01 Beat · sales up, EPS range cut

Revenue grew 48 percent and the top of the earnings range still came down

Lilly added $7,416 million of revenue in a single quarter, taking sales to $22,974 million against $15,558 million a year earlier. Two products did almost all of it. Mounjaro reached $9,943 million, up 91 percent, and Zepbound $4,928 million, up 46 percent. Together they are $14,871 million, which is 64.7 percent of everything the company sold.

Then the guidance moved in two directions at once. Lilly raised the revenue range from $82 to $85 billion up to $85 to $87 billion, and cut the top of the earnings per share range from $37.00 to $36.50. The reason sits in one line of the income statement: acquired in-process research and development of $2,776 million against $154 million a year ago, worth $3.03 a share.

The buying explains the charge. Lilly signed a development and commercialisation deal with Abbisko worth up to $1,900 million, took BioArctic’s neurodegeneration programme for $30 million upfront against $800 million in total, bought Sangamo’s ST-506 outright for $50 million and acquired 4E Therapeutics. Three of those four are neurology, which is the smallest of its four therapy areas at $429 million.

02 Beat · guidance raised

One franchise grew by more than the company’s biggest loss of exclusivity took away

J&J passed $25 billion in a quarter for the first time in its 140-year history, and the number that explains it is not the headline. It is STELARA, down 55.2 percent to $740 million from $1,653 million. The product shed $913 million of quarterly revenue against the same period last year, a hole close to a billion dollars wide in a single line item.

Oncology filled it and then some. The franchise grew 17.3 percent to $7,406 million, adding $1,094 million year on year, more than STELARA lost. That is the entire loss-of-exclusivity defence in two figures, and it is why guidance went up rather than sideways. Look one level further and the scale of the shift is clearer still: DARZALEX alone, at $4,207 million, is now larger than J&J’s whole Immunology therapy area at $3,844 million. A single product has outgrown a franchise.

Immunology still fell 3.7 percent, which is the honest counterweight. TREMFYA at $2,046 million is growing 72.5 percent and carrying the segment, but not yet fast enough to absorb what STELARA is giving up. The successor was in market before the cliff arrived, which is the part of the playbook J&J executed correctly; the arithmetic simply has not caught up yet.

The deal sheet says the same thing. J&J paid $1,000 million for Firefly Bio in June to buy a degrader antibody conjugate platform for Oncology, and in April sold botaretigene sparoparvovec back to MeiraGTx for $25 million upfront against $75 million total. A billion dollars into oncology chemistry, an ophthalmic gene therapy on the way out.

03 Beat · Humira base shrinking

Skyrizi added more in one quarter than Humira has left to sell

Skyrizi reached $5,505 million, up 24.4 percent, which means it added roughly $1,080 million of revenue against the same quarter last year. Humira sold $756 million in the entire quarter. The successor is now adding more every three months than the predecessor has left to lose, and that is the cleanest statement of where AbbVie stands after the biggest patent cliff in the industry’s history.

Humira fell 35.9 percent and shed about $423 million. Immunology absorbed it and grew 15.1 percent to $8,786 million, with Rinvoq adding a further 24.5 percent to $2,525 million. Between them Skyrizi and Rinvoq are $8,030 million, which is 47.3 percent of everything AbbVie sold in the quarter and more than ten times what Humira now contributes.

Oncology is the exception, down 1.5 percent to $1,650 million as Imbruvica fell 29.4 percent to $532 million. AbbVie’s answer was to buy elsewhere: $10,900 million for Apogee Therapeutics in dermatology in June, an option over Kestrel Therapeutics worth up to $1,450 million in oncology, and a pain licence from Haisco. The Apogee price is more than fourteen times what Humira sold in the quarter.

Reported earnings tell a different story from adjusted. Diluted EPS was $2.03 against $0.52, but adjusted EPS was $3.65, up 22.9 percent. The gap is $1,689 million of intangible amortisation and $1,518 million from a change in fair value of contingent consideration, and the effective tax rate fell to 15.5 percent from 39.4 percent.

04 Sales +5% · pre-tax loss

Keytruda stopped growing and its own subcutaneous version covered the gap

Keytruda sold $7,904 million against $7,956 million a year earlier. The biggest medicine in the world went backwards, by 0.65 percent. What closed the gap was Keytruda Qlex, the subcutaneous formulation, which took $463 million from nothing a year ago. Together they are $8,367 million, up 5.2 percent, and 50.4 percent of everything Merck sold.

Three products that barely existed twelve months ago added $919 million between them: Qlex $463 million, Winrevair $252 million as it grew 75 percent to $588 million, and Ohtuvayre $204 million from zero. Merck added $801 million in total, so everything else in the portfolio net shrank by $118 million.

The erosion is concentrated and old. Januvia and Janumet fell 31 percent to $429 million combined, shedding $194 million. Lagevrio is effectively finished at $5 million against $83 million. Dificid fell 77 percent and Vaxneuvance 35 percent. Against that, Prevymis grew 29 percent, Welireg 67 percent and Capvaxive 43 percent.

