BRKRP Q3 2026 earnings call transcript, November 4, 2026

A BRUKER's investor relations website. During today's call, we will be highlighting non-GAAP financial information. Reconciliations of our non-GAAP to GAAP financial measures are included in our earnings release and are posted on our website at IR.BRUKER.COM. Before we begin, I would like to reference BRUKER's Safe Harbor Statement, which is shown on slide two of the presentation. During this conference call, we will or may make forward-looking statements regarding future events and the financial and

advanced packaging. While the lead times on these orders are longer than most of our life science tools, we expect to see these semi-orders convert into revenue, mostly in fiscal year 27 and some in fiscal year 28. Speaking of artificial, speaking of AI, artificial intelligence, in August, we started a strategic collaboration with, and we did a minority investment in Atena. Atenary Technologies, a pioneer of self-driving labs and agentic AI driven chemistry R&D. Atenary integrates our ChemSpeed lab automation and Bruker analytical measurement. Instruments into its agentic AI workflows. The Atenary lab in Boston includes ChemSpeed Robotics and Bruker Benchtop NMR for small molecule synthesis and catalysis in pharmaceutical R&D and process development. All right, let's dive into the numbers. Let's turn to slide four now. For the P&L performance where we achieved significant margin expansion and non-GAAP EPS growth driven by our cost, our focus on cost discipline and execution. Our third quarter 26 reported revenues of 874 million increased 1.6% year over year with organic growth. Our third quarter 26 non-GAAP gross and operating margins were 51.3% and 16.3% respectively. Both up significantly year over year. Our Q3 26 diluted non-GAAP EPS was 56 cents, up 24% from Q3 25. Moving to slide five, our year to date nine months Q3 26 revenues increased by 3.1% to 2.54 billion with organic revenue essentially flat. Our year to date non-GAAP gross margin.

Operating margin and EPS were all up nicely year over year and their year to date performance is summarized on slide five. As Gerald will explain in more detail shortly, in Q3 and year to date, our free cash flow also has improved considerably and we have made excellent progress with deleveraging. Please turn to slides six and seven now where we highlight the year to date third quarter performance of our now reorganized three scientific instruments groups and of our best segment all on a constant currency or CER and year-over-year basis. Year-to-date the biosystem group revenue was 1.2 billion up low single digits percentage year-over-year income in CER. Strength in biopharma and translational research was partially offset by weakness in acagov. Biosystems saw strong CER growth in IRRAM spectroscopy and in mass spectrometry driven in part by the tough work acquisition which was partially offset by softness in NMR. Year-to-date 2026 our new or newly elevated Microbiology and Infection Diagnostics group had revenues of $396 million which increased in the low single digits percentage driven primarily by robust molecular diagnostics revenue growth. Turning to slide 7.

Year-to-date broker nano revenue was $770 million with a low single digits percentage CER decline. Robust year-to-date growth in semi-metrology and biopharma was offset by weakness in AKGAV and industrial. Semi revenues were down double digits in the third quarter, primarily driven by our previously communicated push-outs of semi-metrology instruments from the third quarter. We had been very explicit about that in our Q2 earnings call when Gerald gave Q4. or color that we expected on metrology. Finally, year-to-date, best revenues were up 8.3% in CER, net of intercompany eliminations, with strong growth in research. instruments, or RI, and solid growth also in superconductors. Right. Moving to slide 8, we highlight our recent acquisition of MIMETAS, a leading humanized organ on a chip or NAM platform. NAM stands for new approach methodology, a commonly used term in the industry. And also by the FDA. I'll let you read some of the background on MIMETAS. I think it's a reading slide rather than me going to every bullet. But I think it is very important to get the higher level perspective that in addition to multiomics and spatial and structural biology and AI augmented drug discovery, one of the pain points and one of the reasons for the failure rates of so many drugs when they come, when promising drugs come from, to get translated from mouse models or animal models to humans are toxicities, are off-target toxicities that are unique to humanized models and human physiology. And Mimetas with its humanized organs on a chip, which can be nicely automated, which have many disease models.

