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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:77Outperform
Price Target:
$539.00
▲(12.69%Upside)
Thermo Fisher's strong financial performance, highlighted by robust margins and operational efficiency, drives the positive outlook. The bullish technical indicators and optimistic earnings call further support the score. However, valuation concerns due to a high P/E ratio and challenges in specific market segments temper the overall assessment.
Positive Factors
Financial Performance
Thermo Fisher Scientific reported a strong second quarter and updated its full-year 2025 guidance, raising expectations for both sales and adjusted earnings per share.
Investor Confidence
The stock closed up 9% after the favorable 2Q results and guidance, reflecting investor confidence in the company's future performance.
Market Strategy
Analysts continue to be structurally positive on TMO and reiterate their $500 price target.
Negative Factors
Market Challenges
The early-stage discovery end-market, which contributes significantly to TMO sales, is still weak.
Regional Growth Concerns
Expectations are that US A&G and China will remain soft, posing challenges for growth in these regions.
Research and Development
A confluence of headwinds could pressure life sciences R&D, an end market that broadly comprises 50% of Thermo's sales, longer than many expect.

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 makes money through a diversified revenue model that includes the sale of scientific instruments, laboratory equipment, and consumables. It earns significant income from its laboratory products and services segment, which provides a wide array of products such as lab equipment, chemicals, and supplies to various industries including healthcare, pharmaceuticals, and academic research. The company also generates revenue from its life sciences solutions segment, which includes reagents, instruments, and consumables used in biological and medical research. Additionally, its specialty diagnostics segment offers diagnostic test kits, instruments, and reagents that are widely used in clinical laboratories. Thermo Fisher's analytical instruments segment provides precision laboratory instruments and software solutions. Key partnerships with research institutions, pharmaceutical companies, and healthcare providers, alongside strategic acquisitions, also play a significant role in expanding its market reach and enhancing its product offerings, thus contributing to its earnings.

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 Life Sciences Solutions segment is experiencing a gradual decline, reflecting challenges in the academic and government markets as mentioned in the earnings call. Meanwhile, the Laboratory Products segment remains stable, supported by strategic acquisitions like Soventum's purification business. Despite macroeconomic pressures, the company is focusing on innovation and M&A to drive resilience. The Analytical Instruments segment shows potential for growth, aligning with new product launches. However, US-China tariffs pose a significant risk, potentially impacting future revenue streams.
Data provided by:Main Street Data

Thermo Fisher Earnings Call Summary

Earnings Call Date:Jul 23, 2025
(Q2-2025)
|
% Change Since: 11.86%|
Next Earnings Date:Oct 22, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced picture with strong revenue growth and operational performance, supported by strategic innovation and increased guidance. However, challenges remain in specific segments like academic, industrial, and diagnostics due to external factors such as tariffs and market hesitancy.
Q2-2025 Updates
Positive Updates
Revenue and EPS Beat Expectations
Thermo Fisher's Q2 revenue grew 3% to $10.85 billion, and adjusted EPS was $5.36, both surpassing guidance. Adjusted operating income grew 1% to $2.38 billion.
Strong Performance in Pharma and Biotech
Mid-single-digit growth driven by bioproduction, Pharma Services, and research and safety market. Clinical research saw slight positive growth.
New Product Launches and Innovation
Thermo Fisher launched next-generation products like Orbitrap mass spectrometers and the Krios 5 electron microscope, receiving positive customer feedback.
Increased Full-Year Guidance
Raised full-year revenue guidance to $43.6-$44.2 billion and adjusted EPS to $22.22-$22.84, reflecting strong operational performance.
Successful Cost Management
An additional $300 million in cost reductions since initial guidance, driving strong adjusted operating income growth.
Strategic Acquisitions and Partnerships
Acquisition of Solventum's business lines and expansion of partnership with Sanofi to enhance U.S. drug production capacity.
Negative Updates
Decline in Academic and Government Revenue
Revenue from academic and government sectors declined mid-single digits due to customer hesitancy amid an uncertain environment.
Challenges in Industrial and Applied Markets
Growth in industrial and applied markets declined in low single digits, aligning with expectations and muted demand.
Diagnostics and Healthcare Revenue Decline
Revenue declined in low single digits, affected by headwinds in China despite strong growth in transplant diagnostics.
Impact of Tariffs on Analytical Instruments
Tariffs and U.S. policy focus led to a 4% decline in organic growth for Analytical Instruments, affecting demand for equipment.
Company Guidance
During Thermo Fisher Scientific's 2025 second-quarter earnings call, the company reported a revenue growth of 3% to $10.85 billion and an adjusted operating income increase of 1% to $2.38 billion. The adjusted operating margin for the quarter was 21.9%, and the adjusted earnings per share (EPS) were $5.36, exceeding guidance. The company raised its full-year revenue guidance to a range of $43.6 billion to $44.2 billion, with an adjusted EPS range of $22.22 to $22.84. CEO Marc Casper highlighted strong performance in the pharma and biotech sectors, with mid-single-digit growth, and noted challenges in the academic and government markets, where revenue declined mid-single digits. The company is actively managing its operations to mitigate tariff impacts and is optimistic about future growth, forecasting a 3% to 6% organic revenue growth for 2026 and 2027, with a long-term target of 7% plus organic growth.