The bottom line went the other way entirely. Merck recorded a pre-tax loss of USD 683M against income of USD 4,999M, and a net loss of USD 1,335M against earnings of USD 4,427M. Research and development was USD 9,741M against USD 4,048M, 58.7 percent of sales, because two acquisitions were booked straight to R&D as asset acquisitions: Terns at USD 5.7B this quarter and Cidara at USD 9.0B in the first, USD 13.8B across the half.

05 CER +6% · reported -2%

The Swiss franc took away more than the business added

Roche’s underlying business grew 6 percent at constant exchange rates, worth about CHF 1,857 million. Currency cost it CHF 2,437 million. Reported sales therefore fell 2 percent to CHF 30,364 million while the same half, measured in dollars, grew 8 percent. Every headline on this card moves in opposite directions depending on which currency you read it in.

The pattern repeats down the statement. Core operating profit rose 10 percent at CER and fell 1 percent in francs to CHF 11,856 million. Core earnings per share rose 9 percent at CER and fell 2 percent in francs to CHF 10.85. IFRS operating profit rose 6 percent at CER and fell 6 percent in francs. The business improved its core operating margin to 39.0 percent from 38.8 percent and still reported lower profit.

Cash conversion is where the improvement shows without translation noise. Free cash flow rose 26 percent in francs to CHF 4,197 million, and 58 percent at constant rates, taking it from 10.7 percent of sales to 13.8 percent. Research and development fell 5 percent to CHF 5,765 million, or 19.0 percent of sales from 19.6 percent.

Pharmaceuticals grew 6.2 percent at CER to CHF 23,629 million with a core operating margin of 53.0 percent. Diagnostics grew 3.4 percent to CHF 6,735 million but its margin fell to 17.5 percent from 18.0 percent, held back by Near Patient Care, down 5 percent, and Asia-Pacific, down 5 percent. Net debt rose 37 percent to CHF 22,071 million.

06 Sales up · net income down 19%

Oncology added $1,162 million and Entresto took away $1,176 million

Entresto lost more than half its revenue in a quarter, falling 50 percent to $1,181 million from $2,357 million. That is $1,176 million gone from a single brand, and it dragged the whole cardiovascular, renal and metabolic area down 36 percent to $1,688 million.

Oncology grew 35 percent to $4,515 million and added $1,162 million. Put the two side by side and the quarter explains itself: the biggest engine grew by $14 million less than the biggest loss took away. Net sales rose 1 percent at constant currency and 3 percent as reported, which is the whole story in one line.

Underneath, the compounding is real. Kisqali reached $1,695 million, up 44 percent, Kesimpta $1,424 million, up 32 percent, and Scemblix $562 million, up 89 percent. Cosentyx is still the largest brand at $1,824 million. What Novartis does not yet have is one of these at Entresto’s old scale.

Profit fell much harder than sales. Net income dropped 19 percent to $3,257 million while sales rose, and the two reasons are below the operating line: interest expense went from $289 million to $462 million, and the effective tax rate went from 11.2 percent to 23.7 percent. Core earnings per share, which strips those out, was flat at $2.41.

07 Core +21% · reported profit down

Oncology added more revenue than the whole company did

AstraZeneca added $871 million of revenue in the quarter. Oncology on its own added $1,011 million, growing 16 percent to $7,327 million. The arithmetic only closes one way: everything outside Oncology shrank by $140 million, and Oncology is now 48 percent of the company.

The drag is named and known. Cardiovascular, Renal and Metabolism fell 15 percent to $2,772 million as Farxiga lost US exclusivity, shedding about $489 million. China fell 7 percent to $1,587 million under volume-based procurement, and 13 percent at constant currency. Against that, Respiratory and Immunology grew 13 percent and Rare Disease 9 percent.

The gap between reported and core is the widest in this edition. Reported operating profit fell 10 percent to $3,164 million and reported operating margin dropped 4 points to 21 percent. Core operating profit rose 12 percent to $5,158 million with the margin up 2 points to 34 percent. Thirteen points separate the two margins, and reported EPS of $1.61 sits against core EPS of $2.63.

The pipeline delivered and disappointed in the same quarter. Imfinzi met its primary endpoint in VOLGA and NILE and missed in EMERALD-2. Wainua missed in CARDIO-TTRansform in ATTR-CM, and Ultomiris missed in HSCT-TMA. On the other side, Baxfendy took a first US approval in hypertension and Enhertu cleared three separate label expansions.

08 Beat · costs held flat

Revenue rose $875 million and operating costs rose $17 million

Amgen added $875 million of revenue in the quarter and $17 million of operating cost. Total operating expenses were $6,540 million against $6,523 million a year earlier, which means 98 percent of the revenue increase fell straight to operating income. Operating income rose $858 million to $3,514 million.

