Thermo Fisher (TMO) AI Stock Analysis

• Market Cap: $192.95B
• Dividend Yield: 0.3%
• Average Volume (3M): 2.57M
• Price to Earnings (P/E): 28.9
• Beta (1Y): 0.70
• Revenue Growth: 3.91%
• EPS Growth: 7.09%
• Country: US
• Employees: 125,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 6.57
• Shares Outstanding: 375,708,070
• 10 Day Avg. Volume: 2,500,423
• 30 Day Avg. Volume: 2,569,378
• PEG Ratio: 4.51
• Price to Book (P/B): 4.08
• Price to Sales (P/S): 4.89
• P/FCF Ratio: 34.62
• Enterprise Value/Market Cap: 1.15
• Enterprise Value/Revenue: 4.97
• Enterprise Value/Gross Profit: 12.60
• Enterprise Value/Ebitda: 19.61
• 1Y Price Target: $677.73
• Price Target Upside: 32.65% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16
• EPS Forecast (FY): 24.58
• Revenue Forecast (FY): $46.84B

• Rating: 61 Neutral
• Price Target: $556.00 ▲(8.82% Upside)
• Action: Reiterated Date: 02/14/26
• Date: Action: Reiterated 02/14/26

The score reflects solid underlying fundamentals and supportive 2026 guidance (profitability, strong free cash flow, and expected organic/EPS acceleration), partly offset by weaker balance-sheet flexibility from higher leverage and a notably bearish technical picture. Valuation is also a headwind given the high P/E and very low dividend yield.

Positive Factors

Strong free cash flow generation

Consistent FCF near $6.3B funds capex, dividends, buybacks and M&A, underpinning operational resilience. A high FCF-to-earnings ratio signals earnings quality and the ability to service debt or invest in growth over multiple years, supporting strategic flexibility.

Diversified, market-leading portfolio

A broad four-segment model combines recurring consumables, instruments, software and services, reducing single-market exposure. This diversification supports steadier revenue streams, cross-selling, and resilience to sector-specific cyclicality over the medium term.

Consistent product innovation and regulatory wins

Regular high-impact product rollouts and regulatory clearances expand addressable markets, strengthen differentiation, and support pricing power. Durable innovation capability helps defend market share and drive long-term margin recovery in instruments and diagnostics.

Negative Factors

Elevated leverage reduces financial flexibility

Higher leverage and sizable gross debt limit balance-sheet optionality and increase interest burden sensitivity. If cash flow weakens or funding costs rise, the company’s ability to pursue opportunistic investments or accelerate buybacks/dividends is constrained, raising long-term risk.

Analytical Instruments margin pressure

Sustained, significant margin decline in a major instrument franchise—driven by tariffs, FX and cost pressure—could persistently drag consolidated margins. Prolonged compression limits internal funding for R&D and weakens earnings leverage despite top-line scale.

Heavy reliance on M&A with integration and dilution risk

An aggressive M&A cadence has materially increased deal-related goodwill, near-term dilution and integration complexity. Realizing anticipated synergies is essential to convert acquired revenue into sustainable margins and to justify higher leverage used to fund transactions.

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

Durable profitability and consistently strong free cash flow (TTM FCF ~$6.3B, ~80% of net income) support a solid financial profile, but growth has slowed versus 2020–2022, margins remain compressed from peak levels, and leverage has risen (debt-to-equity ~0.74; cash flow covers ~0.51 of total debt).

Income Statement

TTM (Trailing-Twelve-Months) revenue is essentially flat to slightly up versus recent history, with a clear step-down from the strong growth period in 2020–2022. Profitability remains solid (TTM gross margin ~40% and net margin ~15%), but margins have compressed meaningfully from 2020–2021 levels and have not yet re-expanded, indicating a less favorable mix and/or cost pressures despite stable scale.

Balance Sheet

The balance sheet is supported by a large equity base (TTM equity ~$53B on ~$110B assets), and returns on equity remain healthy in the low-teens (TTM ~13%). However, leverage has increased recently: total debt rose versus 2024, and debt-to-equity moved higher (TTM ~0.74 vs. ~0.66 in 2024), which reduces flexibility if operating conditions soften.

