TMO

Thermo Fisher Scientific just reported Q3 2026 numbers that lit up the income statement while the share price barely shrugged. The stock is up about 1% today after the release, a muted move for a business that posted US$12.14b in revenue and adjusted earnings per share of US$6.68 as the headline. The real story is sentiment. Wall Street is rewarding a clean beat and higher full year earnings guidance, but the reaction so far looks more like cautious relief than euphoria. Love that Thermo Fisher Scientific is posting solid revenue with a clean earnings beat, but still uneasy about the muted share price reaction and what it might imply for risk. Compare this setup with companies screened for stronger balance sheets and fundamentals in our list of solid balance sheet and fundamentals stocks (25 results) - Revenue (Q3 2026 vs. Q3 2025): US$12,137m vs. US$11,122m (up about 9%) - Net Income, Excluding Extra Items (Q3 2026 vs. Q3 2025): US$1,721m vs. US$1,616m (up about 7%) - Basic EPS (Earnings Per Share) (Q3 2026 vs. Q3 2025): US$4.65 vs. US$4.28 (up about 9%) - Adjusted Operating Margin (Q3 2026 vs. Q3 2025): 24.5% vs. prior year level (expanded by 120 basis points) Earnings for Thermo Fisher Scientific look strong on the surface, but investors who care about valuation often focus on the cash coming in and out of the business. When Thermo Fisher Scientific's cash flows are run through a discounted cash flow lens, the stock could be a modest 9% overvalued. The bullish pitch says Thermo Fisher Scientific will turn software, data and services into its edge. "The combination of PPD and Clario creates scope for Thermo Fisher Scientific to package data rich, AI supported clinical trial services with its existing lab products, which can raise win rates on larger, multi year contracts and deepen high margin services revenue over time." Q3 moves this from theory toward evidence. Laboratory Products & Biopharma Services organic growth of 10% with 100 bps margin expansion, along with management's emphasis on strong pharma services and clinical research, indicates that the PPD and Clario assets are contributing to higher growth, higher margin activities rather than just filling the portfolio. That disagreement has a full argument behind it. → Uncover the lower Fair Value this Narrative argues for. Bears worry Thermo Fisher Scientific will struggle to refill the microbiology profit hole as other units try to pick up the slack. "the planned microbiology divestiture that removes US$645 million of revenue with only partial channel retention could mean that even sustained mid single digit growth in these end markets is not enough to prevent a drag on consolidated organic revenue and adjusted EPS." Q3 adjusted EPS rose 15% with 120 bps margin expansion and full year earnings guidance moved higher, which indicates the drag is not yet clearly visible. The miss against the bearish script is that organic revenue is only 4% for 2026, so acceleration that clearly outruns divestiture dilution still has not arrived. Thermo Fisher Scientific just showed how strong reported numbers and a muted share price can drift apart. The real opportunity is finding stocks that could be undervalued before the market corrects them. - Company 1 - 40% below our estimate - uses a growing solar tracker and controls backlog to expand into storage, inverters and non tracker hardware tied to utility scale projects. - Company 2 - 44% below our estimate - builds on a culture led banking model that depends on retaining top lenders while integrating a significant merger and scaling higher margin specialty platforms. - Company 3 - 28% below our estimate - positions its chips and software where data must be moved, connected and secured whenever clients renew AI accelerators, cloud stacks or core enterprise systems. Those are three of them. See the full list of 33 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include TMO. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

- Interested in Thermo Fisher Scientific Inc.? Here are five stocks we like better. - Thermo Fisher reported a strong third quarter: Revenue rose 9% to $12.14 billion, organic growth was 6%, and adjusted EPS increased 15% to $6.68. Adjusted operating margin expanded 120 basis points to 24.5%, with strength across pharma and biotech, industrial and applied markets. - Laboratory Products and Biopharma Services led segment performance, posting 15% reported revenue growth and 10% organic growth, while Analytical Instruments grew 6% and delivered significant margin expansion. Specialty Diagnostics declined 6% on a reported basis but benefited from transplant diagnostics. - The company raised its 2026 outlook, now targeting $47.7 billion–$48.2 billion in revenue, adjusted EPS of $25.13–$25.43 and free cash flow of $7 billion–$7.5 billion. Management also highlighted AI investments in microscopy and clinical research as potential long-term growth drivers. - Quantum BioPharma's Phase 2 Shows Where Biotech Value Actually Gets Built Thermo Fisher Scientific (NYSE:TMO) reported third-quarter revenue growth of 9% to $12.14 billion, supported by 6% organic growth, acquisitions and foreign-exchange effects. Adjusted earnings per share rose 15% to $6.68, while adjusted operating income increased 15% to $2.97 billion. Chairman and CEO Marc Casper said improved end-market conditions seen in the second quarter continued through the third quarter, with customer activity strengthening in pharma and biotech, industrial and applied markets. The company raised its full-year 2026 revenue, earnings and free-cash-flow outlook. → The AI Sell-Off Continues—These 3 Stocks Keep Raising Guidance Anyway - The Market Is Selling Everything, but These 5 Stocks Aren't Breaking Down Thermo Fisher's adjusted operating margin expanded 120 basis points from a year earlier to 24.5%. GAAP earnings per share were $4.64, up 9% year over year. CFO Jim Meyer said third-quarter revenue exceeded the company's prior outlook by more than $200 million, including roughly two percentage points of stronger-than-expected organic revenue growth and favorable foreign exchange. Adjusted EPS was $0.26 above previous guidance. → Tesla's Roadster Reveal Hints at 2 Much Bigger Moves - The Often-Missed Corner of Healthcare That Wall Street Is Loving The quarter also included approximately $60 million of adjusted operating income, or $0.15 per share, from tariff refunds that were recovered during the period. Meyer said Thermo Fisher reinvested part of the refund proceeds in AI deployment, additional Pharma Services capacity and employee-related investments. - Pharma and biotech: High-single-digit growth, led by Pharma Services, the research and safety market channel, and clinical research. - Academic and government: Flat revenue, with favorable demand for chromatography and mass spectrometry offerings. - Industrial and applied: High-single-digit growth, led by electron microscopy and the research and safety market channel. - Diagnostics and healthcare: Low-single-digit growth, supported by transplant diagnostics. Geographically, North America and Europe each grew at a mid-single-digit rate, while Asia-Pacific grew at a low-double-digit pace. China also posted low-double-digit growth, driven primarily by pharma and biotech as well as industrial and applied markets, Meyer said. → Luxury's Middle Market Is Cracking—These 3 Stocks Could Win In Life Sciences Solutions, reported revenue rose 5% and organic revenue grew 1%. Bioproduction led growth in the segment, while adjusted operating income increased 6% and adjusted operating margin reached 37.6%. The Analytical Instruments segment generated 6% reported and organic revenue growth. Electron microscopy recorded strong growth, particularly in semiconductor applications, while chromatography and mass spectrometry also grew. Segment adjusted operating income increased 26%, and adjusted operating margin expanded 430 basis points to 26.9%. Specialty Diagnostics reported a 6% revenue decline, while organic revenue was flat. Growth in transplant diagnostics helped offset other pressures. Adjusted operating income increased 6%, and adjusted operating margin rose 360 basis points to 31%. Laboratory Products and Biopharma Services posted reported revenue growth of 15% and organic growth of 10%, led by Pharma Services, the research and safety market channel and clinical research. Adjusted operating income increased 23%, while adjusted operating margin rose 100 basis points to 15.5%. Casper highlighted several product introductions, including the Orbitrap Isora mass spectrometer