The following is excerpted from the question-and-answer section of the transcript.
(Questions from industry analysts are provided in full, but answers are omitted - download the transcript to see the full question-and-answer session)
Question: Brendan Smith - Cowen and Company LLC - Analyst
: (technical difficulty) areas you would highlight that may seem more meaningful strengths in terms of spending trends across end
markets?
Question: Brendan Smith - Cowen and Company LLC - Analyst
: Yeah, no worries. I'm sorry about that. I just wanted to double-click on the funnel that you mentioned earlier in the Q&A. How much
visibility do you have stretching out over the near term? And are there any areas you would highlight that may seem -- like they
might have more meaningful strengths in terms of spend trends across the end markets?
Question: Brendan Smith - Cowen and Company LLC - Analyst
: That's very helpful. Thank you. Just to fit one more in, could you remind us on what the ideal buyer profile you're looking for for the
B Med divestiture? And I guess, we have updates to timing in the near term.
Question: Brendan Smith - Cowen and Company LLC - Analyst
: Great. Thank you so much.
Question: Andrew Cooper - Raymond James - Analyst
: Hey, everybody. Thanks for the question. Maybe I just want to dive in a little bit on the SMS margin dynamics. Can you give a little
bit of color as to how much of that is really mix-oriented with some of the timing dynamics you talked about versus how much is
structural costs out that are helping there? Because you did kind of outperform our number pretty materially on that line.
Question: Andrew Cooper - Raymond James - Analyst
: Okay, helpful. And then maybe just in terms of looking at fiscal 4Q and some of the step-up here, I mean, what's your visibility today?
And can you help us think about the comfort level knowing that, yes, you have the timing dynamic that helps you, you have the
backlog, but we've seen this quarter a little bit of that backlog push out? So how comfortable are you with that kind of low single
digits and the step-up in SMS in particular in 4Q relative to kind of sitting here the first week of August and what you know you have
in hand?
Question: Andrew Cooper - Raymond James - Analyst
: Okay. I'll stop there. Thanks for the time.
Question: Matthew Stanton - Jefferies LLC - Analyst
: Hey, thanks. Maybe on NGS, could you just put a finer point on the high double-digit growth you saw in the quarter? What exactly
did NGS do in 3Q? I know you said volume was double digits and pricing stable. But maybe a finer point on the trends there in the
quarter.
And then I think prior, you noted potential tailwind here from some of the challenges on the A&G side with funding, especially in
core labs and indirect funding. Maybe just talk a little bit more on kind of any traction you're seeing there as folks maybe look to
outsource or move some of that volume elsewhere and the durability of that tailwind to your business over time. Thanks.
Question: Matthew Stanton - Jefferies LLC - Analyst
: Thanks. And maybe to go to something you touched on in the opening remarks, you talked about the three areas of growth. I think
for both product management and on the R&D side, you noted innovation. Maybe just give us an update on kind of how you're
feeling about the innovation pipeline and cadence.
And then, when could we start to potentially see some of these products and area of innovation you're putting dollars and time in
to start to show up and contribute to the top line? Is that '26, or is it a bit beyond that? Thanks.
Question: Matthew Stanton - Jefferies LLC - Analyst
: If I could just speak one more for Lawrence. On the push-out and the C&I orders, it sounds like it shipped here in 4Q. Any more color
just on what that was? Was it like a couple million dollars or something? Thanks.
Question: Matthew Stanton - Jefferies LLC - Analyst
: Appreciate it.
Question: Matthew Parisi - KeyBanc Capital Markets Inc - Analyst
: Hi, yes. This is Matthew Parisi, on for Paul Knight. I want to congratulate on the great quarter. I have a question around the NIH
funding. You mentioned a 1% headwind. And I was just wondering if there's going to be, like, possibly we could expect less of a
headwind due to the update that we've seen that funding's actually going to be going up now in the quarter or for 2026?
Question: Matthew Parisi - KeyBanc Capital Markets Inc - Analyst
: Thank you. That's all for me.
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