Cash Flow

Cash generation is consistently strong, with TTM free cash flow of ~$6.3B and free cash flow running at ~80% of net income—indicative of solid earnings quality. That said, TTM operating cash flow declined versus 2024 and cash flow covers only about half of total debt (TTM ~0.51), leaving the company more reliant on sustained cash generation over multiple years to comfortably delever.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	44.56B	42.88B	42.86B	44.91B	39.21B
Gross Profit	16.78B	17.73B	17.19B	19.01B	19.63B
EBITDA	10.89B	11.80B	11.20B	11.94B	11.97B
Net Income	6.74B	6.33B	6.00B	6.95B	7.72B
Balance Sheet
Total Assets	110.34B	97.32B	98.73B	97.15B	95.12B
Cash, Cash Equivalents and Short-Term Investments	10.11B	5.57B	8.08B	8.52B	4.48B
Total Debt	39.38B	32.77B	36.42B	36.07B	36.34B
Total Liabilities	56.81B	47.65B	51.88B	53.01B	54.15B
Stockholders Equity	53.41B	49.58B	46.73B	43.98B	40.79B
Cash Flow
Free Cash Flow	6.29B	7.27B	6.93B	6.91B	7.02B
Operating Cash Flow	7.82B	8.67B	8.41B	9.15B	9.54B
Investing Cash Flow	-4.05B	-5.84B	-5.14B	-2.16B	-21.93B
Financing Cash Flow	1.80B	-6.79B	-3.62B	-2.81B	6.58B

Thermo Fisher Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 510.93
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMO, the sentiment is Negative. The current price of 510.93 is below the 20-day moving average (MA) of 556.36, below the 50-day MA of 579.30, and above the 200-day MA of 505.42, indicating a neutral trend. The MACD of -24.41 indicates Positive momentum. The RSI at 28.30 is Positive, neither overbought nor oversold. The STOCH value of 31.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TMO.

Thermo Fisher Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A	73 Outperform	$35.90B	27.77	20.62%	0.72%	6.73%	3.34%
IDXX	70 Outperform	$50.70B	48.24	66.20%	―	8.39%	21.44%
WAT	69 Neutral	$32.13B	30.53	29.28%	―	6.90%	3.86%
DHR	67 Neutral	$147.32B	41.30	7.05%	0.53%	2.90%	-4.81%
MTD	66 Neutral	$27.96B	32.68	―	―	4.77%	7.93%
TMO	61 Neutral	$192.95B	28.95	13.04%	0.30%	3.91%	7.09%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Thermo Fisher Corporate Events

Thermo Fisher Issues $3.8 Billion Notes for Acquisition

On February 12, 2026, Thermo Fisher Scientific issued a total of $3.8 billion in senior unsecured notes across four tranches maturing between 2031 and 2046, with coupons ranging from 4.215% to 5.546%. The notes, which are equal in ranking to the company’s other unsecured, unsubordinated debt and subject to standard covenants and change-of-control protections, were sold in a registered public offering under an existing indenture structure.

The company expects net proceeds of about $3.76 billion, primarily earmarked to fund a portion of the cash consideration for its previously announced acquisition of Clario Holdings, Inc., subject to customary regulatory and closing conditions. Pending completion of that deal, Thermo Fisher may temporarily allocate the funds to general corporate purposes or short-term investments, underscoring its ongoing use of the debt markets to support strategic M&A and balance sheet flexibility.

The most recent analyst rating on (TMO) stock is a Buy with a $670.00 price target. To see the full list of analyst forecasts on Thermo Fisher stock, see the TMO Stock Forecast page.

Thermo Fisher Announces Planned Executive Leadership Transitions

Thermo Fisher Scientific announced that two senior executives, Executive Vice President and Chief Operating Officer Michel Lagarde and Executive Vice President Frederick M. Lowery, will leave the company in 2026 to pursue other opportunities, with Lagarde departing on March 31, 2026, and Lowery on February 28, 2026. Effective March 1, 2026, the company will implement a new organizational structure under which Marc N. Casper will serve as Chairman and Chief Executive Officer, Gianluca Pettiti will be promoted to President and Chief Operating Officer, and Michael Shafer will assume an expanded executive role reporting directly to the CEO, signaling a planned leadership transition and continuity in its long-term management strategy.

The most recent analyst rating on (TMO) stock is a Buy with a $700.00 price target. To see the full list of analyst forecasts on Thermo Fisher stock, see the TMO Stock Forecast page.

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.

The most recent analyst rating on (TMO) stock is a Buy with a $670.00 price target. To see the full list of analyst forecasts on Thermo Fisher stock, see the TMO Stock Forecast page.