Research Reports

Prepared Highlights

Q3 2025 reported revenue decreased 0.5% YoY to $860.5M, with a 2.9% FX tailwind; organic revenue declined 4.5% (prepared).
Scientific Instruments organic revenue declined 5.4% YoY; BEST organic revenue grew 6.9% net of intercompany eliminations (prepared).
Non-GAAP operating margin was 12.3%, down 260 bps YoY but a sequential improvement from 9.0% in Q2 2025 (CEO).
Non-GAAP diluted EPS was $0.45, down 25% from $0.60 in Q3 2024 (CEO).
Scientific Instruments organic bookings grew mid-single-digit % YoY; book-to-bill ratio >1.0x (CEO).
ACA/GOV organic bookings grew high-teens % YoY, despite ongoing U.S. weakness; Biopharma had strongest organic order growth of all end markets in Q3 and YTD (CEO).
China scientific instruments orders grew double-digit % YoY in Q3 (CEO).
Year-to-date Q3 2025 revenue increased 3.0% to $2.5B; organic revenue declined 3.1% (prepared).
Year-to-date non-GAAP gross margin and operating margin performance summarized on Slide 5 (prepared).
Operating cash flow for first 9M 2025 was an outflow of $95.7M, driven by lower profitability, timing of payments, and restructuring (CFO).
Cost savings initiatives (Project Accelerate 2.0) progressing towards high end of $100M–$120M cost-down target for 2026 (CEO).

Official Guidance

Full-year 2025 revenue: $3.41B–$3.44B, reflecting organic revenue decline of 4%–5% (reported growth 1%–2% including ~3.5% from acquisitions and ~2.5% FX tailwind) (CFO).
Full-year 2025 non-GAAP EPS: $1.85–$1.90, including $0.07 dilution from mandatory convertible preferred (CFO).
Q4 2025 organic revenue: expected mid- to high single-digit % decline YoY; Q4 non-GAAP EPS expected to show significant sequential improvement but down meaningfully YoY (CFO).

Mgmt Quotes

"As forecasted, our third quarter revenues and earnings were down year-over-year, primarily due to weaker academic and research instruments demand... However, our Q3 '25 performance was quite a bit better than expected and represents a meaningful sequential step-up from our Q2 performance." (CEO)
"Our improved bookings in Q3 '25 and Scientific Instruments book-to-bill ratio above 1.0 make us optimistic that we may be past the trough in demand." (CEO)
"We are taking up to $120 million in cost out of our business in fiscal year '26 in order to drive significant margin expansion and strong double-digit EPS growth." (CEO)
"Our major cost savings initiatives... are progressing very well towards the high end of our $100 million to $120 million cost down targets for 2026." (CEO)
"We expect to drive improved P&L performance in full year '26 and beyond. With our cost savings plans well on track, we're fully committed to significant margin expansion and double-digit EPS growth in fiscal year '26." (CFO)

Prepared Metrics

Metric	Value	Speaker/Context
Q3 Reported Revenue	$860.5M, -0.5% YoY	(prepared)
Q3 Organic Revenue Growth	-4.5% YoY	(prepared)
Q3 Non-GAAP Operating Margin	12.3%, -260 bps YoY	(CEO)
Q3 Non-GAAP Diluted EPS	$0.45, -25% YoY	(CEO)
Q3 Non-GAAP Gross Margin	50.1%, -110 bps YoY	(CFO)
Q3 BSI Book-to-Bill	>1.0x	(CEO)
FY2025 Revenue Guidance (reported)	$3.41B–$3.44B, +1%–2%	(CFO)
FY2025 Organic Revenue Guidance	-4% to -5%	(CFO)
FY2025 Non-GAAP EPS Guidance	$1.85–$1.90	(CFO)
9M 2025 Operating Cash Flow	-$95.7M	(CFO)

Q&A Batch (1-5 of 5)

Q1 — Puneet Souda

Topic: Q4 order momentum, ACA/GOV vs. biopharma, and U.S. academic recovery
Key points:
- No Q4 data available yet; too early to comment.
- ACA/GOV order strength in Q3 was primarily outside the U.S.; U.S. ACA/GOV orders improved sequentially (Q3 better than Q2) but not a high-teens growth trend.
- Biopharma orders improved in Q3 vs. H1, with particular strength in the U.S.; applied market strength had broad international distribution.
- GigaHertz NMR: no revenue in Q3; one order expected in Q4 (not in U.S.), but could be delayed; Q3 organic decline partly due to >EUR 25 million revenue from two GigaHertz systems in Q3 '24.
Mgmt stance: Neutral – cautious on Q4 trends; needs Q4 orders to give 2026 guidance; U.S. GigaHertz trends still unclear.