for isotope ratio analysis, the EMPAD G2 electron detector for advanced-materials characterization, the FDA-cleared EliA CTD 13 Screen for autoimmune diagnostics, and the Ion 560 Chip for the Ion GeneStudio S5 sequencing platform. The company is also embedding AI-enabled software into its Krios 5 and Glacios 3 cryo-electron microscopes. Casper said the software can reduce manual setup time by approximately 90% while supporting higher-quality data generation for structure-based drug discovery. In clinical research, Thermo Fisher introduced an AI-based clinical research assistant designed to connect proprietary clinical and operational data across multiple systems. Casper said the initiative is intended to allow teams to devote more attention to site engagement, risk assessment and study quality. Casper said AI could improve drug developers' returns on investment by helping support better medicines and more efficient development processes. He added that the company's long-term 7% organic growth framework is "not the cap" on future growth, although he did not quantify a potential contribution from AI. The company also cited progress in its Accelerator Drug Development strategy, which combines clinical research and Pharma Services capabilities. Casper said customers are seeking ways to shorten development timelines, improve trial success rates and reduce costs. Thermo Fisher said its Clario acquisition is performing well and is building momentum for revenue synergies within its clinical-development offering. The filtration and separation business acquired a year earlier is also performing well, according to management. During the quarter, the company completed the divestiture of its microbiology business. Year-to-date operating cash flow totaled $5.9 billion, and free cash flow was $4.6 billion after $1.2 billion of net capital expenditures. Thermo Fisher repaid approximately $1.1 billion of senior notes during the third quarter, paid $175 million in dividends and received $1 billion from the microbiology divestiture. The company ended the quarter with $6.1 billion in cash and short-term investments and $41.4 billion in total debt. For full-year 2026, Thermo Fisher raised its revenue outlook to $47.7 billion to $48.2 billion, representing reported growth of 7% to 8% over 2025. The company now expects 4% organic revenue growth for the year. Adjusted EPS guidance was raised to $25.13 to $25.43, representing growth of 10% to 11%. Thermo Fisher also increased its projected free cash flow range to $7 billion to $7.5 billion and continues to expect approximately 80 basis points of adjusted operating-margin expansion for the year. Thermo Fisher Scientific Inc is a global supplier of laboratory products, analytical instruments, reagents, consumables, software and services used in scientific research, healthcare, pharmaceuticals, biotechnology and industrial applications. The company serves customers ranging from academic institutions and government agencies to hospitals, clinical laboratories and pharmaceutical manufacturers. Its offerings include instruments and systems for genetic analysis, mass spectrometry, chromatography, electron microscopy and materials science, as well as molecular biology reagents, cell culture products, laboratory plastics and research chemicals. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Thermo Fisher Scientific Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Abbott Laboratories (ABT) disclosed plans on Wednesday to separate its nutrition business into a publicly traded entity as the company, along with Thermo Fisher Scientific (TMO) and Danaher (DHR), reported annual gains in their third-quarter results. The spinoff will allow the healthcare firm and the new independent company to pursue specific objectives to their distinct business models. The nutrition company is expected to have $8.5 billion in annual sales and will be led by Daniel Salvadori, currently president of established pharmaceuticals and nutritional products at Abbott, as chief executive. "This separation will benefit both companies, setting each one up for maximum success in its respective market," Abbott CEO Robert Ford said in a statement. "Our nutrition business has a unique opportunity to capitalize on the growing demand for healthy nutrition, and it will be better positioned as an independent company to more effectively direct its strategic resources across its priorities." Abbott aims to separate the nutrition division through a distribution of the proposed independent company's shares to its shareholders. Abbott stockholders will own shares in both the company and the new nutrition entity. The spinoff, which requires approval from regulators, is expected to be completed by the end of next year. Abbott expects to incur one-time charges, which will be estimated at a later time, related to the deal during periods before the separation, it said. Separately, Abbott reported adjusted earnings of $1.42 per share for the quarter ended September, up from $1.30 a year earlier, in line with the consensus on FactSet. Sales climbed 15% to $13.01 billion, topping the Street's view for $12.99 billion. The nutrition division recorded a 5.1% annual gain in sales to $2.26 billion. For 2026, the company now expects adjusted EPS to come in between $5.50 and $5.55, compared with its prior projections of $5.45 to $5.60. For the ongoing three-month period, it sees the metric coming at $1.62 to $1.67. The Street is looking for non-GAAP EPS of $1.64 and $5.52 for the fourth quarter and full year, respectively. Thermo Fisher recorded a 15% year over year increase in its fiscal third-quarter adjusted EPS to $6.68, while revenue inclined 9% to $12.14 billion. Both metrics came in ahead of average analyst estimates on FactSet. The medical-device manufacturer now anticipates adjusted EPS to be in a range of $25.13 to $25.43 for fiscal 2026, representing annual growth of 10% to 11%, CEO Marc Casper said during an earnings call, according to a FactSet transcript. Revenue is pegged at $47.7 billion to $48.2 billion, reflecting a yearly gain of 7% to 8%, Casper said. The market's current view is for non-GAAP EPS of $25.14 and sales growth of 7.5%. Danaher's adjusted EPS increased to $2.11 for the three months through Sept. 25 from $1.89 the year before, ahead of the $1.92 consensus. Revenue improved 8.5% to $6.55 billion, but were just shy of expectations for $6.56 billion. The company forecasts adjusted EPS of $8.57 to $8.62 for the current fiscal year, up from its previous guidance of $8.45 to $8.60. The Street is looking for $8.50. For the ongoing quarter, it projects adjusted core revenue, excluding respiratory sales, to rise by 4% to 5%.

Revenue Grew 9% Including 6% Organic Revenue Growth Grew GAAP Diluted EPS 9% and Adjusted EPS 15% Outstanding performance driven by proven growth strategy and PPI Business System WALTHAM, Mass., October 21, 2026--(BUSINESS WIRE)--Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today reported its financial results for the third quarter ended September 26, 2026. Third Quarter Highlights - Third quarter revenue grew 9% to $12.14 billion - Third quarter GAAP diluted earnings per share (EPS) grew 9% to $4.64 - Third quarter adjusted EPS grew 15% to $6.68 "We are very pleased to deliver another excellent quarter, with outstanding financial performance on both the top and bottom line," said Marc N. Casper, chairman and chief executive officer of Thermo Fisher Scientific. "We're advancing our proven growth strategy, which is resonating strongly with our customers, and our PPI Business System is enabling outstanding execution across the company." Casper added, "Looking ahead, we're well positioned to deliver an excellent 2026 as we continue to drive long-term value creation for all of our stakeholders and build an even brighter future for our company." Growth Strategy and Capital Deployment - Advanced our proven growth strategy, launching a range of high-impact, innovative new products during the quarter. Highlights include the Thermo Scientific™ Orbitrap™ Isora™ mass spectrometer, the first Orbitrap system designed for isotope ratio analysis, enabling faster, simplified workflows and providing deeper insights into the origin and composition of samples for environmental and life sciences research; the Thermo Scientific™ EMPAD™ G2 electron detector enabling faster, more detailed electron microscopy characterization of advanced materials to support the development of next-generation electronics, memory and energy technologies; the FDA-cleared EliA™ CTD 13 Screen in