Good morning, everyone, and welcome to our 2026 Investor Day. It's so great to be back here in my hometown of New York City. All right, let me begin by covering the agenda for today's session. Here we go. Let me begin by covering the agenda for today's session. Mark Casper, our chairman and chief executive officer, will begin with a company overview. We will then transition to the company strategy section of the presentation, led by Mark, John Luca Petiti, Mike Schaefer, and Jim Meyer. We will then take a short break towards the end of the company strategy section, and then return to hear a few examples of our growth strategy in action, led by Mike Schaefer. After that, we will transition the presentation over to Jim Meyer and learn more about our exceptional financial outlook. After Jim's presentation, we will open up the session to Q&A from the audience and then conclude today's event. Before we begin, let me refer you to the Safe Harbor slide, which contains additional details about our Safe Harbor and non-GAAP disclosures. Please note that certain remarks made by the presenters today, as well as some of the language in the presentation today, may contain forward-looking statements as well as non-GAAP financial disclosures. So, let's begin with a company highlighting Thermo Fisher Scientific, and then we'll turn over the presentation to Mark Kasper.

And at Thermo Fisher Scientific, we help make that progress possible. Every day, our customers take on some of the world's biggest challenges, from developing life-saving medicines to ensuring the safety of our food, water, and environment. Our customers seek us out because we're the trusted partner behind that work. We combine global scale, leading technologies, and deep expertise to help ours move faster, make smarter decisions and bring solutions to market with confidence from early discovery to full-scale production we simplify complexity so our customers can focus on what matters most results our connected platforms and AI enabled capabilities turn data into insight and insight into action accelerating innovation at every step and as science advances so do we expanding our capabilities investing in innovation and strengthening our position at the center of growing and essential industries because when our customers succeed they don't just move science forward they create healthier lives a cleaner environment and a safer world. And that's what drives our success today and into the future.

Please welcome to the stage Chairman and Chief Executive Officer Mark Casper.

Good morning everyone and welcome to our Investor Day. It's great to be with you here in New York and with the many that are signed on virtually. What I would like to do is start by thanking the members of our board of directors that are here with us today as they have been in all the years past as well as the members of the management team for their tireless work to create value for all of our stakeholders we're excited for the day we're gonna give you an update on the company and then we look forward to the discussion at the end of the session so in terms of where I want to start really to give you an overview of the company, as Raf said, and then we'll turn to the strategy. With Thermo Fisher Scientific, everything starts with our mission. It's our purpose as an organization, and that mission is profound. We enable our customers to make the world healthier, cleaner, and safer, and that inspires all 125,000 colleagues to bring their best every day because of the importance of the work that our customers do. And when you click down a level into what that really means from each of those elements of enabling our customers to make the world a healthier, cleaner, and safer place, from a healthier perspective, our pharmaceutical and biotech customers work closely with us because we're accelerating the time to bring life-saving therapies to the patients that so desperately need them, leveraging our bioproduction, clinical research, and clinical development and manufacturing capabilities. From a cleaner perspective, our technologies ensure that the water supply and the food supply is clean for us to be able to consume. And our LC-MS, or liquid chromatography mass spectrometry technologies, are used ubiquitously in those applications. And from a safer perspective, you see here a picture of our TRUNARC analyzer, a handheld spectroscopy instrument. And what it's used for is to determine illicit drugs on the street to help law enforcement in a safe way stop crime and ultimately protect society. And these types of examples, there are tens of thousands of them every day of what we're working with our customers on, ultimately make a huge difference in society and creates a great responsibility as a company to be our very best. Investor Day this year. As you know, you've heard me say in the past, we truly love this day. It's a day for us to talk about our objectives, our future, and how we're shaping the company. The takeaways for today, there are four main takeaways. The first of which is we're an incredibly well-positioned industry leader. We have leading businesses that benefit the company's scale and depth of combined capabilities. We serve attractive and improving end markets, powered by strong long-term fundamentals. We actively manage the company, here to deliver outstanding financial performance and create a very compelling outlook. And we do that by three things. Our proven growth strategy that enables our customer success and ultimately allows us to deliver share gain. By driving significant productivity and operational excellence through our PPI business system. and through our tremendous value creation through our capital deployment approach. And finally, we'll discuss AI at a fair level of depth today, right? And we'll do that and show how AI is going to benefit science and ultimately our industry that we're uniquely positioned to win because of AI and we're actively deploying AI within our company to strengthen our own execution. So a very important part of our agenda today. So our company overview. On one slide, we're the world leader in serving science. Our customers know us for our leading brands. They also know us for our industry-leading scale, $45 billion in revenue, 125,000 colleagues, $1.4 billion of R&D investment into our product businesses every year. And they see us for our leading innovative technologies, our deep, deep applications expertise, as well as the comprehensive biopharma services offering, how we are able to reach them through our commercial reach around the world, be their premier productivity partner, and then we're constantly adding new capabilities to strengthen how we work with our customers. And ultimately, they see us as their trusted partner, and we'll bring that to life this morning. And then finally, it's all about outstanding execution. And our PPI business system really allows us to execute in every environment incredibly well. When you look at the revenue profile of the company, it's incredibly attractive. We have leadership in attractive end markets, and we'll spend some time on that today. Pharmaceutical and biotech represents 57% of our revenue. Our other three end markets evenly split the balance. industrial and applied, academic and government, and diagnostics and health care. We have a very strong recurring revenue mix, with 84% of our revenue derived from services and consumables. And we have an unparalleled commercial engine allowing us to be a truly global company and the largest domestic company in every major market around the world. When you look at our business and you look at our segments, they're complementary to each other. and they are industry leaders in their own right. Life Science Solutions, a leading portfolio serving the bioproduction, life science research, and clinical markets. Analytical Instruments is leading technologies to enable scientific breakthroughs and solve the world's most difficult analytical challenges. Specialty Diagnostics, leadership in cost-effectively improving patient care. And our largest segment, Laboratory Products and Biopharma Services, enabling the biotech and pharmaceutical industry with our leading laboratory products, clinical research, development, and manufacturing services. This combination of products, services, and expertise are highly valued by our customers and allowed us to deliver share gain. When you look at those segments and the major businesses within each of them, in terms of life science solutions, you know us for our leading bioscience reagents business as well as our leading bioproduction business, and you'll hear more about bioproduction today. In analytical instruments, chromatography and mass spectrometry, and we can't wait for the American Society of Mass Spectrometry Conference early next month to showcase our amazing technologies. Electromicroscopy plays a critical role in powering the semiconductor industry. In specialty diagnostics, high-value diagnostic products to meet some of the most challenging diseases, Very strong position in serving the transplant diagnostic market. Autoimmune diseases within the immunodiagnostics is a couple of examples that we represent in this segment. And then finally, in laboratory products and biopharma services, a $24 billion segment. And here we have our clinical research, our pharma services, as well as our research and safety market channel businesses. When you look at those segments and the complementary nature of them, they truly benefit from the total company scale and depth of capabilities. And as you see the strategy unfold this morning, you'll see how our businesses benefit from our high-impact innovation, being the trusted partner to our customers, our unparalleled commercial engine around the world, further strengthened by our capital deployment strategy and underpinned by great execution because of PPI. As a company, we're focused on creating value for all of our stakeholders. And when you look at our stakeholders from a customer perspective, we are their trusted partner to accelerate their innovation and advance their productivity. From a colleague perspective, this is a great place to have a mission-driven career. We have incredibly loyal colleagues around the world that do great work every day. From a community perspective, we're good stewards in our communities, right? And we're focused on enhancing them, giving back, and improving the world for current and future generations. And then finally, from a shareholder perspective, an outstanding financial track record and outlook for value creation. And when you look at that from a financial performance perspective, we have a proven track record of delivering excellent financial results. Over the past 10 years, we've delivered double-digit growth in revenue, adjusted earnings per share, and free cash flow. And that is something that over the different periods of time, you would see that similar trend of just very strong historical growth in the company and delivering for our shareholders. When I think about our focus in terms of the financial areas, the two things that we're consistently focused on in terms of delivering exceptional performance is delivering, one, strong and consistent share gain, right? That drives organic growth, and whatever the environment is that we're living in, what we can control is the share gain that we deliver, and we have an exceptional track record of doing that, and that will be our continued focus going forward. And second, to deliver excellent adjusted EPS growth. And that's been a hallmark of our focus over the last 25 years. 2026 is the year of our anniversary, our 20th anniversary since the creation of Thermo Fisher Scientific. And I thought I would take a minute to reflect on the past and look to the future. And when you look at that perspective, I'll start with our proud history, right? Over the last 20 years, we've had a durable and compounding formula in terms of serving attractive and resilient end markets, a proven growth strategy that delivers results, consistently strong execution, and being outstanding deployers of capital. If you look at the chart at the bottom and you look at the growth in adjusted EPS from 2006 through 2019, you can see that steady progression of growth in our adjusted EPS, irrespective of whatever the end market environment was, whatever the financial health of the world was, just a steady improvement of very strong growth. During the pandemic, you saw a very large step up in the earnings of the company, and including in the unwind of the pandemic. We reinvested heavily during this period and still delivered very strong earnings, allowing us to exit this period a much stronger industry leader than what we went into the period. And when you look at 2024 and beyond, you see that same upward march in terms of the growth in adjusted EPS, and I'm incredibly excited for the bright future that we have. We see it as a differentiated value creation opportunity. We are an incredibly well-positioned industry leader with industry-leading businesses that enable our customer success. We serve attractive and improving end markets that are powered by strong long-term fundamentals, and we actively manage the company to accelerate value creation for all of our stakeholders. And those themes will be the ones that we cover in the rest of our analyst days. So it was a good moment to reflect on our 20th anniversary. We're excited for the decades ahead. So the company strategy. I'm going to kick this session off, and we're going to cover how we actively manage the company for creating value. And when you look at it, there are going to be five elements to what we discuss. We're going to discuss the leadership that we have in growing end markets that have strong long-term fundamentals, our proven growth strategy that enables customer success and delivers share gain, our PPI business system and how that drives significant productivity and enables outstanding execution, that our capital deployment strategy and how it creates tremendous value, and then wrap up with our corporate social responsibility strategy and how it delivers competitive advantage. So this will be the roadmap for our company strategy this morning. So starting with our end markets, we shape the end markets that we serve, right? We've worked to shape what we serve and put ourselves in a position to have a great position in very attractive end markets. And when you look at the end markets we serve, it's a little over a $250 billion end market. So we have roughly just under 20% market share, an aggregate of the markets that we serve. And these markets are powered by attractive fundamentals and enduring long-term trends. And the fundamental driver in this industry, right, is demographics, actually. Aging populations have unmet health care needs. They consume more health care, and they want to live longer, healthier lives. By 2035, there'll be 1.2 billion people around the world above the age of 65. And that is driving demand fundamentally for more health care, which then leads to demand in our industry. A few years ago, you heard me coin the term golden age of biology. Today, we have a greater understanding of biology than really at any time in our history. and it's being accelerated by artificial intelligence. It's an incredibly exciting era. And that is driving fundamental growth in our industry. And I'll delve into more on that in a moment. When I think about the need for expertise, the greater the scientific understanding, the more opportunities for the pharmaceutical and biotech industry to serve those unmet needs, and it's more complicated. And because of our scale and because of the role of our industry, We're able to serve that in a very fundamental way to unlock new cures for patients that are desperately waiting for them. And then in our advanced materials applications for this industry, really an exciting time. There's about a trillion dollars of announced investments in semiconductor capacity around the world to fuel the AI demand for technology. It's really an incredible period, and our industry plays an important role in supporting that growth. So the fundamentals here are very attractive. Given the scale of pharmaceutical and biotech, I not only wanted to talk about the long-term, but also some of the shorter-term dynamics that we're seeing. So when you look at our largest ed market as an industry, starting with pharmaceutical portion of it, what you see is a larger focus on biologics versus small molecules. Biologics are much more life science tools and pharma services intensive than small molecule. So that simple shift of what's in the pipelines drives demand to our industry. And when you look at some of the facts, two very different ones, the scale of GLP-1s is creating a reinvestment cycle in the industry that is really quite spectacular. It's expected at about $100 billion of revenue for the GLP-1s in the very near future, right? And that really does put an R&D reinvestment to effectively fill the pipelines for the future. U.S. government policies has led to a significant expansion of investment in the United States. If you had asked me a couple years ago, would I have expected, you know, half a trillion dollars of commitments to U.S. manufacturing, I would have taken the no on that. And the reality is it's incredibly exciting because when I think about the investment opportunities it means for a company like ours, we serve that, not only in our clinical development and manufacturing capabilities, but our bioproduction equipment. We equip the labs. We supply the facilities. It really is an incredible opportunity. And towards the end of the discussion this morning, Mike's going to bring that to life for you in terms of that opportunity. Biotech, an incredibly important customer set. So in 2025, especially early in the year, you heard me talk about improving sentiment, right? And I said there's a lot more optimism in the biotech customer set. You know, optimism doesn't spend any money, but it was good to see the optimism. And that translated into increase in spending as the second half of last year started to unfold. And when you look at what's happened from a dynamic perspective, M&A has really picked up. Licensing has picked up. VC investment has picked up. And if I look at how the company's growth has picked up this year in biotech, you see a nice step up in what's going on in the actual growth in serving that customer base. So it's really quite an exciting time for the short term. And the fact that we live in an incredibly exciting world from a scientific advancement perspective fuels a very good long-term prospect for the industry. So we're excited for the end markets we serve. One of the questions that I guess get asked often is what does AI mean for our customers? And is AI a positive or not a positive for our demand longer term? So we wanted to share our perspective on that topic today. So when I think about AI and automation that is advancing very rapidly, you know, it's going to be a tailwind for our industry. And when you think about what AI is doing, it's enabling a more predictable and higher return on investment for the research and development process of developing a new medicine. And what that does is it spurs a reinvestment in the pipelines of our pharmaceutical and biotech customers that will drive more demand for our industries. And when you look at the two main elements of our industry, the discovery phase and the clinical research phase, if you think about what's going on today in discovery, what our customers want is more and better drug candidates. And what that results in, the more that they understand the science, the more wet lab validation they will do to ensure that they're actually working on the right targets or on the right candidates, I should say. We're also seeing new demand from what I would call a different type of work, which is purely populating biological-based models. So you're seeing a significant uptick in experimentation just to populate biological understanding to complement the advancement of the drug development pipelines. On the clinical research side, what you're seeing is a desire for faster clinical trials, you know, better enrollment, the right sites, better protocol design to be able to go after complex diseases and do that more quickly and more cost effectively. And where that results in for us is greater demand for CRO services because we're able to help them manage the complexity and leverage the fact that we have more data than really anybody in terms of understanding clinical research and can use ai to actually improve our competitive position so it's an incredibly exciting time in terms of how ai will impact the fundamentals of our industry and as a company we're exceptionally positioned to benefit from these ai driven tailwinds ai you know really does amplify our existing differentiators on parallel global scale depth of capabilities, and the trusted partnerships that we've earned, as well as our execution. We're uniquely positioned to capture AI-driven growth through our presence across the full drug development value chain. We have a very different offering than anybody else, and the data really matters. We're benefiting from the differentiated investments that we've made in data that allows us to have unique insights. And then ultimately, we're partnering with the right collaborators, and they want to work with us because of our industry-leading scale and insight. So it's a really incredible ecosystem that we're very well-positioned to benefit from. So let me conclude the end market overview with the summary that our end markets are large. They have attractive fundamentals. Pharma and biotech is really picking up and strengthening, and we're excited about the future in that end market. AI and automation is a significant driver and we're uniquely positioned to win, and it's an exciting time in terms of our end markets. The second element of how we actively manage the company is through our proven growth strategy. And I'll kick off this section and then I'll turn it over to the members of the team. So when you look at our proven growth strategy, it has three elements. High-impact innovation, being the trusted partner with industry-leading products, services, and expertise, and our unparalleled commercial engine. Back in July of last year, you heard a talk about the outlook for growth, and our view remains as it was back in July, that we see the growth rates of 3% to 6% for the company over 2026 and 2027, and then returning to a 7% long-term revenue CAGR as we enter 28 and beyond. So we're very excited about the growth outlook for the company, and we'll bring that to life. for you in the in the coming discussion so what i wanted to end on is why our growth strategy matters to our customers and when you think about it from an innovation perspective our customers want cutting-edge technologies they're doing incredibly important work and they want the very best and we have an incredible track record here of bringing out those breakthrough technologies they are doing their lives work they want to have a trusted partner by their side to enable their success. And we have an unparalleled commercial engine able to reach every customer around the world in a cost-effective way through whatever channel to market a customer prefers. It really is a unique strategy that has driven long-term success and positions us for an incredibly bright future. With that, I'm going to welcome Jean-Luc to the stage, who's going to kick off our discussion on high-impact and innovation. Jean-Luc.

