Thermo Fisher Scientific Inc (TMO)

“And we expect Q3 adjusted EPS to be $0.35 to $0.40 higher than in Q2.”

“We've been saying all along the second half steps up versus the first half. First half was low single-digit growth, and then it steps up meaningfully in the second half.”

“When I think about the performance of our pharma services or what you call the Patheon business, we had modest growth in the quarter, in line with our expectations. The second half, as we've talked about all year, will be stronger for that business just based on when we're actually shipping the activity.”

“As we look to the second half for pharma biotech, we actually think it will be a little better, even though we saw a nice step-up in quarter.”

“We grew 3% organically in the first half in total and expect that to step up to 4% for the second half with both quarters being similar in terms of organic revenue growth.”

“We estimate that full year average diluted share count will be between 370 million and 373 million shares.”

“And we're assuming that we'll return approximately $700 million of capital to shareholders this year through dividends.”

“In terms of capital deployment, we're assuming $4 billion of share buybacks with $3 billion completed in January and an additional $1 billion completed in the second quarter.”

“In terms of free cash flow, we continue to expect that to be in the range of $6.9 billion to $7.4 billion for the year, including between $1.9 billion and $2.1 billion of net capital expenditures.”

“We continue to assume that the adjusted income tax rate will be 11.5%.”

“We continue to expect approximately $660 million of net interest expense in 2026.”

“In terms of adjusted operating income margins, our guide has increased to 80 basis points of expansion.”

“Acquisitions are now expected to contribute $1.6 billion of revenue and $0.32 of adjusted EPS for the year.”

“We continue to expect the transaction to be dilutive to adjusted EPS by approximately $0.15 in the first full year following the close.”

“With an expected Q3 close, the divestiture reduces 2026 revenue by approximately $200 million, net of the retained channel business and reduces 2026 adjusted EPS by $0.05.”

“We now expect a $200 million revenue tailwind from foreign exchange, which is $100 million lower than our previous guidance.”

“We now expect revenue to be in the range of $47.4 million to $48.1 billion and adjusted EPS to be in the range of $24.93 to $25.33, now representing 9% to 11% adjusted EPS growth.”

“We're also increasing our adjusted earnings per share guidance to be in the range of $24.93 to $25.33, which now represents 9% to 11% growth over 2025 and a $0.25 increase from our previous guidance at the midpoint.”

“Our expectation for full year organic revenue growth has increased to about 4%, our guidance range remains 3% to 4%, and we now expect to deliver at the upper end of that range.”

“We're raising our revenue guidance to a new range of $47.4 million to $48.1 billion, representing 6% to 8% reported revenue growth over 2025.”

“We expect Q2 adjusted EPS to be between $0.25 and $0.30 higher than Q1.”

“So that increases the confidence that you'll see even more revenue in '27 and '28.”

“I believe that if it's relatively modest, we will offset it all, and that will all flow through the bottom line, what we held back.”

“Our end markets and our business are progressing in line with our expectations and we're on track to deliver a strong year.”

“We're not assuming any meaningful growth coming out of China this year.”

“Our assumption is that for the year, we would see greater stability in the U.S. end market improving modestly over time. But not back to normal is what we've assumed kind of in aggregate, similar to what we saw last year.”

“In bioproduction, we expect that the revenue is largely a '27 and '28 activity.”

“So our Pharma Services business delivers much stronger growth in the second half of the year aligned with kind of how we modeled the year to start it.”

“We estimate the full year average diluted share count will be between $370 million and 375 million shares.”

“In terms of capital deployment, we're assuming $3 billion of share buybacks, which were already completed in January and that we'll return approximately $700 million of capital to shareholders this year through dividends.”

“and free cash flow in the range of $6.9 billion to $7.4 billion for the year, both reflecting the addition of Clario.”

“We expect between $1.9 billion and $2.1 billion of net capital expenditures and free cash flow in the range of $6.9 billion to $7.4 billion for the year, both reflecting the addition of Clario.”