Cost of sales did the work. It fell to $2,811 million from $3,011 million even as product sales grew 8.7 percent, taking gross margin to 72.0 percent from 67.2 percent, a gain of 484 basis points. Research and development still rose 7.1 percent to $1,868 million, so the saving is manufacturing and mix rather than restraint on the pipeline.

Six products carry roughly 70 percent of product sales and all six are compounding: Tezspire up 42 percent, Evenity 38 percent, Repatha 37 percent, biosimilars 29 percent, rare disease 21 percent and innovative oncology 18 percent. Amgen also disclosed free cash flow of $3.5 billion and capital expenditure of $0.5 billion.

Reported and adjusted earnings moved in opposite directions, and the reported number is the flattering one for once. GAAP diluted EPS was $4.37 against $2.65, up 65 percent, while non-GAAP EPS rose 4 percent to $6.29. Prior-year GAAP was held down by $394 million of other expense and a tax rate of 8.7 percent; this quarter the tax rate was 14.2 percent.

09 Sales +2% · profit -19%

Sales rose 1.6 billion kroner and research spending rose 6.1 billion

Novo Nordisk added DKK 1,631 million of sales in the quarter and DKK 6,097 million of research and development. R&D rose 52 percent to DKK 17,787 million, which is 3.7 times the increase in sales, and took research to 22.7 percent of revenue from 15.2 percent.

Cost of goods sold moved the same way, up 33 percent to DKK 17,100 million against sales up 2 percent. Gross margin fell 507 basis points to 78.2 percent. Operating profit dropped 19 percent to DKK 27,061 million and the operating margin fell from 43.5 percent to 34.5 percent. Net profit fell 21 percent and diluted earnings per share went from DKK 5.96 to DKK 4.75.

The Rare disease segment turned loss-making. Sales were flat at DKK 4,907 million and it recorded an operating loss of DKK 1,295 million against a profit of DKK 518 million a year earlier, a margin of minus 26.4 percent. Obesity and Diabetes care grew 2.3 percent to DKK 73,581 million with its own operating margin down from 45.8 percent to 38.5 percent.

Commercially the launches are landing. US Wegovy weekly prescriptions are around 575,000 with the oral pill at roughly 265,000, the pill is now approved in the EU, UK and UAE, and Wegovy 7.2 mg launched in the UK. Novo holds a 58 percent GLP-1 volume share. Full-year adjusted guidance was still raised, to a range of 0 to minus 6 percent sales growth at constant currency.

10 Sales +13% · net earnings -48%

Two thirds of the growth is a company Abbott did not own a year ago

Abbott’s reported revenue grew 13.0 percent. On a comparable basis it grew 4.8 percent. The 8.2 point gap is one line: Cancer Diagnostics contributed $919 million in the quarter and did not exist inside Abbott a year ago. Exact Sciences closed on 23 March 2026.

Of the $1,451 million Abbott added against the prior year, $919 million came from the acquisition and $532 million from everything it already owned. US Diagnostics grew 104.8 percent as reported and 4.0 percent on a comparable basis, which is the same arithmetic at segment level.

The rest of the portfolio is doing what it has been doing. Medical Devices grew 9.0 percent to $5,853 million and 8.4 percent comparable, the largest segment and the most consistent. Established Pharmaceuticals grew 8.4 percent to $1,499 million, entirely international. Nutrition is the only segment going backwards, down 3.1 percent to $2,144 million with US nutrition off 9.0 percent.

Earnings went the opposite way from sales. Operating earnings fell 17.5 percent to USD 1,693M and net earnings fell 47.8 percent to USD 928M. Three lines did it: selling and administrative costs rose USD 934M, intangible amortisation USD 238M, and interest expense USD 230M on the USD 19.8B of debt raised to buy Exact Sciences. Diluted EPS was USD 0.53 against USD 1.01.

11 Operating loss · USD 11.18B charge

The charge was larger than the quarter’s entire revenue

Gilead booked $11,183 million of acquired in-process research and development in a quarter that produced $7,803 million of revenue. Add $1,750 million of IPR&D impairments and the two lines together come to $12,933 million, which is 1.7 times everything the company sold. Total costs and expenses were $18,197 million against $4,608 million a year earlier.

The result is an operating loss of $10,394 million against operating income of $2,474 million, and an operating margin of minus 133.2 percent against plus 34.9 percent. Diluted loss per share was $8.45 against earnings of $1.56. The effective tax rate was minus 2.4 percent.

The trading business underneath is fine and rather dull by comparison. Product sales grew 8 percent to $7,627 million, and excluding Veklury they grew 10 percent to $7,604 million. HIV rose 12 percent to $5,693 million and is now 74.6 percent of product sales. Liver Disease grew 10 percent, Oncology 3 percent, and product gross margin improved 60 basis points to 79.3 percent.