Mark, thank you and good morning to you all. Good morning to the ones joining us virtually. Over the next 20 minutes, Mike and I will give you an update on the pillars of our proven growth strategy, starting with high-impact innovation. And I will start with an update on our innovation engine and then move to some very concrete example on how our innovation is truly transforming the way our customers work every day. So that's exciting. When you think about our innovation engine, we do innovate at scale. It has been a true differentiator for the company for many years. and we continue to invest aggressively with more than $1.4 billion in R&D investment every year. We do that through 7,000 exceptional colleagues that work within our R&D function. One of the key features of our innovation engine is the connectivity with our customers. The insights we get from them every day with thousands of touch points. Those insights are taken from world-leading scientists in each one of our businesses, and they're creating great solutions for our customers. That has resulted over many decades in a strong track record of best-in-class innovation that delivered very high return on innovation investments. And now, as Mark highlighted, we're complementing that engine with artificial intelligence, and we're very excited about it. Now, why that is incredibly important for our customers is because the end market we serve are thirsty for innovation. Just think of what is happening in biology. with the golden age of biology and our pharma and biotech customers in need of bringing to market more effectively advanced therapies and new modalities to support patients. We're the center of that and our differentiated innovation is supporting them. Or in precision medicine, where with aging population, the need of more frequent, more personalized diagnostic is critical to advanced healthcare and support patients. Or in the world of semiconductor and advanced materials, the demand we're seeing as a result of AI is unprecedented and will be sustained through robotics and physical AI. And our customers are under pressure to get better materials to market, to improve their manufacturing processes. And again, innovation is central to that. So let me start with an example in the field of biology and specifically in discovery and translation with actually an update on one of the most exciting fields of science, proteomics. Proteomics is, in fact, a fast-growing, multibillion-dollar segment in business for us. And the reason why it's so fundamental to the capability of our customers to innovate is because it's giving them a real-time view of what is happening in biological systems. If you think back at when genomic came about, genomic gave scientists the possibility of taking a still picture of life. Actually, proteomics is giving scientists the capability to watch the movie of life. And that's why it's so exciting and so fundamental now that they can map proteins at scale near real time. And that will unlock not only a deeper understanding of disease biology and the underlying mechanism of disease and their progression, but also novel protein drug targets, novel drug candidates, and over time, an all-new class of diagnostics. So it is incredibly exciting. And what we have done over the many years is to assemble an ecosystem that is highly differentiated and quite unique. Starting from where our customers face the biggest challenge, the very complex processes of preparing sample for the analytic process in the sample prep, we innovated materially over the years, both from a hardware and reagent standpoint. On the detection technologies, we've been consistently providing the gold standard to our customers Through our mass spectrometry, through our O-Link high affinity proteomics solutions, with our cryo-electron microscope for structural biology, amongst others that you have represented on the slide. Truly transformative to the capability of our customers to run science. And now we're complementing the ecosystem with an exquisite suite of software and solutions to allow our customers to analyze data at scale. And I can tell you, spending a lot of time with them, they're producing more data than ever. And obviously, we're complementing that innovation with artificial intelligence, bringing more solution more digital solutions to our customers so what is the result the result is that we're getting the preference of our customers in fact our technologies are as I said the gold standard in proteomics with very wide adoption but not only we're getting our customers preference day in and day out in their lab. They're actually entrusting us with their most critical projects, large population study, where they entrust our technology with hundreds of thousands of samples being tested on our platform. We shared in the past, as an example, the UK Biobank, selecting our thermo-fissure all-in technology to do their proteomics testing. A more recent example is Precise, in Singapore, one of the leading precision health programs globally. They did something unique. They actually decided to combine our mass spectrometry technology and our all-in technology providing them breadth and depth understanding the proteome of Singaporean citizens and they are on the verge of very exciting discovery as you think of the way that they're going to advance healthcare in Singapore. So that's a great example of collaboration with customers at scale and I have to say we're just getting started. So that's an update on Proteomics. It's a fast-growing multi-billion dollar segment. We have a unique differentiated Proteomics ecosystem and our customers love it. So now let me move from an exciting update to another equally exciting update because I don't think you can talk about innovation these days without talking about AI. Actually, I don't think you can talk about anything today without talking about AI. So let's dig in what we are doing in that space. As Mark highlighted, our customers are focusing on accelerating the amount of data they are generating to train AI model. And equally, they are focusing in streamlining their processes, improving their laboratories so that they can run science more efficiently. In that journey, we'll focus on three things. Enabling our customers with more speed to insights, helping them improving their R&D processes, and ultimately trying to support them in what is going to be a transformation in their capability of getting drug to market more success will mean more therapies to patients and we're actually uniquely positioned to do that as we serve our customers across the continuum of what they do we start with helping them in designing their experiment, supporting them for all their needs in their laboratories, in the setup, including procurement of products, as well as the testing phase where they're using our technologies day in and day out and ultimately supporting them with software tools to analyze their data. That's quite unique as there's not another company serving customers with that level of breath. But we were missing something. And therefore, we decided to strengthen our physical value proposition, the hardware-software reagents, with great partnership with leaders in the digital and AI space. Mark highlighted our partnership with OpenAI. I'm equally excited for our partnership as an example with nvidia that partnership would result in the first version of fully autonomous instruments being deployed to our customers in the second half of the year what does that mean more speed to result better quality and full integration of those platforms into their AI ecosystems. So we're very excited for what AI is bringing to our end markets and we're equally excited for our progress in supporting our customers with more and better artificial intelligence solution. Now let me pivot to another exciting example, precision medicine. As Mark highlighted, aging population is requiring more frequent, more personalized and precise testing. And the way that we have tackled that over the last decade is to laser focus our next generation sequencing business on that very challenge. And I'm incredibly excited to give you an update today on our NGS business and the contribution that it has done to medicine. In fact, more than 50% of all non-small cell lung cancer companion diagnostic tests today are done on a thermo-fissure scientific platform with our ion-torrent GeneXus DX integrated sequencer in combination with the Oncomine DX express test. What does that mean in simple terms? Is that an oncologist can go from a sample to a therapy selection for a patient in as little as 24 hours. And that is a fully walk-away system. So it's simple to answer. Incredibly simple. And it's truly transformed the way that doctors are identifying the right therapy for the right patients with the right timing. because that's incredibly important for cancer patients. So that's an exciting update on our next-generation sequencing business that has been a world leader in clinical-based NGS now for years. And finally, let me pivot to the world of semiconductor. In fact, AI is driving an unprecedented demand in the space of semiconductor. And our customers are truly under pressure as they have to accelerate manufacturing, improve their processes, innovate in the way they develop new materials. In this example, the time to yield in high-volume semiconductor manufacturing is a critical area of focus for our customers. You're looking at very large fabs and month-long semiconductor manufacturing processes. What is the need? It's better quality and, more importantly, full integration of automated system in line of manufacturing. And that's what you see in that picture. It's a bit dark because it's a quasi-lights-out lab. you can see the track on the ceiling of the factory that track is capturing samples at the manufacturing sites delivering it to our microscopes that are seamlessly analyzing those samples and just in time delivering result to manufacturing managers this technology has been so transformative that we retain a very high share in the semiconductor space and it's been a very material contribution to the revenue for our material sciences business as well as for the company it's more than 3% of the company revenue is now in that space so it's incredibly exciting how we are truly transforming and advancing the the capability of our manufacturing customers to advance their processes. And with that, I wrapped the high-impact innovation. We started with the innovation engine. We looked then at a few examples on how we are consistently transforming our customers' work.

