DANAHER CORP /DE/

Previous wording

You should read this discussion along with the Company’s MD&A and audited financial statements and Notes thereto as of and for the year ended December 31, 2025, included in the Company’s 2025 Annual Report and the Company’s Consolidated Condensed Financial Statements and related Notes as of and for the three and six-month periods ended June 26, 2026 included in this Quarterly Report on Form 10-Q (“Report”).

Current wording

You should read this discussion along with the Company’s MD&A and audited financial statements and Notes thereto as of and for the year ended December 31, 2025, included in the Company’s 2025 Annual Report and the Company’s Consolidated Condensed Financial Statements and related Notes as of and for the three and nine-month periods ended September 25, 2026 included in this Quarterly Report on Form 10-Q (“Report”).

Previous wording

Certain statements included or incorporated by reference in this Report, in other documents we file with or furnish to the Securities and Exchange Commission, in our press releases, webcasts, conference calls, presentations, materials delivered to shareholders and other communications, are “forward-looking statements” within the meaning of the U.S. federal securities laws. All statements other than historical factual information are forward-looking statements, including without limitation statements regarding: projections of tariff or other trade-related impacts, revenue, expenses, profit, profit margins, asset values, pricing, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, our liquidity position or other projected financial measures; management’s plans and strategies for future operations, including statements relating to anticipated operating performance, customer demand, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions and the integration thereof (including our integration of Masimo and the anticipated benefits of such acquisition, which is further described in Note 2), divestitures, spin-offs, split-offs, initial public offerings, other securities offerings or other distributions, strategic opportunities, stock repurchases, dividends, executive compensation and potential executive stock sales or purchases; growth, declines and other trends in markets we sell into; future, new or modified laws, regulations, accounting pronouncements or public policy changes; regulatory approvals and the timing and conditionality thereof; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; future currency exchange rates and fluctuations in those rates; the potential or anticipated direct or indirect impact of public health crises, climate change, military or geopolitical conflicts or other man-made or natural disasters on our business, results of operations and/or financial condition; general economic and capital markets conditions; the anticipated timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that Danaher intends or believes will or may occur in the future. Terminology such as “believe,” “anticipate,” “assume,” “continue,” “should,” “could,” “intend,” “will,” “plan,” “aim,” “expect,” “estimate,” “project,” “target,” “can,” “may,” “possible,” “potential,” “upcoming,” “forecast” and “positioned” and similar references to future periods are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words.

Current wording

Certain statements included or incorporated by reference in this Report, in other documents we file with or furnish to the Securities and Exchange Commission, in our press releases, webcasts, conference calls, presentations, materials delivered to shareholders and other communications, are “forward-looking statements” within the meaning of the U.S. federal securities laws. All statements other than historical factual information are forward-looking statements, including without limitation statements regarding: projections of tariff or other trade-related impacts, revenue, expenses, profit, profit margins, asset values, pricing, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, our liquidity position or other projected financial measures; management’s plans and strategies for future operations, including statements relating to anticipated operating performance, customer demand, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions and the integration thereof (including our integration of Masimo and the anticipated benefits of such acquisition, which is further described in Note 2 to the accompanying Consolidated Condensed Financial Statements), divestitures, spin-offs, split-offs, initial public offerings, other securities offerings or other distributions, strategic opportunities, stock repurchases, dividends, executive compensation and potential executive stock sales or purchases; growth, declines and other trends in markets we sell into; future, new or modified laws, regulations, accounting pronouncements or public policy changes; regulatory approvals and the timing and conditionality thereof; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; future currency exchange rates and fluctuations in those rates; the potential or anticipated direct or indirect impact of public health crises, climate change, military or geopolitical conflicts or other man-made or natural disasters on our business, results of operations and/or financial condition; general economic and capital markets conditions; the anticipated timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that Danaher intends or believes will or may occur in the future. Terminology such as “believe,” “anticipate,” “assume,” “continue,” “should,” “could,” “intend,” “will,” “plan,” “aim,” “expect,” “estimate,” “project,” “target,” “can,” “may,” “possible,” “potential,” “upcoming,” “forecast” and “positioned” and similar references to future periods are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words.

Previous wording

As a result of the Company’s geographic and industry diversity, the Company faces a variety of opportunities and challenges, including rapid technological development (particularly with respect to computing, automation, artificial intelligence, mobile connectivity and digitization) in most of the Company’s served markets, the expansion and evolution of opportunities in high-growth markets, trends and costs associated with a global labor force, consolidation of the Company’s competitors, increasing regulation and a rapidly evolving global trade environment. The Company operates in a highly competitive business environment in most markets, and the Company’s long-term growth and profitability will depend in particular on its ability to expand its business in high-growth geographies and high-growth market segments, identify, consummate and integrate appropriate acquisitions and identify and consummate appropriate investments and strategic partnerships, develop innovative and differentiated new products and services with higher gross profit margins, expand and improve the effectiveness of the Company’s sales force, continue to reduce costs and improve operating efficiency and quality and effectively address the demands of an increasingly regulated global environment and the evolving trade environment. The Company is making significant investments, organically and through acquisitions and investments, to address the rapid pace of technological change in its served markets and to position its manufacturing, research and development and customer-facing resources to be responsive to the Company’s customers throughout the world and improve the efficiency of the Company’s operations.