The deal sheet does not fully account for the charge. Gilead acquired Tubulis on 7 April for $3,150 million upfront against $5,000 million total, and the remaining transactions on the sheet are contract service agreements with Tempus, Orsini, Yuhan and the WHO. What sits behind the balance of the $11,183 million is not in the extracted material.

12 Reported loss · adjusted EPS flat

Every dollar of revenue growth came from alliances and royalties

Pfizer’s revenue rose 3 percent to $15,034 million, and its product revenues fell 1 percent to $11,863 million. The $381 million the company added came from alliance revenues, up 19 percent to $2,697 million, and royalties, up 11 percent to $474 million. On the medicines it sells itself, Pfizer went backwards by $91 million.

Below the operating line the quarter turned. Other income and deductions net was $3,716 million against $739 million a year earlier, an increase of $2,977 million, which is nearly eight times the $381 million of revenue Pfizer added. Restructuring and acquisition costs added a further $457 million against a $18 million credit last year.

The result is a reported net loss of $248 million against net income of $2,910 million, and a loss per share of $0.04 against earnings of $0.51. Adjusted income was flat at $4,440 million and adjusted diluted EPS flat at $0.77. The effective tax rate on reported results was 62.4 percent against 4.6 percent.

Spending went the other way from sales. Research and development rose 13 percent to $2,809 million, taking R&D to 18.7 percent of revenue from 16.9 percent, while selling and administrative costs were held flat at $3,411 million. Pfizer also signed a development and commercialisation licence with Innovent Biologics worth $650 million upfront against $10,500 million in total.

13 Operating profit +48%

Operating profit rose 48 percent and gross profit rose 2.5 percent

Danaher’s operating profit rose 48.3 percent to $1,127 million on sales up 5.5 percent. Gross profit rose 2.5 percent. The gap between those two numbers is selling, general and administrative expense, which fell 12.2 percent, or $288 million, and did almost all the work.

Underneath, the margin went the wrong way. Cost of sales rose $241 million on sales up $329 million, so gross margin fell 171 basis points to 57.6 percent from 59.4 percent. Research and development rose only 2.2 percent to $412 million, taking R&D to 6.6 percent of sales from 6.8 percent.

Growth is less organic than the headline. Total sales growth of 5.5 percent breaks into 3.0 percent core, 1.5 points from acquisitions and 1.0 point from currency. Respiratory testing added a further 1.5 points, so core growth excluding respiratory was 4.5 percent. Diagnostics grew 7.0 percent in total and 2.0 percent core, with acquisitions worth 4 points.

Reported and adjusted earnings tell different stories. Diluted EPS rose 59.7 percent to $1.23 against a prior quarter depressed by impairments worth $0.60 a share. Adjusted diluted EPS rose 7.8 percent to $1.94, with acquisition amortisation of $0.65 a share the largest reconciling item.

14 H1 +20.7% · tax doubled

Pre-tax income rose $114 million and net income fell

Intuitive earned $1,054.6 million before tax in the quarter against $940.4 million in the first quarter, an increase of $114.2 million. Net income was $823.2 million against $826.0 million, a fall of $2.8 million. The entire difference is tax: the charge went from $114.4 million to $231.4 million, and the effective rate from 12.2 percent to 21.9 percent.

The trading business is compounding hard. Revenue rose 4.4 percent sequentially to $2,892.3 million and 20.7 percent year on year across the half to $5,663.1 million. All three lines grew together in the half: instruments and accessories up 20.4 percent, systems up 21.7 percent and services up 20.1 percent, which is the balance you want in a placed-base business.

Margins improved as volume scaled. Gross margin reached 67.8 percent against 66.1 percent in the first quarter, and 66.9 percent in the half against 65.5 percent, up 141 basis points. Cost of revenue actually fell in absolute terms quarter on quarter, to $931.9 million from $940.3 million, while revenue rose $121.5 million.

Investment is rising with it. Research and development was $370.6 million, 12.8 percent of revenue, and $732.5 million in the half, up 16.4 percent. Selling and administrative costs rose only 9.5 percent in the half against revenue up 20.7 percent, which is why half-year operating income rose 38.3 percent to $1,827.2 million.

15 Revenue +5.7% · EPS tripled

Earnings tripled because a charge did not repeat, not because the business tripled

Bristol Myers Squibb reported diluted earnings per share of USD 1.62 against USD 0.64, and net earnings of USD 3,317M against USD 1,310M. Revenue grew 5.7 percent. The gap between those two rates is one line that was there last year and is not there now: acquired IPR&D of USD 1,508M in the second quarter of 2025, the BioNTech upfront, against nil this quarter.

Underneath, the portfolio is turning over fast. The Growth Portfolio grew 14.6 percent to USD 7,560M, led by Camzyos up 60 percent, Breyanzi up 40.7 percent and Reblozyl up 29.4 percent. Cobenfy nearly doubled to USD 63M and Opdivo Qvantig, the subcutaneous version, reached USD 261M from USD 30M while base Opdivo fell 2.9 percent.