And now, I'd like to invite Mike to share with you how we became the trusted partner for our customers mike okay thank you very much sean luca that was excellent so i'm going to spend some time talking about our trusted partner proven growth strategies and how that enables customer success and equally important enables us to drive tremendous share game. And I'm going to give you also a sense for what Mark alluded to, why it matters to be a trusted partner and from the customer perspective and how they think about it and how we're uniquely positioned to deliver on that. So what you're looking at here is basically our definition of our trusted partner status. And it's something where we uniquely occupy this position in the marketplace. Because we're the only company in our end markets with the scale and depth of capabilities to serve our customers' needs. And so when we talk about scale, what that means is that in many cases, we're the largest single supplier for the customer, which makes us incredibly relevant to them. And what depth of capabilities means, it's a huge differentiator for us. Because if you just think about a typical customer, let's just say a pharma and biotech customer or pharma customer I'll take. If you're the head of R&D, you want to spend time with us because we provide your teams with the best tools and capabilities so that they can accelerate their scientific breakthroughs. That's super important to the head of R&D and all of their person's teams. If you're the head of manufacturing, you need access to the best equipment, manufacturing equipment, and supplies to ensure that your manufacturing facilities are operating efficiently and productively. In addition, you probably are using parts of our CDMO capability to complement your internal manufacturing. So it's super important to spend time with Thermo Fisher if you're head of manufacturing. Oops, excuse me. If you're the CFO, remember we're usually the largest supplier, but we're also the source of support for driving productivity across their organization. So we're very important to supporting their agenda. And if you're the CEO, the CEO's in a position where they want to try to accelerate innovation. That's their most important strategy, and that is exactly what we are positioned to do and why they want to spend time with us. And so that scale and depth of capabilities are extremely relevant to our customers. But remember, we have to back this up with performance, and we have. We've done that over a long period of time and have an unprecedented track record of driving performance. And our customers have seen us deliver for them. They've seen how our customer-centric culture shows up in the daily engagements with their teams every day. They see us solving some of their most critical challenges on a regular basis. And they see us consistently performing in a wide variety of different market environments. And from that, we've built this great track record of success and performance for them. And that is how we think about it. So the way we think about it is that we need to earn their business every day, which is exactly what gives us our access to customers. Because it becomes super logical for customers and their teams to spend time with us because we're making their jobs better. We're helping them be successful. And then what we do is we take the insights and experiences that we get from all of these engagements. and we continuously invest in new capabilities, both organically and through acquisitions. All of this creates a compounding effect that drives share gain for us. It's almost like a flywheel effect. The more we invest in solutions for our customers, the more they engage with us, the better we execute, and the more business or share gain we end up getting. And so this is the case in all of our end markets. that we serve, but it's particularly evident in our pharma and biotech end market. And so when you think about the pharma and biotech market, one of the biggest challenges our customers face is that bringing a new therapy to market is incredibly complex and it can take more than 10 years and $2 billion to get there. So our customers need a trusted partner that can help them drive faster scale up of clinical trial programs and get them to commercial launch faster. They want a partner that they can access to provide scientific and regulatory expertise to help them with the increasingly complex modalities and support them as the regulatory environment evolves over time. And they want a partner that is able to drive productivity for them so that they can reduce the costs involved with manufacturing and development, giving them the flexibility to redeploy their capital in the areas that create the highest value for them and their business. And so when I think about what underpins all of this, when you look at the entire flow from discovery to clinical development and scaling up in commercial production, we are uniquely positioned with the scale and depth of capabilities to address their needs. We have a foundational set of products that are critical to the work the customer is doing every day. And when you look at our portfolio of services, they're essential to the clinical development and commercial scale-up and manufacturing capabilities. So the combination of these capabilities are what give us a unique position to address their needs. And so I wanted to give an example of what this might look like for a customer. And so in this example, this is a biotech customer. I call it an early-stage biotech customer. based in South Korea, or no, I'm sorry, based in New England, actually, is a company we've met with many times over the years. The way we first approached them is through our commercial engines. So we got into this customer earlier in the process. Jean-Luc had told you about the proteomics environment, what's going on there. Well, this customer is actually developing new therapeutics based on proteomics. And so we were in a great position to address their needs. relative to our mass spec portfolio, and reagents for proteomics. Then, as you think about it, over time, as they start to grow and build out their lab capabilities, we became the rational partner to help them do that. We understood what they were working on. We were able to support them with our channel business and lab supply capabilities so that they could efficiently build up that lab. as they start to get closer to clinical trials we're there as well we know exactly where they're headed we bring our clinical trial team earlier than we might have otherwise and we help them design that trial moving forward and so in this customer case we're actually in phase two trial right now with them and starting to work on planning for their phase three program so our trusted partner status truly enables us to increase market share with these customers because we're with them during the entire journey of their work with us. And so on the clinical research side I want to dive into a little bit more detail on how we're thinking about utilizing AI in this environment. So the reality is that the clinical trials are complex and they take a lot of time from trial design and site selection to patient recruitment and execution and regulatory filings and so the ai impact is clear customers can get faster trials better execution stronger outcomes which then importantly unlocks the pipeline so that customers can do even more successful trials and this requires a partner that has the scale and depth of capabilities across the entire clinical workflow. And this is actually where we really are differentiated. We combine large-scale data sets, global clinical execution, and advanced AI capabilities, including the point that was mentioned earlier about OpenAI and our collaboration with them, to deliver these solutions in an integrated, scalable way. And so the combination is why customers are selecting us. It's a key reason why we continue to win and how we extend our leadership in clinical research while helping our customers to bring therapies to patients faster. And so, when you connect our CRO and CDMO capabilities together, you have what you've heard from us before as our Accelerator Drug Development Program, which is an integrated model that connects every step of the drug development process from early development through clinical trials and commercialization. Effectively, what we're doing is making it faster, simpler, and more efficient for our customers. And this unique offering is a key element of how we are a trusted partner for our customers. The recent acquisition of Clario, too, adds an important capability around digital endpoints that further differentiates our capability. And let me expand a little bit on why it matters and how this kind of plays out for the customer. And so when we look at what our customers are requiring here is, number one we have to be able to support them across all major modalities and therapeutic areas and then as they go through their journey we're there to support them on every aspect of their pre-ind filing activities their clinical trials and then eventually their post approval and commercial scale up we do that across a global network with trials and supply capability operating around the world And importantly, we connect it all. We bring our CDMO capabilities, our CRO services, our clinical endpoints, and our trial supplies so that each step of development is integrated and not fragmented. That's a key point here. And so that integration matters because it enables our customers to make faster, better decisions, and reduce the complexity of managing multiple vendors. and it removes the delays that often come between different phases and so this is exactly why and what accelerator drug development means and it's an integrated entirely unique model we're literally the only company in the world that are providing these capabilities for customers and I want to give you a few examples here of what this looks like and so this is the Korea South Korea customer that I was thinking about originally. So our commercial team met this company after they were already down the road a little bit with some of their preparations for phase one. And the issue was that the people they were working with, they really had some terrible delays in the program. And so our commercial team went in there and started understanding what their needs were, of course. And we ramped up our accelerator capabilities, integrating multiple solutions that eliminated several bottlenecks in the process. Formulation issues, trial design issues, and regulatory alignment requirements. And so the cool part about this is the customer saved about 12 months in the whole process. We took something that was delayed to accelerating it by almost a year. And the cool part for Thermo Fisher is it's really a great example of how when we engage with biotechs, anywhere in the world for that matter, we can literally drive share gain with our accelerator drug development capabilities. And so the second example, this is a larger, you know, biotech, biopharma type of company. It's a US-based company. And it's a company that we have been working with for a while. We have a pretty well-established trusted partnership with them. and in this particular program it's a respiratory disease that they were working on that addressed a large patient population need it was a and we were working with them in the whole program from the beginning and so then we're coming into phase three and they identified an issue they identified a need to try to get to commercial launch much faster than they had originally planned And the reason was is there was a competitive market. There's some seasonality issues. And they said, you know what? We need all your guys' help to double down and get this out the door faster. And so, fortunately, we had our CRO and CDMO capabilities already embedded in the phase one and two activities. And so our teams were able to identify. We had plenty of levers to pull because we kind of had it managed all under one roof. They identified a bunch of different areas that they could drive some cycle time reductions. Ultimately, what happened for the customer is that we were able to activate over 160 different sites in less than eight weeks. It's huge. I mean, there's something like 8,000 patients in this. And we reduced the enrollment time and the dosage timeline by more than 50%. Really just blew away the targets that were originally set. and that trusted partnership became the key element for how we were able to support their needs. And so you'd get a little bit of a sense of why we're driving share gain across the clinical research and pharma services business. And I would just, let's see, I don't think I have another example. I would just give a little bit of a summary. So when you think about our trusted partner growth strategy and how that enables us to gain share, you can think about how we work with our customers across many different areas with our scale and depth of capabilities you look at programs like accelerator drug development for our pharma and biotech customers and you can see the reality of why this creates opportunities for us to help them accelerate their innovation drive productivity and ensure that we're gaining share across all of the the end markets here within our trusted partner status uh around the world and growth strategy around the world so thank you very much obviously this is super exciting it's real we're actually winning a lot of share right now doing all of this and i'm super excited for the prospects moving forward with that i'll have john luca come back up and talk to us about the parallel commercial engine mike thank you and let me pivot to another very important element and differentiation that we have at the company, our unparalleled commercial engine.

