Financial Analysis

Commitments and Contingencies Purchase Obligations The company has entered into unconditional purchase obligations, in the ordinary course of business, that include agreements to purchase goods, services or fixed assets and to pay royalties that are enforceable and legally binding and that specify all significant terms including: fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transaction. Purchase obligations exclude agreements that are cancelable at any time without penalty. The aggregate amount of the companys unconditional purchase obligations totaled $1.98 billion at December 31, 2025, the majority of which are expected to be settled during 2026. Letters of Credit, Guarantees and Other Commitments Outstanding letters of credit and bank guarantees totaled $379 million at December 31, 2025. Substantially all of these letters of credit and guarantees expire through 2039. Outstanding surety bonds and other guarantees totaled $175 million at December 31, 2025. The expiration of these bonds and guarantees ranges through 2030. The letters of credit, bank guarantees and surety bonds principally secure performance obligations, and allow the holder to draw funds up to the face amount of the letter of credit, bank guarantee or surety bond if the applicable business unit does not perform as contractually required. The company has funding commitments totaling $162 million at December 31, 2025, related to inve …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt and Other Financing Arrangements The companys debt and other financing arrangements are as follows: Effective interest rate at December 31, December 31, December 31, (Dollars in millions) 2025 2025 2024 0.125% 5.5-Year Senior Notes, Due 3/1/2025 (euro-denominated) $ $ 828 2.00% 10-Year Senior Notes, Due 4/15/2025 (euro-denominated) 663 0.853% 3-Year Senior Notes, Due 10/20/2025 (Japanese yen-denominated) 142 0.000% 4-Year Senior Notes Due 11/18/2025 (euro-denominated) 569 3.20% 3-Year Senior Notes, Due 1/21/2026 (euro-denominated) 3.18 % 587 518 1.40% 8.5-Year Senior Notes, Due 1/23/2026 (euro-denominated) 1.45 % 822 725 4.953% 3-Year Senior Notes, Due 8/10/2026 5.18 % 600 600 0.832% 1.5-Year Senior Notes, Due 9/7/2026 (Swiss franc-denominated) 1.14 % 517 5.000% 3-Year Senior Notes, Due 12/5/2026 5.25 % 1,000 1,000 1.45% 10-Year Senior Notes, Due 3/16/2027 (euro-denominated) 1.66 % 587 518 1.75% 7-Year Senior Notes, Due 4/15/2027 (euro-denominated) 1.97 % 705 621 1.054% 5-Year Senior Notes, Due 10/20/2027 (Japanese yen-denominated) 1.18 % 184 184 4.80% 5-Year Senior Notes, Due 11/21/2027 5.00 % 600 600 Floating Rate (EURIBOR + 0.280%) 2-Year Senior Notes, Due 12/1/2027 (euro-denominated) 2.58 % 1,175 0.790% 3-Year Senior Notes, Due 1/6/2028 (Swiss franc-denominated) 1.35 % 111 0.50% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) 0.78 % 940 828 1.6525% 4-Year Senior Notes, Due 3/7/2028 (Swiss franc-denominated) 1.79 % 416 364 0.77% 5-Year Senior Notes, Due 9/6/202 …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Revenues by type are as follows: (In millions) 2025 2024 2023 Revenues Consumables $ 18,664 $ 17,587 $ 17,597 Instruments 7,301 7,446 7,646 Services 18,592 17,845 17,614 Consolidated revenues $ 44,556 $ 42,879 $ 42,857 Revenues by geographic region based on customer location are as follows: (In millions) 2025 2024 2023 Revenues North America $ 23,033 $ 22,504 $ 22,764 Europe 11,826 10,857 10,741 Asia-Pacific 8,101 7,956 7,873 Other regions 1,597 1,561 1,479 Consolidated revenues $ 44,556 $ 42,879 $ 42,857 Revenues by business are as follows: (In millions) 2025 2024 2023 Revenues Biosciences $ 4,169 $ 4,192 $ 4,238 Genetic sciences 2,870 2,787 2,816 BioProduction 3,200 2,652 2,923 Other 136 1 Life Sciences Solutions 10,374 9,631 9,977 Chromatography and mass spectrometry 3,360 3,278 3,329 Chemical analysis 1,237 1,315 1,371 Electron microscopy 2,957 2,870 2,564 Analytical Instruments 7,554 7,463 7,263 Clinical diagnostics 1,115 1,063 1,104 ImmunoDiagnostics 912 864 802 Microbiology 645 633 618 Transplant diagnostics 492 454 393 Healthcare market channel 1,788 1,764 1,712 Elimination of intrasegment revenues and other (275) (266) (222) Specialty Diagnostics 4,676 4,512 4,405 Laboratory products 2,407 2,525 2,613 Research and safety market channel 7,440 7,019 6,841 Pharma services 7,142 6,685 6,806 Clinical research 7,915 7,836 7,691 Elimination of intrasegment revenues and other (920) (907) (910) Laboratory Products and Biopharma Services 23,984 23,157 23,041 Elimination of int …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Stock-based Compensation Expense The company has stock-based compensation plans for its key employees, directors and others. These plans permit the grant of a variety of stock and stock-based awards, including restricted stock units, stock options, or performance-based shares, as determined by the compensation committee of the companys Board of Directors or, for certain non-officer grants, by the