The Legacy Portfolio fell 4.4 percent to USD 5,422M, and inside it the erosion is severe. Pomalyst fell 71.2 percent to USD 204M and Revlimid 49.3 percent to USD 425M, shedding USD 917M between them. What held the line was Eliquis, up 21.8 percent to USD 4,481M and now the single largest product in the company, adding USD 801M on its own.

Costs moved the right way. Amortisation of acquired intangibles halved to USD 437M, restructuring reversed to a USD 32M credit, and the effective tax rate fell to 18.8 percent from 25.9 percent. Against that, research and development rose 14.7 percent to USD 2,959M, which is 22.8 percent of revenue, including USD 220M for a priority review voucher.

16 Beat · gross margin +450bp

Sales rose 9.4 percent and the cost of making them fell

Stryker sold $6,589 million, up 9.4 percent, and its cost of sales fell 4.1 percent to $2,091 million. Revenue up $567 million against cost down $90 million produced $657 million of extra gross profit, and gross margin jumped 450 basis points to 68.3 percent from 63.8 percent.

Operating expenses rose only $111 million against that. Research and engineering grew 6.6 percent to $434 million and selling and administrative costs 7.2 percent to $2,229 million, both slower than sales. Operating income therefore rose 49.1 percent to $1,659 million and the operating margin went from 18.5 percent to 25.2 percent.

The prior-year comparator flatters the picture slightly. Last year’s quarter carried $55 million of goodwill and other impairments against $1 million this year, and intangible amortisation fell from $187 million to $175 million. Neither explains a 450 basis point gross margin move, which is manufacturing and mix.

Below the line, tax took more. The effective rate rose to 18.4 percent from 13.0 percent, so net earnings grew 44.3 percent while pre-tax earnings grew 53.9 percent. Diluted earnings per share reached $3.30 against $2.29. Across the half, sales grew 6.1 percent and operating income 33.1 percent.

17 Revenue +13.7% · on a 14-week quarter

An extra week of selling sits inside a 13.7 percent growth rate

Medtronic’s revenue grew 13.7 percent to USD 9,756M, and the first thing to know about that number is that fiscal 2027 is a 53-week year with the extra week falling in this quarter. Against a 13-week comparative, roughly one fourteenth of the period had no counterpart a year ago. The reported rate flatters the underlying one by something close to seven points.

Even allowing for that, Cardiovascular is running hard. The segment grew 19.5 percent to USD 3,927M, and inside it Electrophysiology Therapies grew 29.6 percent to USD 2,218M, adding USD 506M. That single division is 22.7 percent of company revenue and produced 43 percent of the company’s growth.

The rest is steadier. Neuroscience grew 10.3 percent to USD 2,678M and Medical Surgical 9.9 percent to USD 2,279M, the segment that was flat in the United States a year ago. Diabetes, no longer a reportable segment since the MiniMed IPO in March, grew 16.9 percent to USD 843M and is still consolidated because Medtronic retains control.

Margins moved only slightly. Gross margin was 65.0 percent, unchanged, while operating profit rose 22.1 percent to USD 1,764M and the operating margin gained 124 basis points to 18.1 percent. Diluted earnings per share reached USD 1.14 against USD 0.81, helped by an effective tax rate of 16.3 percent against 19.6 percent.

18 Sales +17.8% at CER

Dupixent is 44 percent of the company and four fifths of its growth

Dupixent sold EUR 5,154M in the quarter, up 37.6 percent at constant rates, and is now 44.4 percent of everything Sanofi sells. Of the EUR 1,603M the company added year on year, Dupixent contributed roughly EUR 1,322M, which is 82 percent of the growth. Everything else in the portfolio added about EUR 281M between it.

In the United States the concentration is sharper still. Dupixent took €3,899 million there, growing 42.8 percent, against €6,344 million of total US sales. Three quarters of what Sanofi sells in its largest market is one molecule.

The launch cohort behind it is real but small. Pharma launches reached €1,305 million, up 48.3 percent, and including vaccines the launch portfolio was €1,530 million, up 61.1 percent. Ayvakit at €190 million and Wayrilz at €17 million are new to the table, and Sarclisa grew 35.7 percent to €187 million.

The erosion is spread thinly rather than concentrated. Influenza and COVID-19 vaccines fell 61.7 percent to €54 million, industrial sales fell 25.5 percent, Myozyme fell 22.9 percent and Lovenox 15.8 percent. Lantus, still €394 million, fell 7.0 percent and 17.1 percent in the United States.

19 Core +6% · total profit -76%

Core operating profit rose 6 percent and total operating profit fell 76 percent

On GSK’s core measure the quarter was strong: sales up 5 percent to £8,409 million, gross margin up 230 basis points to 77.4 percent, operating profit up 6 percent to £2,800 million and core earnings per share up 9 percent to 50.5 pence.