the U.S., a new autoimmune test for systemic connective tissue diseases, including lupus, helping laboratories streamline testing and providing clinicians with reliable information to inform patient care; and the Ion 560 Chip, the highest-throughput sequencing chip for the Ion GeneStudio™ S5 platform, providing nearly twice the sequencing capacity of the prior offering to enable laboratories to process more samples and meet growing genomic profiling needs in oncology research. - Strengthened our industry-leading commercial engine and deepened our trusted partner status with customers. In partnership with Mayo Clinic, we launched Precure, a pioneering initiative that will combine data from more than one million patient samples with our differentiated proteomics ecosystem, including Orbitrap™ mass spectrometry and Olink™ technologies, to generate new insights into disease progression, enable earlier detection and advance precision medicine. In South Korea, we opened our first AI-Automation Innovation Center, bringing together our advanced analytical technologies, automation and AI to enable our customers to accelerate innovation and enhance R&D productivity. In our channel businesses, we also opened a highly automated distribution center in Kentucky, to enhance speed, flexibility and assurance of supply for our customers across North America. - Continued to successfully execute our capital deployment strategy. During the quarter, we completed our previously announced divestiture of our microbiology business. Financial Results Revenue for the third quarter of 2026 grew 9% to $12.14 billion, versus $11.12 billion in the same quarter of 2025. Organic revenue growth was 6%. GAAP Earnings Results GAAP diluted EPS in the third quarter of 2026 was $4.64, 9% growth versus the third quarter of 2025. GAAP operating income for the third quarter of 2026 was $2.26 billion, 17% higher than the year-ago quarter. GAAP operating margin was 18.6%, compared with 17.4% in the third quarter of 2025. Non-GAAP Earnings Results Adjusted EPS for the third quarter of 2026 was $6.68, 15% growth versus the third quarter of 2025. Adjusted operating income for the third quarter of 2026 was $2.97 billion, 15% higher than the year-ago quarter. Adjusted operating margin was 24.5%, compared with 23.3% in the third quarter of 2025. Annual Guidance for 2026 The company will provide updated 2026 financial guidance during its earnings conference call this morning at 7:00 a.m. Eastern Time. Use of Non-GAAP Financial Measures Adjusted EPS, adjusted net income, adjusted operating income, adjusted operating margin, free cash flow, and organic revenue growth are non-GAAP measures that exclude certain items detailed after the tables that accompany this press release, under the heading "Supplemental Information Regarding Non-GAAP Financial Measures." The reconciliations of GAAP to non-GAAP financial measures are provided in the tables that accompany this press release. Conference Call Thermo Fisher Scientific will hold its earnings conference call today, October 21, 2026, at 7:00 a.m. Eastern Time. During the call, the company will discuss its financial performance, as well as future expectations. The call will be webcast live on the "Investors" section of our website, www.thermofisher.com. You can access the conference call by dialing (833) 461-5787 within the U.S. or +1 (585) 542-9983 outside the U.S. The access code is 500554659. The earnings press release and related information can also be found on the Investor Relations section of our website, under the heading "Financials". A replay of the call will be available under "News, Events & Presentations" until the next quarterly earnings call. About Thermo Fisher Scientific Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $45 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Gibco, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com. Safe Harbor Statement The following constitutes a "Safe Harbor" statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: the need to develop new products and adapt to significant technological change; implementation of strategies for improving growth; general economic conditions and related uncertainties; dependence on customers' capital spending policies and government funding policies; the effect of economic and political conditions and exchange rate fluctuations on international operations; use and protection of intellectual property; the effect of changes in governmental regulations; any natural disaster, public health crisis or other catastrophic event; and the effect of laws and regulations governing government contracts, as well as the possibility that expected benefits related to recent or pending acquisitions, may not materialize as expected. Additional important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in our most recent reports on Form 10-K and Form 10-Q under the heading "Risk Factors." These filings are on file with the SEC and available in the "Investors" section of our website under the heading "SEC Filings." These forward-looking statements are based on our current expectations and speak only as of the date of this press release. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, in the event of new information, future developments or otherwise. Condensed Consolidated Statements of Income (unaudited) | | | | | | | | | | Three months ended | | September 26, | | % of | | September 27, | | % of (Dollars in millions except per share amounts) | | | 2026 | | | Revenues | | | 2025 | | | Revenues Revenues | | $ | 12,137 | | | | | $ | 11,122 | | | Costs and operating expenses: | | | | | | | | Cost of revenues (a) | | | 6,945 | | | 57.2 | % | | | 6,470 | | | 58.2 | % Selling, general and administrative expenses (b) | | | 1,863 | | | 15.3 | % | | | 1,795 | | | 16.1 | % Amortization of acquisition-related intangible assets | | | 519 | | | 4.3 | % | | | 435 | | | 3.9 | % Research and development expenses | | | 348 | | | 2.9 | % | | | 346 | | | 3.1 | % Restructuring and other costs (c) | | | 199 | | | 1.6 | % | | | 135 | | | 1.2 | % Total costs and operating expenses | | | 9,874 | | | 81.4 | % | | | 9,182 | | | 82.6 | % Operating income | | | 2,263 | | | 18.6 | % | | | 1,941 | | | 17.4 | % Interest income | | | 252 | | | | | | 234 | | | Interest expense | | | (417 | ) | | | | | (347 | ) | | Other income/(expense) (d) | | | (10 | ) | | | | | (2 | ) | | Income before income taxes | | | 2,088 | | | | | | 1,826 | | | Benefit from/(provision for) income taxes (e) | | | (352 | ) | | | | | (207 | ) | | Equity in earnings/(losses) of unconsolidated entities | | | (9 | ) | | | | | 2 | | | Net income | | | 1,727 | | | | | | 1,621 | | | Less: net income/(loss) attributable to noncontrolling interests and redeemable noncontrolling interest | | | 6 | | | | | | 5 | | | Net income attributable to Thermo Fisher Scientific Inc. | | $ | 1,721 | | | 14.2 | % | | $ | 1,616 | | | 14.5 | % | | | | | | | | Earnings per share attributable to Thermo Fisher Scientific Inc.: | | | | | | | | Basic | | $ | 4.65 | | | | | $ | 4.28 | | | Diluted | | $ | 4.64 | | | | | $ | 4.27 | | | Weighted average shares: | | | | | | | | Basic | | | 370 | | | | | | 378 | | | Diluted | | | 371 | | | | | | 378 | | | | | | | | | | | Reconciliation of adjusted operating income and adjusted operating margin | | | | | | | | GAAP operating income | | $ | 2,263 | | | 18.6 | % | | $ | 1,941 | | | 17.4 | % Cost of revenues adjustments (a) | | | 9 | | | 0.1 | % | | | 10 | | | 0.1 | % Selling, general and administrative expenses adjustments (b) | | | (20 | ) | | -0.2 | % | | | 66 | | | 0.6 | % Restructuring and other costs (c) | | | 199 | | | 1.6 | % | | | 135 | | | 1.2 | % Amortization of acquisition-related intangible assets | | | 519 | | | 4.3 | % | | | 435 | | | 3.9 | % Adjusted operating income (non-GAAP measure) | | $ | 2,968 | | | 24.5 | % | | $ | 2,587 | | | 23.3 | % | | | | | | | | Reconciliation of adjusted net income | | | | | | | | GAAP net income attributable to Thermo Fisher Scientific Inc. | | $ | 1,721 | | | | | $ | 1,616 | | | Cost of revenues adjustments (a) | | | 9 | | | | | | 10 | | | Selling, general and administrative expenses adjustments (b) | | | (20 | ) | | | | | 66 | | | Restructuring and other costs (c) | | | 199 | | | | | | 135 | | | Amortization of acquisition-related intangible assets | | | 519 | | | | | | 435 | | | Other income/expense adjustments (d) | | | 14 | | | | | | (5 | ) | | Income taxes adjustments (e) | | | 27 | | | | | | (64 | ) | | Equity in earnings/losses of unconsolidated entities | | | 9 | | | | | | (2 | ) | | Adjusted