Current wording

As a result of the Company’s geographic and industry diversity, the Company faces a variety of opportunities and challenges, including rapid technological development (particularly with respect to computing, automation, artificial intelligence, mobile connectivity and digitization) in most of the Company’s served markets, the expansion and evolution of opportunities in high-growth markets, trends and costs associated with a global labor force, consolidation of the Company’s competitors, increasing regulation and a rapidly evolving global trade environment. The Company operates in a highly competitive business environment in most markets, and the Company’s long-term growth and profitability will depend in particular on its ability to expand its business in high-growth geographies and high-growth market segments, identify, consummate and integrate appropriate acquisitions and identify and consummate appropriate investments and strategic partnerships, develop innovative and differentiated new products and services with higher gross profit margins, expand and improve the effectiveness of the Company’s sales force, continue to reduce costs and improve operating efficiency and quality and effectively address the demands of an increasingly regulated global environment and the evolving trade environment. The Company is making significant investments, organically and through acquisitions and investments, to address the rapid pace of technological change and increasing demand for automation in its served markets and to position its manufacturing, research and development and customer-facing resources to be responsive to the Company’s customers throughout the world and improve the efficiency of the Company’s operations.

Previous wording

During the second quarter of 2026, the Company’s overall revenues and core sales increased 5.5% and 3.0%, respectively, compared to the comparable period of 2025. Core sales excluding respiratory testing increased 4.5% during the second quarter of 2026 compared to the comparable period of 2025. The increase in core sales in the second quarter of 2026 was due to higher core sales in the Life Sciences segment, and to a lesser extent in the Biotechnology and Diagnostics segments. Acquisitions contributed 1.5% to the increase in sales and the impact of foreign currency increased reported sales by 1.0% during the three-month period ended June 26, 2026. For the six-month period ended June 26, 2026, the Company’s overall revenues and core sales increased 4.5% and 2.0%, respectively, compared to the comparable period of 2025. Core sales excluding respiratory testing increased 4.0% during the six-month period ended June 26, 2026 compared to the comparable period of 2025. The increase in core sales was due to higher core sales in the Biotechnology and Life Sciences segments, partially offset by lower core sales in the Diagnostics segment. During the six-month period ended June 26, 2026, acquisitions contributed 0.5% to the increase in sales and the impact of foreign currency increased reported sales by 2.0%. Price decreases of 0.5% negatively impacted sales growth on a year-over-year basis during the three-month period ended June 26, 2026 while price changes did not have a significant impact on sales growth on a year-over-year basis during the six-month period. Price changes are reflected as a component of core sales above. For the definitions of “core sales,” “core sales excluding respiratory testing” and “acquisitions” refer to “—Results of Operations” below.

Current wording

During the third quarter of 2026, the Company’s overall revenues and core sales increased 8.5% and 3.0%, respectively, compared to the comparable period of 2025. Core sales excluding respiratory testing increased 5.5% during the third quarter of 2026 compared to the comparable period of 2025. The increase in core sales excluding respiratory testing in the third quarter of 2026 was due to higher core sales in all three segments. The segments benefited from sequentially strengthened demand from applied, clinical, pharmaceutical, biopharmaceutical and biotechnology customers. Demand from academic and government customers also improved but remained muted overall. Acquisitions contributed 6.5% to the increase in sales while tariff refunds to customers decreased reported sales by 1.0% during the three-month period ended September 25, 2026. For the same period, the impact of foreign currency did not have a significant impact on reported sales. For the nine-month period ended September 25, 2026, the Company’s overall revenues and core sales increased 6.0% and 2.0%, respectively, compared to the comparable period of 2025. The increase in core sales was due to higher core sales in the Biotechnology and Life Sciences segments, partially offset by lower core sales in the Diagnostics segment. Core sales excluding respiratory testing increased 4.5% during the nine-month period ended September 25, 2026 compared to the comparable period of 2025. During the nine-month period ended September 25, 2026, acquisitions contributed 3.0% to the increase in sales and the impact of foreign currency increased reported sales by 1.5%, while tariff refunds to customers decreased sales by 0.5%. Price decreases of 0.5% negatively impacted sales growth on a year-over-year basis during both the three and nine-month periods ended September 25, 2026. Price changes are reflected as a component of core sales above. For the definitions of “core sales,” “core sales excluding respiratory testing,” “acquisitions” and “tariff refunds to customers” refer to “—Results of Operations” below.

Previous wording

Geographically, the Company’s sales in the three-month period ended June 26, 2026 in developed markets increased year-over-year by 2% and core sales in developed markets were down slightly due to a low-single digit core sales decrease in Western Europe and a slight decline in core sales in North America. The decrease in core sales in developed markets was primarily driven by the Biotechnology segment due to difficult prior year comparisons and the Diagnostics segment due to lower respiratory sales. For the same period, sales in high-growth markets increased year-over-year by 15% and core sales were up more than 10% driven by increases across all three segments and across all major high-growth market regions. High-growth markets represented approximately 31% of the Company’s total sales in the second quarter of 2026. For additional information regarding the Company’s sales by geographical region during the three and six-month periods ended June 26, 2026 and June 27, 2025, refer to Note 4 to the accompanying Consolidated Condensed Financial Statements.