On the statutory measure it was not. Total operating profit was £481 million against £2,023 million, down 76 percent, and the total operating margin fell from 25.3 percent to 5.7 percent, a drop of 1,960 basis points. Total earnings per share fell 69 percent to 10.8 pence. The gap between the two measures is £2,319 million, and GSK attributes it principally to the impairment of camlipixant.

The underlying cost picture is genuinely improving. Cost of sales fell 4 percent to £1,898 million while sales rose 5 percent, which is what produced the 230 basis point gross margin gain, helped by product mix and an easy prior-year comparator. Selling and administrative costs rose 5 percent, in line with sales.

Research spending is going the other way on purpose. R&D rose 13 percent to £1,721 million, or 20.5 percent of sales, which GSK describes as accelerated pipeline investment. Royalties fell 17 percent to £204 million against a prior year that included an intellectual property settlement, and core EPS benefited from buybacks and a lower tax rate.

20 Beat · gross margin +306bp

Every region and every segment grew, and the smallest grew fastest

Boston Scientific grew 7.5 percent to $5,442 million, landing at the top of its own 5.5 to 7.5 percent guidance range. What is unusual is the spread: all four regions and both segments grew, and there is not a single declining line on the card.

Cardiovascular carried the volume, up 8.3 percent to $3,624 million, two thirds of the company. MedSurg grew 5.9 percent to $1,818 million, with Neuromodulation the fastest line anywhere in the business at 12.7 percent and Urology the slowest at 1.1 percent.

Geographically the smallest markets moved hardest. Latin America and Canada grew 21.9 percent to $206 million, and 16.2 percent operationally. Asia-Pacific grew 11.1 percent to $878 million. The United States, at $3,426 million and 63 percent of sales, grew 6.3 percent.

Margins did something unusual. Cost of products sold fell 2.6 percent to USD 1,594M while sales rose 7.5 percent, lifting gross margin 306 basis points to 70.7 percent. Operating expenses rose only 2.5 percent, so operating income climbed 43.8 percent to USD 1,178M and the operating margin gained 546 basis points to 21.7 percent. Reported diluted EPS was USD 0.61 against USD 0.53, and adjusted EPS USD 0.86.

21 Life Science up · Healthcare down

Life Science grew 8 percent organically and Healthcare shrank 3.4 percent

The two sectors in scope went in opposite directions. Life Science grew 8.0 percent organically to €2,412 million, adding about €181 million. Healthcare shrank 3.4 percent organically to €2,151 million, losing roughly €72 million on the same basis. Together they are €4,563 million, 84 percent of the Merck Group.

Healthcare’s reported number only clears zero because of dealmaking. Acquisitions contributed 5.4 percentage points and currency 0.3, so a 3.4 percent organic decline became roughly 2.3 percent reported growth. Nothing about the trading business improved; the perimeter changed.

Inside Life Science the strength is concentrated. Process Solutions, 44 percent of the sector, grew 14.7 percent organically to €1,071 million. Discovery Solutions grew only 2.1 percent to €724 million and Advanced Solutions 4.4 percent to €617 million. One business unit is carrying the sector.

At group level, including Electronics which sits outside this scope, net sales were €5,434 million, up 3.4 percent, with organic growth of 4.1 percent. Profitability fell across the board: operating result was €753 million against €891 million, down 15.5 percent, and the margin dropped from 17.0 percent to 13.9 percent.

22 Yen +10.2% · constant fx -0.5%

All of the growth was the yen, and net profit fell anyway

Takeda’s revenue rose 10.2 percent to ¥1,219.9 billion in yen and fell 0.5 percent at constant exchange rates. The underlying business shrank by about ¥5.5 billion and currency added roughly ¥118.7 billion. Every positive number on the top line is translation.

The pattern deepens down the statement. Operating profit rose 9.1 percent in yen and fell 3.1 percent at constant rates. Profit before tax rose 8.0 percent and fell 6.8 percent. By the time it reaches the bottom line even the yen cannot hold it up: net profit fell 8.9 percent to ¥113.3 billion, and 23.5 percent at constant rates.

Core measures are kinder but tell the same story. Core operating profit rose 11.5 percent in yen and fell 0.5 percent at constant rates, and core net profit rose 2.5 percent in yen against a 10.9 percent fall at constant rates. Core earnings per share were ¥154 against ¥151, up 1.5 percent reported and down 11.8 percent at constant rates.

This is the mirror image of Roche, five places above in this edition. Roche’s business grew 6 percent at constant rates and the Swiss franc turned it into a 2 percent decline. Takeda’s business shrank 0.5 percent at constant rates and the yen turned it into 10.2 percent growth. Neither number is wrong; they are answers to different questions.

23 Volume +5.1% · price -4.3%

They sold 5 percent more and were paid 4 percent less for it

Bayer’s pharmaceuticals division sold 5.1 percent more by volume and took 4.3 percent less on price. Add currency at minus 0.7 and portfolio at minus 0.4 and sales landed at €4,458 million, down 0.3 percent reported and up 0.8 percent adjusted. The quarter is a volume story cancelled by a price story.

