Thermo Fisher (TMO) AI Stock Analysis

• Market Cap: $217.58B
• Dividend Yield: 0.3%
• Average Volume (3M): 1.65M
• Price to Earnings (P/E): 33.5
• Beta (1Y): 0.67
• Revenue Growth: 3.22%
• EPS Growth: 8.26%
• Country: US
• Employees: 125,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 5.79
• Shares Outstanding: 375,708,070
• 10 Day Avg. Volume: 1,808,828
• 30 Day Avg. Volume: 1,649,379
• PEG Ratio: 4.64
• Price to Book (P/B): 4.01
• Price to Sales (P/S): 4.63
• P/FCF Ratio: 27.35
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 4.75
• Enterprise Value/Gross Profit: 11.93
• Enterprise Value/Ebitda: 18.33
• 1Y Price Target: $640.30
• Price Target Upside: 10.26% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 21
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 72 Outperform
• Price Target: $631.00 ▲(8.65% Upside)

Thermo Fisher's overall stock score reflects strong financial health and strategic initiatives, offset by valuation concerns and mixed technical indicators. The company's robust earnings call and corporate events support future growth, but challenges in cash flow and certain market segments warrant caution.

Positive Factors

Strategic Acquisitions

The acquisition of Clario Holdings enhances Thermo Fisher's clinical trial capabilities, potentially driving earnings growth and strengthening its market position in biopharma services.

Bioprocessing Expansion

Expanding bioprocessing capabilities in Asia positions Thermo Fisher to capture growth in the rapidly expanding biopharmaceutical industry, enhancing its competitive advantage and market reach.

Innovation in Genomic Profiling

Advancements in genomic profiling and precision medicine bolster Thermo Fisher's product offerings, supporting long-term growth in the healthcare and diagnostics sectors.

Negative Factors

Free Cash Flow Challenges

Challenges in free cash flow generation could limit Thermo Fisher's ability to invest in growth opportunities and manage financial obligations, impacting long-term financial flexibility.

China Market Weakness

Weakness in the China market, particularly in diagnostics and healthcare, poses a risk to Thermo Fisher's revenue growth and market expansion in a key region.

Diagnostics Sector Challenges

Ongoing challenges in the diagnostics sector, exacerbated by market conditions in China, could hinder Thermo Fisher's growth in this critical segment, affecting overall revenue stability.

Thermo Fisher Business Overview & Revenue Model

Company Description

Thermo Fisher Scientific Inc. provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services in the North America, Europe, Asia-Pacific, and internationally. The company's Life Sciences Solutions segment offers reagents, instruments, and consumables for biological and medical research, discovery, and production of drugs and vaccines, as well as diagnosis of infections and diseases; and solutions include biosciences, genetic sciences, and bio production to pharmaceutical, biotechnology, agricultural, clinical, healthcare, academic, and government markets. Its Analytical Instruments segment provides instruments, consumables, software, and services for pharmaceutical, biotechnology, academic, government, environmental, and other research and industrial markets, as well as clinical laboratories. The company's Specialty Diagnostics segment offers liquid, ready-to-use, and lyophilized immunodiagnostic reagent kits, as well as calibrators, controls, protein detection assays, and instruments; immunodiagnostics develops, manufactures and markets complete bloodtest systems to support the clinical diagnosis and monitoring of allergy, asthma and autoimmune diseases; dehydrated and prepared culture media, collection and transport systems, instrumentation, and consumables; human leukocyte antigen typing and testing for organ transplant market; and healthcare products. Its Laboratory Products and Biopharma Services segment provides laboratory products, research and safety market channel, and pharma services and clinical research. It offers products and services through a direct sales force, customer-service professionals, electronic commerce, and third-party distributors under Thermo Scientific; Applied Biosystems; Invitrogen; Fisher Scientific; Unity Lab Services; and Patheon and PPD. Thermo Fisher Scientific Inc. was founded in 1956 and is headquartered in Waltham, Massachusetts.

How the Company Makes Money

Thermo Fisher generates revenue through multiple key streams, including the sale of laboratory instruments, reagents, and consumables. The Life Sciences Solutions segment, which encompasses products for genetic analysis, cell culture, and bioproduction, is a significant contributor to revenue. The Analytical Instruments segment includes chromatography and mass spectrometry products, which serve various industries, from pharmaceuticals to environmental testing. Specialty Diagnostics provides diagnostic kits and tests, while Laboratory Products and Services encompass a wide array of laboratory supplies and services. Additionally, Thermo Fisher benefits from strategic partnerships with research institutions and healthcare organizations, which enhance its market presence and drive sales. The company also capitalizes on growing trends in biotechnology and personalized medicine, positioning itself to capture increased demand in these sectors.