net income (non-GAAP measure) | | $ | 2,477 | | | | | $ | 2,190 | | | | | | | | | | | Reconciliation of adjusted earnings per share | | | | | | | | GAAP diluted EPS attributable to Thermo Fisher Scientific Inc. | | $ | 4.64 | | | | | $ | 4.27 | | | Cost of revenues adjustments (a) | | | 0.02 | | | | | | 0.03 | | | Selling, general and administrative expenses adjustments (b) | | | (0.06 | ) | | | | | 0.17 | | | Restructuring and other costs (c) | | | 0.54 | | | | | | 0.36 | | | Amortization of acquisition-related intangible assets | | | 1.40 | | | | | | 1.15 | | | Other income/expense adjustments (d) | | | 0.04 | | | | | | (0.01 | ) | | Income taxes adjustments (e) | | | 0.07 | | | | | | (0.17 | ) | | Equity in earnings/losses of unconsolidated entities | | | 0.02 | | | | | | (0.01 | ) | | Adjusted EPS (non-GAAP measure) | | $ | 6.68 | | | | | $ | 5.79 | | | | | | | | | | | Reconciliation of free cash flow | | | | | | | | GAAP net cash provided by operating activities | | $ | 2,551 | | | | | $ | 2,239 | | | Purchases of property, plant and equipment | | | (437 | ) | | | | | (404 | ) | | Proceeds from sale of property, plant and equipment | | | 1 | | | | | | 5 | | | Free cash flow (non-GAAP measure) | | $ | 2,115 | | | | | $ | 1,840 | | | Business Segment Information | | Three months ended | | September 26, | | % of | | September 27, | | % of (Dollars in millions) | | | 2026 | | | Revenues | | | 2025 | | | Revenues | | | | | | | | Revenues | | | | | | | | Life Sciences Solutions | | $ | 2,719 | | | 22.4 | % | | $ | 2,588 | | | 23.3 | % Analytical Instruments | | | 2,002 | | | 16.5 | % | | | 1,893 | | | 17.0 | % Specialty Diagnostics | | | 1,098 | | | 9.1 | % | | | 1,174 | | | 10.6 | % Laboratory Products and Biopharma Services | | | 6,863 | | | 56.5 | % | | | 5,970 | | | 53.7 | % Eliminations | | | (546 | ) | | -4.5 | % | | | (503 | ) | | -4.5 | % Consolidated revenues | | $ | 12,137 | | | 100.0 | % | | $ | 11,122 | | | 100.0 | % | | | | | | | | Segment income and segment income margin | | | | | | | | Life Sciences Solutions | | $ | 1,022 | | | 37.6 | % | | $ | 968 | | | 37.4 | % Analytical Instruments | | | 538 | | | 26.9 | % | | | 429 | | | 22.6 | % Specialty Diagnostics | | | 341 | | | 31.0 | % | | | 321 | | | 27.4 | % Laboratory Products and Biopharma Services | | | 1,067 | | | 15.5 | % | | | 868 | | | 14.5 | % Subtotal reportable segments | | | 2,968 | | | 24.5 | % | | | 2,587 | | | 23.3 | % Cost of revenues adjustments (a) | | | (9 | ) | | -0.1 | % | | | (10 | ) | | -0.1 | % Selling, general and administrative expenses adjustments (b) | | | 20 | | | 0.2 | % | | | (66 | ) | | -0.6 | % Restructuring and other costs (c) | | | (199 | ) | | -1.6 | % | | | (135 | ) | | -1.2 | % Amortization of acquisition-related intangible assets | | | (519 | ) | | -4.3 | % | | | (435 | ) | | -3.9 | % Consolidated GAAP operating income | | $ | 2,263 | | | 18.6 | % | | $ | 1,941 | | | 17.4 | % (a) Adjusted results exclude accelerated depreciation on manufacturing assets to be abandoned due to facility consolidations. Adjusted results in 2026 also exclude $7 of transaction-related costs. Adjusted results in 2025 also exclude $8 of charges for the sale of inventory revalued at the date of acquisition. (b) Adjusted results exclude certain third-party expenses, principally transaction/integration costs, charges/credits for changes in estimates of contingent acquisition consideration, accelerated depreciation on fixed assets to be abandoned due to facility consolidations, and charges for product liability litigation. (c) Adjusted results exclude restructuring and other costs consisting principally of severance, impairments of long-lived assets, net charges/credits for pre-acquisition litigation and other matters, net gains/losses on the sale of real estate, and abandoned facility and other expenses of headcount reductions and real estate consolidations. Adjusted results in 2026 exclude $72 of gain on the sale of a business and $244 for a held-for-sale loss. Adjusted results in 2025 also exclude $51 of charges for disposition of a consolidated joint venture. (d) Adjusted results exclude net gains/losses on investments and settlement charges for pension plans. (e) Adjusted results exclude incremental tax impacts for the reconciling items between GAAP and adjusted net income, incremental tax impacts as a result of tax rate/law changes and the tax impacts from audit settlements. | Note: Consolidated depreciation expense is $307 and $227 in 2026 and 2025, respectively. Organic revenue growth | | Three months ended | | September 26, 2026 Revenue growth | | 9% Acquisitions/divestitures | | 3% Currency translation | | 0% Organic revenue growth (non-GAAP measure) | | 6% | | Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release. Condensed Consolidated Statements of Income (unaudited) | | | | | | | | | | Nine months ended | | September 26, | | % of | | September 27, | | % of (Dollars in millions except per share amounts) | | | 2026 | | | Revenues | | | 2025 | | | Revenues Revenues | | $ | 35,136 | | | | | $ | 32,341 | | | Costs and operating expenses: | | | | | | | | Cost of revenues (a) | | | 20,525 | | | 58.4 | % | | | 18,905 | | | 58.5 | % Selling, general and administrative expenses (b) | | | 5,570 | | | 15.9 | % | | | 5,295 | | | 16.4 | % Amortization of acquisition-related intangible assets | | | 1,433 | | | 4.1 | % | | | 1,294 | | | 4.0 | % Research and development expenses | | | 1,048 | | | 3.0 | % | | | 1,041 | | | 3.2 | % Restructuring and other costs (c) | | | 346 | | | 1.0 | % | | | 316 | | | 1.0 | % Total costs and operating expenses | | | 28,923 | | | 82.3 | % | | | 26,850 | | | 83.0 | % Operating income | | | 6,213 | | | 17.7 | % | | | 5,491 | | | 17.0 | % Interest income | | | 693 | | | | | | 735 | | | Interest expense | | | (1,172 | ) | | | | | (1,054 | ) | | Other income/(expense) (d) | | | 13 | | | | | | (18 | ) | | Income before income taxes | | | 5,746 | | | | | | 5,155 | | | Benefit from/(provision for) income taxes (e) | | | (590 | ) | | | | | (394 | ) | | Equity in earnings/(losses) of unconsolidated entities | | | (32 | ) | | | | | (9 | ) | | Net income | | | 5,124 | | | | | | 4,751 | | | Less: net income/(loss) attributable to noncontrolling interests and redeemable noncontrolling interest (f) | | | 16 | | | | | | 11 | | | Net income attributable to Thermo Fisher Scientific Inc. | | $ | 5,108 | | | 14.5 | % | | $ | 4,740 | | | 14.7 | % | | | | | | | | Earnings per share attributable to Thermo Fisher Scientific Inc.: | | | | | | | | Basic | | $ | 13.77 | | | | | $ | 12.55 | | | Diluted | | $ | 13.75 | | | | | $ | 12.53 | | | Weighted average shares: | | | | | | | | Basic | | | 371 | | | | | | 378 | | | Diluted | | | 372 | | | | | | 378 | | | | | | | | | | | Reconciliation of adjusted operating income and adjusted operating margin | | | | | | | | GAAP operating income | | $ | 6,213 | | | 17.7 | % | | $ | 5,491 | | | 17.0 | % Cost of revenues adjustments (a) | | | 51 | | | 0.1 | % | | | 31 | | | 0.1 | % Selling, general and administrative expenses adjustments (b) | | | 59 | | | 0.2 | % | | | 99 | | | 0.3 | % Restructuring and other costs (c) | | | 346 | | | 1.0 | % | | | 316 | | | 1.0 | % Amortization of acquisition-related intangible assets | | | 1,433 | | | 4.1 | % | | | 1,294 | | | 4.0 | % Adjusted operating income (non-GAAP measure) | | $ | 8,102 | | | 23.1 | % | | $ | 7,231 | | | 22.4 | % | | | | | | | | Reconciliation of adjusted net income | | | | | | | | GAAP net income attributable to Thermo Fisher Scientific Inc. | | $ | 5,108 | | | | | $ | 4,740 | | | Cost of revenues adjustments (a) | | | 51 | | | | | | 31 | | | Selling, general and administrative expenses adjustments (b) | | | 59 | | | | | | 99 | | | Restructuring and other costs (c) | | | 346 | | | | | | 316 | | | Amortization of acquisition-related intangible assets | | | 1,433 | | | | | | 1,294 | | | Other income/expense adjustments (d) | | | (15 | ) | | | | | (1 | ) | | Income taxes adjustments (e) | | | (269 | ) | | | | | (320 | ) | | Equity in earnings/losses of unconsolidated entities | | | 32 | | | | | | 9 | | | Noncontrolling interests adjustments (f) | | | — | | | | | | (1 | ) | | Adjusted net income (non-GAAP measure) | | $ | 6,745 | | | | | $ | 6,167 | | | | | | | | | | | Reconciliation of adjusted earnings per share | | | | | | | | GAAP diluted EPS attributable to Thermo Fisher Scientific Inc. | | $ | 13.75 | | | | | $ | 12.53 | | | Cost of revenues adjustments (a) | | | 0.14 | | | | | | 0.08 | | | Selling, general and administrative expenses adjustments (b) | | | 0.16 | | | | | | 0.26 | | | Restructuring