Reported Revenue Beat
Q1 reported revenue $823.4M, up 2.7% year-over-year (FX tailwind +4.5%, M&A +2.6%, organic -4.4%) and came in ahead of prior expectations.
Strong Bookings and Book-to-Bill
BSI segment organic bookings grew in the high-single-digits and BSI book-to-bill was comfortably >1.0x for the third consecutive quarter, providing momentum into Q2 and beyond.
AI-Driven Solutions Gaining Traction
Semi Metrology now a >$300M annual business with strong AI-driven demand (memory chips, advanced packaging); SciY software and lab digitization ~$50M and growing; several groups saw organic bookings >20% in Q1.
BEST Segment Large Multi-Year Orders
BEST secured ~ $80M of multi-year orders for Fusion research instruments and ~ $600M of multi-year superconductors orders (Dec–Apr) from major MRI customers, supporting medium-term stability in BEST.
Segmental Strengths and Product Innovations
CALID Group revenue $316M with mid-single-digit CER growth led by molecular spectroscopy; product launches and NMR/spatial biology innovations highlighted as leadership areas (e.g., AVANCE NEO-X, PaintScape/CosMx advances).
Cost Savings Exceeding Target
Annualized cost-savings now tracking around $140M (above prior $100–$120M target), with ~300 bps benefit already attributed to actions taken in FY25.
Reconfirmed Full-Year Guidance
FY26 guidance reconfirmed: reported revenue $3.57B–$3.60B (+4%–5%), organic revenue growth 1%–2%, non-GAAP EPS $2.10–$2.15 (+15%–17%), and expected non-GAAP operating margin expansion of 250–300 bps (net).
Improved Cash Flow and Deleveraging
Q1 operating cash flow $71M, free cash flow $47M (+$8M YoY), cash balance ~$133M, $180M debt paydown in the quarter and net leverage reduced to 2.9x.
Encouraging Geographic and End-Market Order Trends
Order strength noted in Academic & Government (outside U.S.), industrial, semi, and growth geographically in Europe and rest of APAC with marked improvement in China order trends compared to prior comps.