Current wording

Geographically, the Company’s sales in the three-month period ended September 25, 2026 in developed markets increased year-over-year by 5% and core sales in developed markets were flat as a mid-single digit increase in core sales in Western Europe was offset by a low-single digit core sales decrease in North America and declines in other developed markets. The decrease in core sales in North America was primarily driven by the Diagnostics segment due to lower respiratory sales. For the same period, sales in high-growth markets increased year-over-year by 15% and core sales in such markets were up 10% driven by increases across all three segments and across all major high-growth market regions, led by high-single digit core sales growth in China. In China, the Biotechnology and Life Sciences segments were supported by healthy funding and investment levels. High-growth markets represented approximately 31% of the Company’s total sales in the third quarter of 2026. For additional information regarding the Company’s sales by geographical region during the three and nine-month periods ended September 25, 2026 and September 26, 2025, refer to Note 5 to the accompanying Consolidated Condensed Financial Statements.

Previous wording

The Company’s net earnings for the three and six-month periods ended June 26, 2026 totaled $870 million and approximately $1.9 billion, or $1.23 and $2.68 per diluted common share, respectively, compared to $555 million and approximately $1.5 billion or $0.77 and $2.10 per diluted common share, respectively, for the three and six-month periods ended June 27, 2025. Impairment charges in 2025 of $432 million ($328 million after-tax or $0.46 per diluted common share), and $447 million ($339 million after-tax or $0.47 per diluted common share), recorded in the three and six-month periods ended June 27, 2025, respectively, drove the year-over-year increase in net earnings and diluted net earnings per common share in both periods.

Current wording

The Company’s net earnings from continuing operations for the three and nine-month periods ended September 25, 2026 totaled approximately $1.2 billion and $3.1 billion, or $1.71 and $4.38 per diluted common share, respectively, compared to $908 million and approximately $2.4 billion, or $1.27 and $3.37 per diluted common share, respectively, for the three and nine-month periods ended September 26, 2025. Discrete tax benefits related to the release of reserves for uncertain tax positions resulting from audit settlements in 2026 of $263 million (or $0.37 per diluted common share) recorded in the three and nine-month periods ended September 25, 2026 and impairment charges in 2025 of $101 million ($70 million after-tax or $0.10 per diluted common share) and $548 million ($409 million after-tax or $0.57 per diluted common share), recorded in the three and nine-month periods ended September 26, 2025, respectively, drove the year-over-year increase in net earnings from continuing operations and diluted net earnings per common share from continuing operations in both periods.

Previous wording

Currency exchange rates increased reported sales by approximately 1.0% and 2.0%, respectively, for the three and six-month periods ended June 26, 2026, compared to the comparable periods of 2025, primarily due to the exchange rates of the U.S. dollar compared to the euro and other major currencies. In future periods, strengthening of the U.S. dollar against other major currencies compared to the exchange rates in effect as of June 26, 2026 would adversely impact the Company’s sales and results of operations on an overall basis, and weakening of the U.S. dollar against other major currencies compared to the exchange rates in effect as of June 26, 2026 would positively impact the Company’s sales and results of operations. In addition to the translational exchange rate risk to sales, the Company also faces transactional exchange rate risk from transactions with customers in countries outside the U.S. and from intercompany transactions between affiliates. Transactional exchange rate risk (and any resulting gains or losses) arises from the purchase and sale of goods and services in currencies other than the Company’s functional currency or the functional currency of its applicable subsidiary.

Current wording

Currency exchange rates did not have a significant impact on reported sales during the three-month period and increased reported sales by approximately 1.5% for the nine-month period ended September 25, 2026, compared to the comparable periods of 2025, primarily due to the exchange rates of the U.S. dollar compared to the euro and other major currencies. In future periods, strengthening of the U.S. dollar against other major currencies compared to the exchange rates in effect as of September 25, 2026 would adversely impact the Company’s sales and results of operations on an overall basis, and weakening of the U.S. dollar against other major currencies compared to the exchange rates in effect as of September 25, 2026 would positively impact the Company’s sales and results of operations. In addition to the translational exchange rate risk to sales, the Company also faces transactional exchange rate risk from transactions with customers in countries outside the U.S. and from intercompany transactions between affiliates. Transactional exchange rate risk (and any resulting gains or losses) arises from the purchase and sale of goods and services in currencies other than the Company’s functional currency or the functional currency of its applicable subsidiary.

Previous wording

Danaher operates a diversified global supply chain and sources parts and materials globally. In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (“IEEPA”), which the U.S. administration relied on to impose certain tariffs, does not authorize the imposition of such tariffs. On March 4, 2026, the U.S. Court of International Trade ordered the U.S. Customs and Border Protection (“CBP”) to process refunds of the IEEPA tariffs, and the CBP has begun accepting and processing applications for refunds on certain IEEPA tariffs. The IEEPA tariffs remain subject to ongoing litigation between the administration and other parties. In response to the U.S. Supreme Court ruling mentioned above, the administration implemented new tariffs under alternative statutory authority. The Company intends to pursue any refunds to which it is entitled. To the extent the Company recovers refunds in periods subsequent to the second quarter of 2026, the Company will recognize earnings for the refunds, less any amounts due to customers. The full impact of the U.S. Supreme Court’s ruling and the administration’s response, including the timing and extent of refunds and the impact of the new tariffs, remain uncertain. The tariffs enacted in 2025 and in the first half of 2026 and related refunds did not have a material impact on the Company’s business or financial statements in the periods presented.