and other costs (c) | | | 0.93 | | | | | | 0.83 | | | Amortization of acquisition-related intangible assets | | | 3.86 | | | | | | 3.42 | | | Other income/expense adjustments (d) | | | (0.04 | ) | | | | | 0.00 | | | Income taxes adjustments (e) | | | (0.72 | ) | | | | | (0.85 | ) | | Equity in earnings/losses of unconsolidated entities | | | 0.09 | | | | | | 0.02 | | | Noncontrolling interests adjustments (f) | | | — | | | | | | 0.00 | | | Adjusted EPS (non-GAAP measure) | | $ | 18.15 | | | | | $ | 16.30 | | | | | | | | | | | Reconciliation of free cash flow | | | | | | | | GAAP net cash provided by operating activities | | $ | 5,867 | | | | | $ | 4,361 | | | Purchases of property, plant and equipment | | | (1,263 | ) | | | | | (1,060 | ) | | Proceeds from sale of property, plant and equipment | | | 14 | | | | | | 17 | | | Free cash flow (non-GAAP measure) | | $ | 4,618 | | | | | $ | 3,319 | | | Business Segment Information | | Nine months ended | | September 26, | | % of | | September 27, | | % of (Dollars in millions) | | | 2026 | | | Revenues | | | 2025 | | | Revenues | | | | | | | | Revenues | | | | | | | | Life Sciences Solutions | | $ | 8,170 | | | 23.3 | % | | $ | 7,428 | | | 23.0 | % Analytical Instruments | | | 5,564 | | | 15.8 | % | | | 5,339 | | | 16.5 | % Specialty Diagnostics | | | 3,445 | | | 9.8 | % | | | 3,456 | | | 10.7 | % Laboratory Products and Biopharma Services | | | 19,592 | | | 55.8 | % | | | 17,605 | | | 54.4 | % Eliminations | | | (1,635 | ) | | -4.7 | % | | | (1,487 | ) | | -4.6 | % Consolidated revenues | | $ | 35,136 | | | 100.0 | % | | $ | 32,341 | | | 100.0 | % | | | | | | | | Segment income and segment income margin | | | | | | | | Life Sciences Solutions | | $ | 3,017 | | | 36.9 | % | | $ | 2,722 | | | 36.6 | % Analytical Instruments | | | 1,317 | | | 23.7 | % | | | 1,153 | | | 21.6 | % Specialty Diagnostics | | | 987 | | | 28.7 | % | | | 932 | | | 27.0 | % Laboratory Products and Biopharma Services | | | 2,781 | | | 14.2 | % | | | 2,425 | | | 13.8 | % Subtotal reportable segments | | | 8,102 | | | 23.1 | % | | | 7,231 | | | 22.4 | % Cost of revenues adjustments (a) | | | (51 | ) | | -0.1 | % | | | (31 | ) | | -0.1 | % Selling, general and administrative expenses adjustments (b) | | | (59 | ) | | -0.2 | % | | | (99 | ) | | -0.3 | % Restructuring and other costs (c) | | | (346 | ) | | -1.0 | % | | | (316 | ) | | -1.0 | % Amortization of acquisition-related intangible assets | | | (1,433 | ) | | -4.1 | % | | | (1,294 | ) | | -4.0 | % Consolidated GAAP operating income | | $ | 6,213 | | | 17.7 | % | | $ | 5,491 | | | 17.0 | % (a) Adjusted results exclude accelerated depreciation on manufacturing assets to be abandoned due to facility consolidations and charges/(credits) for the sale of inventory revalued at the date of acquisition. Adjusted results in 2026 also exclude $16 of transaction-related costs. (b) Adjusted results exclude certain third-party expenses, principally transaction/integration costs, charges/credits for changes in estimates of contingent acquisition consideration, accelerated depreciation on fixed assets to be abandoned due to facility consolidations, and charges for product liability litigation. (c) Adjusted results exclude restructuring and other costs consisting principally of severance, impairments of long-lived assets, net charges/credits for pre-acquisition litigation and other matters, net gains/losses on the sale of real estate, and abandoned facility and other expenses of headcount reductions and real estate consolidations. Adjusted results in 2026 exclude $72 of gain on the sale of a business and $244 for a held-for-sale loss. Adjusted results in 2025 also exclude $51 of charges for disposition of a consolidated joint venture. (d) Adjusted results exclude net gains/losses on investments and settlement charges for pension plans. Adjusted results in 2026 also exclude $6 of business interruption recoveries. (e) Adjusted results exclude incremental tax impacts for the reconciling items between GAAP and adjusted net income, incremental tax impacts as a result of tax rate/law changes and the tax impacts from audit settlements. (f) Adjusted results in 2025 exclude the incremental impacts for the reconciling items between GAAP and adjusted net income attributable to noncontrolling interests. Note: Consolidated depreciation expense is $945 and $758 in 2026 and 2025, respectively. Organic revenue growth | | Nine months ended | | September 26, 2026 Revenue growth | | 9% Acquisitions/divestitures | | 4% Currency translation | | 1% Organic revenue growth (non-GAAP measure) | | 4% | | Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release. Condensed Consolidated Balance Sheets (unaudited) | | | | | | | | | | September 26, | | December 31, (In millions) | | | 2026 | | | 2025 | | | | Assets | | | | Current assets: | | | | Cash and cash equivalents | | $ | 5,461 | | $ | 9,852 Short-term investments | | | 600 | | | 253 Accounts receivable, net | | | 9,625 | | | 8,900 Inventories | | | 5,643 | | | 5,425 Other current assets | | | 4,285 | | | 4,278 Total current assets | | | 25,615 | | | 28,707 Property, plant and equipment, net | | | 10,577 | | | 10,565 Acquisition-related intangible assets, net | | | 18,077 | | | 15,838 Other assets | | | 5,701 | | | 5,871 Goodwill | | | 54,263 | | | 49,362 Total assets | | $ | 114,233 | | $ | 110,343 | | | | Liabilities, redeemable noncontrolling interest and equity | | | | Current liabilities: | | | | Short-term obligations and current maturities of long-term obligations | | $ | 2,262 | | $ | 3,533 Other current liabilities | | | 11,908 | | | 11,656 Total current liabilities | | | 14,170 | | | 15,189 Other long-term liabilities | | | 6,059 | | | 5,766 Long-term obligations | | | 39,108 | | | 35,852 Redeemable noncontrolling interest | | | 128 | | | 122 Total equity | | | 54,767 | | | 53,415 Total liabilities, redeemable noncontrolling interest and equity | | $ | 114,233 | | $ | 110,343 | | | | | | | | Condensed Consolidated Statements of Cash Flows (unaudited) | | | | | | | | | | Nine months ended | | September 26, | | September 27, (In millions) | | | 2026 | | | | 2025 | | | | | Operating activities | | | | Net income | | $ | 5,124 | | | $ | 4,751 | Adjustments to reconcile net income to net cash provided by operating activities: | | | | Depreciation and amortization | | | 2,378 | | | | 2,053 | Change in deferred income taxes | | | (676 | ) | | | (728 | ) Other net non-cash expenses | | | 621 | | | | 540 | Changes in assets and liabilities, excluding the effects of acquisitions | | | (1,580 | ) | | | (2,255 | ) Net cash provided by operating activities | | | 5,867 | | | | 4,361 | Investing activities | | | | Purchases of property, plant and equipment | | | (1,263 | ) | | | (1,060 | ) Proceeds from sale of property, plant and equipment | | | 14 | | | | 17 | Proceeds from cross-currency interest rate swap interest settlements | | | 284 | | | | 218 | Acquisitions, net of cash acquired | | | (8,877 | ) | | | (4,037 | ) Purchases of investments | | | (668 | ) | | | (351 | ) Proceeds from sales and maturities of investments | | | 253 | | | | 254 | Proceeds from sale of business, net of cash divested | | | 1,021 | | | | — | Net proceeds from terminations of cross-currency interest rate swaps | | | 388 | | | | — | Other investing activities, net | | | (26 | ) | | | 20 | Net cash used in investing activities | | | (8,874 | ) | | | (4,938 | ) Financing activities | | | | Net proceeds from issuance of debt | | | 5,238 | | | | 2,840 | Repayment of debt | | | (2,519 | ) | | | (1,625 | ) Proceeds from issuance of commercial paper | | | 389 | | | | 1,095 | Repayment of commercial paper | | | (389 | ) | | | (597 | ) Purchases of company common stock | | | (4,000 | ) | | | (2,963 | ) Dividends paid | | | (511 | ) | | | (474 | ) Other financing activities, net | | | 251 | | | | (1 | ) Net cash used in financing activities | | | (1,541 | ) | | | (1,725 | ) Exchange rate effect on cash | | | 164 | | | | 273 | Increase/(decrease) in cash, cash equivalents and restricted cash | | | (4,384 | ) | | | (2,029 | ) Cash, cash equivalents and restricted cash at beginning of period | | | 9,879 | | | | 4,040 | Cash, cash equivalents and restricted cash at end of period | | $ | 5,494 | | | $ | 2,011 | | | | | | | | | Free cash flow (non-GAAP measure) | | $ | 4,618 | | | $ | 3,319 | | | | | | | | | | | | | Note: For more information related to non-GAAP financial measures, refer to the section titled "Supplemental Information Regarding Non-GAAP Financial Measures" of this release. Supplemental Information Regarding Non-GAAP