Thermo Fisher Financial Statement Overview

Summary
Thermo Fisher displays solid financial health with stable profitability, efficient cash generation, and a balanced capital structure. However, challenges in revenue growth and managing debt levels slightly offset the strengths.
Income Statement
82
Very Positive
Thermo Fisher's income statement shows impressive stability and profitability. The TTM (Trailing-Twelve-Months) gross profit margin stands at 41.74%, and the net profit margin is 15.19%, indicating strong profitability. The EBIT margin of 17.08% and EBITDA margin of 24.71% reflect efficient operations. While revenue has been relatively stable over the past periods, the company exhibited a slight decline in revenue from 2022 to TTM, indicating potential challenges in sales growth.
Balance Sheet
78
Positive
The balance sheet indicates a robust equity position with a debt-to-equity ratio of 0.69, suggesting moderate leverage. The return on equity (ROE) is 13.20%, reflecting decent profitability relative to shareholder investment. The equity ratio of 49.83% demonstrates a balanced capital structure, though the company carries a significant amount of debt, which requires careful management.
Cash Flow
75
Positive
Cash flow analysis reveals healthy operational cash flow with a TTM free cash flow to net income ratio of 1.03, underscoring efficient cash generation. The operating cash flow to net income ratio of 1.25 indicates strong cash conversion from profits. However, free cash flow growth is slightly negative compared to the previous period, highlighting the need to focus on future cash flow improvements.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue42.88B42.86B44.91B39.21B32.22B
Gross Profit17.70B17.11B19.50B20.23B16.50B
EBITDA11.80B11.08B11.94B12.96B10.19B
Net Income6.33B6.00B6.95B7.72B6.38B
Balance Sheet
Total Assets97.32B98.73B97.15B95.12B69.05B
Cash, Cash Equivalents and Short-Term Investments5.57B8.08B8.52B4.48B10.32B
Total Debt31.27B34.92B34.49B34.87B21.73B
Total Liabilities47.65B51.88B53.01B54.15B34.53B
Stockholders Equity49.55B46.73B43.98B40.79B34.51B
Cash Flow
Free Cash Flow7.27B6.93B6.91B7.02B6.82B
Operating Cash Flow8.67B8.41B9.15B9.54B8.29B
Investing Cash Flow-5.84B-5.14B-2.16B-21.93B-1.51B
Financing Cash Flow-6.79B-3.62B-2.81B6.58B959.00M

Thermo Fisher Technical Analysis

Technical Analysis Sentiment
Positive
Last Price478.32
Price Trends
50DMA
412.82
Positive
100DMA
440.29
Positive
200DMA
494.50
Negative
Market Momentum
MACD
9.35
Negative
RSI
69.36
Neutral
STOCH
76.24
Neutral
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 478.32 is above the 20-day moving average (MA) of 425.42, above the 50-day MA of 412.82, and below the 200-day MA of 494.50, indicating a neutral trend. The MACD of 9.35 indicates Negative momentum. The RSI at 69.36 is Neutral, neither overbought nor oversold. The STOCH value of 76.24 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$44.23B50.8259.33%5.56%4.66%
77
Outperform
$176.18B27.0113.46%0.35%2.05%7.03%
75
Outperform
$34.19B29.4718.88%0.82%0.56%-4.08%
72
Outperform
$34.14B29.0919.80%3.53%-10.72%
71
Outperform
$17.77B27.0740.82%2.57%8.31%
68
Neutral
$141.70B42.036.68%0.58%-3.24%-16.60%
60
Neutral
HK$17.07B6.10-7.44%2.88%11.55%-28.15%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TMO
Thermo Fisher
478.32
-126.84
-20.96%
A
Agilent
120.35
-15.92
-11.68%
DHR
Danaher
205.48
-66.99
-24.59%
IDXX
Idexx Laboratories
565.19
95.48
20.33%
WAT
Waters
298.47
-19.49
-6.13%
IQV
IQVIA Holdings
199.17
-40.50
-16.90%

Thermo Fisher Corporate Events

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.

The most recent analyst rating on (TMO) stock is a Buy with a $680.00 price target. To see the full list of analyst forecasts on Thermo Fisher stock, see the TMO Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Thermo Fisher Shareholders Elect Board, Reject Proposals
Neutral
May 28, 2025

At the Annual Meeting on May 21, 2025, Thermo Fisher shareholders elected board nominees for a one-year term and ratified PricewaterhouseCoopers LLP as the independent auditor for 2025. However, a proposal on executive compensation was not approved, and a shareholder proposal to remove the one-year holding period for calling special meetings was also rejected.

The most recent analyst rating on (TMO) stock is a Buy with a $680.00 price target. To see the full list of analyst forecasts on Thermo Fisher stock, see the TMO Stock Forecast page.

Executive/Board Changes
Thermo Fisher Approves CEO’s $60M Stock Award
Neutral
May 22, 2025

On May 21, 2025, Thermo Fisher‘s Board of Directors approved a 5-year performance-based restricted stock unit award for CEO Marc N. Casper, aimed at securing his leadership until May 2030 and driving substantial shareholder returns. The award, valued at approximately $60 million, is designed to incentivize sustained shareholder value growth through total shareholder return outperformance, with payouts based on performance relative to the S&P 500 over a set period.

The most recent analyst rating on (TMO) stock is a Buy with a $680.00 price target. To see the full list of analyst forecasts on Thermo Fisher stock, see the TMO Stock Forecast page.

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: Jul 25, 2025