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Thermo Fisher (TMO)
NYSE:TMO
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Thermo Fisher (TMO) AI Stock Analysis

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TMO

Thermo Fisher

(NYSE:TMO)

Rating:78Outperform
Price Target:
$562.00
▲(15.98% Upside)
Thermo Fisher's strong financial performance and positive earnings call guidance are the most significant factors driving the stock score. The technical analysis supports a bullish outlook, though the high valuation and challenges in certain markets temper the overall score. The recent acquisition adds strategic value but has a short-term dilutive effect.
Positive Factors
Financial Performance
Thermo Fisher reported improved financials for 2Q25, with revenue increasing by 3.0% YoY and adj. EPS declining lightly by 0.2% YoY, both exceeding Bloomberg consensus.
Investment and Growth Plans
TMO announced a US$2bn investment plan in the US, including US$1.5bn in Capex, to capture growing opportunities in reshoring manufacturing.
Strategic Positioning
The synergies created by Thermo’s best-in-class service offerings have solidified its position as the partner of choice for the biopharma industry.
Negative Factors
Demand Challenges
The early-stage discovery end-market, which contributes significantly to TMO sales, is still weak.
Market Risks
Risk factors include exposure to biopharma; reliance on government funding and exposure to regulatory markets; considerable global footprint and China exposure; diverse competition across end-markets; acquisition and integration risks; regulatory and safety concerns; and a potential headwind to margins.
Market Weakness
Weak performance in Chemical Analysis and Electron Microscopy due to low demand in China and A&G.

Thermo Fisher (TMO) vs. SPDR S&P 500 ETF (SPY)

Thermo Fisher Business Overview & Revenue Model

Company DescriptionThermo 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 MoneyThermo Fisher generates revenue through multiple key streams including the sale of scientific instruments, consumables, and reagents. Its primary revenue sources are divided into four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services. The Life Sciences Solutions segment focuses on products for drug discovery, development, and production, while the Analytical Instruments segment includes high-end analytical instruments used for quality control and research. Specialty Diagnostics comprises in vitro diagnostics and biological safety testing products. Additionally, Laboratory Products and Services includes a range of lab equipment and services. The company also benefits from significant partnerships with academic institutions, research organizations, and pharmaceutical companies, which facilitate the development and commercialization of innovative solutions. Thermo Fisher's strong market presence and diverse product portfolio contribute to its robust earnings and financial stability.

Thermo Fisher Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Breaks down revenue across various business segments, revealing which areas are contributing most to growth and where there may be potential for expansion or risk.
Chart InsightsThermo Fisher's revenue from Life Sciences Solutions and Analytical Instruments shows a declining trend, with recent stabilization. The earnings call highlights strong performance in pharma and biotech, offset by challenges in academic and government sectors. Despite a decline in diagnostics revenue, the company is optimistic about future growth, raising full-year revenue guidance. Strategic acquisitions and new product launches are expected to drive long-term growth, while tariff impacts and market hesitancy pose risks. The company's focus on cost management and innovation supports its positive outlook.
Data provided by:Main Street Data

Thermo Fisher Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted Thermo Fisher's strong operational performance, driven by growth in the pharma and biotech segments, successful product launches, and strategic partnerships. However, challenges in academia, government, and the China market, along with tariff impacts, presented notable headwinds.
Q2-2025 Updates
Positive Updates
Revenue and Earnings Growth
Thermo Fisher Scientific's Q2 revenue grew by 3% to $10.85 billion, with adjusted operating income increasing by 1% to $2.38 billion. Adjusted EPS was $5.36 per share, surpassing guidance.
Bioproduction and Pharma Services Strength
The bioproduction and Pharma Services businesses experienced significant growth, contributing to the mid-single-digit growth in the pharma and biotech segment.
Innovation in Analytical Instruments
Launch of next-generation Thermo Scientific Orbitrap mass spectrometers and the Krios 5 cryo-transmission electron microscope, receiving positive customer feedback.
Capital Deployment and Partnership Expansion
Thermo Fisher announced the acquisition of Sanofi's sterile fill-finish site and the strategic partnership expansion to boost U.S. manufacturing capacity.
Raised Annual Guidance
Increased full-year guidance with revenue expected between $43.6 billion and $44.2 billion, and adjusted EPS from $22.22 to $22.84.
Negative Updates
Academic and Government Revenue Decline
Revenue from academic and government customers declined mid-single digits due to customer hesitancy and muted demand.
China Market Headwinds
Challenges in the China market contributed to a low single-digit decline in diagnostics and healthcare revenue.
Impact of Tariffs and Policy Environment
Tariffs and policy focus resulted in a 5% headwind to adjusted operating income dollars and a significant impact on Analytical Instruments revenue.
Company Guidance
During the Thermo Fisher Scientific 2025 Second Quarter Conference Call, the company provided updated financial guidance reflecting strong operational performance and increased projections for the year. Revenue for Q2 grew by 3% to $10.85 billion, with an adjusted operating income increase of 1% to $2.38 billion, marking an adjusted operating margin of 21.9% and an adjusted EPS of $5.36 per share. For the full year, Thermo Fisher raised its revenue guidance to $43.6 billion to $44.2 billion and adjusted EPS to $22.22 to $22.84. Despite challenges such as tariffs and a subdued macro environment, the company leveraged its PPI Business System and strategic initiatives like Accelerator Drug Development to drive shareholder value. Additionally, the company anticipates 3% to 6% organic revenue growth in 2026 and 2027, emphasizing its commitment to innovation and strategic partnerships to sustain long-term growth.

