Quarterly guidance

Quarterly guidance
No specific formal numeric next-quarter guidance was given, though management noted expectations for continued mid-single-digit DSA growth, high single-digit manufacturing growth, and sequential operating margin improvement.

Annual guidance

Reported revenue
Decline of 1.5% to 2%.
Organic revenue growth
At least 1.5% growth.
Non-GAAP earnings per share
$11.35 to $11.55.
Operating margin expansion
Approximately 120 to 150 basis points.
Free cash flow
$400 million to $420 million.
Capital expenditures
Approximately $200 million.

Outlook

Demand environment
The improving biopharmaceutical demand environment remains consistent with positive momentum, supported by strong proposal activity and improved biotech funding.
DSA pricing
The company is gradually reducing discounting in proposals, though pricing benefits are not expected to impact revenue until at least the second half of next year.
Long-term growth targets
Management expects gradual organic growth improvement in 2027, building toward the targeted 5% to 7% range starting in 2028.
Artificial intelligence
AI is expected to act as a multi-year tailwind by increasing the number of programs progressing through regulated drug development processes.