Financial Measures In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures such as organic revenue growth, which is reported revenue growth, excluding the impacts of acquisitions/divestitures and the effects of currency translation. We report these measures because Thermo Fisher management believes that in order to understand the company's short-term and long-term financial trends, investors may wish to consider the impact of acquisitions/divestitures, and/or foreign currency translation on revenues. Thermo Fisher management uses these measures to forecast and evaluate the operational performance of the company as well as to compare revenues of current periods to prior periods. We report adjusted operating income, adjusted operating margin, adjusted net income, and adjusted EPS. We believe that the use of these non-GAAP financial measures, in addition to GAAP financial measures, helps investors to gain a better understanding of our core operating results and future prospects, consistent with how management measures and forecasts the company's core operating performance, especially when comparing such results to previous periods, forecasts, and to the performance of our competitors. Such measures are also used by management in their financial and operating decision-making and for compensation purposes. To calculate these measures we exclude, as applicable: - Certain transaction-related costs, including charges for the sale of inventories revalued at the date of acquisition, significant transaction-related third-party costs, changes in estimates of contingent acquisition-related consideration, and other costs associated with obtaining short-term financing commitments for pending/recent acquisitions. We exclude these costs because we do not believe they are indicative of our normal operating costs. - Costs/income associated with restructuring activities and large-scale abandonments of product lines, such as reducing overhead and consolidating facilities. We exclude these costs because we believe that the costs related to restructuring activities are not indicative of our normal operating costs. - Equity in earnings/losses of unconsolidated entities; impairments of long-lived assets; and certain other gains and losses that are either isolated or cannot be expected to occur again with any predictability, including gains/losses on investments, the sale of businesses, product lines, and real estate, significant litigation-related matters, curtailments/settlements of pension plans, and the early retirement of debt. We exclude these items because they are outside of our normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. - The expense associated with the amortization of acquisition-related intangible assets because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives of up to 20 years. Exclusion of the amortization expense allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies. - The noncontrolling interest and tax impacts of the above items and the impact of significant tax audits or events (such as changes in deferred taxes from enacted tax rate/law changes), the latter of which we exclude because they are outside of our normal operations and difficult to forecast accurately for future periods. We report free cash flow, which is operating cash flow less net capital expenditures, to provide a view of the continuing operations' ability to generate cash for use in acquisitions and other investing and financing activities. The company also uses this measure as an indication of the strength of the company. Free cash flow is not a measure of cash available for discretionary expenditures since we have certain non-discretionary obligations such as debt service that are not deducted from the measure. Thermo Fisher Scientific does not provide GAAP financial measures on a forward-looking basis because we are unable to predict with reasonable certainty and without unreasonable effort items such as the timing and amount of future restructuring actions, transaction-related charges as well as gains or losses from sales of real estate and businesses, the early retirement of debt and the outcome of legal proceedings. The timing and amount of these items are uncertain and could be material to Thermo Fisher Scientific's results computed in accordance with GAAP. The non-GAAP financial measures of Thermo Fisher Scientific's results of operations and cash flows included in this press release are not meant to be considered superior to or a substitute for Thermo Fisher Scientific's results of operations prepared in accordance with GAAP. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the tables above. View source version on businesswire.com: https://www.businesswire.com/news/home/20261020833836/en/ Contacts Media Contact Information: Sandy Pound Thermo Fisher Scientific Phone: 781-622-1223 E-mail: [email protected] Investor Contact Information: Rafael Tejada Thermo Fisher Scientific Phone: 781-622-1356 E-mail: [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Delivered 6% organic revenue growth driven by improved end-market conditions and strong execution in Pharma Services and Analytical Instruments. - Pharma and biotech markets showed high single-digit growth, reflecting increased customer confidence and a robust investment cycle in cardiovascular, obesity, and oncology pipelines. - Industrial and applied segments benefited from a market-leading position in semiconductor research and manufacturing, specifically driving demand for electron microscopy. - The PPI Business System, combined with new AI deployments, enabled 120 basis points of adjusted operating margin expansion through productivity gains and volume leverage. - Management attributed the biotech recovery to improved funding environments and a shift toward outsourcing, where the company maintains a significant service presence. - High-impact innovation remained a core pillar, with new product launches in mass spectrometry and electron microscopy designed to expand served markets and automate complex workflows. - Raised full-year 2026 organic revenue growth guidance to 4%, reflecting Q3 outperformance and a stable 4% growth expectation for the fourth quarter. - Guidance assumes a sequential moderation in Pharma Services growth in Q4 due to specific customer activity timing that was pulled forward into the third quarter. - Management expects to continue progressing toward their Long-Range Plan (LRP) of 7% organic growth, aiming for a return to 'normal' market conditions by late 2027 or early 2028. - The company is reinvesting approximately $40 million of tariff refund gains into AI deployment and Pharma Services capacity to secure long-term competitive advantages. - Free cash flow expectations were raised to a range of $7 billion to $7.5 billion, supported by disciplined capital allocation and operational efficiency. - Recognized a $60 million net benefit from tariff refund recoveries, contributing $0.15 to adjusted EPS and 50 basis points to operating margin. - Completed the divestiture of the microbiology business in mid-Q3, resulting in a 1% decrease in reported revenue for the quarter. - Integration of the Clario acquisition is proceeding as planned, with management focusing on delivering meaningful revenue synergies within the clinical development offering. - The one-year anniversary of the filtration and separation business acquisition was reached, with the unit now fully integrated into upstream and downstream bioproduction workflows. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management noted that biotech confidence has increased meaningfully, with funding improvements leading to higher laboratory-based activity in research channels. - While clinical research and channel businesses have recovered first, high-tech reagents in Life Sciences Solutions are expected to follow in the coming quarters. - AI is viewed as a 'virtuous cycle' that improves customer ROI in drug development, which in turn spurs more investment in the industry. - Management believes AI could potentially drive growth beyond the 7% LRP ceiling by enabling faster breakthroughs for unmet medical needs. - Specific AI applications, such as the new clinical research assistant, are helping to shave time off clinical trials and improve the probability of success. - The 6% organic growth in Q3 was partially boosted by the timing of Pharma Services projects that were completed earlier than originally anticipated. - The 4% Q4 guidance is described as a normalization of this timing rather than a slowdown in underlying commercial momentum.

