Life Science Tools & Diagnostics: NIH Outlays: No FY26 NIH Budget Flush

The Treasury Department published its September Monthly Treasury Statement (MTS) late last week, which included NIH outlays of $4.159B in September 2026, down -9.5% vs. Sept 2025. FY26 NIH outlays were $45.630B, down -3.6% vs. FY25. While this came in at the high end of our expectations ($3.87B to $4.15B) based on daily cash withdrawal data, it nevertheless confirms our thesis that there was no NIH budget flush this year, and A&G will continue to lag other tools end-markets. This confirms our more cautious near-term stance on BRKR, based on this additional data point indicating that soft A&G trends are likely to continue through at least year-end. September was the highest monthly NIH outlay since December 2025, but still represented a year-over-year decline on both a monthly and fiscal full year basis. Calendar 3Q26 total NIH outlays declined -13.3% vs. calendar 3Q25, compared with a +4.7% increase in calendar 2Q26. Note that NIH funding does not flow to tools companies as revenue wit