Thermo Fisher Scientific Stock Earnings Reports

Thermo Fisher delivered a strong Q3: revenue rose 5% to $11.12B, adjusted operating income grew 9% to $2.59B, adjusted operating margin expanded 100 bps to 23.3%, and adjusted EPS increased 10% to $5.79. Management raised full‑year 2025 guidance: revenue to $44.1–44.5B and adjusted EPS to $22.60–22.86. Organic growth was ~3% in Q3 (2% midpoint full‑year organic, including a 1‑point COVID runoff headwind). Segment highlights: Life Sciences Solutions (+8% reported, bioproduction strength), Analytical Instruments (+5%, led by electron microscopy and chromatography/mass spec), Specialty Diagnostics (+4%, led by transplant and immunodiagnostics), and Lab Products & Biopharma Services (+4%). Management emphasized operational execution driven by their PPI continuous‑improvement system, strong product innovation (new sequencing, proteomics, electron microscopes, and compliance software launches), and strategic partnerships (notably a collaboration with OpenAI and a partnership with AstraZeneca). They completed two acquisitions (filtration/separation from Silventum and a Sanofi sterile fill‑finish site), repurchased $1B of shares in the quarter ($3B YTD), and outlined ~$7.6B capital deployment for 2025 (including $4B for recent M&A). Tariffs and FX remain a headwind to margins (FX tailwind to revenue but EPS headwind); Q3 had a ~$300M revenue tailwind vs prior guide and a $0.30 EPS beat (mix of lower tariffs/FX impact and strong operations). China and academic/government markets remain pressured (China down mid‑single digits in Q3), while pharma/biotech and bioproduction/onshoring trends represent potential multi‑year tailwinds. Balance sheet and cash flow: YTD operating cash flow $4.4B, free cash flow $3.3B; ending cash ~$3.5B and total debt $35.7B (3.2x gross debt / adjusted EBITDA). Management remains confident in mid‑term outlook (3–6% organic target range) and the company’s ability to convert revenue momentum into earnings growth.