And are poised for very significant double-digit growth with high gross margins, we think are probably the best type of systems of this type on the market, which is why after extensive research on that market, we acquired a majority in Mimetas. Excited and we think this will complement our multi-omics, spatial biology, structural biology in drug discovery, in particular drug discovery and development in a very important way. It's a high priority for just about every biopharma company. Right. On slide nine, we touched on a few recent advances in functional proteomics with novel workflows for drug discovery and disease biology launched at the recent International UPO Conference in Singapore. Again, I will not read every bullet, but we had very significant further advances. In this multi-DIA method on our TIMS Ultra for bottom-up proteomics, for plasma proteomics, single-cell proteomics, where we see in that net more peptides and protein groups and also more isoforms, sequence variants, and all the other things that traditional MS-based methods or the affinity methods simply cannot. see but they're functionally very important for better AI frontier models or better drug discovery on the right-hand side our teams omni continues to be very very successful system in the market with with significant orders and here are new workflows that are really very very important one in glycobiology where with

our unique trapped electron based fragmentation I won't go into technical details but it's really crucial to do this at scale at speed and in very sensitive manners and glycobiology is tremendously important but has been traditionally very difficult to study moreover oligonucleotides the native RNA analysis is another important area whether mRNA is a drug target or a potential drug a potential RNA drug and the instrument can perform outstanding workflows now in this area as well we think this bodes well for further rapid adoption in academic medical centers which have good funding as well as in pharma companies and biotech companies all right that about does it for me in summary the third quarter we achieved significant margin expansion and non-GAAP EPS growth and our positive bookings booking trends continued our BSI organ panic bookings and BSI backlog are both up mid single digits percentage year to date this helps de-risk our fourth quarter and sets us up for meaningful further performance improvement and growth acceleration in fiscal year 27 and beyond let me turn the call over to our cfo gerald thank you frank and thanks everyone for joining us today i'm pleased to provide more detail on grouker's third quarter 2026 financial performance starting in slide 11. in the third quarter of 26 our results were in the third quarter of 26 our results were line with our expectations on the top line but meaningfully ahead of our expectations and margins and eps largely confirming the benefit of our cost saving actions together with a positive mix in the quarter

in the third quarter of 2026 brokers reported revenue increased 1.6 percent to 874 million dollars with organic revenue growth of 0.7 percent. Acquisitions added 1.7 percent to our top line while foreign exchange was a 0.6 percent headwind resulting in constant exchange rate revenue growth of 2.4 percent year over year. BSI organic revenue declined 0.4 percent in the third quarter 26 with BSI instrument revenue down mid single digits and BSI aftermarket revenue up high single digits organically year-over-year. The organic decline in the third quarter 26 instruments revenue was primarily driven by the previously communicated push-outs of semi-metrology and instruments from the third quarter. Geographically, on a year-over-year organic basis in the third quarter of 2026, European revenue was up low single digits. America's revenue was roughly flat, while Asia-Pacific revenue declined in the mid-single-digit percentage. PSI revenues in China were up in the low double-digit percentage in the third quarter. And for our IMEA region, revenue was up over 30%. Our BSI segment order book performance was up organically in the low single-digit percentage year-over-year, driven by strong growth in SEMI and double-digit growth in U.S. academic government research and China academic government research. Partially offset by declines in European and Japanese ACA-Gov and biopharma in the third quarter, mostly due to quarterly fluctuations.