“We continue to assume that the adjusted income tax rate will be 11.5%.”

“We expect approximately $660 million of net interest expense, which now includes financing for the Clario acquisition.”

“Our updated guidance for the year continues to assume 3% to 4% organic revenue growth.”

“As I look ahead, we see our end markets progressing as expected in our original guidance.”

“And finally, I wanted to touch on phasing for Q1. Embedded in the guidance is the assumption that Q1 organic revenue growth will be a couple of points lower than the full year 2026.”

“Yes. I think when we gave the back of the time when we gave that framework and where we are now, yeah, we see that consistent in terms of our assumption about the future and executing towards that.”

“It's really in a way a capital project to expand our capacity. You know, we're winning contracts to meet our pharmaceutical customers' needs for reshoring to the US. So, the demand profile is good, and our business has had a strong year and will continue to step up in growth over the next couple of years.”

“Our assumption for academic and government embedded in our guidance is similar conditions to last year in aggregate.”

“After factoring in the financing costs, they represented 7¢ of adjusted EPS dilution for 2026.”

“In that inorganic period, these acquisitions are expected to contribute $60 million of adjusted operating income. The math of which adds a 20 basis point headwind to adjusted operating margins in 2026.”

“I'm assuming we'll return approximately $700 million of capital to shareholders this year through dividends.”

“We assume that the adjusted income tax rate will be 11.5% in 2026, largely driven by the increased earnings.”

“We expect approximately $500 million of net interest expense in 2026.”

“Financially, the transaction has an attractive double-digit return profile, is expected to be accretive to organic revenue growth and to adjusted operating margin.”

“We expect it to be accretive to adjusted EPS by approximately $0.45 in the first twelve months of ownership, and we expect to close the transaction by 2026.”

“And as we progress through 2026, we can retire risk as we go and progress higher in the range.”

“The midpoint of our guidance assumes organic revenue growth is slightly above 3%. This is a step up from 2025.”

“The guidance assumes 3% to 4% organic revenue growth, a $300 million revenue tailwind from foreign exchange, and 50 basis points of adjusted operating margin expansion.”

“And as we go through the investment phase over twelve months of ownership, we expect the transaction to be dilutive by about $0.05. To get into 2027, the revenue profitability builds nicely as the new lines start to generate revenue there.”

“For the first twelve months of ownership, we continue to expect the transaction to be $0.06 dilutive, just under half of that is occurring in 2025.”

“Looking to Q4, given the tariffs increased from the time of our last guide most materially between U.S. and Europe. Our initial view is that that kind of assumptions we had around tariffs pretty much hold for Q4. So I'm not expecting a significant pickup in Q4.”

“Then in terms of capital deployment, our guidance now assumes that we deploy $7.6 billion of capital in 2025.”

“So for the full year, we now expect FX to be a year-over-year tailwind to revenue of $230 million and a headwind to adjusted operating income and adjusted EPS of $110 million and $0.37 respectively.”

“We now expect net interest expense to be $440 million in 2025, and we continue to expect an adjusted tax rate of 10.5% for the full year.”

“We expect between $1.4 billion and $1.7 billion of net capital expenditures and around $7 billion of free cash flow for the year.”

“Organic revenue growth at the midpoint of the guide continues to be 2% for the full year, and as a reminder, that includes a one point of headwind from the run-up of pandemic-related revenue.”

“Our view is, over the next couple of years, growth is going to build over time.”

“over time, over this next couple of year period, the absence of negatives, meaning that academic and government won't decline as much, China at some point will stabilize, that in and of itself, without even improving the market conditions, ultimately gets higher in the range and then ultimately continued share gain in market conditions will get us further and further in the range over time.”

“3% to 6% organic is the right level of assumptions and strong operating margin and operating income growth coming out of that.”

