Q2 2026 Earnings

Reported July 21, 2026

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

Free Cash Flow

Income Statement

Cash Flow Statement

Balance Sheet

Operating metrics disclosed this quarter

Read from the filing itself — XBRL does not carry these, so no standard financial dataset has them.

Remaining Performance Obligations
$7.50B
Remaining performance obligations related to Topic 606, Revenue from Contracts with Customers, represent the aggregate transaction price allocated to performance obligations with an original contract term greater than one year which are fully or partially unsatisfied at the end of the period. As of June 26, 2026, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $ 7.5 billion. The Company expects to recognize revenue on approximately 41 % of the remaining performance obligations over the next 12 months, 26 % over the subsequent 12 months, and the remainder recognized thereafter.
High-Growth Markets Core Sales Growth
10.0%
Geographically, the Company’s sales in the three-month period ended June 26, 2026 in developed markets increased year-over-year by 2% and core sales in developed markets were down slightly due to a low-single digit core sales decrease in Western Europe and a slight decline in core sales in North America. The decrease in core sales in developed markets was primarily driven by the Biotechnology segment due to difficult prior year comparisons and the Diagnostics segment due to lower respiratory sales. For the same period, sales in high-growth markets increased year-over-year by 15% and core sales were up more than 10% driven by increases across all three segments and across all major high-growth market regions. High-growth markets represented approximately 31% of the Company’s total sales in the second quarter of 2026. For additional information regarding the Company’s sales by geographical region during the three and six-month periods ended June 26, 2026 and June 27, 2025, refer to Note 4 to the accompanying Consolidated Condensed Financial Statements.
Biotechnology Core Sales Growth
2.5%
Sales Growth and Core Sales Growth % Change Three-Month Period Ended June 26, 2026 vs. Comparable 2025 Period | | | % Change Six-Month Period Ended June 26, 2026 vs. Comparable 2025 Period Total sales growth (GAAP) | | 4.0 | | % | | | 7.5 | | % Impact of: Currency exchange rates | | (1.5) | | % | | | (3.0) | | % Core sales growth (non-GAAP) | | 2.5 | | % | | | 4.5 | | % Price increases in the segment contributed 1.5% to sales growth on a year-over-year basis in both periods and are reflected as a component of core sales above.

Diagnostics Core Sales Growth

2.0%

Sales Growth and Core Sales Growth (Decline) % Change Three-Month Period Ended June 26, 2026 vs. Comparable 2025 Period | | | % Change Six-Month Period Ended June 26, 2026 vs. Comparable 2025 Period Total sales growth (GAAP) | | 7.0 | | % | | | 2.5 | | % Impact of: Acquisitions | | (4.0) | | % | | | (2.0) | | % Currency exchange rates | | (1.0) | | % | | | (1.5) | | % Core sales growth (decline) (non-GAAP) | | 2.0 | | % | | | (1.0) | | % Impact of respiratory testing | | 3.0 | | % | | | 5.0 | | % Core sales growth excluding respiratory testing (non-GAAP) | | 5.0 | | % | | | 4.0 | | % Price decreases in the segment of 1.5% in both the three and six-month periods ended June 26, 2026, primarily attributable to the volume-based procurement program in China and the impact of sales promotions in the six-month period ended June 26, 2026, negatively impacted the year-over-year change in sales and are reflected as a component of core sales above. Total segment sales increased 7.0% and 2.5%, respectively, during the three and six-month periods ended June 26, 2026 primarily as a result of the Masimo Acquisition. In the three-month period ended June 26, 2026, core sales growth and the impact of currency exchange rates also contributed to the increase in segment sales. In the three-month period ended June 26, 2026, increased demand in the clinical diagnostics businesses more than offset decreased demand for respiratory tests in the molecular diagnostics business. Core sales excluding respiratory testing increased 5.0% during the three-month period ended June 26, 2026. During the six-month period ended June 26, 2026, segment sales increased as result of the Masimo Acquisition and the impact of currency exchange rates, partially offset by decreased core sales. The decrease in segment core sales in the six-month period ended June 26, 2026 was primarily driven by decreased year-over-year demand for respiratory tests in the molecular diagnostics business, partially offset by increased demand in the clinical diagnostics businesses. Core sales excluding respiratory testing increased 4.0% during the six - month period ended June 26, 2026. Geographically, the core sales increase in the three-month period ended June 26, 2026 was led by North America, Middle East and Western Europe, partially offset by declines in China. Geographically, the core sales decrease in the six-month period ended June 26, 2026 was led by China, North America and Western Europe, partially offset by the Middle East. The core sales decrease in China in both periods was partially attributable to the pricing impact of China’s volume-based procurement program and healthcare reimbursement changes, which has moderated as the Company began to move beyond the most significant year-over-year impacts of these changes that began in late 2024.

