Americas Life Sciences Tools & Diagnostics: 2Q26 Earnings Preview: GS Tools Tracker and China Stimulus Tracker Updates

Research evidence excerpt

Americas Life Sciences Tools & Diagnostics: 2Q26 Earnings Preview: GS Tools Tracker and China Stimulus Tracker Updates

Equity Research

14 July 2026 | 4:01AM EDT

Americas Life Sciences Tools & Diagnostics: 2Q26 Earnings Preview: GS

Tools Tracker and China Stimulus Tracker Updates

Executive Summary Evie+1(212)357-1694Koslosky| e.v.koslosky@gs.com

Goldman Sachs & Co. LLC

Grey Smith

Year to date, Tools saw underperformance versus the broader market (return of -9% +1(212)934-1193 | grey.smith@gs.com

vs S&P 500 +10%), as 1Q performance for several names came in line with guides

that were previously expected to be conservative. The Tools space is yet again in a

position where organic growth needs to show sequential improvement throughout

the year in order to meet/beat full year guides for several names in our coverage. We

continue to be focused on several factors which we believe could drive end market

improvements and sequential growth including 1) CDMO demand driven by

onshoring trends to offset tariff (TMO, A), 2) bioprocessing equipment which could

potentially see an inflection late 2026/early 2027 (DHR), 3) respiratory testing

headwinds rolling off in 2Q26 (DHR, WAT), 4) improved clinical stage biotech

funding which could start to flow through to spending in 2H26 (TMO), 5) continued

investment in downstream Pharma manufacturing (WAT, A, MTD), and 6) industrial

strength driven by semiconductors and cyclical patterns (A, BRKR). We remain

cautious on the potential recovery in US Academic & Government and while we are

encouraged by recent strength in preclinical biotech funding, we believe this will take

time to be reflected in spending patterns.

Recent investor conversations revolved around the magnitude and timing of the