And what differentiate has here is the combination of three elements, an exceptional commercial scale and access. We have, in fact, what is the largest commercial organization and presence in essentially all markets that we serve in our industry. Then that's combined with a decade-long journey or decades-long journey to actually build what is a truly comprehensive infrastructure, both from a supply chain standpoint and services standpoint, that allow us to reach every customer every day, essentially across the globe. And finally, an extensive set of data and insights that we gained from the interaction with our customers, both physically and digitally, happening every day. So let me give you an update on each one of those, starting with the exceptional commercial scale and access we have. We have thousands of interactions with our customers every day. This is happening as a result of the largest commercial team in our industry. And as I said, it gives us the benefit of powerful insights. We also interact with our customers at all levels, from the front line to key decision makers, all the way to the C-suites. In fact, there's not a week that goes by that us, the senior executive team at the company, don't interact with many executives at our customers and that's strengthening our trusted partner status were there for them when they need us the most the second element is a comprehensive set of infrastructure and services that have been assembled and scaled and we truly continue to invest in those capabilities every year, starting with our customers enablement center. This is a center where our customers can go, demo our solution, test them, learn about innovation, and ultimately is a big driver of adoption of our technology. We also have leading on-site services. It means thousands of Thermo Fisher Scientific colleagues spending time at our customer site every day. They're fully integrated in their operation. And finally, we complement that with scaled capability and very specialized in supply chain and logistic, both in mature market and across the world in emerging market and the regions. So truly a comprehensive set of capabilities that gives us the opportunity to have access to a tremendous amount of data and customers inside. Whether those insights are coming from physical interaction and knowledge that our teams are developing, being on site with customers, or through the digital interactions where our leading e-commerce platform, ThermoFisher.com and FisherSci.com are the most scaled e-business platform in the entire industry where we have millions of touch points and transactions happening every year. And then obviously we're taking full advantage of artificial intelligence to analyze those data scale and ultimately improve our capability to serve customers day in and day out. Let me give you a concrete example on how this set of capabilities are coming together in a single integrated platform. Our research and safety market channel business. Our research and safety market channel business, it's a highly differentiated and scaled channel to market. Just think that we have more than 6 million products. We aggregate 9,000 suppliers into one single channel for our customers. That yields more than 4 million orders processed every year. We have more than 2,000 colleagues that are sitting at our customer site every day. and i tell you i visit a lot of those customers you can't differentiate whether someone is working for thermal fisher or is working for our customers is incredible the level of trust and integration and then on the bottom of the slide you can see the importance of our infrastructure with scaled and integrated supply chain and logistic and delivery, including logistic service directly to customers delivering product here in the US and the global scale. And when you combine that with our digital presence, with FisherSide.com, which is a premier website utilized from our customers to find choice and convenient, this creates a truly spectacular experience for our customers. And it has resulted, over the many years, in consistent share gain in the space. So we're very excited about our research and safety market channel. It's performing extremely well. Another element of our unparalleled commercial engine is our presence and investment in emerging markets. And trust me, I had the opportunity to spend three years in South America, five years in China. This is incredibly important. Our customers in the region are incredibly thirsty, not only for innovation, but for support, for help. And they look up to Thermo Fisher Scientific as a partner of choice to advance their science. And these markets have been very good growth for us over many years, and they're incredibly attractive in terms of long-term growth prospects, driven by obviously favorable demographics and growing healthcare spend in most of these markets. we continue to invest a scale and employ commercial capabilities and on the slide you have few examples we're doing that in areas like India Southeast Asia and Brazil where over the last year we have increased our presence both from a manufacturing standpoint commercial some point customer enablement center standpoint and we continue to do so over time creating what should be an equally exceptional experience in the region compared to what our customers are getting here in the U.S. And we're getting that to many, many of our customers. So with this, let me wrap up our proven growth strategy section. We started from high-impact innovation, a key differentiator for our customers in all the segments we serve. Mike explained how we gained trusted partner status and the central role of our services business to elevate the engagement and trust of our customers. And we closed with our unmatched and scaled commercial engine, which is a practical but incredibly important aspect of our strategy, connecting us with our customers every day. And with that, let me now call Jim to the stage to give you an update on our PPI business system. Jim?

Thank you John Luca and good morning everyone. One of the constants in my 17 plus years with the company is the PPI business system. I vividly remember sorry I vividly remember my initial PPI training upon joining the company that included a competitive simulation on most efficiently making toast. Picture it I'm a new finance guy about three days into the company, I'm in a makeshift kitchen in the mezzanine of a Rochester, New York factory on a team of value stream supervisors trying to shave a few more seconds off our next piece of buttered toast. It's an incredibly memorable and valuable learning experience for me. I'm reminded of it every time I'm in my kitchen at home taking any unnecessary steps between cupboards and drawers, and then annoying my kids, explaining the missed efficiency opportunity right in front of us. The fundamentals are very simple. The concepts are very fundamental, but incredibly powerful when deployed at scale. The PPI business system at Thermo Fisher is our discipline that enables outstanding execution. It's how our global teams know if they had a good shift, a good day, a good week, a good month, a good quarter, and ultimately a good year on repeat. It also allows us to know quickly and course correct when we're off track, and it does happen. PPI facilitates continuous improvement where all 125,000 colleagues can contribute to finding a better way every day. This creates robust pipelines of opportunities to reduce our costs, enhance our quality, and make the customer experience better tomorrow than it was today. We deploy PPI to help us effectively navigate complexity, like integrating acquisitions, mitigating inflation with agility, or executing large-scale transformation programs. In the current environment, we're focused on delivering excellent growth in adjusted earnings, and we're using PPI to deliver an accelerated level of productivity. We're aggressively leveraging our scale to grow the use of our global shared services and functional centers of excellence. We're expanding the use of product cost reduction capabilities through value engineering, and we're actively managing tariffs. We're also deploying PPI to drive working capital efficiency, additionally benefiting free cash flow generation. AI is allowing us to run the company even better within the framework of continuous improvement and PPI. At the core of it is reimagining business processes to drive efficiency by deploying AI tools. This drives real cost reduction and a step change in scalability as we grow. As we look forward, we expect our headcount growth to be far less correlated to our volume growth as it's been in the past. AI is also unlocking tremendous value and insights from the vast proprietary data that we have across commercial, operations, and supply chain. Allowing us to work even smarter end-to-end, further strengthening our predictability and execution. the examples on the right show how we're more efficiently serving customers even better on a daily basis with real-time knowledge we're deploying advanced software development capabilities to accelerate new product timelines and further stimulate innovation and we're strengthening our operations through by deploying automation and predictive modeling to improve our throughput and reduce downtime. The PPI business system at Thermo Fisher is deeply ingrained in our culture. It lives within us as a persistent passion to always be better. It fuels consistent, outstanding execution, and it drives durable margin expansion over long periods of time. We are excited about how AI can strengthen its impact moving forward. With that, I'll turn it to Mark to talk about capital deployment.

