Thermo Fisher Scientific Inc

during today's call, you may do so at any time by pressing Start, followed by 1 on your telephone keypad. I would like to introduce our moderator for the call, Mr. Rafael Tejada, Vice President, Investor Relations. Mr. Tejada, you may begin the call.

Good morning, and thank you for joining us. On the call with me today is Mark Casper, our Chairman, President, and Chief Executive Officer, and Stephen Williamson, Senior Vice President and Chief Financial Officer. Please note this call is being webcast live and will be archived on the investor section of our website, thermofisher.com, under the heading News, Events, and Presentations until July 22, 2025. A copy of the press release of our first quarter earnings is available in the investor section of our website, under the heading financials so before we begin let me briefly cover our safe harbor statement various remarks that we may make about the company's future expectations plans and prospects constitute forward-looking statements for purposes of the safe harbor provisions under the private securities litigation reform act of 1995. actual results may differ materially from those indicated by these forward-looking statements as a result of various important factors, including those discussed in the company's most recent annual report on Form 10-K, which is on file with the SEC and available in the investor section of our website under the heading Financials SEC Filings. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our estimates change. Therefore, you should not rely on these forward-looking statements as representing our views as of any date subsequent to today. Also, during this call, we will be referring to certain financial measures not prepared in accordance with generally accepted accounting principles or GAAP. A reconciliation of these non-GAAP financial measures to the most directly comparable gap measures is available in the press release of our first quarter 2025 earnings and also in the investor section of our website under the heading financials. So with that, I'll now turn the call over to Mark.