Thermo Fisher Scientific (TMO) came out with quarterly earnings of $6.68 per share, beating the Zacks Consensus Estimate of $6.4 per share. This compares to earnings of $5.79 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +4.38%. A quarter ago, it was expected that this maker of scientific instrument and laboratory supplies would post earnings of $5.71 per share when it actually produced earnings of $6.03, delivering a surprise of +5.6%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Thermo Fisher, which belongs to the Zacks Medical - Instruments industry, posted revenues of $12.14 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.81%. This compares to year-ago revenues of $11.12 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Thermo Fisher shares have added about 17.3% since the beginning of the year versus the S&P 500's gain of 12.4%. While Thermo Fisher has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Thermo Fisher was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #2 (Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $7.28 on $12.87 billion in revenues for the coming quarter and $25.13 on $47.81 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Instruments is currently in the top 41% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Integer (ITGR), is yet to report results for the quarter ended September 2026. This medical device outsource manufacturer is expected to post quarterly earnings of $1.65 per share in its upcoming report, which represents a year-over-year change of -7.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Integer's revenues are expected to be $457.3 million, down 2.2% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Integer Holdings Corporation (ITGR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. - Revenue: Q3 revenue grew 9% to $12.14 billion; organic growth 6%, acquisitions contributed 4%, microbiology divestiture reduced 1%. - Adjusted Operating Income: Grew 15% to $2.97 billion. - Adjusted Operating Margin: Expanded 120 basis points to 24.5%. - Adjusted EPS: Grew 15% to $6.68 per share. - GAAP EPS: $4.64, up 9% year over year. - Adjusted Gross Margin: 42.8% in Q3. - Adjusted SG&A: 15.5% of revenue. - R&D Expense: $350 million, or 6.7% of manufacturing revenue. - Net Interest Expense: $165 million in Q3. - Adjusted Tax Rate: 11.6% in Q3. - Diluted Shares: Average 371 million, down 8 million year over year. - Cash Flow from Operations: $5.9 billion year-to-date. - Free Cash Flow: $4.6 billion year-to-date after $1.2 billion net capex. - Cash & Short-Term Investments: $6.1 billion at quarter end. - Total Debt: $41.4 billion; leverage 3.4x gross and 2.9x net debt to adjusted EBITDA. - Adjusted ROIC: 11%. - Tariff Refunds: ~$60 million net benefit to adjusted operating income (50 bps of margin) and $0.15 to adjusted EPS. - Life Sciences Solutions: Revenue up 5% (organic 1%); adjusted operating income up 6%; margin 37.6%, up 20 bps. - Analytical Instruments: Revenue and organic revenue up 6%; adjusted operating income up 26%; margin 26.9%, up 430 bps. - Specialty Diagnostics: Reported revenue down 6%, organic flat; adjusted operating income up 6%; margin 31.0%, up 360 bps. - Laboratory Products and Biopharma Services: Reported revenue up 15% (organic 10%); adjusted operating income up 23%; margin 15.5%, up 100 bps. - Full-Year 2026 Revenue Guidance: Raised to $47.7$48.2 billion (7%8% reported growth; organic growth 4%). - Full-Year 2026 Adjusted EPS Guidance: Raised to $25.13$25.43 (10%11% growth). - Full-Year 2026 Free Cash Flow Guidance: Raised to $7.0$7.5 billion. - Full-Year 2026 Capex: $1.9$2.0 billion net capital expenditures expected. - Capital Returns: $4 billion share buybacks assumed; ~$700 million dividends planned. - Warning! GuruFocus has detected 11 Warning Signs with TMO. - Is TMO fairly valued? Test your thesis with our free DCF calculator. Release Date: October 21, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Thermo Fisher Scientific Inc (NYSE:TMO) delivered 9% revenue growth to $12.14 billion, with adjusted EPS up 15% to $6.68, exceeding guidance. - Adjusted operating margin expanded by 120 basis points to 24.5%, driven by strong productivity and volume leverage. - The company raised full-year 2026 revenue guidance to $47.7-$48.2 billion and adjusted EPS to $25.13-$25.43, reflecting confidence in continued momentum. - High-impact innovation across segments, including new mass spectrometry, electron microscopy, and diagnostic products, strengthens market leadership. - Strategic acquisitions like Clario and the filtration business are performing well, with smooth integration and revenue synergies expected. - Academic and government revenue was flat in Q3, showing no growth in that end market. - Specialty Diagnostics reported a 6% decline in revenue, with organic growth flat, indicating weakness in that segment. - Life Sciences Solutions organic growth was only 1%, lagging other segments and reflecting muted demand for biotech reagents. - Pharma services growth was weighted toward Q3, with some customer activity timing that may not repeat, leading to a lower Q4 organic growth guide of 4%. - Adjusted ROIC was 11%, which may be below some investors' expectations for returns on invested capital. Q: Tycho Peterson of Jefferies asked for a state of the union on end markets and organic growth by segment, including China, and whether the improvement is broad-based or concentrated.A: CEO Marc Casper said the end-market step-up seen in Q2 continued and was "very strong" in Q3. Pharma and biotech grew high-single digits, with biotech continuing to improve and customer confidence strong. Academic and government was flat as expected, though demand for high-end chromatography, mass spec and electron microscopy remained solid. Industrial and applied grew high-single digits, led by semiconductor-related electron microscopy. Diagnostics and healthcare grew low-single digits, in line with the first half. China grew low-double digits. Q: Tycho Peterson of Jefferies followed up on pharma, the largest market, asking what it would take to return to 8%-10% growth and how much of a tailwind AI represents.A: CEO Marc Casper said customer confidence has risen meaningfully: government negotiations are largely behind the industry, the science pipeline is "extraordinarily" strong across cardiovascular, obesity and cancer vaccines, and biotech funding has improved. On AI, he said it improves customers' return on investment in drug development, spurring more investment in a virtuous cycle, with very high customer activity in clinical research. Q: Douglas Schenkel of UBS asked which investments made during the tools downturn position Thermo Fisher to disproportionately benefit as market growth accelerates.A: CEO Marc Casper pointed to heavy investment in innovation and a steady cadence of launches driving adoption, plus major investments in pharma services and clinical research capabilities, including AI deployment and capacity expansion. He also cited the filtration and separation acquisition and the more recent Clario deal as key enablers, saying these position the company to deliver against its midterm commitment of 7% organic growth. Q: Douglas Schenkel of UBS asked whether AI could ultimately lift the company's long-term organic growth algorithm, beyond creating incremental demand and improving customer productivity in the midterm.A: CEO Marc Casper said he believes AI-enabled medicines for unmet needs brighten the long-term outlook, citing the unprecedented scale of adoption seen with COVID vaccines and GLP-1s. He reiterated that 7% organic growth is a reasonable normal outlook and "not the cap," adding that the company first wants to get back to that range. Q: Jack Meehan of Operon Research asked about the phasing from 6% organic growth in Q3 to a maintained 4% guide for Q4, and how much reflects conservatism versus pharma services timing.A: CFO Jim Meyer said second-half organic growth guidance was raised to 5% from 4%. Pharma services accelerated meaningfully in the second half, with much of that weighted to Q3, so some customer activity timing was completed in the quarter. That is being fully offset by business momentum in Q4, and the second half is playing out exactly as expected. Q: Jack Meehan of Operon Research asked for thoughts on 2027 and progress toward the higher end of the 3%-6% midterm organic growth range.A: CEO Marc Casper declined to guide before the February 2 earnings call but said the company grew 2% last year and is on track for 4% this year with a stronger second half than first half. He said this sets up continued progress through the midterm framework, with the goal of exiting 2027 back in a normal period, though the exact quarter is hard to predict. Q: Daniel Arias of Stifel asked how the biotech recovery is broadening across the portfolio, noting Life Sciences Solutions grew only 1% organically.A: CEO Marc Casper described a sequential recovery: clinical research authorizations picked up first, then revenue growth, followed by laboratory-based activity in the research and safety market