Geographically it is not one business but two. Europe, the Middle East and Africa fell 17.8 percent to €1,393 million, shedding €301 million. North America grew 20.8 percent to €1,640 million, adding €282 million. Those two moves are 38.6 percentage points apart and almost exactly cancel: the division net lost €12 million.

The product mix behind it is a straight handover. Nubeqa and Kerendia continued to post significant gains, with Nubeqa growing in every region and strongest in the United States and Europe, while Radiology and the Mirena family also grew. Against that, Bayer recorded substantially lower Eylea and Xarelto sales on patent expirations.

Research spending fell while capital spending rose. R&D was €837 million against €959 million, down 12.7 percent, and capital expenditure was €290 million against €182 million, up 59.3 percent. Operating cash flow at the division collapsed to €80 million from €493 million, and at group level free cash flow was minus €371 million against plus €125 million.

24 Orders +14% · revenue +2%

Orders grew seven times faster than revenue

Orders rose 14 percent to €6,860 million and revenue rose 2 percent to €5,764 million. That is a book-to-bill of 1.19, and it means the company took in €1,096 million more work than it converted in the quarter. On a comparable basis orders grew 15 percent against revenue at 3 percent.

Profit rose 28 percent to €1,047 million and the margin went from 14.5 percent to 18.2 percent, a gain of 370 basis points. Excluding severance the margin was 18.6 percent against 15.1 percent. Management attributes the increase primarily to positive effects from tariff refunds in the United States, which is a one-off rather than an operating gain.

The revenue split inside the business is uneven. Volume growth came from imaging and precision therapy. Diagnostics declined, which Siemens attributes in part to a structural change in the market environment in China rather than a trading effect it expects to reverse quickly.

Currency worked against the quarter throughout, and profit still rose in every business. Severance costs fell to €24 million from €31 million. Note the calendar: Siemens Healthineers reports on a September year end, so its fiscal third quarter is the calendar quarter to June and aligns with this edition.

25 Revenue +5.4% · guidance updated

The United States grew twice as fast as everywhere else

BD grew 5.4 percent to $4,983 million, or 4.4 percent on a currency-neutral basis. The split by geography is the striking part: the United States grew 6.9 percent reported and currency-neutral alike, while International grew 3.2 percent reported and only 0.6 percent once currency is stripped out.

All four segments grew. BioPharma Systems led at 6.6 percent reported and 5.2 percent currency-neutral, with Interventional close behind at 6.4 and 5.5 percent. Medical Essentials, the largest, grew 4.5 percent reported but 3.2 percent currency-neutral, the slowest underlying line in the business.

Cost structure is that of a device manufacturer rather than a pharmaceutical company. Cost of products sold was $2,668 million, 53.5 percent of revenue, leaving a gross margin of 46.5 percent. Research and development was $258 million, or 5.2 percent of revenue, roughly a quarter of what the pharmaceutical names in this edition spend proportionally.

Earnings moved almost exactly with sales. Reported diluted EPS rose 4.5 percent and 3.8 percent currency-neutral; adjusted diluted EPS rose 4.9 percent and 3.9 percent. BD updated its full-year guidance alongside the result. Note the calendar: BD’s financial year ends in September, so its fiscal third quarter is the calendar quarter to June and aligns with this edition.

26 Flat revenue · operating loss

The growth brands added exactly what generics lost, and the loss came from somewhere else

Teva’s three growth brands added USD 310M between them and generic products lost USD 308M. The two almost perfectly cancel, which is why revenue was flat at USD 4,142M against USD 4,176M, down 0.8 percent. AUSTEDO grew 39.8 percent to USD 696M, AJOVY 57.8 percent to USD 243M and UZEDY 42.6 percent to USD 77M, while generics fell 12.8 percent to USD 2,103M.

The loss came from research spending. R&D was USD 970M against USD 244M, a rise of USD 726M in a quarter where revenue fell USD 34M. That took R&D to 23.4 percent of revenue from 5.8 percent and turned an operating profit of USD 455M into an operating loss of USD 231M.

Everything between gross profit and operating income moved against the company at once. Legal settlements and loss contingencies rose to USD 230M from USD 166M, and selling and marketing to USD 717M from USD 654M. Gross margin actually improved 164 basis points to 52.0 percent, so the trading business was healthier and the result was still a loss.

Non-GAAP earnings tell the sharpest version. Non-GAAP net income attributable to Teva fell to USD 21M from USD 769M and non-GAAP diluted earnings per share to USD 0.02 from USD 0.66. Reported diluted loss per share was USD 0.49 against earnings of USD 0.24. Teva still raised full-year revenue guidance to USD 16.5 to 16.85B.