Current wording

Danaher operates a diversified global supply chain and sources parts and materials globally. In February 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (“IEEPA”), which the U.S. administration relied on to impose certain tariffs, does not authorize the imposition of such tariffs. On March 4, 2026, the U.S. Court of International Trade ordered the U.S. Customs and Border Protection (“CBP”) to process refunds of the IEEPA tariffs, and the CBP has begun accepting and processing applications for refunds on certain IEEPA tariffs. The IEEPA tariffs remain subject to ongoing litigation between the administration and other parties. In response to the U.S. Supreme Court ruling mentioned above, the administration implemented new tariffs under alternative statutory authority. The Company intends to pursue any refunds to which it is entitled. The full impact of the U.S. Supreme Court’s ruling and the administration’s response, including the timing and extent of additional refunds and the impact of the new tariffs, remain uncertain. The tariffs enacted in 2025 and in the first nine months of 2026 did not have a material impact on the Company’s business or financial statements in the periods presented. The impact to net earnings of the IEEPA tariff refunds, net of tariff refunds to customers, was less than $100 million.

Previous wording

While the Company did not experience material interruption to its supply chain or operations in the first half of 2026 as a result of the conflict in the Middle East, the Company did experience delays and higher logistics costs in the delivery of goods to customers in the region. The conflict has significantly reduced the export of oil and natural gas from the Persian Gulf, creating upward pressure on oil and natural gas prices, and has also disrupted and increased the costs of certain other supplies. Refer to “Part II - Other Information - Item 1A - Risk Factors” for a further discussion of the risks relating to the conflict in the Middle East. To the extent the conflict continues and/or escalates, the negative impacts noted above may continue or increase, the risks referenced above may eventuate and demand for the Company’s products could be adversely affected.

Current wording

While the Company did not experience material interruption to its supply chain or operations in the first nine months of 2026 as a result of the conflict in the Middle East, the Company did experience delays and higher logistics costs in the delivery of goods to customers in the region. The conflict has impacted the export of oil and natural gas from the Persian Gulf, creating upward pressure on oil and natural gas prices, and has also disrupted and increased the costs of certain other supplies. Refer to “Part II - Other Information - Item 1A - Risk Factors” for a further discussion of the risks relating to the conflict in the Middle East. To the extent the conflict continues and/or escalates, the negative impacts noted above may continue or increase, the risks referenced above may eventuate and demand for the Company’s products could be adversely affected.

Previous wording

On June 10, 2026, the Company acquired Masimo by acquiring all of the outstanding shares of Masimo’s common stock for a cash purchase price of approximately $9.8 billion, or $180.00 per share, net of cash acquired. Masimo develops and produces monitoring technologies, which include innovative measurements, sensors and patient monitors, serving primarily healthcare customers and is now part of the Company’s Diagnostics segment. Masimo generated revenues of approximately $1.5 billion in 2025. The acquisition of Masimo has provided, and is expected to provide, additional sales and earnings opportunities for the Company by expanding product line diversity, including new product offerings supporting acute care settings. The Company financed the Masimo Acquisition using cash on hand and proceeds from the issuance of long-term debt and commercial paper. The Company preliminarily recorded approximately $5.0 billion of goodwill related to the Masimo Acquisition.

Current wording

On June 10, 2026, the Company acquired Masimo by acquiring all of the outstanding shares of Masimo’s common stock for a cash purchase price of approximately $9.8 billion, or $180.00 per share, net of cash acquired. Masimo develops and produces monitoring technologies, which include innovative measurements, sensors and patient monitors, serving primarily healthcare customers and is now part of the Company’s Diagnostics segment. Masimo generated revenues of approximately $1.5 billion in 2025. The acquisition of Masimo has provided, and is expected to provide, additional sales and earnings opportunities for the Company by expanding product line diversity, including new product offerings supporting acute care settings. The Company financed the Masimo Acquisition using cash on hand and proceeds from the issuance of long-term debt and commercial paper. The Company preliminarily recorded approximately $4.9 billion of goodwill and $5.0 billion of intangible assets (primarily comprised of $3.4 billion of developed technology, $895 million of customer relationships and $660 million of trade names).

Previous wording

•sales from acquired businesses (as defined below); and

Current wording

•sales from acquired businesses (as defined below)

Previous wording

•the impact of currency translation.

Current wording

•the impact of currency translation; and

Previous wording

Beginning with the Company’s Quarterly Report on Form 10-Q for the third quarter of 2026, the Company intends to exclude from the core sales measures the impact, if any, of tariff refunds (related to tariff payments made in prior periods) that are returned, or expected to be returned, to customers. The Company believes this adjustment will help investors better understand underlying growth trends in the Company’s business that otherwise may be obscured by the above-noted tariff-related impacts.