“And over the next couple of years, we're investing in additional lines that we're drive much stronger utilization of that site going forward.”

“And then we're bringing this company this business into the company as a low double-digit margin business, and that quickly gets up to mid-teens and above.”

“When I think about going forward, the revenue growth there will be likely around or above the average for the company going forward.”

“I think it's worth remembering that today, we're basically at 2% organic and is about full point headwind from the COVID runoff, which doesn't which won't repeat next year. So we're kind of running at the 3% range.”

“We put into our implied guidance range for the fourth quarter a reasonable set of action outcomes based on the government shutdown and based on our own experience.”

“So Jack, a couple of things to think about when you're doing the modeling for 2026. So based on current FX rates, there'll be a tailwind to revenue of a couple of million dollars.”

“And we reflected that in our guidance, right? We're expecting that U.S. academic and government will be soft in the second half of the year.”

“adjusted EPS to be approximately $0.10 to $0.15 higher than Q2”

“In terms of phasing for Q3, we expect organic growth in Q3 to be about 1 point higher than Q2 and adjusted EPS to be approximately $0.10 to $0.15 higher than Q2.”

“we'll return approximately $600 million of capital to shareholders this year through dividends”

“We continue to estimate the full year average diluted share count will be between 378 million and 379 million shares.”

“free cash flow in the range of $7 billion to $7.4 billion for the year”

“We continue to expect between $1.4 billion and $1.7 billion of net capital expenditures in 2025”

“we continue to expect an adjusted tax rate of 10.5% for the full year”

“So for the full year, we now expect FX to be a year-over- year tailwind to revenue of $10 million and a headwind to adjusted operating income and adjusted EPS of $80 million and $0.27, respectively.”

“It is important to note that our organic outlook for the second half of the year remains on track to the prior guidance.”

“Organic revenue growth is still expected to be in the range of 1% to 3%.”

“This will result in us delivering strong adjusted operating income growth of mid- to high single digits.”

“This would lead to a 2026 and 2027 scenario where we will deliver 3% to 6% organic revenue growth.”

“We're not assuming that right now that there's immediately the high single digit, but it returns to growth and then build from there.”

“In that top line environment using the proven levers of the PPI Business System, we expect to generate approximately 50 to 70 basis points of adjusted operating margin expansion and mid- to high single-digit adjusted operating income growth.”

“We're managing the company under the assumption that we'll deliver between 3% and 6% organic revenue growth in that period.”

“When I look to the future, once this near-term scenario plays out, we expect to deliver 7% plus organic revenue growth.”

“We expect the environment to improve over the next couple of years, and during that time, we'll deliver very strong earnings growth.”

“Today, we're currently at the low end of this range, and we believe that our growth will accelerate over the next 2 years.”

“yes, so we have an assumption that things basically stay the same as they were in Q2, things will get -- will improve from the guide we've given you.”

“Given the fluidity of the tariff and trade policy environment, we thought it was appropriate to keep the tariff impact outlook for the second half unchanged at this point. Should global tariffs to remain as they are today, we'll likely have upside to the new guidance.”

“Would expect that US academic would be relatively soft, the balance of the year.”

“For the year, we were assuming year, we've had just over a percentage point of price. This is kind of getting to that to close to 2%.”

“I don't see really any meaningful changes in the patterns that we're expecting.”

“Finally, I wanted to touch on phasing for Q2. We expect organic growth in Q2 to be similar to Q1, and adjusted EPS in Q2 to be approximately $0.05 to $0.10 higher than in Q1.”

“We continue to estimate that full-year average diluted share count will be between 378 million and 379 million shares, and return approximately $600 million of capital to shareholders this year through dividends.”

“We continue to expect between $1.4 billion and $1.7 billion of net capital expenditures in 2025 and free cash flow in a range of $7 billion to $7.4 billion for the year.”

