, and also is giving birth to sort of fully integrated, innovative pharma companies in China. Pharma for us in China grew over 50%, right? Behind these trends and strong execution. This sort of result was only possible because we have a fantastic team in China that insisted that we localize our portfolio in China to be available to customers across the board, and we did that first for Analytical Sciences business. Yeah. yeah I mean, look, Evie, thanks for the question, but let me start sort of at the highest level. i mean look evie thanks for the question but let me start sort of at the highest level I mean, pharma in China is doing extremely well. i mean pharma in china is doing extremely well I think we talked about this several quarters ago. i think we talked about this several quarters ago Roughly 1/3 of all biotech molecules that are licensed by large pharma now come from China. roughly 1/3 of all biotech molecules that are licensed by large pharma now come from china That has then helped the CDMO industry grow, and also is giving birth to sort of fully integrated, innovative pharma companies in China. that has then helped the cdmo industry grow and also is giving birth to sort of fully integrated innovative pharma companies in china Pharma for us in China grew over 50%, right? pharma for us in china grew over 50% right Behind these trends and strong execution. behind these trends and strong execution This sort of result was only possible because we have a fantastic team in China that insisted that we localize our portfolio in China to be available to customers across the board, and we did that first for Analytical Sciences business. this sort of result was only possible because we have a fantastic team in china that insisted that we localize our portfolio in china to be available to customers across the board and we did that first for analytical sciences business We intend to do the same for Biosciences, where at this point, not much of the portfolio is localized. We're doing that at rapid pace. We have our own site in Suzhou, where we'll start doing this. In Q3, you should start to see seeing the orders flow in from the localized portfolio. There is another headwind in China for the flow business, which relates to export controls, and there we've streamlined the process dramatically during integration planning and now since the close of the deal. In fact, we've seen the highest number of orders flow in in the last few days, ever since the ban went in place. We intend to do the same for Biosciences, where at this point, not much of the portfolio is localized. we intend to do the same for biosciences where at this point not much of the portfolio is localized We're doing that at rapid pace. we're doing that at rapid pace We have our own site in Suzhou, where we'll start doing this. we have our own site in suzhou where we'll start doing this In Q3, you should start to see seeing the orders flow in from the localized portfolio. in q3 you should start to see seeing the orders flow in from the localized portfolio There is another headwind in China for the flow business, which relates to export controls, and there we've streamlined the process dramatically during integration planning and now since the close of the deal. there is another headwind in china for the flow business which relates to export controls and there we've streamlined the process dramatically during integration planning and now since the close of the deal In fact, we've seen the highest number of orders flow in in the last few days, ever since the ban went in place. in fact we've seen the highest number of orders flow in in the last few days ever since the ban went in place It's the same playbook, Eve, that allowed the Analytical Sciences Solution business to now really set the standard for the industry's growth in China, and we expect to do the same for Biosciences. It's the same playbook, Eve, that allowed the Analytical Sciences Solution business to now really set the standard for the industry's growth in China, and we expect to do the same for Biosciences. it's the same playbook eve that allowed the analytical sciences solution business to now really set the standard for the industry's growth in china and we expect to do the same for biosciences

Speaker 5: Your next question will come from Puneet Souda with Leerink. Your next question will come from Puneet Souda with Leerink. your next question will come from puneet souda with leerink

Speaker 7: Yeah. Hi, Udit and Amol. Thanks for my questions here. First one on pricing versus volume. Could you talk a bit about how much of the growth was driven by volume in the quarter? You talked quite a bit about pricing initiatives. Wondering, you know, if you could drill down a bit and just give us some volume growth metrics in the BD business. How sustainable is the pricing tailwind, just given the competition and the, let's say, the microbiology business? Yeah. yeah Hi, Udit and Amol. hi udit and amol Thanks for my questions here. thanks for my questions here First one on pricing versus volume. first one on pricing versus volume Could you talk a bit about how much of the growth was driven by volume in the quarter? could you talk a bit about how much of the growth was driven by volume in the quarter You talked quite a bit about pricing initiatives. you talked quite a bit about pricing initiatives Wondering, you know, if you could drill down a bit and just give us some volume growth metrics in the BD business. wondering you know if you could drill down a bit and just give us some volume growth metrics in the bd business How sustainable is the pricing tailwind, just given the competition and the, let's say, the microbiology business? how sustainable is the pricing tailwind just given the competition and the let's say the microbiology business

Speaker 1: Yeah. On the legacy Waters business, we did roughly a little over 200 basis points of price, and that's consistent with how we've been performing for last few years. On the BD business, we did just about half a percentage of price, which is in line with how BD has been doing historically. That's also what we've embedded in our full-year guide, nothing different from the historic performance. We do see a very meaningful opportunity to bring the BD business where our legacy Waters business is. As Udit outlined, we've already instituted to deal desk. We see tremendous areas of opportunity, not just in pricing, but also in tariff mitigation and also in reagent rental contract compliance. All those are opportunities we are pursuing, none of which are in our guide. Yeah. yeah On the legacy Waters business, we did roughly a little over 200 basis points of price, and that's consistent with how we've been performing for last few years. on the legacy waters business we did roughly a little over 200 basis points of price and that's consistent with how we've been performing for last few years On the BD business, we did just about half a percentage of price, which is in line with how BD has been doing historically. on the bd business we did just about half a percentage of price which is in line with how bd has been doing historically That's also what we've embedded in our full-year guide, nothing different from the historic performance. that's also what we've embedded in our full-year guide nothing different from the historic performance We do see a very meaningful opportunity to bring the BD business where our legacy Waters business is. we do see a very meaningful opportunity to bring the bd business where our legacy waters business is As Udit outlined, we've already instituted to deal desk. as udit outlined we've already instituted to deal desk We see tremendous areas of opportunity, not just in pricing, but also in tariff mitigation and also in reagent rental contract compliance. we see tremendous areas of opportunity not just in pricing but also in tariff mitigation and also in reagent rental contract compliance All those are opportunities we are pursuing, none of which are in our guide. all those are opportunities we are pursuing none of which are in our guide

