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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