Third quarter 2026 non-GAAP growth. Post-margin increased 120 basis points to 51.3%. Non-GAAP operating margin was 16.3%, up 400 basis points, driven by our cost-saving actions and favorable mix. We are on track to achieve our $140 million annualized run rate cost out target. On a non-GAAP basis, third quarter 2026 diluted EPS was $0.56, up 24.4% from the $0.45 we posted in the third quarter 25. GAP effective tax rate was 28.4% compared to 24.4% in the third quarter of 25 due to unfavorable jurisdictional mix in the third quarter of 26. On a GAAP basis, we reported a diluted loss per share of 81 cents compared to a GAAP diluted loss per share of 41 cents in the third quarter. 25. Our third quarter 26 GAAP results include a non-cash goodwill impairment charge of approximately $175 million related to Bruker Spatial Biology, where U.S. academic government research market conditions have been weak. Weighted average diluted shares outstanding in the third quarter of 2026 were 153.2 million, an increase of 1.2 million shares from the third quarter of 25. Slide 12 shows Bruker's performance for the year-to-date of 2026. which has similar drivers to the third quarter. Turning to slide 13, in the third quarter of 2026, free cash flow improved $151 million year over year, driven mainly by higher net income, excluding the non-cash goodwill impairment, and improved working capital. We continued our debt deleveraging in the quarter, paying down an additional $58 million in debt.

Leverage ratio was 2.4 times as of September 30th, 2026, and now is below our previously communicated leverage target. Turning now to slide 15, we're updating our fiscally year 26 financial outlook for currency and reconfirming our prior fiscal year 26 organic revenue growth and non-GAAP EPS guidance. We now expect reported revenue of $3.52 to $3.56 billion. representing reported growth of two and a half to three and a half percent compared to fiscal year 25. We continue to expect organic revenue growth of one to two percent and contribution from acquisition to approximately one and a half percent. We now expect currency to be approximately neutral to reported revenue for fiscal year 26 after the recent strengthening of the U.S. dollar. We continue to expect non-GAAP operating margin expansion of 250 to 300 basis points here. Year, largely driven by our cost saving actions. On the bottom line, we continue to expect non-GAAP DPS for fiscal year 26 in a range of 210 to 215, up 15 to 17 percent. Compared to fiscal year 25. Other guidance assumptions are listed on the slide. Our fiscal year 26 ranges have been updated for foreign currency rates as of September 30th, 2026. Now some color on the fourth quarter. of 2026. We expect fourth quarter organic revenue to grow in the lower mid single digits percentage year over year. We expect meaningful sequential and year over year increases in operating margin and EPS due to higher

volume and favorable mix in the fourth quarter, as well as due to the compounding effects from our cost saving actions. To wrap up third quarter 2026 was a solid quarter for Bruker. Giving us improved confidence in a market recovery in many key market segments and geographies. Our cost saving actions are well on track, positioning us for significant margin and profitability improvements in fiscal year 26. And we're driving towards. Further margin improvement and double-digit EPS growth in 2027. With that, I'd like to turn the call back over to Joe. Thank you very much.

Thanks, Gerald. We will now begin the Q&A portion of the call. As a reminder, to allow everyone time for...

...questions, we ask that you limit yourself to one question and one follow-up. Operator? We will now begin that question and answer session. Once again, to ask a question, you may press star and then one on your touchtone phones. If you are using a speakerphone, we do ask that you please pick up your handset before pressing the keys. To withdraw your questions, you may press star and two.

Our first question today comes from Pneet Souda from Leerank Partners.

Good morning, Puneet. Yeah, thank you for your questions. I think, you know, I mean, I think we've significantly de-risked the fourth quarter. By my math, we do no longer need a 500 bips. Sequential step up that was, I think, previously correct. We need to step up from where we were at 16.3 percent. And I think we need to step up to the. By teens. And that seems much more achievable, given that it's likely to be about a billion dollar in revenue quarter.