Thermo Fisher Financial Statement Overview

Summary

Thermo Fisher exhibits strong financial health with robust profitability and a solid balance sheet. The income statement and balance sheet are strong, but the cash flow statement highlights some areas for improvement, particularly in free cash flow generation.

Income Statement

Thermo Fisher's income statement shows strong profitability with a consistent net profit margin around 15% and a healthy EBIT margin. The company has demonstrated stable revenue growth, with a slight increase in the TTM period. However, the gross profit margin has slightly decreased over the years, indicating potential cost pressures.

Balance Sheet

The balance sheet reflects a solid financial position with a moderate debt-to-equity ratio, indicating manageable leverage. The return on equity is strong, showcasing effective use of equity to generate profits. However, the equity ratio suggests a moderate reliance on debt financing.

Cash Flow

The cash flow statement indicates a decline in free cash flow growth in the TTM period, which could be a concern. The operating cash flow to net income ratio is stable, but the free cash flow to net income ratio has slightly decreased, suggesting potential challenges in converting income into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.74B	42.88B	42.86B	44.91B	39.21B	32.22B
Gross Profit	17.41B	17.73B	17.19B	19.01B	19.63B	16.03B
EBITDA	11.33B	11.80B	11.20B	11.94B	11.97B	10.11B
Net Income	6.57B	6.33B	6.00B	6.95B	7.72B	6.38B
Balance Sheet
Total Assets	103.02B	97.32B	98.73B	97.15B	95.12B	69.05B
Cash, Cash Equivalents and Short-Term Investments	3.55B	5.57B	8.08B	8.52B	4.48B	10.32B
Total Debt	35.68B	32.77B	36.42B	36.07B	36.34B	22.55B
Total Liabilities	52.00B	47.65B	51.88B	53.01B	54.15B	34.53B
Stockholders Equity	51.02B	49.58B	46.73B	43.98B	40.79B	34.51B
Cash Flow
Free Cash Flow	6.11B	7.27B	6.93B	6.91B	7.02B	6.82B
Operating Cash Flow	7.65B	8.67B	8.41B	9.15B	9.54B	8.29B
Investing Cash Flow	-4.92B	-5.84B	-5.14B	-2.16B	-21.93B	-1.51B
Financing Cash Flow	-5.39B	-6.79B	-3.62B	-2.81B	6.58B	959.00M

Thermo Fisher Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 580.74
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMO, the sentiment is Positive. The current price of 580.74 is above the 20-day moving average (MA) of 574.53, above the 50-day MA of 571.41, and above the 200-day MA of 483.46, indicating a bullish trend. The MACD of 1.65 indicates Negative momentum. The RSI at 56.40 is Neutral, neither overbought nor oversold. The STOCH value of 96.82 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TMO.

Thermo Fisher Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IDXX	78 Outperform	$54.95B	54.58	64.63%	―	8.39%	21.44%
DHR	75 Outperform	$163.50B	47.64	6.84%	0.53%	2.22%	-7.60%
A	73 Outperform	$39.21B	30.25	20.62%	0.72%	6.73%	3.34%
TMO	72 Outperform	$217.58B	33.46	13.14%	0.30%	3.22%	8.26%
WAT	70 Outperform	$22.92B	35.50	32.99%	―	6.90%	3.86%
MTD	64 Neutral	$28.95B	35.42	―	―	4.77%	7.93%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Thermo Fisher Corporate Events

Thermo Fisher Issues €2.1 Billion in Senior Notes

On December 1, 2025, Thermo Fisher Scientific’s subsidiary, Thermo Fisher International, issued €2.1 billion in senior notes through a public offering. The proceeds from this issuance are intended for general corporate purposes, potentially including acquisitions, debt repayment, and capital expenditures, reflecting the company’s strategic financial management and positioning in the market.

Thermo Fisher Announces Acquisition of Clario Holdings

On October 29, 2025, Thermo Fisher Scientific announced a definitive agreement to acquire Clario Holdings, Inc. for approximately $8.875 billion in cash, with additional contingent payments. Clario, a provider of endpoint data solutions for clinical trials, will enhance Thermo Fisher’s capabilities in delivering clinical insights and accelerating the digital transformation of clinical research. This acquisition is expected to be completed by mid-2026, subject to regulatory approvals, and will be immediately accretive to Thermo Fisher’s adjusted earnings per share. The transaction aims to strengthen Thermo Fisher’s position as a trusted partner to pharma and biotech customers, offering deeper clinical insights and improved decision-making capabilities.

Thermo Fisher Issues $2.5 Billion in Senior Notes

On October 7, 2025, Thermo Fisher Scientific Inc. issued $2.5 billion in senior notes across four different maturities, with the proceeds intended for general corporate purposes such as acquisitions, debt refinancing, and capital expenditures. The issuance is part of a strategic financial maneuver to strengthen the company’s liquidity and operational flexibility, potentially impacting its market positioning and offering opportunities for growth and investment.