Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $12.14 billion | up 9% |
| Adjusted Operating Income | $2.97 billion | up 15% |
| Adjusted EPS | $6.68 per share | up 15% |
| Adjusted Operating Margin | 24.5% | up 120 basis points |
Guidance and outlook
- Full-year revenue: $47.7 billion to $48.2 billion.
- Full-year adjusted EPS: $25.13 to $25.43 per share.
- Full-year organic revenue growth: 4%.
- Full-year free cash flow: $7 billion to $7.5 billion.
How management sounded
Positive (+7 on our -10 to +10 scale). Management raised full-year top and bottom-line guidance, citing strong operational performance and improved end-market conditions. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
End Market Recovery
Asked: Is the acceleration in end markets broad-based?
Answer: Yes, the activity that stepped up in Q2 continued in Q3, with pharma and biotech strengthening and industrial and applied markets remaining strong.
AI Impact
Asked: How much of a tailwind is AI for the business?
Answer: AI improves the return on investment for customers in drug development, creating a virtuous cycle of investment that drives demand for products and services.
Q4 Pacing
Asked: Why maintain 4% organic growth for Q4 despite 6% in Q3?
Answer: Q3 had some timing benefits in pharma services that were completed in the quarter, but the company is offsetting that with strong momentum in the fourth quarter.
Biotech Reagents
Asked: When will the biotech recovery reach reagents?
Answer: The company expects that customer spending on high-tech reagents will increase over the next couple of quarters as the biotech end market continues to recover.
What to watch before the next call
- The timing of the recovery in life science research reagents.
- The impact of AI-driven demand on long-term organic growth.
- The integration progress of the Clario acquisition.