And in the the recent. U.S. ACA GOV order pickup probably mostly will benefit us in 27. China ACA GOV orders have picked up earlier and they would begin to help us in Q4. The semi shift. Some of that goes into Q4. Some of that may go into early 27, but that's all good. So I think the margin and the revenue margin EPS ramp into Q4. I mean, yes, never without risk, which we think what we're saying about the color there is prudent at this point in time. But I think this is much significantly different. With another strong, obviously, the margin performance and EPS performance in particular, makes it much more achievable. Thanks for clarifying that. And then on AI, Frank, obviously, important theme for a broker. You're levered to it in multiple ways, uniquely on the semi-side. And obviously, the AI bio discovery as that starts to take shape as companies are investing more in discovery and platforms there. Can you maybe, is there a way to sort of quantify the contribution today from AI and then how are you thinking about 2027 here for AI overall across the enterprise? Thank you. Yeah, two pieces to that. As you've pointed out, the semiconductor metrology and within our best segmented RI, also some contribution to the ASML supply chain ultimately, although that's still smaller. It goes into the latest and greatest tools that they are beginning to now. That has been quantified. I think you've written notes on that. Others have been written notes on that, so I won't jump into that. And that continues to, I believe.

The year-to-date order growth in that area has been 30% or higher year-to-date. And again, it also was really strong in Q3 and order performance. So that's just humming along. And obviously one of the very strong. Growth drivers in our deep tech, broader deep tech area, but particularly in the semi-metrology and a little bit in the lithography supply chain. Bio-discovery or bio... ...and chemistry discovery and materials discovery benefits our chem-speed automation orders, benefits our sci-y software, and more and more I think it will also benefit those deep... ...biology, 2.0 tools, whatever you want to call it, that, you know, from bottom-up proteomics, of course, to isoforms, to incomplete proteoforms, top-down, glycobiology... ...spatial biology and structural biology, I think, are all going... There's an excellent article in the Wall Street Journal today where, yeah, taking more shots on goal, meaning on drug targets, is helping a little bit, but it may not lead to the expected breakthroughs of... curing all diseases anytime soon, which is optimistic anyway. But, you know, I think the deeper...unless you feed these frontier models with much, much deeper insights into disease biology and drug... targets and mechanisms of action. We're not going to make all that much progress. So there, I think, maybe not uniquely, but I mean, more than any other company, I think we're positioned for really providing these disease biology tools. We think that we'll, you know, that's still not...

...moving the needle so far, but I think that's quite promising for 27, and I think could be seeing a very significant ramp up in the next few years.

Catching the surface at higher... ...with more shots on goal, which is sort of the initial approach, which is fine to, I think, the much more impactful, deeper biology for which we need our tools. That was a long answer, I apologize. No, it's all good. Thanks, Frank. Our next question comes from Tycho Peterson from Jefferies. Please go ahead with your question. Hey, thanks. Frank, obviously a lot of improvement here in end markets. I'm wondering if you could...

pharma. They see stronger growth, as we've seen yesterday, for instance. But I'm encouraged that in the more CapEx-heavy drug discovery front end, the trends are good, although there's some flip. quarterly fluctuations, also for automation and software tools. Okay, that's helpful. And then, what's your latest framing on 27, you know, given mid-single-digit bookings growth here, you know, BSI, book to build above one. Obviously, the incremental cost savings look like they'll continue to flow through here. So, can you just provide any updated thoughts on 27 at this point? Well, not really beyond what we've said already. I mean, as you know, when we report probably in early February, a report Q4 will give guidance. But, you know, I mean, having we put our neck out and feel pretty comfortable and are very committed to double digit EPS growth. But refining that further, it's too early right now. We are seeking more than 100 BIPs of further operating margin expansion, hopefully more than just 100, not 300 or 250, like 300 this year. That's another meaningful step. And from this year, still relatively flattish because for us, it's always that orders kick in six to nine months before the revenue growth kicks in. You've seen. And then we have this very strong deep tech orders, which have even longer conversion times, but come in at very good margins and with very good order trends. So, so, you know, anticipating that we will excel.

The rate in organic bookings growth, sorry, in organic revenue growth from this year is easy because it's going to be an easy comparison. But nonetheless, you know, that should bring us to the, at least to the lower mid single digits. Okay. And then just quickly on margins before I hop off, a mix contributed 90 BIPs this quarter. Can you just unpack, you know, what, where you're seeing the biggest mix benefits? Yeah, I take it, it's Gerald. I'd say we saw some significant mix improvement both in our NMR business as well as in our optical microscopy business in the quarter. And that's better than what we actually anticipated. Clearly, we still have, you know, good solid performance in a number of other areas, but I'd highlight Okay, thank you. You're welcome. Our next question comes from Luke Sergat from Barclays. Please go ahead with your question. Great, thanks. Just wanted to follow up on the margin side. So a big margin.