“We now expect their purchases to be more muted in 2025, especially for instruments and equipment, as we evaluate the impact of potential changes to government funding and work out how to access new funding sources to continue their critical work.”

“As a result, as I mentioned earlier, there's no net adjusted EPS impact for 2025 from the non-China-related tariffs.”

“The increase in tariffs has caused a significant weakening of the US dollar, and at current rates, this increases our revenue guide for the year by $600 million.”

“The pull-through on the lower volumes and higher costs, net of the aggressive mitigation actions, is assumed to be a headwind of adjusted operating income in 2025 of $375 million versus the prior guide.”

“In our guidance, we're assuming this is a $400 million revenue headwind for the year.”

“Once they are complete, we expect them to fully mitigate the impact of these tariffs.”

“We expect this impact will reduce very rapidly next year when the full benefits of our mitigation actions are realized.”

“That's what we embedded in our guidance going forward. And that, you know, it could improve based on the appropriations dynamics this summer.”

“There's a scenario for 2025 that could be low in this guidance range if the macroeconomic outlook meaningfully dampens. And there are scenarios that could land above this range that would be largely in line with our original guidance.”

“Yes, first of all, we're highly confident we're going to get back to the industry long-term market growth rate of 4% to 6%.”

“In 2025, we will once again deliver strong share gain, and our PPI Business System will enable outstanding execution and we will deliver very strong earnings growth.”

“We just assume that the conditions will continue to be somewhat muted and similar to last year.”

“Our expectation is that the environment is similar to what we saw last year. Stimulus will be a benefit.”

“You're going to wind up with something in the strong mid-single digits at the end of the year for us, right?”

“And the trajectory we expect that, as I said in my prepared remarks, we expect that to continue to increase as we go through the year.”

“It feels like the conditions will be more measured this year. That's what's embedded in our guidance, kind of similar to what we saw last year, and then it sets up for great success.”

“And when I think to the future about 2025, the business is behaving the way that I would think it should, which it's a long cycle business.”

“Orders were actually stronger in terms of the orders that we received in China on our instruments, and that will obviously ship in 2025.”

“When I think about what's embedded in our guidance, I would say for academic and government globally, would be around the company average in terms of what's assumed there, and maybe slightly below that because I think pharma and biotech ultimately will be a little bit better than the company average this year in terms of the end-markets.”

“We expect to deliver a very strong year of adjusted EPS growth in 2025.”

“It bodes really well for the acceleration of growth, certainly in 2026 and beyond.”

“Certainly, as we get through 2025, you'll see higher levels of utilization on that capacity to support the strong growth in sterile fill/finish.”

“For us in 2025, what I would say is that it's the final year of the runoff of the pandemic-related activity and while that'll still be a headwind to growth, it's going to be less than it was in 2024.”

“I'm really quite excited by the fact that we're expecting the fourth quarter to return to growth organically, which is a good thing.”

“That would reflect 2.5% organic revenue growth for the fourth quarter, which is unchanged from the previous guidance and is a continuation of our sequential increase in growth that we delivered each quarter throughout the year.”

“Full-year average diluted share count is assumed to be approximately 383 million shares.”

“free cash flow in the range of $6.5 billion to $7 billion.”

“And for the year, we're assuming between $1.3 billion and $1.5 billion in net capital expenditures and free cash flow in the range of $6.5 billion to $7 billion.”

“We continue to expect the adjusted income tax rate will be 10.5% in 2024.”

“Our updated 2024 guidance continues to assume an adjusted operating income margin between 22.5% and 22.8%.”

“Revenue guidance continues to be in the range of $42.4 billion to $43.3 billion and we continue to assume the core organic revenue growth will be in the range of minus 1% to positive 1% for 2024.”

“So for us, long-term 7% to 9% top line growth, which enables 40 basis points to 50 basis points of expansion.”

“My expectation is that it's largely going to show up in revenue in 2025 and likely to have some small effect in the fourth quarter of 2024 as well.”