Jim, the toast story really resonated with me. I have to admit, Allison hates when I give her suggestions about how to run the household. So I stay in my lane. When I think about the fourth element of our company strategy and how we are actively managing the company, it's really about capital deployment. And our disciplined approach, Jim's going to walk through that in his presentation, but it hasn't changed. It's been a proven approach to unlock significant value for our shareholders. What I did want to talk about is our proven M&A strategy, which is an important element of our capital deployment strategy. And when you look at that strategy, it's been incredibly successful. It starts with a rigorous selection criteria for all acquisitions. A company must strengthen our customer offering so that it will be valued by our customers. It has to enhance our strategic position as a company. And when you listen to how Mike talked about the trusted partner status, you see how the businesses keep reinforcing one another and how we've curated those capabilities to have a stronger and stronger competitive position. And that ultimately it has to create meaningful shareholder value. And we measure that through the ROICs, ROICs, the internal rates of return, as well as the EPS accretion that it adds over time. The second aspect of that strategy is disciplined decision-making, right? Because there will be a number of companies that will fit that criteria. And the decision-making process is really to characterize risk and to understand the various scenarios of the businesses that we buy and how it will work out and our ability to deliver against the commitments we make to our shareholders. And our track record through that decision-making process has really been exceptional. We have a proven integration process for those businesses that we acquire. And the result of that combination of understanding the selection criteria, buying the right businesses, a proven way of integrating them, is to be able to ultimately enhance the financial and operational performance of well-run businesses that we acquire, right? We don't buy broken businesses, we buy good businesses with strong competitive positions, we make them better. Our ability to deliver synergies has been exceptional, whether it is the aggressive cost revenue or tax synergies that we're able to target that really has created meaningful value. And ultimately, those businesses, you see them within our leading segments as having better strategic decision-making processes that drive their long-term success. We've been active deployers of capital. In terms of M&A, we've deployed $70 billion since 2012, and here are some of the major acquisitions that we've done over that period of time, and we've done a significant number of smaller ones as well. I thought in a moment I would give you an update on a couple of the more recent large acquisitions that we've done. But first, I want to talk about capital deployment and M&A in the context of how we actively shape our business. When we think about it, we're adding to our capabilities. And if you look at the couple recent acquisitions that we've done, both Clario as well as Solventum's filtration and purification business, they've actually expanded our capabilities in high growth and markets. And as part of our process of shaping our business, we actively look through our portfolio, think about are we the right owners of our businesses and best businesses to free up capital and free up time. At the end of April, we announced the upcoming divestiture of our microbiology business as part of that portfolio management as well. So a quick update on our two most recent acquisitions. We closed the acquisition of Solventum's filtration business at the beginning of September of 2025. As a reminder, the rationale for the acquisition was it was adding leading capabilities in filtration and separations technologies in the production of biologics. A very complementary set of capabilities to our bioproduction portfolio. And ultimately, it's enabled us to serve an unmet need of our customers in the filtration segment. And when you look at how it's going, while it's early days, it starts out with a $750 million set of capabilities that's been added to our company. We're on track for this business to become a mid- to high-single-digit organic growth business as part of Thermo Fisher. And I think over time, you'll see us move higher in that range. We're on track to deliver the synergies. The teams have done a really nice job on the early synergies and really setting up the plan and execution against a $125 million target. And we're on track to deliver the double-digit internal rates of return that we signed up for when we announced the transaction earlier in 2025. So really an exciting addition that's going very, very well. we announced clario and we were able to close clario at the end of march we announced at the end of 2025 and the rationale for clario was to really bring the industry leading and you know endpoint data solutions into our company and this is a business that is has very differentiated technology proprietary data assets it's very much of an ai enabled business with deep deep scientific expertise it really is a very special edition it positions our company in one of the fastest growing segments of drug development in clinical research it's a great fit with our laboratory capabilities in terms of one of the key areas that we bring in generating endpoints in clinical research and ultimately it's going to give us deeper clinical insights for our customers in the drug development process when you look at clario this was a nine billion dollar acquisition for us. It is foundational in terms of its role in the drug development process. It has supported over 30,000 clinical trials around the world. 70 percent of the medicines approved by the FDA and EMA have been using these capabilities over the past decade, and we're actively working on 3,000 trials around the world. Really an incredible set of capabilities. Financially, the business did 1.25 billion dollars last year this year in the nine months that we will own it it'll add about 20 basis points to our margins 32 cents to our adjusted EPS and longer term the expected impact here as a reminder is it will be accretive to our organic growth or adjusted operating margins and to our adjusted EPS we're on track to deliver the hundred and seventy five million dollars of adjusted operating income by year five and deliver double-digit internal rates of return an incredible opportunity to create shareholder value from our capital deployment strategy we're excited about the pipeline of activities that we're looking at today and we'll continue to be good stewards of your capital the final element of how we're actively managing the company to create value is around our corporate social responsibility strategy right and ultimately it delivers competitive advantage and I want to spend a moment on that right I started this morning with our mission right and when you think about i talked about our colleagues i talked about a great place to have a mission-driven career and when you think about the company and our colleagues passion you know they want to work for a company that is a great steward of the planet a great member of the community making a difference to society and that really creates a remarkable culture that allows all of us to bring our very best selves to work and work as a winning team. Our commitment to environmental stewardship is important to the company. And when you think about some of the examples of our road to net zero, you know, today 63% of our electricity is sourced from renewable sources. We're well on track to deliver 80% of that by 2030. And in some of the markets where it doesn't exist yet in terms of renewables, As soon as it does, you'll see us continue to advance our target in terms of the use of renewable electricity. You know, when I think about how we operate, it's incredibly important that we operate as an ethical company, a safe company, a high-quality company, and that is critical to our colleagues and critical to our customers as being a trusted partner. And in giving back to our communities, we're so passionate about science and STEM education that last year, 180,000 students around the world have benefited from how we give back to education. And really a compelling view of the difference that we're making. And all of this focus on corporate social responsibility is about creating an environment where our customers want to work with us, our colleagues are passionate about being here, we manage risks for the future, and we set ourselves up for a bright future. So with that, um we're going to take a break i think you got a good sense of the company's strategy we'll take a 15 minute break we'll return mike will come up and talk about how we bring this to life um in one of our businesses and one of the business opportunities and then we'll turn to our financial outlook so see you uh shortly thank you please welcome back to the stage

mike shaffer welcome back everybody i hope you're well and highly caffeinated now ready for the the next part of our session. So what I want to do here is you've heard a lot about our company strategy, the proven growth strategies, PPI business systems, capital deployment. And what I want to do is provide a few examples. These are really cool big examples, by the way, that we're uniquely positioned to go after. But talk a little bit about how we combine these capabilities in a way that enables us to drive share gain and win new business. And so I'll start with our bioproduction business. This is an outstanding, you guys I think have heard a lot about our bioproduction business over time, and it's really an outstanding business in its own right in a very fast-growing end market. We're the leading provider spanning the full cycle from cell culture media and single-use technologies to filtration, purification, and production chemicals. And so we have a leadership position in core categories, and the business has been and continues to be an exceptionally fast-growing business, growing extremely well with clear momentum as it fully leverages our total company capabilities. And so when you think of this, what we're showing here are the components of our company. strategy and growth strategies, and I'll start with our ability to invest in high-impact innovation. And so that ability enabled us to create new technologies that really address critical challenges for our customers. The one we're showing right now is our DynaDrive single-use bioreactor that really enables customers to accelerate process development and scale up to a much larger scale with single-use technology. And so if I think about our trusted partner status, we're not just supplying products for our customers, we're working with them to help understand what's necessary to design and validate end-to-end bioprocessing workflows. And we do this through our commercial engine, where we're able to engage customers around the world, leveraging our scale of commercial efforts and bring the right subject matter expertise to the discussion, either in their facilities or in one of our global located bioprocessing design centers. These design centers are cool because it gives the customer a chance to come in and take a look at the equipment, understand how it's used, even run some non-GMP type of trials. And as you heard from Mark earlier, our ability to deploy capital to address critical categories of capabilities that enable the customer workflow solutions with the solventum filtration business is a fantastic way by which we continue to strengthen our bioproduction business, leveraging our company growth strategies and driving growth and continuing to drive growth and share gain for the business. And so the next one I want to bring your attention to is the U.S. reshoring theme that we're seeing across all of our big pharma customers. And so biopharma companies have announced, I think you guys have all heard over a half a trillion, Mark mentioned it earlier, half a trillion dollars in u.s manufacturing investments and they're really looking for partners who can help them move quickly and what they're really trying to solve then are these time-based challenges around how do i move some of my programs into the u.s now and they're doing that with our us-based cdmo capacity and then number two how do i accelerate the whole process of scaling up these new investments in the US. And so again, company strategy, the components of it coming together in a way that enables this. I mentioned the DynaDrive here. Well, this is a part of an entire platform we're creating. So if you imagine if you're going to build a new facility, you're going to want the great, the best in class next generation platform to fit out your new factory. And in this case, what we're showing you here is the entire platform so from lab scale all the way up to commercial scale on the dyna drive platform this really becomes the next generation and it's a great opportunity for us to capitalize on the the new investments in building out manufacturing in the u.s from a trusted partner status so in the near term what they want to do is get some of these programs into the U.S. right away. That's a huge priority for them. And so they're leveraging our CDMO capacity to do that. They know us already. We're working with all of these big pharma companies in our CDMO business and across many others. So they know that we're in a great position to help them as a trusted partner advance or accelerate this agenda. And so that unparalleled commercial engine is based on the fact, as I mentioned in the trusted partner section, we're working with clients at each level of their company. And so as a result, we're in there very early talking to them about their specific needs and what we can do with the subject matter expertise to help them design and build out the workflows and concepts that they need to drive and then from a capital deployment perspective you may know that from a sterile fill finish perspective there's huge demand for capacity and so we used our ability to deploy capital to acquire sanofi's new jersey sterile fill finish facility and create capacity for all of the programs that we want to start customers want to start transferring into the u.s And so, in summary, when you think about all of these components of our growth strategy, you really can get a sense for how we're generating share gain and demand and supporting these customers. And the point I want to make on this last page, too, is that this is not some sort of way out in the future thing. We're actually already winning new business, significant new business for our CDMO because people are moving programs into our capacity right now. And we're getting great traction on supporting customers with their planning and development programs for the new builds that they're going to do. And so what I want to do is give you an example of this. This is real world. We're actually in the process of doing this right now with one of these top 10 pharma companies where the way we're engaging with them right now, and of course we've been working with them for many, many years, is we're working with them right now on enabling the validation of the workflow with this bioproduction platform that I mentioned. And so our teams are together running tests and so forth in our design center so that they can get a good understanding of what it's going to take to do this at scale in their new facilities. And from a short-term perspective, we're already working with them on giving them capacity for their new programs to transfer in so we can start to run those now and actually validate them in a GMP environment. And then the last piece is so when they get the facility built, they want to ramp it up extremely quickly. And so we will be in a great position to help them do that ramp quickly because they've done the tech transfer into us already, and we'll be able to help develop the tech transfers to them ramping up in the facility on the same platform that we've been using. So it's really a phenomenal opportunity for us. It's kind of one of those once-in-a-lifetime opportunities, and we are so well-positioned to win and gain share here. It's very impressive. So in summary, company strategy, two big opportunities, how we deploy the components of that strategy and combine them in ways that really enable us to drive share gain in the industry. So with that, I hope you get a good sense of how that all works. I want to hand it over to Jim to talk about the exceptional financial outlook outlooks.