Yeah, good question. So I should observe. That best was pretty weak last year. So it also sometimes a weaker comparison helps, but nonetheless, we're very pleased with the best order trends, which are even stronger. And we don't break those out because some of our. MRI superconducting wire orders. They come sort of every five years and big framework agreements, but very, very strong order growth in the research instrument side. And that is driven to your question by Eater and fusion. Orders that ultimately will go towards fusion energy, certainly fusion energy range research. There are other high energy physics and advanced light sources and electron free lasers. And similar projects around the world where we just have pretty unique capabilities and unique technology that really play a role and where the order growth also has been very, very strong. As I said, they're also plugged in a little bit into this ASML lithography supply chain in a small way. But, you know, being designed in is a good thing. So you want to be into the newest tool. So we're just we're just delighted with that segment. And it also has seen nice margin improvement. So it's not just the growth. But the bookings growth is even higher there, even though the revenue growth is really quite nice. So it's an exciting part. Part of our normally less appreciated deep tech, in addition to the deep tech semiconductor metrology that we've quantified and that you've all had more interest and insights in this year.

Appreciate it, thanks. Our next question comes from Sibu Nambi from Guggenheim. Please go ahead with your question.

Thank you for that. A follow-up. Last quarter, you indicated two-thirds of the fourth quarter revenue was covered by backlog. Are you almost fully de-risked at this point?

I'd say pretty much at this stage, we have pretty clear visibility into the backlog for the fourth quarter, and we're, you know, we still have execution-related issues, but other than that, I would say pretty much. Yeah, I mean, you have, you know, there's about 60% instruments revenue, 40% consumables. Obviously, on consumables and services, you have limited backlog, and on the instruments, you tend to have the backlog, and then it depends on sometimes issues. Suppliers, and then also more typically, customer site readiness, which, I mean, at any given quarter, this is not a fourth quarter thing, at any given quarter, it could be you. You've kind of, even if you execute perfectly, just from the customers, it's sort of a plus minus 20 million uncertainty that you have because you don't know exactly when they'll be ready to take shipment. But again, all. I think we feel obviously it was not excessive, but there was more risk in our Q4 ramp previously. And now it's not it's not a shoe in. It never is. It's a big. quarter. But it seems achievable. Thank you so much. Thank you. Thank you. Our next question comes from Lucy from Bank of America.

Got it. And then second question, probably on China. So definitely year today has been pretty strong performance. It seems like the money has like falling. Into contact the orders. I'm wondering, kind of like looking forward in 2027, do you still expect kind of like pretty like durable bookings growth? And maybe just like, like what do you hear from the customer on the market? Thank you. China is really revenue in earlier in the year was still going down because of weak orders in 25. I think that has reversed in Q3 with some raw. Revenue growth. And then year to date in China, that's exactly, you're exactly right. Our order growth in China and for BSI, it has been really quite good. And we don't expect that to see. We expect that to continue in Q4. It's hard to read China beyond a few quarters. China, sometimes we say, well, you've got to finish the quarter to know. I think we have reasonable time. Confidence that Q4, the strength will continue. Hopefully that can be extrapolated into 27. We have no reason to believe otherwise, but it's just all China over. One or two year periods. But we're encouraged this year. The trends have been, order trends have been very good. Expected to be continued in Q4. And by the way, also in China, AkaGov, it was not only U.S. AkaGov, that was weak, but also China AkaGov, and that has really turned.

And our next question comes from Doug Schenkel from UBS. Please go ahead with your question.

