Quarterly Revenue and Organic Growth
Generated total revenue of $711 million in Q1; reported total-company organic growth of 3% in the quarter. On a pro forma basis (excluding China immunodiagnostics), Q1 revenue would have been $687 million and pro forma organic growth would have been 6%.
Adjusted Operating Margin Outperformance
Delivered adjusted operating margin of 23.6% for the quarter, above prior 23% outlook; pro forma adjusted operating margin for the quarter was 24%. Full-year pro forma margin guidance raised to 28.4%.
Earnings Per Share Beat
Adjusted EPS of $1.06 in Q1, beating the implied guidance range of $1.02–$1.04. Pro forma Q1 adjusted EPS would have been $1.04.
Strong Cash Generation and Balance Sheet
Generated free cash flow of $115 million in Q1 with a 97% conversion of adjusted net income. Ended the quarter with net debt to adjusted EBITDA of 2.8x; 100% fixed-rate debt with weighted-average interest rate of 2.6% and ~6 years weighted average maturity.
Strategic Portfolio Action — China Immunodiagnostics Divestiture
Announced intent to divest China immunodiagnostics (≈6% of company revenue last year). Pro forma, this is expected to improve 2026 total-company organic growth by ~100 basis points and enhance operating margins by ~30 basis points, and materially improve cash-flow conversion going forward.
Software and AI Momentum
Signals software and new product launches (Xynthetica, BioDesign, LabGistics) highlighted. SaaS/ARR growth remains robust (management cited ~30–40% ARR growth YoY and strong SaaS pipeline); software APV and SaaS metrics growing double digits.
Segment and Product Strengths — Reproductive Health & Instruments
Diagnostics reproductive health grew low double digits organically; newborn screening grew low double digits. Life Sciences instrumentation saw mid-single-digit growth; strong demand for high-content screening products (e.g., Opera Phenix OptIQ) tied to AI-driven research trends.
Capital Return and Share Count
Repurchased $86 million of shares in Q1; diluted average share count ~111.9 million. Management indicated continued opportunistic share buybacks as a capital deployment priority.