Current wording

Beginning with this Report, the Company is excluding tariff refunds to customers from core sales. References to tariff refunds to customers refer to the impact of tariff refunds related to tariffs collected by the Company in prior periods that are returned, or to be returned, to customers. The Company believes this adjustment helps investors better understand underlying growth trends in the Company’s business that otherwise may be obscured by the above-noted tariff-related impacts.

Previous wording

Beginning with this Report, in addition to disclosing core sales growth, the Company is disclosing a new non-GAAP measure, titled “Core sales excluding respiratory testing.” This new measure adjusts core sales to exclude revenues related to the sale of respiratory testing products in the Company’s molecular diagnostics business in the Diagnostics segment. Demand for respiratory testing depends significantly on the severity levels of influenza and influenza-like illness in a given period, and these severity levels are not under management’s control. As a result, presenting core sales on a basis that combines respiratory testing revenue with other Diagnostics business revenues can obscure underlying growth trends within the Diagnostics businesses. The Company believes that presenting this additional measure will complement core sales, enhance investors’ understanding of the historical and anticipated performance of the Diagnostics businesses and Danaher as a whole, including with respect to underlying growth trends, and facilitate comparisons of period-to-period performance.

Current wording

References to core sales excluding respiratory testing refer to core sales excluding revenues related to the sale of respiratory testing products in the Company’s molecular diagnostics business in the Diagnostics segment. Demand for respiratory testing depends significantly on the severity levels of influenza and influenza-like illness in a given period, and these severity levels are not under management’s control. As a result, presenting core sales on a basis that combines respiratory testing revenue with other business revenues can obscure underlying growth trends. The Company believes that presenting this measure will complement the core sales measure, enhance investors’ understanding of the historical and anticipated performance of the Diagnostics businesses and Danaher as a whole, including with respect to underlying growth trends, and facilitate comparisons of period-to-period performance.

Previous wording

•the period-to-period change in revenue (excluding sales from acquired businesses (as defined above)); and

Current wording

•the period-to-period change in revenue (excluding sales from acquired businesses and the impact from tariff refunds to customers for tariffs collected in prior periods (as defined above)); and

Previous wording

•the period-to-period change in revenue (excluding sales from acquired businesses (as defined above)) after applying current period foreign exchange rates to the prior year period.

Current wording

•the period-to-period change in revenue (excluding sales from acquired businesses and the impact from tariff refunds to customers for tariffs collected in prior periods (as defined above)) after applying current period foreign exchange rates to the prior year period.

Previous wording

Operating profit margins increased 520 basis points from 12.8% during the three-month period ended June 27, 2025 to 18.0% for the three-month period ended June 26, 2026.

Current wording

Operating profit margins decreased 10 basis points from 19.1% during the three-month period ended September 26, 2025 to 19.0% for the three-month period ended September 25, 2026.

Previous wording

•Higher first half of 2026 core sales, net of the impact of changes in leverage from the Company’s operations and administrative cost structure and the impact of product mix - 75 basis points

Current wording

•Higher third quarter 2026 core sales and the impact of IEEPA tariff refunds, net of changes in leverage in the Company’s operational and administrative cost structure and the impact of product mix - 170 basis points

Previous wording

Operating profit margins increased 280 basis points from 17.4% during the six-month period ended June 27, 2025 to 20.2% for the six-month period ended June 26, 2026.

Current wording

Operating profit margins increased 180 basis points from 18.0% during the nine-month period ended September 26, 2025 to 19.8% for the nine-month period ended September 25, 2026.

Previous wording

Price increases did not have a significant impact on sales growth on a year-over-year basis during both the three and six-month periods ended June 26, 2026 and are reflected as a component of core sales above.

Current wording

Price increases in the segment did not have a significant impact on sales growth during the three-month period ended September 25, 2026 and contributed 1.0% to sales growth on a year-over-year basis during the nine-month period ended September 25, 2026 and are reflected as a component of core sales above.

Previous wording

Total segment sales increased 4.0% and 7.5% during the three and six-month periods, respectively. The increase in segment sales in both the three and six-month periods was led by increased core sales, and to a lesser extent by the impact of currency exchange rates. In the three-month period ended June 26, 2026, the year-over-year increase in total segment core sales was led by increased sales of consumables and to a lesser extent, higher equipment sales. The year-over-year increase in total segment core sales in the six-month period ended June 26, 2026 was led by increased sales of consumables, partially offset by lower equipment sales. Geographically, the increase in core sales in the three-month period ended June 26, 2026 was led by China, partially offset by Western Europe and North America. The decrease in core sales in developed markets was primarily driven by difficult prior year comparisons. The increase in core sales in the six-month period ended June 26, 2026 was led by China and Western Europe, partially offset by North America.

Current wording

Total segment sales increased 0.5% and 5.0% during the three and nine-month periods, respectively. The increase in segment sales in both the three and nine-month periods was led by increased core sales, partially offset by tariff refunds to customers. The impact of currency exchange rates partially offset the increase in segment sales in the three-month period and contributed to the increase in segment sales in the nine-month period. In the three-month period ended September 25, 2026, the year-over-year increase in total segment core sales was led by increased sales of consumables and equipment. The year-over-year increase in total segment core sales in the nine-month period ended September 25, 2026 was led by increased sales of consumables, partially offset by lower equipment sales. Geographically, the increase in core sales in the three-month period ended September 25, 2026 was led by China and Western Europe. The increase in core sales in the nine-month period ended September 25, 2026 was led by China and Western Europe, partially offset by declines in North America.