Thank you, Mike. Those are great examples of our strategy in action where we bring the power of Thermo Fisher to a particular business or across businesses to enable our customer success or capture an attractive market opportunity. You've heard much about our company and our customers' important work, and I'm excited to spend a few minutes now sharing our exceptional financial outlook. I'll be bridging what you've heard about our end markets, our differentiated growth strategy, and our disciplined approach to capital deployment to what the expected financial outcomes will be as we execute in 2026 and beyond. i'll start with a look backwards and then dive into 2026 then as i look forward i'll talk specifically about our expectations and approach to managing the company over the midterm which we've defined as the next couple years and then i'll turn to share our expectations for the longer term starting with a look backwards taking a 10-year historical view clearly demonstrates rates are proven track record of delivering exceptional financial results. Over the course of the past decade, we've delivered double-digit compound annual growth rates in revenue, adjusted earnings per share, and free cash flow. This is a strong reflection on the attractiveness of our end markets, the impact of our proven growth strategy, the power of the PPI business system, and compounding capital deployment generating excellent returns. Turning now to 2026 and a summary of the guidance provided during our Q1 earnings call. The bottom line here is 8 to 10 percent growth in adjusted EPS. This reflects our commitment to delivering strong earnings growth as our end markets and top line continue to improve. Clicking into some of the key assumptions embedded in our guidance. Our organic revenue growth range remains three to four percent with a midpoint slightly above three percent. We have very good visibility and continue to have very good visibility to the expected sequential growth progression across the year. Adjusted operating income margin expansion of 70 basis points includes an approximately 30 basis point headwind from the impacts of tariffs and related FX year over year, the majority of which we've already experienced in Q1. Acquisitions will contribute $1.5 billion in revenue or 3% reported growth and $0.27 of adjusted EPS, or 1% growth. In terms of free cash flow, we expect to deliver between $6.9 and $7.4 billion, and this includes an elevated level of capital expenditures as we ramp the capabilities of new acquisitions and invest to support our customers with their U.S. manufacturing initiatives. We are on track to deliver our financial commitments for the year. Turning now to the midterm, as a reminder, in our July 2025 earnings call, we provided a financial framing that included roughly the next couple of years, including 2026 and 2027. This represented a view of how we were actively managing the company in a more muted but improving set of market conditions to deliver outstanding earnings growth. We outlined an expectation for 3% to 6% organic revenue growth progressing through that range over the period, and that with that top-line assumption, we would deliver 50 to 70 basis points of margin expansion and mid-to-high single-digit growth in adjusted operating income. As we stand here today, we are on track to deliver the mid-term financial framing provided. Organic revenue growth is on track with an improving trajectory. Our end markets are progressing as expected, and our customers remain focused on advancing their priorities. We are executing well on the accelerated level of productivity embedded while funding high-return strategic investments and delivering strong earnings growth. The accelerated level of productivity is proving durable, and we are still in the early innings of unlocking efficiency from AI and automation. Capital deployment continues to be a compounder of long-term returns. In Q1, we closed the acquisition of Clario, which is immediately accretive to our margins and adjusted EPS. The business is on track and expected to grow high single digits under our ownership, and the integration is progressing very well. In late April, we announced we had entered an agreement to divest our microbiology business for about $1.1 billion. The transaction is expected to close in the second half of the year. We'll provide any expected impact to our 2026 financials and our Q2 earnings call. When I layer in the impacts of known capital deployment to the previously provided organic elements, our expectation for growth and adjusted operating income improves. We still expect 3% to 6% organic growth progressing through that range over the period. we will deliver 50 to 70 basis points of margin expansion each year and we now expect to deliver high single digit growth in adjusted operating income for both years as usual we'll provide specifics on our expectations for 2027 in january pivoting now to a longer horizon as i think about the makeup of the company as we exit 2026 we are incredibly well positioned to deliver outstanding financial performance and create long-term value for all our stakeholders our actions have shaped our end market mix to 60 percent pharma and biotech with compelling growth fundamentals and where our trusted partner status strongly resonates with customers Our business mix of greater than 85% services and consumables is highly durable, and our new acquisitions are well on track to be accretive to organic growth as they anniversary their close dates. Capital deployment will continue to be a compounder of returns, and the PPI business system has never been stronger. We are incredibly well positioned to capitalize as our end markets continue to improve. We thought it would be helpful to share what we view as the building blocks to our long-term expectations of a 7% organic revenue CAGR. It's helpful to start with 2025 as a grounding baseline where we grew 2% in the face of several specific end-market headwinds that impacted the company's growth. Turning to the building blocks for 2026 and beyond, I've outlined the key drivers of steady end-market improvement that we've begun to see or expect to see moving forward. This steady improvement is what progresses us through the range of 3% to 6% over the next couple years, and then to 7% organic revenue CAGR beyond that. This implies that in-market growth progresses to normalized levels of about 4% to 5% in the out years. Starting with pharma and biotech, we saw improved biotech funding driving strong authorizations growth in our clinical research business last year that's translating to stronger revenue growth this year. As biotech continues to improve, funding will flow further to discovery and research, which we serve with industry-leading businesses across our products portfolio. In pharma services, we've been investing in production capacity to support existing customers with their ramping up for commercialized medicines. We have well-contracted capacity coming online over the next several quarters that give us great visibility into the business progressing to stronger and sustainable organic growth in the back half of this year and beyond. At the same time, we're actively supporting our customers with their U.S. pharma manufacturing investments. As Mike outlined, this will first be realized in our CDMO capabilities, and then more broadly in bioproduction, analytical instruments, and the Fisher Scientific Channel. In addition to the shorter-term impacts of capacity builds, we expect our long-term outlook to improve as well, because our technologies and capabilities are incredibly well-positioned to have higher share in newly built production capacity. Further out, as detailed earlier today, we expect R&D pipeline investment to accelerate as the benefits of AI improve the return and predictability of drug discovery. Our unmatched breadth and scale of capabilities, including our accelerator drug development offering, position us incredibly well to win as AI helps bring more medicines to patients over time. Turning to industrial and applied, our electron microscopy business is a critical enabler to innovation in semiconductors. As investment in innovation accelerates and focuses on more efficient, higher-density chip designs, our cutting-edge instruments play a critical role enabling our customers' success as they scale capacity and transition new chips into production. In diagnostics and health care, we've seen reimbursement impacts globally, including in China, that we expect to moderate over the near term. As discussed earlier today, aging population demographics support our expectation for a steady uptick in testing volumes over the long term. In academic and government, we expect to see stabilization of funding in the U.S. and China over time. Specifically in the U.S., we've seen the approval of an NIH budget with a slight increase in funding, and it was positive to see the flow of funding improve at the end of Q1. The cumulative impact of these market growth catalysts gives us great confidence in the organic revenue growth progression we are planning for over the long term. Turning now to capital deployment, which will continue to be a strong contributor of value creation in the future. Our ability to generate strong free cash flows gives us substantial capacity for capital deployment in the short, mid, and long term. Our disciplined approach drives outstanding returns, and those are additive to the returns generated on our organic investments. Mark outlined the tenets of our M&A strategy and the highly fragmented nature of the industry gives us a robust pipeline of opportunities to execute against. M&A remains the primary focus of our capital deployment strategy and you can expect share buybacks will remain the primary means of returning capital. over time we expect to deploy capital roughly two-thirds to M&A and one-third for return to shareholders that mix can vary in any given year depending on the opportunities available our formula for long-term financial success is very attractive and represents a compelling value creation opportunity taken all together our long-term outlook includes a seven percent organic revenue CAGR, delivering 40 to 50 basis points of margin expansion annually fueled by the PPI business system, then layering in substantial capital deployment, delivering strong returns. This leads us to delivering low teens adjusted earnings per share and free cash flow growth consistently over the long term. As I close the financial section, let me bring back together the key points that underpin our exceptional financial outlook and compelling value creation opportunity we have a proven track record of delivering our markets are attractive and improving which supports the steady organic growth improvement outlined our growth strategy is differentiated and delivers compounding share gains when we deliver well for customers we earn the right to do more no one else can bring the depth or scale of capabilities that we can the ppi business system is the engine that drives great execution consistently and produces durable margin expansion over time ai will only strengthen its impact and we have substantial capacity for capital deployment and ample opportunities to deliver excellent returns thank you for your time today i'm one of over 125 000 colleagues who are incredibly excited about the bright future we're building together for our company we appreciate your continued support of thermo fisher scientific i'll now turn it to mark to open the q a and invite john luca and mike to the stage Thank you.

Thank you, Jim. We're looking forward to your questions. Eileen and Raf have the mic, so if you raise your hands, they'll hand them out. So we'll start there.