companys employee equity committee, which consists of its chief executive officer. The company generally issues new shares of its common stock to satisfy option exercises and restricted unit vesting. Grants of stock options and restricted units generally provide that in the event of both a change in control of the company and a qualifying termination of an option or unit holders employment, all options and service-based restricted unit awards held by the recipient become immediately vested (unless an employment or other agreement with the employee provides for different treatment). Stock Options The weighted average assumptions used in the Black-Scholes option pricing model are as follows: 2025 2024 2023 Expected stock price volatility 25 % 25 % 25 % Risk free interest rate 4.4 % 4.3 % 4.2 % Expected life of options (years) 5.9 5.0 4.7 Expected annual dividend 0.3 % 0.3 % 0.3 % Weighted average per share grant-date fair values of options granted $ 166.69 $ 166.92 $ 159.32 The total intrinsic value of options exercised during the same periods was $247 million, $395 million and $320 mi …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Income Taxes The components of income before provision for income taxes are as follows: (In millions) 2025 2024 2023 U.S. $ 2,608 $ 2,226 $ 2,431 Non-U.S. 4,700 4,812 3,867 Income before income taxes $ 7,308 $ 7,037 $ 6,298 The components of the provision for income taxes are as follows: (In millions) 2025 2024 2023 Current income tax provision Federal $ 402 $ 561 $ 228 Non-U.S. 658 1,175 1,206 State 126 130 150 1,186 1,866 1,584 Deferred income tax provision/(benefit) Federal $ (385) $ (1,026) $ (551) Non-U.S. (221) (72) (647) State (34) (111) (102) (639) (1,209) (1,300) Provision for/(benefit from) income taxes $ 547 $ 657 $ 284 The provision for income taxes in the accompanying statement of income differs from the provision calculated by applying the statutory federal income tax rate to income before income taxes due to the following: (Dollars in millions) 2025 U.S. federal statutory tax rate $ 1,535 21.0 % State and local income taxes, net of federal income tax effect (a) 68 0.9 % Foreign tax effects Malta Changes in valuation allowances 2,351 32.2 % Statutory tax rate difference between Malta and United States 473 6.5 % Deferred interest (2,351) (32.2) % Notional interest deduction (1,186) (16.2) % Other 19 0.3 % Netherlands Changes in valuation allowances 144 2.0 % Deferred interest (97) (1.3) % Other (27) (0.4) % United Kingdom Partnership income/(loss) (118) (1.6) % Foreign exchange 131 1.8 % Other (41) (0.6) % Other foreign jurisdictions 166 2.3 % Effect of changes i …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leases As a lessee, the company leases certain logistics, office, and manufacturing facilities, as well as vehicles, copiers, and other equipment. These operating leases generally have remaining lease terms between 1 month and 30 years, and some include options to extend (generally for 1 to 10 years) or have options to terminate the arrangement within 1 year. The company has guaranteed the residual value of three leased operating facilities with lease terms ending in 2028, 2029, and 2030. The company has agreed with the lessor to comply with certain financial covenants consistent with its other debt arrangements (Note 3). The aggregate maximum guarantee under these three lease arrangements is $147 million. Operating lease ROU assets and lease liabilities for these lease arrangements are recorded on the consolidated balance sheet as of December 31, 2025, but exclude any amounts for residual value guarantees. As a lessee, the consolidated financial statements include the following relating to operating leases: (Dollars in millions) 2025 2024 2023 Statement of income Operating lease costs $ 381 $ 353 $ 355 Variable lease costs 116 115 115 Statement of cash flows Cash used in operating activities for payments of amounts included in the measurement of operating lease liabilities $ 374 $ 327 $ 410 Operating lease ROU assets obtained in exchange for new operating lease liabilities 197 262 234 Balance sheet ROU assets - included in other assets $ 1,447 $ 1,489 Operating lease liabili …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements The following table provides a description of recent accounting pronouncements adopted and those standards not yet adopted with potential for a material impact on the company's financial statements or disclosures. Standard Description Adoption timing and approach Impact of adoption or other significant matters Standards recently adopted ASU No. 2022-04, LiabilitiesSupplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations New guidance to disclose information about supplier finance programs. Among other things, the new guidance requires expanded disclosure about key program terms, payment terms, and amounts outstanding for obligations under supplier finance programs for each period presented. Some aspects adopted in 2023 using a retrospective method and other aspects adopted in 2024 using a prospective method Not material ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures Among other things, new guidance to disclose additional information about the tax rate reconciliation and income taxes paid. 2025 annual report and interim periods thereafter using a prospective method Increased disclosures in Notes 7 and 9 Standards not yet adopted ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses New guidance to disclose specified information about certain costs and expenses. 