Previous wording

The year-over-year increase in core sales in the segment in the three and six-month periods was led by low-single digit and mid-single digit core growth, respectively, in the bioprocessing business. This growth was primarily driven by improved consumables demand and to a lesser extent, improved equipment sales in the three-month period, which more than offset the impact of certain large commercial customers moving the timing of shipments out of the quarter. Core sales in the discovery and medical business increased year-over-year in both periods, driven by increased consumables in both periods, led by pharma and biopharma customers and an improving academic and research funding environment.

Current wording

Core sales in the bioprocessing business increased towards the upper end of mid-single digits in the three-month period and increased mid-single digits in the nine-month period primarily driven by mid-single digit increases in consumables demand and to a lesser extent, improved equipment sales. Core sales in the discovery and medical business decreased year-over-year in the three-month period and increased slightly in the nine-month period. In the three-month period, higher demand for protein research was more than offset by decreased consumables sales. In the nine-month period, increased consumables demand contributed to the year-over-year increase in core sales.

Previous wording

Price increases in the segment contributed 1.5% to sales growth on a year-over-year basis in both periods and are reflected as a component of core sales above.

Current wording

Price increases in the segment contributed 0.5% to sales growth on a year-over-year basis during the three-month period ended September 25, 2026 and are reflected as a component of core sales above. Price changes did not have a significant impact on sales growth during the nine-month period.

Previous wording

Total segment sales increased 5.5% and 4.5%, respectively, during the three and six-month periods ended June 26, 2026. The sales increase in both periods was primarily driven by increased core sales, and to a lesser extent currency exchange rates in the six-month period. The year-over-year increase in total segment core sales in both the three and six-month periods ended June 26, 2026 was driven by an increase in consumables sales and to a lesser extent higher demand for equipment. Over the first half of 2026, demand from applied, pharmaceutical, biopharmaceutical and biotechnology customers continued to strengthen and demand from academic and government customers improved modestly, but remains muted overall. Geographically, the core sales increase was led by the high-growth markets in both periods.

Current wording

Total segment sales increased 4.0% and 4.5%, respectively, during the three and nine-month periods ended September 25, 2026. The sales increase in both periods was primarily driven by increased core sales, and to a lesser extent currency exchange rates in the nine-month period. In the three-month period the increase in segment sales was partially offset by the impact of currency exchange rates. The year-over-year increase in total segment core sales in both the three and nine-month periods ended September 25, 2026 was driven by an increase in consumables sales, and to a lesser extent higher demand for equipment. Geographically, the core sales increase in the three-month period was led by North America, Western Europe and China. In the nine-month period, the core sales increase was led by Western Europe and China.

Previous wording

The year-over-year increase in segment core sales in both the three and six-month periods was led by the filtration business and to a lesser extent, the life sciences instruments and life sciences consumables businesses. The year-over-year core sales increase in the filtration business in both periods was driven by higher demand for microelectronic and energy products. In the three-month period ended June 26, 2026, the increase in core sales in the life science instruments businesses was driven by higher demand for consumables in the flow cytometry and lab automation solutions business and mass spectrometry businesses and increased demand for equipment in the microscopy and mass spectrometry businesses. The increase in core sales in the life science instruments businesses in the six-month period ended June 26, 2026 was driven by increased demand for consumables, partially offset by lower equipment demand.

Current wording

The year-over-year increase in segment core sales in both the three and nine-month periods was led by the filtration and the life sciences instruments businesses, and to a lesser extent the life sciences consumables businesses. The year-over-year core sales increase in the filtration business in both periods was driven by higher demand for microelectronic and aerospace products. In both periods, the increase in core sales in the life science instruments businesses was driven by higher demand for consumables and equipment in both the flow cytometry and lab automation solutions and mass spectrometry businesses. The mass spectrometry business benefited from strong demand from pharmaceutical and biopharmaceutical customers and a modest improvement in academic spending in the United States.

Previous wording

•Higher second quarter 2026 core sales, net of the impact of product mix and the impact of changes in leverage from the Company’s operations and administrative cost structure - 210 basis points

Current wording

•Higher third quarter 2026 core sales and the impact of IEEPA tariff refunds, net of the impact of changes in leverage from the Company’s operations and administrative cost structure - 115 basis points

Previous wording

Price decreases in the segment of 1.5% in both the three and six-month periods ended June 26, 2026, primarily attributable to the volume-based procurement program in China and the impact of sales promotions in the six-month period ended June 26, 2026, negatively impacted the year-over-year change in sales and are reflected as a component of core sales above.

Current wording

Price decreases in the segment of 1.0% and 1.5%, respectively, in the three and nine-month periods ended September 25, 2026 were primarily attributable to the impact of China’s volume-based procurement program and reimbursement changes, as well as the impact of sales promotions and are reflected as a component of core sales above.