Thank you, Raf. Good morning, everyone, and thanks for joining us today for our first quarter call. As you saw in our press release, we delivered very strong performance in the quarter. I'm proud of our team's ongoing focus to enable the success of our customers, while demonstrating incredibly strong commercial execution and operational discipline. Our continued success as a result of our growth strategy, our PPI business system, and our proven capital deployment approach. And of course, all of this is against the backdrop of a more uncertain macro environment. So big thanks to the team for their efforts. In my remarks today, I'll first cover Q1, which was a strong quarter with clean execution across all dimensions. In the second part of my remarks, I will cover the expected impact of the uncertainty in the macro environment. And I'll provide a high-level view of our updated guidance for the year that incorporates the expected net impact of current tariffs and the changes driven by the current policy focus of the U.S. administration. So to turn into Q1, let me recap the financials. Our revenue in the quarter was $10.36 billion. Our adjusted operating income was $2.27 billion. Q1 adjusted operating margin was 21.9%, and we grew adjusted EPS by 1% to $5.15 per share. Our team's excellent execution and strong focus on our customer success enabled us to deliver revenue performance ahead of our expectations, and then we translated that revenue performance into earnings that were also ahead of expectations. Turning to our performance by end market, as a reminder, there were two less days in the quarter than the same period last year. In pharma and biotech, we delivered low single-digit growth during the quarter, which included a two-point headwind from the runoff of vaccine and therapy-related revenue. Performance in this quarter was led by our bioproduction and pharma services businesses, as well as our research and safety market channel. In academic and government, revenue declined low single digits in the quarter, driven by the macro conditions in the U.S. and China for this end market. In industrial and applied, we grew low single digits during the quarter, highlighted by strong growth in our electron microscopy business. Finally, in diagnostics and healthcare, we grew low single digits during the quarter, reflecting strong performance in our healthcare market channel and in our transplant diagnostics and immunodiagnostics businesses. Wrapping up on our end markets, while there was more uncertainty than originally expected, our team delivered on our financial commitments for the quarter. In terms of our growth strategy, we made terrific progress in the quarter. As a reminder, our strategy consists of three pillars, high-impact innovation, our trusted partner status with customers, and our unparalleled commercial engine. So starting with the first pillar of our growth strategy, high-impact innovation, we had an excellent start to the year, launching several outstanding new products that are strengthening our industry leadership by enabling customers to advance their important work. Let me first highlight a couple of new products and analytical instruments that demonstrate our continued market leadership. In electron microscopy, we introduced the thermoscientific Vulcan automated lab, a fully integrated AI-enabled solution that combines robotics and electron microscopy, helping to advance process development and control in semiconductor manufacturing. The Vulcan system speeds up transmission electron microscopy workflows reduces labor and delivers consistent high quality data. This innovation improves manufacturing yields and enhances productivity and seamlessly connects lab and fabrication operations, a major step forward for our semiconductor customers. In chromatography and mass spectrometry, we introduced the next generation thermoscientific Transcend, a new ultra high performance liquid chromatography platform helping high-volume laboratories simplify sample preparation and increase efficiency in clinical research, forensic toxicology, food safety, and environmental testing applications, including for PFAS. Turning to our genetic sciences business, we introduced O-Link Revealed Proteomics Kits that enabled the identification of proteins related to inflammation and immune response, helping to advance precision medicine. It was a terrific quarter for innovation, And we're excited about the strong pipeline of launches slated for Q2, including those that will debut at ASMS. Our high-impact innovation is enabling an even brighter future for our company. During the quarter, we also continued to strengthen our industry-leading commercial engine and deepen our trusted partner status with our customers to accelerate their innovation and enhance their productivity. In our clinical research business, we continued to strengthen our leadership in real-world evidence, to help our customers gain insights about the safety and effectiveness of current and future treatments. We launched new Corevitas patient registries in alopecia and lupus to enhance our customers' ability to inform treatment decisions and ultimately improve patient outcomes. And in electron microscopy, we announced a new collaboration with the Chan Zuckerberg Institute for Advanced Biological Imaging to advance the understanding of human cells by leveraging cutting-edge cryo-electron tomography technologies This effort supports the development of the Open Cell Atlas, a groundbreaking initiative aimed at creating high-resolution 3D maps of human cells to drive biological discovery. It's another example of how Thermo Fisher is enabling large-scale collaborative research efforts that push the boundary of science forward. Our trusted partner status and industry-leading commercial capabilities enable our customer success. They also provide us a unique opportunity for us to engage with our customers helping them solve current challenges and plan for the future. As always, our PPI business system played a significant role in our success, enabling outstanding execution during the quarter. PPI engages and empowers all of our colleagues to find a better way every day. PPI is helping us to drive share gain and improve quality, productivity, and customer allegiance. It's a significant competitive advantage for Thermo Fisher as we navigate through the current macroeconomic uncertainties. Let me now turn to capital deployment. We continue to successfully execute our proven capital deployment strategy, which is a combination of strategic M&A and returning capital to our shareholders. In February, we announced that we entered into a definitive agreement to acquire Silventum's purification and filtration business for $4.1 billion. The business is a leading provider of purification and filtration technologies used in the production of biologics, as well as in medical technologies and industrial applications. Soventum's innovative products are highly complementary to our leading cell culture media and single-use technologies, broadening our bioproduction capabilities to better serve the high-growth bioprocessing market. The transaction is expected to be completed by the end of 2025 and is subject to customary closing conditions and regulatory approvals. We look forward to welcoming our new colleagues to Thermo Fisher. In terms of return of capital, during the quarter, we repurchased $2 billion of shares and increased our dividend by 10%. Let me now turn to our guidance. We've all seen a tremendous pace of change in the world since we provided our guidance on January 30th. The two main elements of the macro changes since then are tariffs and the changes driven by the current policy focus of the US administration. As you would expect, we've been operating with agility to assess the changes as they come, and we're actively managing our business to mitigate the impact and capitalize on new opportunities. As a result, we're able to offset a large amount of the impact of the macro changes in 2025 and more fully offset them when the full impact of our mitigation actions is realized next year. While these recent macro changes are causing uncertainty and remain fluid, we thought it would be most helpful to the investment community to offer our best estimate of the impact of the known changes as of today and embed them in our guidance. Our updated guidance range for the year is revenue in the range of $43.3 billion to $44.2 billion, and adjusted EPS in the range of $21.76 to $22.84. Stephen will take you through the details in his remarks. While the guidance has changed for the expected impact of the macro factors and the mitigating actions, it's important to note that the rest of the guidance remains fully on track relative to what we shared on our last earnings call. As you know, during periods of change, we define a clear set of guiding principles on how to successfully manage the company. These principles have three elements. First, everything we do starts with our customers and ensuring that we're enabling their success. Second, we inspire our colleagues to bring their best every day to fulfill our mission. And third, you know we hold ourselves to an incredibly high standard to deliver differentiated short-term performance all while identifying opportunities to enhance our long-term competitive position, which creates an even brighter future for our company. To enable that differentiated short and long-term performance in this environment, we're leveraging our PPI business system to aggressively manage our supply chain, to counteract tariffs, and to appropriately manage our cost base. You've heard us talk about our commercial intensity, and we're pivoting our commercial teams to the areas with the best opportunities to accelerate our share gain momentum. We're ensuring that our trusted partner status is driving tangible benefits for our customers. And one way we're doing this is by continuing to invest further to strengthen our capabilities for our customers. This includes increasing our investment in U.S. manufacturing R&D in the range of about $2 billion. As the largest domestic life sciences player in every major market around the world, We're uniquely positioned to help customers navigate this environment. I'm encouraged by the fact that both our colleagues and our customers have never been more enthusiastic about our company. Our customer allegiance score is at an all-time high, and colleague engagement and retention is incredibly strong. So to summarize our key takeaways from our quarter, we delivered a very strong quarter driven by our proven growth strategy and PPI business system. Our trusted partner status and proven ability to enable our customer success is a significant competitive advantage. Looking ahead, we're acting with speed and agility to navigate the current environment, and we're incredibly well positioned to minimize the impact and maximize new opportunities, creating an even brighter future for our company. With that, I'll now hand the call over to our CFO, Steven Williamson. Steven?