Thanks for the question. Mike Riskin, Bank of America. Mark, Jim, a number of times in your remarks you kind of alluded to, you know, end markets continue to improve. You're seeing early signs of that improvement. You know, you updated the LRP today again to, I think, 7% organic growth in the out years. You kind of refined it a little bit last year, too. But it's still a long ways away from where you are today and where the end markets are today. So that slide you had a couple slides ago, Jim, the building blocks of the long-term growth, the bridge, that's really helpful. But just wondering if you could drill into that a little bit. How much of that is tangible? How much of that are you already seeing today versus maybe is a little bit more still hypothetical or theoretical? It's just what gives you confidence in that 18 months that you'll get there for 2028?

Mike, thanks for the question. So when I think about the end markets we serve, right, and we gave the midterm view in a period where I think the investor community in particular, about a year ago, very uncertain about what the markets were and actually us explaining how things would progress was very reassuring to the investor base. And if you think about it, we've had the benefit of three quarters since then. And the markets have actually played out exactly as we've expected to, right? There's lots of things going on in the world. We have a war and all these other things. But actually, our end markets are incredibly predictable. And so where I sit today and I think about how much we're interacting with our customers across all four segments, they would articulate that the activities would actually support the progression that we're laying out so we feel that the ability to see the growth in the 3-4% range this year we're on track to do that we had very strong orders in the first quarter all these dynamics that set it up and if I think about what 27 looks like it feels like a continued progression of that and as you exit that period you get into that long term dynamics. So hopefully that's helpful.

And if I can ask a follow-up, you touched a lot on AI and how that's being implemented, how that's changing pharma R&D. I think the longer-term argument of improving ROI R&D and pharma reinvesting that, I think that makes sense, but there's still a question of where will those dollars go? Will those dollars get reinvested back into tools, or will they get reinvested back into AI or maybe other processes? So I don't know if you had any specific examples you could point to. I mean, there were some major headlines today about pharma deploying quad at a high level um sort of you know the early adopters of ai on pharma are they spending more with thermal where are they spending it are they shifting how that money is allocated between clinical pre-clinical just any details you can give on that would be helpful sure so mike when i think about i've had the benefit of being in this industry for 30 years, right?

And in every technological advancement that we've seen, whether it was genomics or all of the different ones that have happened, the advancement of science has expanded the market. And AI is so exciting. So what does it really mean, where the spending is? This customer base understands fundamentally how complicated biology is and the higher the certainty you have or you actually invest in wet lab of those experiments right and of course there's going to be experiments that never get done right because you know from in a way in silico that it's a waste of time but there's so much desire to spend money and time on things that matter the wet lab validation would be a great way of giving confidence on the earlier side of research that you do that and then on the development the higher the confidence you have in the molecule the more indications effective you run you kind of front load your spending so so we're quite excited about it and maybe the most tangible example i can give is some years ago um in you know in electron microscopy you know alpha fold existed right and There was early read that the fact that you could have in silico predictions of a microscope, what would happen, would there be less electron microscopy done? And what actually happened, it was a huge accelerator because actually once you had more insight, you actually wanted to validate it. So it's a very much applied, in a way, AI example to a technology area where you could have a hypothesis that it shrinks the market. The reality is it ultimately expanded the market. So hopefully that's helpful. Great. So, Rafa.

Hey, thanks. Tycho Peterson from Jefferies. Maybe just a couple follow-ups there. First, just on the adjustment to the LRP, is that just prudence going from 7 plus to 7, or is there something that has changed in your outlook? And then, I guess just thinking about AI, is there any way to quantify how much training LLMs might actually raise R&D in the next couple years? I mean, it seems like it could be a significant amount. And then are you investing in semi-capacity as well? I think it's 3% of revenues today you said. What priority is that to build out capacity? And it sounds like you've got some autonomous instruments coming, too. I'm just curious where you're alluding to there.

So, Tycho, thanks for the questions. In terms of the outlook, and then I'll have Jean-Luc talk about some of the AI aspects of it in electron microscopy. so when when we looked at the the outlook actually it's the same in terms of what it is well we what we thought about the longer term is what is the view on the market and our view is that it's going to average seven percent there'll be years definitely above it they'll be the years of the plus but for the analyst community we wanted to actually be able to model because I don't know how you model a plus so we put the seven percent CAGR out there and of course there'll be years that'll be higher than that and on the years that'll be around that and so that's how we thought about it and we're quite optimistic and quite confident in the progression of the market returning back to that more normalized growth. Jean-Luc?

Tycho, thanks for the question and perhaps the best way to address it is share a couple of examples of engagement with our customer and how they are thinking about it and I was recently with one of our large customers in the Boston area. It's a biotech company. They're very tech forward. They actually built their business on the premise that AI-driven drug discovery will enable them to accelerate drug-to-market. And they had to create an enormous amount of cryo-EM structure in this. We supported them to actually begin to train model. I was recently, another company in the Boston area we're sharing notes on and perhaps more importantly which kind of data are available to truly train models and I think the general consensus and what we're hearing from customers everybody in the tech biospace is trying to generate more and more data so we'll definitely see a pretty material acceleration over the next I think few years including customers that will build data factory that will be specifically deployed to train AI models. So it's definitely a quite clear trend hearing it from our customers. There's going to be substantial deployment capital in increasing their testing throughput over the next few years.

And maybe just one quick follow-up for Jim on AI on margins. You know, I understand it's an enhancement to PPI and understand your long-term kind of guidance here on margins, But how do you think about AI contributing to maybe margin expansion above that?

Yeah, thanks. And not already margins. Thanks, Tycho. When I think about the 40 to 50 basis points of margin long-term in an environment growing 7%, it's about $80 to $100 million of more annual productivity than kind of the previous, the historical long-term model. And we feel really good about our ability to deliver that, and AI will be a major contributor of that. We see an endless opportunity to drive incremental cost efficiency, and we're still in the early phases of prioritizing and understanding the future costs of that deployment as well, so that we can really get to a number. If it proves to be bigger than that, then we're well-positioned to capitalize on it.

Thank you, Jack. Meehan, I wanted to follow up on the AI questions. I think one of the big themes of today is AI will benefit the industry over the long term. Something you didn't talk as much about is all the data resources that Thermo Fisher has, including the recent Clario acquisition. Can you talk about what you might be able to do in terms of new products that customers can improve their productivity with?

Sure. I'll start, and then I'll turn it over to Mike to add as well. So when I think about clinical research, you know, more broadly, before we talk about Clario, one of the really unique assets that we have is we've just run an enormous number of trials, right, much more than any of the innovative pharmaceutical companies, just given our scale, right, and the two large CROs are in that, you know, unique position in terms of the amount of data. Everything from protocol design, everything from site selection, the regulatory filings, it benefits enormously from the experiences right so when you actually think about the trend that ai enables the development process the stronger your data footprint is the more capable you are the better actually you have as a competitive position so you know clara really adds to it in terms of the insights that it brings but mike maybe you talk about an example and you know in terms of how we're applying what we're seeing yeah the the the simple way that we think about it is when you're when we're involved in all aspects of the

workflow you know endpoint solutions clinical supply and so forth we kind of have we have a unique set of data all under one roof and so when we in the physical world like with accelerator right now when we accelerate their trials we get we win more business they give us more molecules and they create more programs and so from the data angle it's similar concept we're in this kind of unique position where we're going to extract the data out of that you know in ways that nobody else can and figure out ways to model it so what we have this uh uh age ai kind of suite of agents right now that we're applying it to clinical forecasting uh trial execution and so forth but the key to that is that we're underpinning that with this whole workflow data and so what we're able to do is start to forecast where we're going to have opportunities to accelerate the trial with patient recruitment and so forth more effectively and adding in the Clario piece into that is really going to be super helpful and Clario they have 40 50 different agents already being deployed on the platform that they've got on their program too and that's continues to grow and one follow-up what are the kpis that we should be tracking to kind of be able to judge for ourselves that this thesis that ai will be better for the industry is showing up i'm thinking things like an increase in the number of new companies that are being created or an

acceleration in r&d spend because customers are making more money because they're bringing more things to market what are you seeing in the business like what do you think would prove that out i always go back to what we hold ourselves accountable to which is delivering the organic growth outlook um that we've outlined in terms of how we're translating that and when i think about our expectations you know pharmaceutical and biotech you know we expect it to be a high single digit growth um you know market for the company we'll be giving you examples through throughout time in terms of the what we're seeing in terms asking for our customers and and bring it to life. But at the end of the day, it's all going to be how it translates into our top line performance. So that'll be helpful.

Good morning, Mark. Doug Schenkel here. Under your leadership, there are many examples of how Thermo plays offense when others are playing defense, especially in periods of slower growth. Clario and Solventum, those deals in the Sanofi site acquisition. Those are good examples of how you've done that recently. So with that in mind, really, I guess, kind of a three-parter. One, is there more to do this year in advance of the group, you know, hopefully moving into a more meaningful period of recovery? Two, are the partnerships you cited as part of your efforts to be seen and to be positioned as a trusted AI partner, things like NVIDIA, BenchSci, Tetra. Are those kind of new components of your offensive playbook? And then third, collectively, are these actions fully reflected in the LRP? Thank you.

Yeah, so Doug, thanks for the questions. I agree with the sentiment, right, which is in periods that are not massive tailwinds, right? There are periods where, you know, you're living there but most times or not it's those are when you differentiate yourself as a company and you strengthen the industry leadership the moves we made on the downside of the pandemic to strengthen the company really allowed us to exit in a stronger position than anybody else i love this environment from an m a perspective so we're very active does that mean anything gets done we don't know right because we're going to stick with our discipline about can we generate strong returns from it but this is a good m a environment because you know companies aren't loved as much as they once were and we can be a solution for some of those companies. So I think that is positive. When you think about the AI partnerships and the trusted partner status from that lens, whether it's OpenAI or NVIDIA, they want to work with the industry leaders because they understand we actually have more data, more insight, more commercial reach. So the more successful we are, the better off it's going to be in terms of the revenue that they generate. So we've been able to curate a set of partners that allows us to be successful for the future and have flexibility as well so that as other companies evolve their technology and become very competitive that we'll be able to bring those capabilities you know into our company as well so hopefully that that helps what was your third question yeah so so when I think about it you know right now we want to deliver against this. We're not constraining ourselves to the 7% CAGR, and as we move through the midterm, we'll start to articulate how we see the end markets playing out, and we'll get some more data points on what does the academic and government look like, what does China look like, and those could be obviously upsides to what we're assuming right now. Thank you.

