Revenue Growth and Mix
Sales of $947M in Q1; local-currency sales up 3% (1% excluding acquisitions); reported USD sales +7%. Acquisitions contributed ~1.5% to growth in the quarter.
Adjusted EPS and Operating Profit Expansion
Adjusted EPS $8.91, a 9% increase year-over-year. Adjusted operating profit $246M, up 4% versus prior year; adjusted operating margin 26% (down 80 bps reported, but up 40 bps excluding unfavorable currency).
Raised Full-Year EPS Growth Outlook
Full-year adjusted EPS guidance raised to $46.30–$46.95, representing 8%–10% growth (an upward revision from prior 8%–9% growth guidance).
Strong Service Revenue and Cash Return Plans
Service revenue grew 7% in Q1 (5% excluding acquisitions). Free cash flow guidance of ~$900M for 2026 (≈+5% on a per-share basis) and share repurchases planned at $825M–$875M for the year.
Regional and End-Market Strength — China and Emerging Markets
Asia/Rest of World local-currency sales up 5% in Q1, including China +4%. Company raised China full-year growth expectation to mid-single digits; emerging markets (India, SE Asia) show very good growth.
Industrial and Product Inspection Momentum
Industrial sales up 5% in Q1 (core industrial +1%; product inspection +11%). Product inspection benefitted from innovation and mid-market strategy, delivering market share gains and strong growth.
Ongoing Innovation and New Product Launches
Continued investment in R&D (R&D $51M, +1% LC). New product introductions include EasyMax automated lab reactor, InMotion PX One autosampler, PFAS-free low-retention pipette tips, expanded X-ray and metal-detection solutions (M50 R-Series with 20% increased sensitivity).
Tariff and Currency Management Clarified in Guidance
Guidance incorporates tariff-rate changes and FX assumptions (FX estimated to be ~+2% benefit to sales at recent spot rates and neutral to EPS); company excludes potential tariff refunds from adjusted EPS and organic sales growth metrics.