Speaker 9: Yeah. Just to sort of add one other comment on pricing. There are pockets already, Puneet, in the Bioscience and diagnostics where we see pricing similar to what we've been able to implement in the legacy Waters business. The reason we're not putting it, embedding it into the guide is simply because we want to see that play out and be sort of pervasive across all geographies. Really good starting starting point, and I expect that to be an upside as we go through the year. Yeah. yeah Just to sort of add one other comment on pricing. just to sort of add one other comment on pricing There are pockets already, Puneet, in the Bioscience and diagnostics where we see pricing similar to what we've been able to implement in the legacy Waters business. there are pockets already puneet in the bioscience and diagnostics where we see pricing similar to what we've been able to implement in the legacy waters business The reason we're not putting it, embedding it into the guide is simply because we want to see that play out and be sort of pervasive across all geographies. the reason we're not putting it embedding it into the guide is simply because we want to see that play out and be sort of pervasive across all geographies Really good starting starting point, and I expect that to be an upside as we go through the year. really good starting starting point and i expect that to be an upside as we go through the year

Speaker 7: Got it. Then on the core, I mean, congrats on the momentum there. Wanted to get a sense of, in the LC-MS instrument replacement cycle, where do we stand? Are you seeing sort of a pull forward of that replacement cycle peak that I think you were expecting in 2027? Could we see that in 2026 now? Wanted to get a sense of where we stand in the replacement cycle. Got it. got it Then on the core, I mean, congrats on the momentum there. then on the core i mean congrats on the momentum there Wanted to get a sense of, in the LC-MS instrument replacement cycle, where do we stand? wanted to get a sense of in the lc-ms instrument replacement cycle where do we stand Are you seeing sort of a pull forward of that replacement cycle peak that I think you were expecting in 2027? are you seeing sort of a pull forward of that replacement cycle peak that i think you were expecting in 2027 Could we see that in 2026 now? could we see that in 2026 now Wanted to get a sense of where we stand in the replacement cycle. wanted to get a sense of where we stand in the replacement cycle

Speaker 1: Yeah. I mean, the replacement cycle is going really well. As we outlined, right, I mean, it first started with large pharma, then the CDMOs stepped in. There are still some participants like the CROs and the Chinese branded generics and some of the biotechs that are still not replacing even when their fleets have significantly overaged. That gives us a good runway into 2027. Keep in mind, 2021, 2022 were very large instrument placement years, and those instruments then come up for replacement in 2029, 2030. Yeah. yeah I mean, the replacement cycle is going really well. i mean the replacement cycle is going really well As we outlined, right, I mean, it first started with large pharma, then the CDMOs stepped in. as we outlined right i mean it first started with large pharma then the cdmos stepped in There are still some participants like the CROs and the Chinese branded generics and some of the biotechs that are still not replacing even when their fleets have significantly overaged. there are still some participants like the cros and the chinese branded generics and some of the biotechs that are still not replacing even when their fleets have significantly overaged That gives us a good runway into 2027. that gives us a good runway into 2027 Keep in mind, 2021, 2022 were very large instrument placement years, and those instruments then come up for replacement in 2029, 2030. keep in mind 2021 2022 were very large instrument placement years and those instruments then come up for replacement in 2029 2030 One would say, "Hey, you may hit a bit of a air pocket as we go through 2028." That's exactly where the reshoring dynamic plays out because a lot of reshoring placements would likely happen second half of 2027, all of 2028. The setup is really good. We could move seamlessly from one instrument replacement cycle to another with the reshoring bridge in between. One would say, "Hey, you may hit a bit of a air pocket as we go through 2028." That's exactly where the reshoring dynamic plays out because a lot of reshoring placements would likely happen second half of 2027, all of 2028. one would say "hey you may hit a bit of a air pocket as we go through 2028." that's exactly where the reshoring dynamic plays out because a lot of reshoring placements would likely happen second half of 2027 all of 2028 The setup is really good. the setup is really good We could move seamlessly from one instrument replacement cycle to another with the reshoring bridge in between. we could move seamlessly from one instrument replacement cycle to another with the reshoring bridge in between

Speaker 5: This concludes the Q&A portion of the call. I will now hand it back to Caspar. This concludes the Q&A portion of the call. this concludes the q&a portion of the call I will now hand it back to Caspar. i will now hand it back to caspar

Speaker 2: Thank you, Layla. This concludes our call. We look forward to connecting with many of you at upcoming events and conferences. Thank you, Layla. thank you layla This concludes our call. this concludes our call We look forward to connecting with many of you at upcoming events and conferences. we look forward to connecting with many of you at upcoming events and conferences