Um, cause otherwise semi bookings have been just very strong year to date, greater than 30%. Uh, the other part is that, and that the other part that also has longer conversion times is NMR. And sometimes we'll. And that certainly felt the impact of 2025 aga gov weakness in the U S and in China. Um, so the. The NMR part until that grows again also takes a little bit longer. So NMR and semi push out are why you haven't seen it as much yet. Uh, you will see as we're predicting that this all implies organic. BSI organic revenue growth in Q4. I'm not saying that the Q4 rate will then therefore be indicative as an exit rate for 27, but it'll probably be closer.

Other than that, I think your logic isn't something that I would object to. Or detect a flaw. This is one of the scenarios that you've just outlined with numbers. I'm not confirming that, but I'm also not contradicting it. It's one of the scenarios of how it could play out. It's reasonable. Okay. All right. Thanks, Frank. I appreciate you indulging me on that.

Our next question comes from Jack Meehan from Oberon Research. Please go ahead with your question.

Life and or shorten ICU times and longer term health effects. So it has an important societal function. Wrapping up, I think I think while right now it's. A little bit slower. I think this is a high single digit growth area long term. And it has very, very nice margins. Great. Thank you for all that. Gerald one below. The line follow up for you. So in the guide, you raise the tax rate assumption from twenty six and a half to twenty seven and a half percent. I was just wondering, as a twenty twenty seven question, as we look forward, like what you. Think is the right ongoing tax rate for the business. And if there are any moving parts that have changed that we should be thinking about. Thanks. I mean, I think generally our our position on. Taxes have been relatively consistent here. We're tracking somewhere in the twenty seven and a half range. And we have been for for a period of time. We have a number of tax planning initiatives, which we won't discuss here. Fundamentally, we've got a number of initiatives underway that are expected to benefit the tax rate going forward, particularly in twenty seven and twenty eight. We can talk more about that another time, but just fundamentally. I would just say that those are the goal for us is to continue to drive that rate down at least 50 basis points on a year over year basis in twenty seven and then consistently there. That's our target. Perfect. Thank you. Thanks. Our next question comes from Kyle Boucher from TD Callen. Please go ahead with your question. Hey, good morning. Thank you for taking my questions. I wanted to go back and build off of maybe a couple that were asked just around, you know,

targets and mechanism of action biology and off target effects, all these complexities, much, much better if they want to have a better drug discovery and, and fundamental, you know, disease translational approaches. So, yeah. I think, I think this inevitably also then strengthens. There still is a lot of state and philanthropic and other funding. And, you know, these days it's not so much traditional. The department of chemistry needing more NMRs or mass specs. Now it's the cancer or neurodegeneration or autoimmunity or cardiovascular disease, academic medical centers, and they have other sources of. funding. So that part is really getting stronger. Got it. Thank you. Maybe just one more sort of conceptual question. But, you know, you mentioned during the call that you're below your target leverage range. I guess he's talked a little bit about. You know, how you're thinking about M&A going forward now that you're under your leverage target? Well, we did some M&A this year. Mimetas was an important one. And it gets us into a new area in addition to our preclinical imaging, the preclinical humanized organs on a chip model that are in some ways closer to human physiology than animal models are tremendously important. It wasn't very, very large M&A. You're right. We didn't do any of that this year. And we did some other, a couple of smaller acquisitions that were really very important for the BMIT.

Diagnostic, infectious disease diagnostic sequencing, including sequencing the metagenome, which also can help sometimes in extreme cases in detecting infections directly. Three from blood, without a blood culture, and then some enrichment technology. So we did some smaller bolt-ons that were technically very, very important for our B-MIT group, and which I think also have... In addition to good market demand, I think, and to Jack's question earlier, I think in terms of new solutions that you'll see launched in 27 and 28 in that group, microbiology and molecular diagnostics, I'm... I think they'll also outgrow their markets perhaps quite significantly. So we've done some M&A. We have now, again, some more capacity for M&A, you know, but we also like EPS accretion, so we'll be very disciplined. Got it. Thank you.

Our next question comes from Dan Arias from Stifel. Please go ahead with your question.