“What's embedded in our guidance in the market, right, is that for the full-year is that it continues to step up a little bit more in Q3 and further in Q4.”

“The year is progressing as we expected, so we expect that the market will continue to improve modestly in the back half of the year, each quarter being a little better than the quarter before and that our performance will also continue to step up and that will give us momentum going at ‘25”

“And in terms of adjusted EPS in Q3, I recommend modeling it to be just over 24% of the full-year.”

“Also good to model core organic revenue growth in Q3 1% higher than we delivered in Q2.”

“Relative to the midpoint of the guide, I recommend modeling Q3 organic revenue growth 1% higher than we delivered in Q2.”

“Expect to return approximately $600 million of capital to shareholders this year through dividends”

“For the year we're assuming between $1.3 billion and $1.5 billion in net capital expenditures and free cash flow in the range of $6.5 billion to $7 billion.”

“We continue to expect adjusted income tax rate will be 10.5% in 2024”

“We still continue to assume core organic revenue growth will be in the range of minus 1% to positive 1% for 2024.”

“But I think what's really relevant is how do I feel about the 4% to 6%, right? And I'm looking forward to Investor Day. I feel great about the long-term 4% to 6%.”

“It certainly impacts our growth in terms of headwind in 2024, but it becomes better in '25 and '26 as the new therapies and the tech transfers are complete and new lines come on place.”

“$0.03 of that $0.06 could be offset in the second-half.”

“But if I say, how is the team operating? Actually, the team is operating well. So the margins there will expand as the year progresses and into the future as well.”

“I wouldn't expect material shipments in Q2 around this.”

“While we expect this business will moderate this year relative to the last few years, just the momentum it has bodes extremely well for the midterm of high single-digit growth business plus synergies.”

“And we expect Q2 adjusted EPS to be similar to Q1.”

“In Q2, we expect revenue dollars to step up from the first quarter, and organic growth will likely be 2 points better than Q1.”

“Full year average diluted share count is assumed to be approximately 383 million shares.”

“we continue to see [ we will close ] the Olink acquisition by midyear.”

“In terms of capital deployment. We're assuming $3 billion of share buybacks, which were completed in January. We expect to return approximately $600 million of capital to shareholders this year through dividends”

“We're assuming between $1.3 billion and $1.5 billion of net capital expenditures and free cash flow in the range of $6.5 billion to $7 billion.”

“We expect the adjusted income tax rate will be 10.5% in 2024.”

“Given recent FX rate changes, we're assuming that the $0.07 beat that we saw in Q1 is offset in the remainder of the year, leading to no change for the year as a whole for FX versus our prior guide.”

“We see that FX will be roughly neutral year-over-year to both revenue and adjusted EPS.”

“In total, this represents a year-over-year headwind of $1.3 billion to $1.4 billion or 3% of revenue.”

“In 2024, we're assuming just under $100 million of testing revenue and $300 million to $400 million of vaccines and therapies-related revenue.”

“We continue to assume core organic revenue growth will be in a range of minus 1% to positive 1% for 2024.”

“Turning to our planned acquisition of Olink. We're working through the regulatory process, and the transaction is on track to close by mid-2024.”

“We would expect that the business' growth would be much more moderate this year just based on the comparisons. But the future, meaning looking out into 2025 and beyond, this is a really strong business, long-term, high single-digit growth business plus the synergies it's driving.”

“I do believe that as you see volumes grow at more normalized rate, you'll see a very strong flow-through on the margins.”

“yeah, there won't be the repeat of the unwind of the pandemic impacts on the supply chain. The business is positioned for a good year and there's a high demand for the breakthrough technologies, whether it's in electron microscopy, or semiconductor, material science, life sciences or the Astral”

“In terms of capital deployment, our guidance assumes $3 billion of share buybacks, which, as I mentioned earlier, were already completed in January and we estimate the full year average diluted share count will be approximately 383 million shares.”