2027 a …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Pension and Other Postretirement Benefit Plans 401(k) Savings Plan and Other Defined Contribution Plans The companys 401(k) savings and other defined contribution plans cover the majority of the companys eligible U.S. and certain non-U.S. employees. Contributions to the plans are made by both employees and the company. Company contributions are based on the level of employee contributions and formulas determined by the company. In 2025, 2024, and 2023, the company charged to expense $472 million, $443 million, and $468 million, respectively, related to its defined contribution plans. Defined Benefit Pension Plans Employees of a number of the companys non-U.S. and certain U.S. subsidiaries participate in defined benefit pension plans covering substantially all full-time employees at those subsidiaries. Some of the plans are unfunded, as permitted under the plans and applicable laws. The company also maintains postretirement healthcare programs at several acquired businesses where certain employees are eligible to participate. The liabilities and costs associated with the companys postretirement healthcare programs are generally funded on a self-insured and insured-premium basis and are not material for any period presented. Contributions to the plans included in the following table are estimated at between $45 million and $50 million for 2026. The following table provides a reconciliation of benefit obligations and plan assets of the companys domestic and non-U.S. pension plan …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Business Segment and Geographical Information The companys financial performance is reported in four segments. A description of each segment follows. Life Sciences Solutions: provides an extensive portfolio of reagents, instruments and consumables used in biological and medical research, discovery and production of new drugs and vaccines as well as diagnosis of disease. These products and services are used by customers in pharmaceutical, biotechnology, agricultural, clinical, healthcare, academic, and government markets. Analytical Instruments: provides a broad offering of instruments and the supporting consumables, software and services that are used for a range of applications in the laboratory and in the field. These products and services are used by customers in pharmaceutical, biotechnology, academic, government, environmental and other research and industrial markets, as well as the clinical laboratory. Specialty Diagnostics: offers a wide range of diagnostic test kits, reagents, culture media, instruments and associated products to serve customers in healthcare, clinical, pharmaceutical, industrial, and food safety laboratories. Our healthcare products are used to increase the speed and accuracy of diagnoses, which improves patient care in a more cost-efficient manner. Laboratory Products and Biopharma Services: offers virtually everything needed for the laboratory. Our unique combination of self-manufactured and sourced products and extensive service offering enables …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Comprehensive Income/(Loss) and Shareholders' Equity Comprehensive Income/(Loss) Changes in each component of accumulated other comprehensive income/(loss), net of tax, are as follows: (In millions) Cumulative translation adjustment Unrealized gains/(losses) on hedging instruments Pension and other postretirement benefit liability adjustment Total Balance at December 31, 2024 $ (2,409) $ (25) $ (263) $ (2,697) Other comprehensive income/(loss) before reclassifications 223 13 236 Amounts reclassified from accumulated other comprehensive income/(loss) 5 3 5 13 Net other comprehensive income/(loss) 228 3 18 249 Balance at December 31, 2025 $ (2,181) $ (23) $ (245) $ (2,448) Shareholders Equity At December 31, 2025, the company had reserved 36 million unissued shares of its common stock for possible issuance under stock-based compensation plans. Early in the first quarter of 2026, the company repurchased $3.00 billion of the company's common stock (4.9 million shares). …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Environmental Matters The company is currently involved in various stages of investigation and remediation related to environmental matters. The company cannot predict all potential costs related to environmental remediation matters and the possible