That's a good question, Dan. I'd say it's kind of staying the same. I mean, these big fab projects... ...or within a fab, adding additional lines is remarkably on time. I mean, that's one industry that runs extremely well managed, but that doesn't mean you cannot have a one-quarter shift. ...or sometimes a two-quarter shift. So that all continues as before, actually, we're here in that industry. It's not problematic there. When we ship and install, these systems work. I mean, these are very robust, high-volume manufacturing metrology systems. These are not finicky scientific. I mean, they're extremely, extreme nanoscience, but they're very, very robust and high-throughput systems. Yeah, data center built out in the U.S., but, I mean, we'll have to realize the U.S. is only a small, it's only a. Fraction, not a small fraction. It's an increasing, but still a small-ish fraction compared to what's going on in Japan and in APEC, a little bit in Europe, but it's mostly in China itself where we can only. We deliver lower-end systems. The rest of APEC and big build-out in Japan and Singapore are all investing very happy. So that build-out is, if anything, it's accelerating. Yep. Okay. Okay. Helpful. And then just, Gerald, maybe a bookings clarification. Were BSI bookings up during the quarter? You had said mid-singles, year-to-date, but the... The first two quarters of the year were double digits. So just trying to square away the 3Q number in order to get to the nine-month range here. Thank you.

Yeah. I think the bookings performance is low single digits. In the third quarter. Third quarter last year was very, very strong. So actually I think that's Q3 of 25 and bookings were very strong. So yeah, it is up sequentially. Oh, sorry, it's up year over year, low single digits, and it's up sequentially in the mid to high single digits compared to Q2 of 26. It's all good. Yeah, it's all moving. The momentum is there, I'd say, yes. Yep, okay. Thank you. Yeah, you're welcome. Our next question comes from Albert Hew from Citi. Please go ahead with your question. Thanks for taking the question. Maybe on the previous question.

Good question. You may have stumped us slightly. I think we're not prepared to discuss that type. We don't give 27 guidance. We're certainly not giving granularity yet. But directionally, I can't reproduce all the math that you have in your head right now. I think the direction is correct. And yeah, that business, if anything, would accelerate in revenue growth next year compared to this year. That is also correct. And its order growth has already been very good. And we hope that we think that we'll continue into 27 and then, you know, beyond 27, we follow what the industry thinks and the industry hasn't really taken a position on 28, 29 yet. We're pretty sure that 27, things will continue to hum along with very fast growth rates. Okay. And then I think you previously called out some potential NIH budget flush in September. Is that what you guys saw that drove the double-digit A&G bookings this quarter? And I guess, do you expect that to flow through given the six to nine months conversion time for A&G to grow? Next year, or how should we kind of juggle just the strong double-digit bookings and the forward thinking? I appreciate it. Yeah, right, Albert. I think the double-digit bookings in Q3 had a lot to do with the week Q3 of last year and maybe some incremental orders that came, but there was a budget flush at NIH for sure. That's well documented. And since most of that we think will help us with Q4 orders and perhaps some of that will still, you know, take a little bit of time and go into Q1 orders.

So the budget flush, that was not. It's significantly responsible for improved bookings in Q3. I think it's just, you know, there's a lot of pent up demand. People need the newer tools. At some point they just do whatever it takes. Within their university or academic medical center or research hospital to get the new tools and they're getting used to this slightly less predictable federal funding and they're just dealing with this new, you know. They're settling into that and are now kind of back to where they're placing orders for what they really need. And then the budget flush that did take place probably for us primarily will help Q4 and Q1 bookings.

Thanks so much and with that and with that ladies and gentlemen we will be ending today's question and answer session. I would like to turn the floor back over to. So Kostka for closing comments. Thank you for joining us today. The Bruker's leadership team looks forward to meeting with you at an event or speaking with you directly during the fourth quarter. Feel free to reach out to me to arrange any follow-ups. Have a good day. And with that, ladies and gentlemen, we'll conclude today's conference call and presentation. We thank you for joining. You may now disconnect your lines.

We'll be right back.