Previous wording

Total segment sales increased 7.0% and 2.5%, respectively, during the three and six-month periods ended June 26, 2026 primarily as a result of the Masimo Acquisition. In the three-month period ended June 26, 2026, core sales growth and the impact of currency exchange rates also contributed to the increase in segment sales. In the three-month period ended June 26, 2026, increased demand in the clinical diagnostics businesses more than offset decreased demand for respiratory tests in the molecular diagnostics business. Core sales excluding respiratory testing increased 5.0% during the three-month period ended June 26, 2026. During the six-month period ended June 26, 2026, segment sales increased as result of the Masimo Acquisition and the impact of currency exchange rates, partially offset by decreased core sales. The decrease in segment core sales in the six-month period ended June 26, 2026 was primarily driven by decreased year-over-year demand for respiratory tests in the molecular diagnostics business, partially offset by increased demand in the clinical diagnostics businesses. Core sales excluding respiratory testing increased 4.0% during thesix-month period ended June 26, 2026. Geographically, the core sales increase in the three-month period ended June 26, 2026 was led by North America, Middle East and Western Europe, partially offset by declines in China. Geographically, the core sales decrease in the six-month period ended June 26, 2026 was led by China, North America and Western Europe, partially offset by the Middle East. The core sales decrease in China in both periods was partially attributable to the pricing impact of China’s volume-based procurement program and healthcare reimbursement changes, which has moderated as the Company began to move beyond the most significant year-over-year impacts of these changes that began in late 2024.

Current wording

Total segment sales increased 17.0% and 7.5%, respectively, during the three and nine-month periods ended September 25, 2026 primarily as a result of the Masimo Acquisition. In the three-month period ended September 25, 2026, core sales increased as higher demand in the clinical diagnostics businesses more than offset decreased demand for respiratory tests in the molecular diagnostics business. Core sales excluding respiratory testing increased 7.0% during the three-month period ended September 25, 2026. In the nine-month period ended September 25, 2026 the decrease in segment core sales was primarily driven by decreased year-over-year demand for respiratory tests in the molecular diagnostics business, partially offset by increased demand in the clinical diagnostics businesses and higher demand for non-respiratory testing in the molecular diagnostics business. Core sales excluding respiratory testing increased 5.0% during the nine-month period ended September 25, 2026. Geographically, the core sales increase in the three-month period ended September 25, 2026 was led by the high-growth markets, partially offset by North America. Geographically, the core sales decrease in the nine-month period ended September 25, 2026 was led by North America and China, partially offset by an increase in the Middle East. The core sales decrease in China in the nine-month period was partially attributable to the pricing impact of China’s healthcare policy changes. The Company continues to move beyond the most significant year-over-year impacts of these changes that began in late 2024. Core sales increased year-over-year in China in the three-month period.

Previous wording

During both the three and six-month periods ended June 26, 2026, core sales in the molecular diagnostics business declined year-over-year as increased core sales of non-respiratory tests were more than offset by decreased core sales of respiratory tests. The decreased demand for respiratory tests was driven primarily by a less severe respiratory season in the first half of 2026 compared to the comparable period of 2025. The relative severity of the upcoming respiratory season and customer purchases in the first half of 2026 in preparation for such respiratory season could adversely impact demand for such tests over the remainder of 2026. In the segment’s clinical diagnostics businesses, core sales increased year-over-year in both the three and six-month periods, led by the clinical lab business, and to a lesser extent by the acute care diagnostics and pathology diagnostics businesses. In the clinical lab businesses, increased year-over-year core sales in North America and in the high growth markets outside of China, more than offset core sales declines in China in the three and six-month periods.

Current wording

During both the three and nine-month periods ended September 25, 2026, core sales in the molecular diagnostics business declined year-over-year as increased core sales of non-respiratory tests across most major test categories were more than offset by decreased core sales of respiratory tests. The decreased demand for respiratory tests was driven primarily by lower prevalence of respiratory disease in the nine-month period of 2026 compared to the comparable period of 2025. The relative severity of the upcoming respiratory season and customer purchases in the three and nine-month periods of 2026 in preparation for such respiratory season could adversely impact demand for such tests over the remainder of 2026. In the segment’s clinical diagnostics businesses, core sales increased year-over-year in both the three and nine-month periods, led by the clinical lab business, and to a lesser extent by the pathology diagnostics and acute care diagnostics businesses.

Previous wording

•The impact of product mix and changes in leverage in the segment’s operational and administrative cost structure, net of higher second quarter 2026 core sales - 165 basis points

Current wording

•Higher third quarter 2026 core sales and the impact of IEEPA tariff refunds, net of the impact of product mix and changes in leverage in the segment’s operational and administrative cost structure - 30 basis points

Previous wording

•Lower first half of 2026 core sales and the impact of product mix, net of improvements in leverage in the Company’s operational and administrative cost structure - 125 basis points

Current wording

•Lower 2026 core sales and the impact of product mix, net of improvements in leverage in the Company’s operational and administrative cost structure and the impact of IEEPA tariff refunds - 80 basis points

Previous wording

Amortization of intangible assets as a percentage of sales increased during both the three and six-month periods ended June 26, 2026 as compared to the comparable periods of 2025, primarily as a result of the impact of the Masimo Acquisition.