impact on future operations given the uncertainties regarding the extent of the required cleanup, the complexity and interpretation of applicable laws and regulations, the varying costs of alternative cleanup methods and the extent of the companys responsibility. Expenses for environmental remediation matters related to the costs of installing, operating and maintaining groundwater-treatment systems and other remedial activities related to historical environmental contamination at the companys domestic and international facilities were not material in any period presented. At June 27, 2026, there have been no material changes to the accruals for pending environmental-related matters disclosed in the companys 2025 financial statements and notes included in the companys Annual Report on Form 10-K. While management believes the accruals for environmental remediation are adequate based on current estimates of remediation costs, the company may be subject to additional remedial or compliance costs due to future events such as changes in existing laws and regulations, changes in agency direction or enforcement policies, developments in remediation technologies or changes in the conduct of the companys opera …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

Debt and Other Financing Arrangements The companys debt and other financing arrangements are as follows: Effective interest rate at June 27, June 27, December 31, (Dollars in millions) 2026 2026 2025 3.20% 3-Year Senior Notes, Due 1/21/2026 (euro-denominated) $ $ 587 1.40% 8.5-Year Senior Notes, Due 1/23/2026 (euro-denominated) 822 4.953% 3-Year Senior Notes, Due 8/10/2026 5.07 % 600 600 0.832% 1.5-Year Senior Notes, Due 9/7/2026 (Swiss franc-denominated) 1.12 % 506 517 5.00% 3-Year Senior Notes, Due 12/5/2026 5.24 % 1,000 1,000 1.45% 10-Year Senior Notes, Due 3/16/2027 (euro-denominated) 1.65 % 569 587 1.75% 7-Year Senior Notes, Due 4/15/2027 (euro-denominated) 1.97 % 683 705 1.054% 5-Year Senior Notes, Due 10/20/2027 (Japanese yen-denominated) 1.18 % 179 184 4.80% 5-Year Senior Notes, Due 11/21/2027 5.00 % 600 600 Floating Rate (EURIBOR + 0.280%) 2-Year Senior Notes, Due 12/1/2027 (euro-denominated) 2.75 % 1,138 1,175 0.790% 3-Year Senior Notes, Due 1/6/2028 (Swiss franc-denominated) 1.34 % 109 111 0.50% 8.5-Year Senior Notes, Due 3/1/2028 (euro-denominated) 0.77 % 911 940 1.6525% 4-Year Senior Notes, Due 3/7/2028 (Swiss franc-denominated) 1.79 % 408 416 0.77% 5-Year Senior Notes, Due 9/6/2028 (Japanese yen-denominated) 0.90 % 179 185 1.375% 12-Year Senior Notes, Due 9/12/2028 (euro-denominated) 1.46 % 683 705 1.75% 7-Year Senior Notes, Due 10/15/2028 1.89 % 700 700 5.00% 5-Year Senior Notes, Due 1/31/2029 5.24 % 1,000 1,000 1.125% 4-Year Senior Notes, Due 3/7/2029 (Swiss f …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Revenues by type are as follows: Three months ended Six months ended (In millions) June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Revenues Consumables $ 5,073 $ 4,606 $ 9,794 $ 8,960 Instruments 1,750 1,644 3,305 3,270 Services 5,171 4,605 9,899 8,990 Consolidated revenues $ 11,994 $ 10,855 $ 22,999 $ 21,219 Revenues by geographic region based on customer location are as follows: Three months ended Six months ended (In millions) June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Revenues North America $ 6,149 $ 5,722 $ 11,854 $ 11,235 Europe 3,311 2,830 6,268 5,454 Asia-Pacific 2,104 1,920 4,075 3,811 Other regions 430 383 802 720 Consolidated revenues $ 11,994 $ 10,855 $ 22,999 $ 21,219 Revenues by business are as follows: Three months ended Six months ended (In millions) June 27, 2026 June 28, 2025 June 27, 2026 June 28, 2025 Revenues Biosciences $ 1,060 $ 1,075 $ 2,040 $ 2,068 Genetic sciences 703 679 1,358 1,356 BioProduction 941 745 1,834 1,416 Other 112 219 Life Sciences Solutions 2,815 2,499 5,450 4,840 Chromatography and mass spectrometry 821 784 1,620 1,557 Chemical analysis 318 292 603 578 Electron microscopy 707 652 1,340 1,311 Analytical Instruments 1,847 1,728 3,563 3,446 Clinical diagnostics 290 276 561 539 ImmunoDiagnostics 248 234 478 451 Microbiology 166 159 326 311 Transplant diagnostics 134 124 255 237 Healthcare market channel 442 407 873 880 Elimination of intrasegment revenues (75) (65) (145) (137) Specialty Diagnostics 1,205 1,134 2,346 2, …

DisaggregationOfRevenueTableTextBlock · excerpt; the full note is in the filing

