Life Science Tools & Diagnostics: Latest Thoughts on the Group and Key Themes Heading into 2Q Earnings

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Life Science Tools & Diagnostics: Latest Thoughts on the Group and Key Themes Heading into 2Q Earnings

J P M O R G A N North America Equity Research

16 July 2026

Life Science Tools & Diagnostics

Latest Thoughts on the Group and Key Themes

Heading into 2Q Earnings

Tools have outperformed since 1Q earnings (S5LSTS +19% since 5/11 vs. XLV of Life Science Tools & Diagnostics

AC+11% and SPX of +2%), driven in part by a broader market rotation out of AI and Casey Woodring

tech and into underowned areas like healthcare. That said, investor sentiment is (1-212) 622-9074

positive on the tools group on a fundamental basis going into 2Q as intraquarter casey.woodring@jpmchase.com

leading indicators and management commentary seem to be generally healthier Marta Nazarovets Zaremba

than where we were to start the year, with sentiment most notably shifting more (1-212) 622-6046

positive after Agilent’s positive off-cycle F2Q print at the end of May. Most tools marta.zaremba@jpmchase.com

2026 guidance ranges aren’t baking in material end-market improvement this year Jaden Rismay

(with backhalf ramps tied more to comp dynamics), and while expectations are low (1-212) 622-8479

jaden.rismay@jpmchase.com

for U.S. A&G (despite several companies calling out greenshoots in 1Q), pharma/ J.P. Morgan Securities LLC

biotech trends across upstream and downstream exposures seem to be healthy and

support potential improvement in demand as we move through the year.

Additionally, we think the outlook is becoming more optimistic on longer-term

tailwinds related to reshoring and AI-driven drug development.

With that in mind, in terms of what we would own into the quarter, we remain

constructive on the high quality diversified companies in the sector in TMO and

DHR upon end-market recovery.