“we're basically standing up a facility for a customer. We're getting paid a fee to do that. We get to recognize that fee over the production volumes, and we're incurring substantial costs in the interim in 2024, which will create good accretive growth going forward.”

“We made an assumption for this year, which is pretty much the same as what we said back in late October, is that we're assuming that for the full year, it's going to be pretty similar to 2023 and a mirror image, meaning that we start to lap comps as the year unfolds and we wind up with the market being down slightly in the low single digits and us performing better than that level.”

“And we expect Q1 adjusted earnings per share to be approximately 22% of the full year.”

“First, in terms of organic revenue growth we expect Q1 to be better sequentially than Q4 2023 by 1 to 2 points and then improve each quarter during the year.”

“Strong underlying productivity and cost controls, including the carryover benefit from the cost actions put in place last year, are expected to largely offset the runoff in the remaining pandemic-related revenue inflation and a normalization of incentive compensation across the company to appropriately invest in our colleagues.”

“From a phasing standpoint, FX is expected to be a slight headwind in Q1 and an offsetting tailwind in the second half.”

“At current rates, we expect FX to be neutral year-over-year to both revenue and adjusted EPS.”

“M&A is expected to increase revenue by $175 million year-over-year, the combination of six months of Olink revenue and the inorganic portion of CorEvitas revenue in 2024.”

“In total, this represents a year-over-year headwind of $1.3 billion to $1.4 billion or 3% of revenue.”

“We're assuming that the market declines in the low single digits this year, our growth strategy and PPI Business System execution will enable us to continue to take share once again this year.”

“This progress will help us achieve our recently established target of utilizing 80% renewable electricity globally by 2030.”

“Our view is that it will normalize as the year unfolds and as I've said in an investor conference earlier in the year, no one is going to get rewarded for calling the moment of when that inflection happens.”

“So I think that we'll be smarter with the benefit of another three months of time to see what our view is on 2024. But I don't think we'll be talking throughout the year about inventory reduction in the customer side because there's activity that's going on currently that's consuming the inventory that's out there.”

“Our assumption has been that it would step down from the 20% and then sort of double-digit growth to that, and then actually it will step down below that and bounce back up just on the math of the COVID -- the COVID activity run-off over the next year or so.”

“And then Rachel, just on the kind of the additional kind of weakness we saw in China in Q3, some of that came through in revenue in Q3, but it's going to be more in terms of revenue in Q4 because of a lag in terms of bookings profile for an instrumentation business.”

“But we know that the comparisons get easier in the second half for China as we lap some of the comparables -- or the more challenging comparables.”

“When I think about the outlook here, we definitely saw the impact of the declining economy in the results and we would expect that that will continue.”

“In terms of adjusted operating income dollars, with this top-line setup, we would expect to deliver similar adjusted operating income dollars through 2023.”

“M&A is expected to increase revenue $175 million year-over-year.”

“We continue to assume that full-year average diluted share count will be approximately 388 million shares, and then we'll return approximately $540 million of capital to shareholders this year through dividends, a 17% increase over 2022.”

“And we now expect the free cash flow will be between $6.7 billion and $6.9 billion for the year.”

“We continue to assume that the adjusted tax rate for the -- 2023 will be 10%, and we're now expecting net capital expenditures will be between $1.3 billion and $1.5 billion.”

“We now expect just under $500 million of net interest expense in 2023, a slight increase reflecting the acquisition of CorEvitas.”

“We now assume that they'll contribute approximately $300 million to our reported revenue growth for the year.”

“And in terms of adjusted EPS, we now expect FX to be a year-over-year headwind of $0.28 which is $0.17 more of a headwind than our previous guidance.”

“Given recent rate changes, we're now assuming that FX will be a year-over-year headwind to revenue of approximately $100 million.”

“We continue to assume that we'll deliver $300 million of testing revenue in 2023.”