Income Taxes The provision for income taxes in the accompanying statements of income differs from the provision calculated by applying the statutory federal income tax rate to income before provision for income taxes due to the following: Six months ended (Dollars in millions) June 27, 2026 June 28, 2025 U.S. federal statutory tax rate $ 768 21.0 % $ 699 21.0 % State and local income taxes, net of federal income tax effect 44 1.2 % 43 1.3 % Foreign tax effects (431) (11.8) % (73) (2.2) % Effect of changes in tax laws or rates enacted in the current period 0.0 % 5 0.1 % Effect of cross-border tax laws 129 3.5 % 46 1.4 % Tax credits (96) (2.6) % (99) (3.0) % Changes in valuation allowances 0.0 % (122) (3.7) % Nontaxable or nondeductible items 7 0.2 % (5) (0.1) % Changes in unrecognized tax benefits 28 0.8 % (28) (0.8) % Other adjustments (212) (5.8) % (279) (8.4) % Effective tax rate $ 238 6.5 % $ 187 5.6 % During the first quarter of 2026, the company recorded a deferred tax benefit of $175 million resulting from the recognition of tax attributes related to domestication transactions. During the second quarter of 2026, the company recorded a deferred tax benefit of $148 million in jurisdictions where the deferred tax assets are now expected to be realized due to forecasted income. During the first quarter of 2025, the company recorded a deferred tax benefit of $125 million resulting from the recognition of a tax attribute related to a domestication transaction. During the seco …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements The following table provides a description of recent accounting pronouncements adopted and those standards not yet adopted with potential for a material impact on the company's financial statements or disclosures. Standard Description Adoption timing and approach Impact of adoption or other significant matters Standards recently adopted ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures Among other things, new guidance to disclose additional information about the tax rate reconciliation and income taxes paid. 2025 annual report and interim periods thereafter using a prospective method. Increased annual disclosures in Notes 7 and 9 Standards not yet adopted ASU No. 2024-03, Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses New guidance to disclose specified information about certain costs and expenses. 2027 annual report and interim periods thereafter using a prospective or retrospective method. Will increase disclosures in Note 6 Standard Description Adoption timing and approach Impact of adoption or other significant matters ASU No. 2025-06, IntangiblesGoodwill and OtherInternal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software Among other things, new guidance to modernize the accounting for costs to develop software for internal use. 2028 annual report and interim periods …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Business Segment Information Business Segment Information The companys financial performance is reported in four segments. During 2026, there have been no changes to the companys basis of segmentation or in the basis of measurement of segment income. Other segment items included in the below tables consist of stock-based compensation and other incentive compensation expenses, allocations of corporate expenses and certain overhead expenses, as well as elimination of intersegment and intrasegment profits. Prior period segment expense amounts have been recast to reflect the method for allocating expenses to segments in the current period. 2026 Three months ended June 27, 2026 (In millions) Life Sciences Solutions Analytical Instruments Specialty Diagnostics Laboratory Products and Biopharma Services Total Revenues Revenues from external customers $ 2,355 $ 1,799 $ 1,188 $ 6,652 $ 11,994 Intersegment revenues 460 47 17 41 565 2,815 1,847 1,205 6,693 12,559 Elimination of intersegment revenues (565) Consolidated revenues $ 11,994 Segment Income Cost of revenues 1,080 925 699 5,150 Selling, general, and administrative expenses 500 315 177 677 Research and development expenses 140 140 45 27 Other segment items 54 43 (50) (97) Segment income 1,041 424 334 936 2,735 Unallocated amounts Cost of revenues adjustments (28) Selling, general and administrative expenses adjustments (36) Restructuring and other costs (98) Amortization of acquisition-related intangible assets (485) Interest in …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

Comprehensive Income/(Loss) and Shareholders' Equity Comprehensive Income/(Loss) Changes in each component of accumulated other comprehensive income/(loss), net of tax, are as follows: (In millions) Cumulative translation adjustment Unrealized gains/(losses) on hedging instruments Pension and other postretirement benefit liability adjustment Total Three months ended June 27, 2026 Balance at March 28, 2026 $ (2,234) $ (22) $ (242) $ (2,497) Other comprehensive income/(loss) before reclassifications 39 39 Amounts reclassified from accumulated other comprehensive income/(loss) (4) 1 1 (2) Net other comprehensive income/(loss) 35 1 1 37 Balance at June 27, 2026 $ (2,199) $ (21) $ (241) $ (2,460) Six months ended June 27, 2026 Balance at December 31, 2025 $ (2,181) $ (23) $ (245) $ (2,448) Other comprehensive income/(loss) before reclassifications (19) 2 (17) Amounts reclassified from accumulated other comprehensive income/(loss) 2 1 2 5 Net other comprehensive income/(loss) (17) 1 4 (12) Balance at June 27, 2026 $ (2,199) $ (21) $ (241) $ (2,460) …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing