Incremental Commentary & Thoughts from Today‘s Prints

Research evidence excerpt

Incremental Commentary & Thoughts from Today‘s Prints

Idea

July 23, 2026 04:18 PM GMT

Morgan Stanley & Co. LLCMLife Science Tools & Diagnostics | North America Kallum L Titchmarsh

Equity Analyst

Incremental Commentary & Kallum.Titchmarsh@morganstanley.comJason Lai +1 212 761-2351

Research Associate

Jason.Lai@morganstanley.com +1 212 761-4848

Thoughts from Today's Prints Jakob Dodd

Jakob.Dodd@morganstanley.com +1 212 761-0797

TMO's print should help drive incremental confidence in the

Life Science Tools & Diagnostics

wider life science tools space, with broad-based performance North America

across end markets and product categories. Investor questions Industry View In-Line

on WST have focused on the GLP HVP guidance for H2.

TMO - Pleased to see shares sharply up: With positioning more balanced into the

quarter and an overall confident tone on the conference call, we're not surprised to

see TMO shares up meaningfully this morning (see our initial take here). Investors

have been highlighting the +5% organic growth being the strongest topline print for

TMO since 3Q21 as being perhaps indicative of a turning point. We've received a

reasonable amount of incoming on the back-half guidance, whereby Street organic

growth for Q3 should move up and Q4 a little down per messaging (+4% was called

out as a reasonable starting point for both periods, versus the Street's current

+3.5% and +4.7% for Q3/Q4, respectively). From discussions, we sense conservatism

at play here more than anything else, particularly when considering the sustained

pharma end market momentum paired with an uptick in biopharma spend, while no

improvement is being assumed in areas like A/G despite brighter spots this quarter.

The Pharma Services (CDMO) acceleration into H2 should drive a portion of this