“And when we look to the future, we expect this to be a long-term, mid-teens-plus growth business and be able to generate really significant adjusted operating income synergies driven by that accelerated revenue growth, right?”

“We expect this business to be a mid-teens revenue growth business for us well into the future.”

“And on top of that, just $125 million of earnings that come from the year five synergies, and that's going to generate double-digit returns for the shareholders.”

“We expect to deliver $125 million in adjusted operating income synergies in year five, driven by revenue synergies and cost efficiencies.”

“a normal assumption for the year, we start with 50 basis points of expansion on top of what we just ended the year.”

“we'll hold ourselves to the standard of delivering a couple of points higher than what the market growth is when we think about that.”

“So we're assuming basically the same market conditions, not just China, but for the rest of the world, as well as we saw in Q2 for the remainder of the year.”

“revenue is a little bit more weighted and look at the year as a whole to the second-half versus the first-half.”

“clearly, a higher adjusted operating income margin in the second-half of the year and that's really largely driven by the impact of the cost actions.”

“of the $450 million, $75 million impacted the first-half and you'll have $375 million of benefit in the second-half.”

“I would say we would expect that the growth rate would become more muted as the year unfolds in the analytical instruments business as we continue to work down the backlog.”

“we'll return approximately $540 million of capital to shareholders this year through dividends, a 17% increase over 2022.”

“we continue to expect the free cash flow will be $6.9 billion for the year.”

“we continue to expect net interest expense in 2023 to be approximately $480 million.”

“we now expect FX to be a headwind of $0.11, which is $0.05 higher than our previous guidance.”

“we continue to assume that FX will be a year-over-year tailwind to revenue of approximately $100 million.”

“Within the call, we continue to expect $500 million of vaccines and therapies revenue in 2023.”

“we now think it's appropriate to assume that the cautious spending will continue through the remainder of the year.”

“Financially, we expect the business to deliver low-double-digit growth and be accretive to adjusted EPS by $0.03 in 2024.”

“we're leveraging our PPI Business System to deliver $450 million of additional cost actions in 2023.”

“we're maintaining our guidance for full year 2023, consisting of revenue guidance of $45.3 billion, including 7% core organic revenue growth and adjusted EPS guidance of $23.70.”

“Next year will be year three. And, as a reminder, that's $250 million of revenue that we're assuming from a revenue synergy next year.”

“China should be a good market for us this year and it has been historically.”

“we expect it to be a solid Q3, and we'll obviously have more visibility to Q4 when we report in July. So we're assuming that Q3 is little better than we expected and Q4 as we expected at this point because that's what we have visibility to.”

“our expectation is that the second half of the year is better than the first half of the year in terms of the view.”

“Bioproduction, which is where your question is really focused, we're going to see in the first half more headwinds than our original expectation.”

“We're currently assuming that the first half of the year represents approximately 48% of our full year revenue dollars and 44% of our full year adjusted EPS dollars.”

“we're assuming we return approximately $540 million of capital to shareholders this year through dividends, a 17% increase over 2022.”

“We estimate the full year average diluted share count will be approximately 388 million shares.”

“We continue to assume that net capital expenditures will be approximately $2 billion in 2023 and free cash flow is assumed to be $6.9 billion for the year.”

“Below the line, we expect net interest expense in 2023 to be approximately $480 million.”

“We're assuming The Binding Site acquisition will contribute approximately $250 million to our reported revenue growth this year.”

“Within that core revenue, we expect $500 million of vaccines and therapies revenue in 2023.”

“We continue to assume 7% core organic revenue growth from market growth of 4% to 6%.”

“So when I think about the margin profile going forward, that 7% to 9% core organic growth driving 40 to 50 basis points is the right way to think about that company.”

“So we have good visibility to the first half. It's when those – most of those orders will ship. We would expect that the Analytical Instruments business will be a really nice contributor to our growth for the year.”