Thermo Fisher Financial Statement Overview

Summary
Thermo Fisher demonstrates robust financial health characterized by stable profitability, a balanced capital structure, and efficient cash flow management. Strong margins, effective debt management, and solid ROE are notable, though revenue growth is moderate.
Income Statement
85
Very Positive
Thermo Fisher shows strong profitability with a stable Gross Profit Margin of approximately 41.74% for TTM. The Net Profit Margin is 15.24%, indicating efficient cost control and profitability. Revenue growth has been modest with a TTM increase of 0.78% compared to the previous year. EBIT and EBITDA margins are healthy at 17.13% and 19.58%, respectively, reflecting robust operational performance.
Balance Sheet
80
Positive
The company's financial position is solid with a manageable Debt-to-Equity Ratio of 0.70. Return on Equity (ROE) stands at 13.05%, showcasing effective use of equity. The Equity Ratio of 49.85% highlights a balanced capital structure. Overall, the balance sheet indicates stability with a slight increase in liabilities over time.
Cash Flow
78
Positive
Operating Cash Flow to Net Income Ratio is 1.15, indicating strong cash generation. The Free Cash Flow has decreased by 15.09% from the previous year, reflecting higher capital expenditures. The Free Cash Flow to Net Income Ratio is 0.94, suggesting efficient cash flow management despite investment activities.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue43.21B42.88B42.86B44.91B39.21B32.22B
Gross Profit17.10B17.73B17.19B19.01B19.63B16.03B
EBITDA11.40B11.80B11.20B11.94B11.97B10.11B
Net Income6.58B6.33B6.00B6.95B7.72B6.38B
Balance Sheet
Total Assets101.23B97.32B98.73B97.15B95.12B69.05B
Cash, Cash Equivalents and Short-Term Investments6.39B5.57B8.08B8.52B4.48B10.32B
Total Debt35.23B32.77B36.42B36.07B36.34B22.55B
Total Liabilities50.63B47.65B51.88B53.01B54.15B34.53B
Stockholders Equity50.51B49.58B46.73B43.98B40.79B34.51B
Cash Flow
Free Cash Flow6.17B7.27B6.93B6.91B7.02B6.82B
Operating Cash Flow7.58B8.67B8.41B9.15B9.54B8.29B
Investing Cash Flow-4.37B-5.84B-5.14B-2.16B-21.93B-1.51B
Financing Cash Flow-5.95B-6.79B-3.62B-2.81B6.58B959.00M

Thermo Fisher Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price484.55
Price Trends
50DMA
455.18
Positive
100DMA
434.31
Positive
200DMA
481.51
Positive
Market Momentum
MACD
9.47
Positive
RSI
54.97
Neutral
STOCH
36.88
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMO, the sentiment is Neutral. The current price of 484.55 is above the 20-day moving average (MA) of 482.47, above the 50-day MA of 455.18, and above the 200-day MA of 481.51, indicating a bullish trend. The MACD of 9.47 indicates Positive momentum. The RSI at 54.97 is Neutral, neither overbought nor oversold. The STOCH value of 36.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TMO.

Thermo Fisher Risk Analysis

Thermo Fisher disclosed 26 risk factors in its most recent earnings report. Thermo Fisher reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Thermo Fisher Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$32.44B26.6119.80%3.53%-10.72%
79
Outperform
$35.50B29.3619.88%0.78%4.48%-11.52%
78
Outperform
$186.06B28.2213.44%0.34%2.05%7.03%
77
Outperform
$51.77B53.2264.87%6.68%18.84%
70
Outperform
$17.65B26.1537.03%5.89%10.61%
69
Neutral
$147.38B43.286.68%0.59%-3.24%-16.60%
51
Neutral
$7.90B-0.33-41.69%2.23%23.45%-1.99%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TMO
Thermo Fisher
484.55
-120.35
-19.90%
A
Agilent
125.22
-12.08
-8.80%
DHR
Danaher
199.44
-63.88
-24.26%
IDXX
Idexx Laboratories
633.95
164.77
35.12%
WAT
Waters
290.06
-41.25
-12.45%
IQV
IQVIA Holdings
184.62
-63.52
-25.60%

Thermo Fisher Corporate Events

M&A TransactionsBusiness Operations and Strategy
Thermo Fisher Completes $4 Billion Solventum Acquisition
Positive
Sep 2, 2025

On September 2, 2025, Thermo Fisher Scientific completed its $4.0 billion acquisition of Solventum Corporation’s purification and filtration business, enhancing its bioprocessing and adjacent market offerings. The acquisition is expected to generate $750 million in revenue for 2025 and provide significant growth and synergy opportunities, although it will initially be dilutive to adjusted EPS by $0.06. The transaction strengthens Thermo Fisher’s portfolio with advanced filtration technologies, expanding its reach in industries requiring ultra-pure water, such as battery, semiconductor, and medical device manufacturing.

Executive/Board Changes
Thermo Fisher Announces CFO Retirement and Successor
Neutral
Jul 23, 2025

On July 23, 2025, Thermo Fisher Scientific Inc. announced that its Senior Vice President and Chief Financial Officer, Stephen Williamson, will retire effective March 31, 2026. James R. Meyer, currently Vice President of Financial Operations, will succeed Williamson as CFO starting March 1, 2026, bringing extensive experience within the company since joining in 2009.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Sep 02, 2025