Diagnostics Core Sales Growth Excluding Respiratory Testing

5.0%

Life Sciences Core Sales Growth

5.5%

Sales Growth and Core Sales Growth % Change Three-Month Period Ended June 26, 2026 vs. Comparable 2025 Period | | | % Change Six-Month Period Ended June 26, 2026 vs. Comparable 2025 Period Total sales growth (GAAP) | | 5.5 | | % | | | 4.5 | | % Impact of: Currency exchange rates | | — | | % | | | (1.5) | | % Core sales growth (non-GAAP) | | 5.5 | | % | | | 3.0 | | % Price increases did not have a significant impact on sales growth on a year-over-year basis during both the three and six-month periods ended June 26, 2026 and are reflected as a component of core sales above.

Total Company Core Sales Growth

3.0%

Sales Growth and Core Sales Growth % Change Three-Month Period Ended June 26, 2026 vs. Comparable 2025 Period | | | % Change Six-Month Period Ended June 26, 2026 vs. Comparable 2025 Period Total sales growth (GAAP) | | 5.5 | | % | | | 4.5 | | % Impact of: Acquisitions | | (1.5) | | % | | | (0.5) | | % Currency exchange rates | | (1.0) | | % | | | (2.0) | | % Core sales growth (non-GAAP) | | 3.0 | | % | | | 2.0 | | % Impact of respiratory testing | | 1.5 | | % | | | 2.0 | | % Core sales growth excluding respiratory testing (non-GAAP) | | 4.5 | | % | | | 4.0 | | %

Total Company Core Sales Growth Excluding Respiratory Testing

4.5%

Sales Growth and Core Sales Growth % Change Three-Month Period Ended June 26, 2026 vs. Comparable 2025 Period | | | % Change Six-Month Period Ended June 26, 2026 vs. Comparable 2025 Period Total sales growth (GAAP) | | 5.5 | | % | | | 4.5 | | % Impact of: Acquisitions | | (1.5) | | % | | | (0.5) | | % Currency exchange rates | | (1.0) | | % | | | (2.0) | | % Core sales growth (non-GAAP) | | 3.0 | | % | | | 2.0 | | % Impact of respiratory testing | | 1.5 | | % | | | 2.0 | | % Core sales growth excluding respiratory testing (non-GAAP) | | 4.5 | | % | | | 4.0 | | %

Biotechnology Price Contribution to Sales Growth

1.5

Sales Growth and Core Sales Growth % Change Three-Month Period Ended June 26, 2026 vs. Comparable 2025 Period | | | % Change Six-Month Period Ended June 26, 2026 vs. Comparable 2025 Period Total sales growth (GAAP) | | 4.0 | | % | | | 7.5 | | % Impact of: Currency exchange rates | | (1.5) | | % | | | (3.0) | | % Core sales growth (non-GAAP) | | 2.5 | | % | | | 4.5 | | % Price increases in the segment contributed 1.5% to sales growth on a year-over-year basis in both periods and are reflected as a component of core sales above.

Consolidated Price Contribution to Sales Growth

-0.5

During the second quarter of 2026, the Company’s overall revenues and core sales increased 5.5% and 3.0%, respectively, compared to the comparable period of 2025. Core sales excluding respiratory testing increased 4.5% during the second quarter of 2026 compared to the comparable period of 2025. The increase in core sales in the second quarter of 2026 was due to higher core sales in the Life Sciences segment, and to a lesser extent in the Biotechnology and Diagnostics segments. Acquisitions contributed 1.5% to the increase in sales and the impact of foreign currency increased reported sales by 1.0% during the three-month period ended June 26, 2026. For the six-month period ended June 26, 2026, the Company’s overall revenues and core sales increased 4.5% and 2.0%, respectively, compared to the comparable period of 2025. Core sales excluding respiratory testing increased 4.0% during the six-month period ended June 26, 2026 compared to the comparable period of 2025. The increase in core sales was due to higher core sales in the Biotechnology and Life Sciences segments, partially offset by lower core sales in the Diagnostics segment. During the six-month period ended June 26, 2026, acquisitions contributed 0.5% to the increase in sales and the impact of foreign currency increased reported sales by 2.0%. Price decreases of 0.5% negatively impacted sales growth on a year-over-year basis during the three-month period ended June 26, 2026 while price changes did not have a significant impact on sales growth on a year-over-year basis during the six-month period. Price changes are reflected as a component of core sales above. For the definitions of “core sales,” “core sales excluding respiratory testing” and “acquisitions” refer to “—Results of Operations” below.

Diagnostics Price Contribution to Sales Growth

-1.5

Respiratory Testing Sales

$250

Historical and Forward-Looking Respiratory Testing Sales ($ in millions) Three-Month Period Ended Year Ended December 31, 2025 K Three-Month Period Ended | | | | Three-Month Period Ending Year Ending December 31, 2026 K March 28, 2025 | | | | June 27, 2025 | | | | September 26, 2025 | | | | December 31, 2025 | | | | | | March 27, 2026 | | | | June 26, 2026 | | | | September 25, 2026 | | | | December 31, 2026 Respiratory testing sales L ~$650 | | | | ~$300 | | | | ~$500 | | | | ~$500 | | | | ~$1,900 | | | | ~$500 | | | | ~$250 | | | | ~$325 | | | | ~$500 | | | | ~$1,600 K Respiratory testing sales amounts for the relevant three-month periods may not add to the year-to-date period amount due to rounding. L Actual respiratory testing sales are rounded to the nearest $50 million.