Hi, Evie Kuzlowski with Goldman Sachs. Given your LRP hinges on not only thermospecific growth initiatives, but but also the underlying market improvement. Can you walk through how much of the improvement in the growth rate depends on thermospecific execution versus broader end market changes, and then what are your expectations around the broader market growth baked into the 7%?

Jim, do you want to talk a little bit about that?

Yeah, sure. So I'll start with the assumptions on the end markets within the long-range model of progressing to a 7% organic revenue CAGR. And the underlying end market assumption is that we've progressed to a normalized level of about 4% to 5% end market growth over that period of time. And that means we'll continue to drive share gains of about 2% to 3% over that period of time. And we've outlined the compelling growth strategy and give examples of real share gain opportunities, and we expect to be able to accelerate and deliver more throughout the period.

Great, and then you guys talked a bit about emerging markets and some of the investments you're making there how much of a growth contribution from these markets is baked into the 7% and then how do you balance investments there relative to China where we've seen an increased investment from MNC Pharma in the region Evie, thanks for the question so in terms of the emerging markets there are clearly some incredibly exciting things going on in India, certainly in Brazil and a number of the markets that will continue to support the long-term growth that we've outlined. We have a large presence in China. It's about 7.5% of our revenue. When you look at what's going on in the end market, actually, farm and biotech is growing nicely, right, despite the fact that, you know, the industrial healthcare sectors are under more pressure in China. For us, farm and biotech has been very strong, right? There's a lot of activity that's going on. The Chinese companies, they think about their Chinese competition. They know if they're going to license to a Western company, there is a real competitive advantage for the Chinese company to work with the right Western partners. I was in China at the end of March, and I was thinking about the number of leaders of the Chinese biotech companies that I met with. They want differentiation relative to somebody else that's trying to get a license for a molecule, and they're opening up new opportunities for us.

Western companies are investing very heavily, not only in doing their own early research and early development in china but also figuring out how to license um as well and that's creating more growth opportunities i actually think china um is likely to and probably uh if it plays would expect it actually could be actually an upside relative to what's assumed in our model so thank you hi mark dan areas from steve i wanted to ask you about biotech if i could sure obviously your scope across the industry is super broad and my assumption is that your account level details are pretty good too so it kind of feels like you're our best shot at asking this question but you know have you been able to look at spending at the company level for biotechs that have raised money either in 2024 or during this wave here in 2026 and draw conclusions on what might happen and the reason I ask is because I think we're all just sort of looking around and wondering whether this financing activity is going to translate to higher spending for these companies and I'm wondering whether that's just like a wrong thesis to have at this point so you know have you been able to look into the numbers and say this company raised 200 million dollars and you saw that six months or 12 months later yeah so so it's a great question don't lose the faith um so we hang out with these people all the time right i mean if you think about what our biotech customers are doing

they are trying to make an enormous impact on human health right and you know the individuals are doing their life's work to make a difference in society and build great businesses and if you think about um the cycles right that go in here on the earlier stage biotech companies the ones that are pre-revenue but could have be spending at a high level the pattern is actually quite predictable right which is there's roughly a six-month lag between the you know raising of money and activity starting to pick up and you know it largely always shows up in the development pipelines first because as you progress through development you are able to tap into more funding right so you see that we talked a lot about how authorizations in clinical development really were picking up in the second half quite meaningfully that would then turn into spending thereafter and you saw that in our growth rates pick up in the fourth quarter first quarter in clinical development the activity now is starting to pick up in the research which follows in the next phase so actually that cycle is you know predictable and we've lived through many cycles right this is not a new phenomenon on the pacing of it so I feel very good and you're seeing M&A activity pick up which then leads to you know more interest in vc in the industry you're seeing that activity pick up in terms of funding of new companies and new rounds you're seeing licensing pick up so actually the environment feels very good and will set us up um in the in the way that jim articulated it over the next couple of years for a nice step up in growth you know in the biotech area so um should be very positive and we feel highly confident you're also seeing what i'll call the um you know not the emerging but the mid-sized biotech companies which have products on the market those companies you know we work with incredibly closely and because they are actually meaningful customers but they're still small enough that two or three people at those customers make the decisions for the organization those are spectacular customers for us because we're able to sit down with the CEO

head of development head of operations at the same time and just lay out a compelling you know way forward to be able to accelerate their timeframe to market so we're very very excited about biotech okay that is helpful perspective thank you then maybe just to go back to your your comments on china what is the underlying growth assumption beneath the seven percent CAGR for china when i think about the old long-term growth rate that you talked about and a seven percent number today one of the big differences there is obviously just what what that geography is capable of yeah our assumptions embedded in the seven percent would be below the company average.

That's what's assumed there. The upside is farm and biotech becomes a larger and larger proportion, grows more quickly. But for now, we're assuming it's a bit below the company average.

Hey, Mark, it's Dan Brennan from TD Cowan. I guess the first question would be, I just wanted to go a little further on Mike's question on the bridge. So you've got 3% to 4% growth this year. I think you're closer to 3% at the kind of midpoint. And And consensus sits around 5% for next year, which seems reasonable in the context of the 3% to 6% framework. So I'm just wondering, like, the confidence level and seeing these levels of growth. And I'm just wondering if you can help bridge a little bit more on how we think about either customers or business segments improving to support the growth.

Yeah, so, Dan, thanks for the question. When I think about our confidence, you know, you have an experienced management team that's interacting with our customers all the time. We have extraordinarily high confidence in the progression of our end markets and what the next couple of years and what longer term looks like. When I think about how do you support that, you ultimately support that with customers making decisions to spend their resources with us. And if I think about the pipeline of activity, the orders that we're winning, which is much faster, actually, than the organic growth that we're delivering right now, we're building that backlog, if you will, to support the progression. When we talk about things like pharma services capacity, Mike's team has sold it out. It's not we just need to actually bring those online, go through the regulatory process, produce the medicine. So what's embedded in the step-up is largely in our control, right? And so we feel very good about that in terms of what the next couple of years are. And we understand the drivers are end markets. That supports the longer-term growth as well.

And then maybe as a follow-up just on an AI question and the benefits that you're expecting, particularly on the PPD business, I'm wondering if you could differentiate between how you think about the impact on the broader CRO industry versus your ability to capitalize on AI, since I think a lot of CRO peer stocks have faced more challenges given some concerns around what the impact could be.

Yeah, so when I think about the entire CRO industry, like every segment, there's always going to be a certain level of winners and losers, right? But for the industry as a whole, I actually think for the companies that have, you know, the deep data and capabilities has a real competitive advantage in serving the farm and biotech industry. So I'm quite bullish about our position in serving that. And it's actually from two different lenses, right? It's actually the capabilities we have today to support pharma and biotech and how we're applying AI to be able to really lead in the field and benefit, as Mike articulated in the accelerated drug development, understanding all of the handoffs between the physical creation of a medicine alongside the development process is a huge advantage, actually, in shaving time and cost out of the process. So we feel we're uniquely positioned to win. Thank you, Dan. We'll take one last question.

Great, thanks. Luke Sergat, Barclays. So all the questions on AI, I feel like there's a different paradigm across drug discovery, regular research in the labs, down to pharma manufacturing, where you almost have it fully adopted on the manufacturing process on the semis business. And it feels like that we have a different scale of automation that's needed across the different labs. And so can you talk about the investments that you guys are making from an innovation side where the research, you know, traditional wet lab work is needing to adopt all this innovation and automation? And, like, how close are we to getting to that semis automation example that you used?

Yeah, so Gianluca, why don't you talk about how some of the larger customers are thinking about the lab of the past versus the lab of today and how we're helping them modernize the approach to the early research.

It's interesting. The lab of the future became the lab of today. We're starting to see material traction in terms of demand for automation. We do have a business that is focused on automation and software. We combined those businesses a few years back, and we're seeing really good demand. I would say we're going to see more as some of the data factories are becoming more real. And as we said, the amount of data that needs to be created at scale is so material that we'll naturally see more and more demand for automation. One of the challenges that the industry had historically is that automation has always been incredibly bespoke. Large engineering project, and I think over time, we're going to see automation being productized more, and companies like ours will have a lot of benefit from it, considering the scale that we have in being able to bring productized and more standardized automation to our customers. Great, thanks.

And just last year, kind of follow-up on Aries' question on the biotech side, but pharma's been backfilling a lot of their pipelines with M&A within China biotech, and I feel like China biotech was an upside driver for the tool sector in 1Q, and it feels like that's a durable tailwind going forward. And I guess it's more of a question, does that kind of supplant the innovation that's needed and done on the Western biotech side that drove a lot of upside growth, let's say pre-COVID and is this just you know shifting around to the dollars or is this going to be something that can be incremental on top from from what we're seeing from the funding side on the western side?

That's a great question Luke when I think about what we're seeing we're seeing really a nice pickup in funding in the west as well right so you're seeing that dynamic in China and we're also seeing some of the you know western biotech companies saying we want to do some more of the early clinical research actually in China to get a quicker read on whether my molecule is safe and efficacious, right? So you're actually seeing, you know, global companies saying, all right, Thermo Fisher, you have the reach into China. Help us actually tap into that market as well. So whether we're in Cambridge or whether we're in Shanghai, that we're able to take benefits of the regulatory landscape as well. So we see it as an upside, an additive to our total business. So let me conclude with the takeaways of the day. And I think it came away with the enthusiasm we have for the future in terms of how well we're positioned as the industry leader and how our businesses benefit from the scale and the depth of capabilities that we have, that we serve attractive end markets that have long-term compelling fundamentals, We're actively managing the company through our growth strategy, our PPI business system, and our proven capital deployment approach, and that we're excited about AI and the acceleration of science, how we're uniquely positioned to win because of AI, and then ultimately we're applying AI as well to how we're running the company to further strengthen our execution. So we're very excited for the years ahead. we look forward to updating you on our progress periodically starting next in the month of July with our earnings call thank you everyone and thanks for attention today