27 Sales +8% · +7% constant fx

Equipment is a sixth of surgical and produced half its growth

Alcon grew 8 percent to $2,782 million, and 7 percent at constant currency. Inside Surgical, which grew 8 percent to $1,570 million, the contributions are wildly uneven. Equipment and other grew 26 percent, adding $57 million, while Implantables grew 2 percent, adding $10 million. Equipment is 17.8 percent of the segment and delivered roughly half its growth.

Implantables is the line to watch. At $466 million it is the second largest in Surgical and grew just 1 percent at constant currency. Intraocular lenses grew 2 percent at constant currency on the strength of PanOptix Pro, and Alcon names two offsets explicitly: competitive pressures, and lower sales in surgical glaucoma.

Vision Care carried the other half of the company and grew 8 percent to $1,212 million, 7 percent at constant currency. Ocular health was the stronger line at 13 percent, reaching $486 million, against contact lenses at 5 percent and $726 million.

Across the half the pattern holds. Net sales were $5,467 million against $5,028 million, up 9 percent reported and 7 percent at constant currency, with a 2 point currency benefit. Equipment and other again led at 26 percent reported and 24 percent constant currency.

28 Orders +11.1% · revenue +3.5%

Orders grew three times faster than revenue, and free cash flow was negative without tariff refunds

Organic orders grew 11.1 percent against organic revenue at 3.5 percent, a book-to-bill of 1.15 times and a backlog of $23.9 billion. Demand is running well ahead of what GE HealthCare is converting, which is the same signal Siemens Healthineers is showing four places above at 1.19 times.

The reported profitability is flattered. Free cash flow was $68 million, an improvement of $61 million, and GE HealthCare states it includes $107 million of refunds for IEEPA tariffs incurred in 2025 and 2026. Strip those out and cash flow for the quarter was negative by roughly $39 million.

The same qualifier runs through the margin. Adjusted EBIT was $750 million at a 14.2 percent margin, down 40 basis points, and includes $23 million of 2026 tariff refunds. Adjusted EPS of $1.13 was up 6.6 percent and includes $0.04 of the same benefit. The company also notes that both measures exclude a further $106 million and $0.18 of refunds relating to 2025 tariffs.

Strategically the quarter was about scale and consolidation. GE HealthCare signed a $500 million Care Alliance with Catholic Health, strengthened a theranostics collaboration in Germany, and reported Flyrcado on track for a $500 million annual opportunity with Vizamyl at $200 million by 2028. It is also consolidating a new AIS segment and Global Markets region.

29 Margin +4.0pp on tariff refunds

The margin rose four points and Philips says the tariff refund was worth 4.2

Adjusted EBITA margin improved to 16.4 percent from 12.4 percent, a gain of four points. Philips states plainly that this includes a tariff refund benefit of effectively 4.2 percent, and that adjusted EBITA excluding the refund slightly decreased, held back by cost inflation and higher tariffs against higher sales and productivity measures. The entire improvement, and slightly more, is a refund.

Sales were €4,360 million, up 1 percent nominally and 4 percent on a comparable basis, with growth across all segments: Personal Health up 8 percent comparable, Diagnosis and Treatment up 2 percent and Connected Care up 2 percent. Comparable order intake, however, was minus 1 percent against plus 6 percent a year earlier.

That order number is the outlier in the medtech block. Siemens Healthineers is running a book-to-bill of 1.19 and GE HealthCare 1.15, both with backlogs building faster than revenue. Philips is the one taking in less work than a year ago.

Reported profit rose sharply for reasons beyond trading. Income from operations was €609 million against €400 million, helped by the refund, higher sales and a swing in restructuring and acquisition items from a €20 million charge to €86 million of income, which included a €99 million gain on a divested business against €50 million of portfolio realignment and €50 million of Respironics charges. Net income was €386 million against €240 million.

30 Sales +5% · adjusted EPS flat

Most of the earnings increase is a smaller loss from a business being exited

Net income rose 38 percent to $126 million from $91 million. Income from continuing operations rose 11 percent, contributing $13 million. The loss from discontinued operations narrowed from $31 million to $9 million, contributing $22 million. Roughly 63 percent of the earnings increase comes from a business Baxter is on the way out of.

On the continuing business the picture is flat. Sales grew 5 percent to $2,960 million while cost of sales grew 6 percent, so gross margin slipped 40 basis points to 34.9 percent, the lowest on any card in this edition. Adjusted operating income was $421 million against $423 million, unchanged, and adjusted diluted EPS from continuing operations fell 5 percent to $0.56.

The costs Baxter did control were the discretionary ones. Selling and administrative expenses grew 2 percent, well below sales, taking them to 24.8 percent of revenue from 25.6 percent. Research and development fell 4 percent to $129 million, or 4.4 percent of sales from 4.8 percent, which is the lowest research intensity in this edition.

Below the line, both interest and tax took more. Net interest expense rose 10 percent to $64 million and the effective tax rate rose to 14.6 percent from 8.3 percent. Reported operating income still grew 14 percent to $217 million, taking the operating margin from 6.8 percent to 7.3 percent.