Current wording

Intangible asset amortization as a percentage of sales increased during both the three and nine-month periods ended September 25, 2026 primarily as a result of the impact of the Masimo Acquisition.

Previous wording

Cost of sales increased year-over-year during both the three and six-month periods ended June 26, 2026 as compared to the comparable periods in 2025. The increase was primarily due to the impact of higher year-over-year sales volumes, the impact of recently acquired businesses and a $46 million acquisition-related charge associated with the fair value adjustment to inventory recorded in connection with the Masimo Acquisition in the second quarter of 2026. In the six-month period ended June 26, 2026, these increases were partially offset by a $15 million impairment charge related to a facility in the Biotechnology segment recorded in 2025.

Current wording

Cost of sales increased year-over-year during both the three and nine-month periods ended September 25, 2026 as compared to the comparable periods in 2025. In both periods, the increase was primarily due to the impact of recently acquired businesses, and to a lesser extent acquisition-related charges, higher sales volumes and facility impairments. The increase in cost of sales in 2026 included acquisition-related charges associated with the fair value adjustment to inventory recorded in connection with the Masimo Acquisition of $84 million and $130 million recorded in the three and nine-month periods, respectively, and a $52 million impairment charge recorded during the three and nine-month periods ended September 25, 2026, partially offset by a $15 million impairment charge recorded in the nine-month period ended September 26, 2025, in both cases related to facilities in the Biotechnology segment. In both periods, the increase in cost of sales was partially offset by the receipt of IEEPA tariff refunds, which are recorded as a reduction of cost of sales.

Previous wording

R&D expenses (consisting principally of internal and contract engineering personnel costs) as a percentage of sales decreased slightly during both the three and six-month periods ended June 26, 2026 as compared to the comparable periods of 2025, primarily as a result of the increase in sales.

Current wording

R&D expenses (consisting principally of internal and contract engineering personnel costs) as a percentage of sales increased during both the three and nine-month periods ended September 25, 2026 as compared to the comparable periods of 2025, primarily as a result of spending growth related to new product development initiatives.

Previous wording

For a description of the Company’s other income (expense), net during the three and six-month periods ended June 26, 2026 and June 27, 2025, refer to Note 7 to the accompanying Consolidated Condensed Financial Statements.

Current wording

For a description of the Company’s other income (expense), net during the three and nine-month periods ended September 25, 2026 and September 26, 2025, refer to Note 8 to the accompanying Consolidated Condensed Financial Statements.

Previous wording

Interest expense of $107 million and $170 million for the three and six-month periods ended June 26, 2026, respectively, was $36 million higher and $27 million higher than the comparable periods of 2025, due primarily to higher average borrowings in 2026 compared to 2025.

Current wording

Interest expense of $135 million and $305 million for the three and nine-month periods ended September 25, 2026, respectively, was $68 million higher and $95 million higher than the comparable periods of 2025, due primarily to higher average borrowings in 2026 compared to 2025.

Previous wording

Interest income of $61 million and $88 million for the three and six-month periods ended June 26, 2026, respectively, was $53 million higher and $74 million higher than the comparable periods of 2025, due primarily to higher average cash balances in 2026 compared to 2025.

Current wording

Interest income of $31 million and $119 million for the three and nine-month periods ended September 25, 2026, respectively, was $28 million higher and $102 million higher than the comparable periods of 2025, due primarily to higher average cash balances in 2026 compared to 2025.

Previous wording

For the three-month period ended June 26, 2026, net discrete tax charges of $21 million increased the effective tax rate by 1.9% and related primarily to changes in estimates associated with prior period uncertain tax positions, partially offset by benefits from the release of reserves for uncertain tax positions resulting from audit settlements.

Current wording

For the three-month period ended September 25, 2026, net discrete tax benefits of $263 million decreased the effective tax rate by 23.2% and related primarily to the release of reserves for uncertain tax positions resulting from audit settlements.

Previous wording

For the three-month period ended June 27, 2025, the effective tax rate was reduced by the tax effect from an intangible asset impairment in a jurisdiction with a higher statutory tax rate than the Company’s effective tax rate, partially offset by changes in uncertain tax positions. The net impact reduced the effective tax rate by 1.4%.

Current wording

For the three-month period ended September 26, 2025, the effective tax rate was reduced by the tax effect from intangible asset impairments in jurisdictions with higher statutory tax rates than the Company’s effective tax rate, which reduced the effective tax rate by 1.3%. There was no net discrete tax charge in the three-month period, as a valuation allowance recorded on certain foreign operating losses was offset by benefits from the remeasurement of deferred taxes in a jurisdiction which enacted a tax rate change.

Previous wording

For the six-month period ended June 26, 2026, net discrete tax charges of $21 million increased the effective tax rate by 0.9% and related primarily to changes in estimates associated with prior period uncertain tax positions, partially offset by benefits from the release of reserves for uncertain tax positions resulting from audit settlements and expiration of statutes of limitations.

Current wording

For the nine-month period ended September 25, 2026, net discrete tax benefits of $242 million decreased the effective tax rate by 7.0% and related primarily to the release of reserves for uncertain tax positions resulting from audit settlements and expiration of statutes of limitations, partially offset by changes in estimates associated with prior period uncertain tax positions.