channel, which strengthened further in Q3. Life science research reagents were similar to Q2 as expected, and he expects that customer base to spend more on those technologies over the next couple of quarters. Q: Daniel Arias of Stifel asked about the organic contribution from the filtration and separation (Solventum) business now that the deal has annualized.A: CFO Jim Meyer said the business is performing well and on track to be a mid- to high-single-digit grower. The extra month is not a meaningful driver at the segment or company level, and the company is investing in capacity amid strong customer adoption. Q: Matt Larew of William Blair asked how to think about monetizing AI tools versus using them to maintain or gain share.A: CEO Marc Casper said AI improves how scientific workflows are designed, citing the new AI Automation Innovation Center in South Korea, where government incentives encourage researcher adoption. New demand is emerging as customers populate biological models, and instruments must be automated to support autonomous science. In services, AI is applied across clinical research, from protocol design to enrollment prediction, helping win business. Q: Matt Larew of William Blair asked about the lighter organic growth in Life Sciences Solutions and for an update on reshoring.A: CEO Marc Casper said the bioscience and genetic science reagents environment remains more muted, but significant investments are strengthening capabilities, including Olink proteomics, the Mayo Clinic joint venture and clinical next-gen sequencing launches such as the Ion 560 chip. Bioproduction was the segment's strongest grower, though growth was a bit below recent quarters as tough comparisons normalize. Q: Daniel Brennan of TD Cowen asked what drove the Q3 beat beyond pharma services.A: CFO Jim Meyer said the beat was driven by pharma services, largely a timing element between Q3 and Q4, plus strong growth across pharma and biotech. Analytical Instruments also performed very well, with electron microscopy seeing strong semiconductor demand and strong deliveries. China had a great quarter with low-double-digit growth, improving sequentially, primarily in pharma, biotech and industrial and applied. Q: Daniel Brennan of TD Cowen asked whether AI's benefit to the 7% long-term growth plan could be sized at 1-2 points, and whether it would come sooner or over three to five years.A: CEO Marc Casper said the February 2 outlook will highlight how AI is shaping the market, with fuller quantification planned for the next Investor Day. He said the company is "super bullish" on the For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Thermo Fisher Scientific Inc. TMO delivered third-quarter 2026 adjusted earnings of $6.68 per share, up 15% year over year. The figure beat the Zacks Consensus Estimate by 4.4%. Revenues rose 9% to $12.14 billion and surpassed the consensus mark of $11.92 billion by 1.8%. Results were supported by 6% organic revenue growth and improved operating profitability, reflecting the strength of the company's growth strategy and PPI Business System. Following the earnings announcement, TMO stock fell 4.1% in pre-market trading today. Life Sciences Solutions revenues increased 5.1% year over year to $2.72 billion. Segment income rose to $1.02 billion from $968 million, while the segment income margin expanded 20 basis points (bps) to 37.6%. Laboratory Products and Biopharma Services remained the largest business, with revenues climbing 15% to $6.86 billion. Segment income increased to $1.07 billion from $868 million, while margin improved to 15.5% from 14.5%. The segment accounted for 56.5% of consolidated revenues before eliminations. Analytical Instruments revenues advanced 5.8% year over year to $2 billion. Segment income jumped to $538 million from $429 million, driving margin expansion to 26.9% from 22.6%. The 430-bps improvement was the largest among the company's four segments. Specialty Diagnostics revenues declined 6.5% to $1.1 billion. However, segment income increased to $341 million from $321 million, while margin expanded to 31% from 27.4%. The improvement in profitability despite lower revenues highlights the segment's stronger operating efficiency. Adjusted operating income increased 15% year over year to $2.97 billion. The adjusted operating margin widened 120 bps to 24.5%, reflecting profitability improvements across all four business segments. On a GAAP basis, operating income rose 17% to $2.26 billion, while the operating margin improved to 18.6% from 17.4%. The cost of revenues totaled $6.95 billion, selling, general and administrative expenses were $1.86 billion, and research and development spending amounted to $348 million. GAAP earnings per share increased 9% to $4.64. Thermo Fisher ended the third quarter with cash and cash equivalents of $5.46 billion compared with $9.85 billion at the end of 2025. Total assets stood at $114.23 billion, while long-term obligations amounted to $39.11 billion. For the first nine months of 2026, net cash provided by operating activities increased to $5.87 billion from $4.36 billion a year earlier. Free cash flow rose to $4.62 billion from $3.32 billion. During this period, acquisitions net of cash acquired totaled $8.88 billion, share repurchases reached $4 billion, and dividends paid amounted to $511 million. Thermo Fisher partnered with Mayo Clinic to launch Precure, an initiative combining data from more than one million patient samples with its proteomics technologies. The collaboration aims to advance disease research, earlier detection and precision medicine. The company also opened its first AI-Automation Innovation Center in South Korea to help customers accelerate innovation and research productivity. Additionally, a highly automated distribution center in Kentucky expanded its North American supply capabilities. Thermo Fisher completed the previously announced divestiture of its microbiology business during the quarter. Management highlighted the effectiveness of its growth strategy and operational execution. Chairman and CEO Marc N. Casper expressed confidence in delivering strong results for 2026 and creating long-term stakeholder value. The company is scheduled to provide updated full-year financial guidance during its Oct. 21 earnings conference call. Thermo Fisher Scientific Inc. price-consensus-eps-surprise-chart | Thermo Fisher Scientific Inc. Quote Thermo Fisher ended the third quarter with both earnings and revenues beating respective estimates. Performance reflected the strength of the company's proven growth strategy, strong execution and the power of the PPI Business System. Expansion of the adjusted operating margin in the quarter is also very promising. During the quarter, Thermo Fisher launched the Orbitrap Isora mass spectrometer — its first Orbitrap system designed for isotope ratio analysis — enabling faster workflows and deeper insights into sample composition. Other launches included the EMPAD G2 electron detector for advanced materials characterization and the FDA-cleared EliA CTD 13 Screen for systemic connective tissue diseases. The company also introduced the Ion 560 Chip, offering nearly twice the sequencing capacity of its predecessor to support growing genomic profiling requirements. Thermo Fisher currently carries a Zacks Rank #3 (Hold). Some top-ranked stocks from the broader Computer and Technology sector are Micron Technology MU, Richardson Electronics, Ltd. RELL and Ciena CIEN. Micron Technology, sporting a Zacks Rank #1 (Strong Buy) at present, reported a fourth-quarter fiscal 2026 EPS of $33.42, which beat the Zacks Consensus Estimate by 5.73%. Revenues of $54.23 billion surpassed the Zacks Consensus Estimate by 6.33%. You can see the complete list of today's Zacks #1 Rank stocks here. MU has an earnings yield of 18.7% compared with the industry's 4.5% yield. The company surpassed earnings estimates in each of the trailing four quarters, the average surprise being 21%. Richardson Electronics, currently sporting a Zacks Rank #1, posted a first-quarter fiscal 2027 EPS of 27 cents, topping the Zacks Consensus Estimate by 200%. Revenues of $64.92 million beat the Zacks Consensus Estimate by 10.07%. RELL has an estimated fiscal 2027 earnings growth rate of 62.5% compared with the industry's 46.2% growth. The company's earnings beat estimates in each of the trailing four quarters, the average surprise being 110%. Ciena, sporting a Zacks Rank #1 at present, reported third-quarter fiscal 2026 EPS of $2.11, which topped the Zacks Consensus Estimate by 21.26%. Revenues of $1.67 billion surpassed the consensus mark by 1.44%. CIEN has an estimated fiscal 2026 earnings growth rate of 171.2% compared with the industry's 35.3% growth. The company's earnings beat estimates in each of the trailing four quarters and matched on one occasion, the average surprise being 17.55%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Ciena Corporation (CIEN) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report Richardson Electronics, Ltd. (RELL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research