Q2 — Avantika Dhabaria

Topic: Government shutdown impact on Q4 and 2026 revenue outlook
Key points:
- Government shutdown impact not formally baked into Q4 outlook; assumed relatively minor so far, but a multi-week/month shutdown could delay grants/orders/installations.
- No formal 2026 guidance; Q4 '25 bookings needed for reliable February 2026 guidance.
- Even without growth, cost cutting can expand operating profit margins by 250–300 bps; double-digit non-GAAP EPS growth expected next year, after ~$0.20 dilution from mandatory convert.
Mgmt stance: Neutral – no revenue growth assumption for 2026; margin expansion and EPS growth achievable even flat.

Q3 — Tycho Peterson

Topic: Margin expansion assumptions, NIH budget, China stimulus, and order pushouts
Key points:
- Not confirming a specific margin expansion number (e.g., 300 bps); driving toward high end of $100M–$120M cost savings target for significant margin expansion and double-digit EPS growth.
- NIH budget: mini budget flush in Q3 (especially September); U.S. academic bookings improved sequentially but not a year-over-year growth driver; can work with NIH down 10–15%.
- China stimulus: less than $10 million in orders (closer to $6 million) in Q3; green shoots but needs Q4 continuation.
- Revenue pushouts: some sites want delivery in Q1 rather than Q4; most large orders from September will be revenue in 2026.
Mgmt stance: Bullish on margin expansion capability; neutral on NIH/China – needs Q4 clarity.

Q4 — Luke Sergott

Topic: China stabilization, spatial biology demand, and instrument vs. consumables cadence
Key points:
- China Q3 slightly better sequentially (including ~$6 million stimulus green shoots); Q4 exit rate not indicative of 2026 due to weak P&L from prior orders.
- Spatial biology: Q3 orders improved (CosMx, CellScape); 2/3 academic/government, 1/3 biopharma; PainScape still early.
- Consumables and instruments both saw strength; new workflows (whole transcriptome) run on existing systems.
Mgmt stance: Neutral – cautious on reading Q4 China as trend; spatial biology improving but U.S. academic funding needed.

Q5 — Subhalaxmi Nambi

Topic: Diagnostics (ELITech) and semi growth in 2026; order strength by product
Key points:
- Diagnostics (clinical microbiology + molecular diagnostics) >$500 million; ELITech growing high single digits in '25, placements 20%+ ahead of business plan; reagent rentals take ~6 months for revenue ramp.
- Semi: ~$300 million annual revenue; flattish in '25 (2 strong quarters, 2 weak); revenue expected to improve in 2026.
- Q3 order strength came from larger ASP instruments (optics, AXS) and European markets (ACA/GOV, biopharma, applied); diagnostics not a major contributor to Q3 order strength.
Mgmt stance: Bullish on diagnostics and semi as core businesses with high incremental margins; neutral on near-term order mix.

Q&A Batch (6-9 of 9)

Q6 — Casey Woodring

Topic: 四季度订单趋势与 backlog 展望
Key points:
- Q4 订单通常环比 Q3 增长是“既定事实”，但同比去年 Q4 的趋势需关注。
- 当前 backlog 为 7 个月（高于 Q2 的 6.5 个月），2026 年表现取决于 Q4 收入结果。
- 三季度美国和中国在学术/政府领域出现补单，而全球其他地区无类似情况。
Mgmt stance: 偏乐观，管理层明确 Q4 环比增长几乎确定，但提醒同比趋势需观察。

Q7 — Brandon Couillard

Topic: 利息费用与股份数更新
Key points:
- MCP 发行带来的稀释股份数约 1,300 万股，该数字基本准确。
- 利息费用因包含外汇损益而复杂，管理层建议在建模讨论中进一步细化。
Mgmt stance: 中性，未给出具体指导数，仅确认股份数大致正确，利息费用需单独分析。

Q8 — Joshua Waldman

Topic: 欧洲订单动力与制药需求的可持续性
Key points:
- 欧洲在学术/政府、应用、生物制药三个领域均表现强劲，且无一次性项目驱动。
- 制药订单在 Q3 环比显著改善，全球生物制药订单强劲，无年末抢单行为。
- 公司认为制药领域正在转向投资工具以提升药物发现效率，而非短期因素。
Mgmt stance: 偏积极但谨慎，对欧洲可持续性有信心，但仍需 Q4 订单确认；制药趋势被看作结构性变化。

Q9 — Douglas Schenkel

Topic: 成本节约计划与 2026 年利润率扩张
Key points:
- 成本节约预期为 $100M–$120M 的高端，95% 的措施已启动或实施，2026 年全年可实现。
- 2026 年利润率扩张目标约 $300M（即使收入条件较弱），大部分节约来自欧洲，但流程稍有延迟。
- 2025 Q4 面临产品组合逆风，是 Q4 营业利润率指引下调的原因；成本节约将在 Q1 实现 90-95%，剩余在 Q2 落地。
Mgmt stance: 偏乐观，管理层承诺目标，强调与欧洲工人委员会的良好合作，但指出 Q1 略低、Q2 补全的时间分布。