“And in terms of our thoughts about 2023, it will grow above of the company's average of the 7% growth that we outlined in the course.”

“Adjusted operating margin to be slightly lower than Q4 2022 and adjusted EPS to be just over 20% of the full year total.”

“From a foreign exchange standpoint while a slight tailwind for the year as a whole in Q1, FX is expected to be a year-over-year headwind of approximately $200 million of revenue and $80 million of adjusted operating income.”

“Revenue adjusted operating margin and adjusted EPS are all expected to ramp up as we go through the year.”

“This is 60 basis points lower than 2022, driven by two elements, a 40 basis points of core margin expansion and a 100 basis point headwind from the runoff of testing revenue.”

“So when I think about all of that wrapped up for our long-term financial model we gave you back in May, we’re on track to achieve or exceed the adjusted EPS target we put at that.”

“In terms of vaccines and therapies, as a reminder, we said we would expect to do in our core revenue about $1.5 billion this year. We did just under $400 million in Q3. That brings the year-to-date to $1.3 billion and on track to achieve or exceed the $1.5 billion.”

“That implies growth in line with the long-term organic outlook for the business.”

“Our guidance also continues to assume the full year average diluted share count will be between 394 million and 395 million shares.”

“Our guidance still assumes $2.5 billion of capital deployment, which is the $2 billion of share buybacks that we completed in January and $475 million of capital returned to shareholders through dividends.”

“We continue to assume an adjusted income tax rate of 13.2% in 2022, which includes a 13.6% tax rate in Q4.”

“For free cash flow, we see $7 billion at the high end of the range of outcomes for the year.”

“The FX headwind on adjusted EPS in 2022 is now expected to be $0.77 for the full year or 3.1%.”

“We now expect the business to contribute $2.03 to adjusted EPS in the year, up $0.03 from our prior guidance.”

“We now expect $2.8 billion of testing revenue for the year, which includes the assumption of an endemic run rate level of $100 million per quarter in Q4.”

“Bookings were very strong as well. So, that gives us – that’s encouraging in the second half.”

“The way I think about the outlook is it should be a good market in the second half of the year.”

“when I think about the 7% to 9% growth, that’s the long-term sort of average we worked through.”

“looking at adjusted EPS on that same basis, we expect the second half total to be weighted a couple of percentage points more to Q4 than the revenue.”

“When I think about the revenue dollars in Q3 and Q4, we expect Q4 to contribute just under 52% of the second half total.”

“we continue to assume the full year average diluted share count will be between 394 million and 395 million shares.”

“Our guidance still assumes $2.5 billion of capital deployment, which is a $2 billion of share buybacks to be completed in January and $475 million of capital returned to shareholders through dividends.”

“We continue to assume net capital expenditures of approximately $2.5 billion to $2.7 billion and free cash flow of approximately $7 billion.”

“we now expect FX to be a year-over-year headwind on of $1.25 billion on revenue, up 3.2%.”

“This reflects an assumed glide path from Q2 to an endemic run rate level in Q4.”

“And that bodes really well for the growth of our instruments business this year and into next.”

“but authorization support that for this year, but also support the long-term expectations that this is a high single digit growth business. And when we drive, synergies, it can be better than that.”

“And this year we would expect that price would be about double the high end of that range or about two points of price within our outlook for the year.”

“We're looking at the back half of the year that Q3 and Q4 are normal in China, back to strong growth.”

“And in terms of adjusted EPS phasing, we expect Q2 as a percentage of the full year to be just slightly lower than the comparable periods last year.”

“revenue dollars for the remainder of the year they're expected to be fairly linear with Q4 being slightly higher than Q2 and Q3.”

“And we now estimate that the full year average diluted share count will be between 394 million and 395 million shares.”

“A guidance still assumes $2.5 billion of capital deployment, which is the $2 billion of share buybacks that we completed in January and $475 million of capital to return to shareholders through dividends.”