Thermo Fisher (TMO)
NYSE:TMO
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Thermo Fisher
(NYSE:TMO)
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Rating:63Neutral
Price Target:
$509.00
▲(4.26% Upside)
Action:ReiteratedDate:03/24/26
The score is anchored by solid underlying financial quality and supportive 2026 guidance (growth and modest margin expansion), but is held back by weak technical momentum and a premium valuation. Elevated leverage and acquisition integration/tariff-FX pressures add risk, partially offset by strategic M&A benefits and strong free-cash-flow generation.
Positive Factors
Strong free cash flow generation
Consistent high free cash flow gives Thermo Fisher durable self-funding: it supports capital expenditures, sizable M&A, share buybacks and dividends without relying on equity issuance. Over multiple years this cash conversion underpins financial flexibility and investment in growth initiatives.
Negative Factors
Elevated leverage after heavy M&A
Substantial 2025 deployment and new notes increased gross leverage, constraining flexibility if end markets soften. Higher debt raises interest and covenant sensitivity, making durable deleveraging reliant on sustained strong cash flow and successful integration of acquisitions over multiple years.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow generation
Consistent high free cash flow gives Thermo Fisher durable self-funding: it supports capital expenditures, sizable M&A, share buybacks and dividends without relying on equity issuance. Over multiple years this cash conversion underpins financial flexibility and investment in growth initiatives.
Read all positive factors
Thermo Fisher (TMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$181.35B
Dividend Yield0.3%
Average Volume (3M)2.00M
Price to Earnings (P/E)32.3
Beta (1Y)0.72
Revenue Growth3.91%
EPS Growth7.09%
CountryUS
Employees125,000
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)6.57
Shares Outstanding371,484,250
10 Day Avg. Volume1,844,133
30 Day Avg. Volume1,997,477
Financial Highlights & Ratios
PEG Ratio4.51
Price to Book (P/B)4.08
Price to Sales (P/S)4.89
P/FCF Ratio34.62
Enterprise Value/Market Cap1.17
Enterprise Value/Revenue4.78
Enterprise Value/Gross Profit12.11
Enterprise Value/Ebitda18.54
Forecast
1Y Price Target
$661.91Price Target Upside35.58% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering14
EPS Forecast (FY)24.57
Revenue Forecast (FY)$46.91B
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 Scien...
How the Company Makes Money
Thermo Fisher makes money primarily by selling products and services to customers in pharmaceuticals and biotechnology, academic and government research, hospitals and clinical labs, and industrial/environmental testing markets. Key revenue stream...
Thermo Fisher Key Performance Indicators (KPIs)
Any
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.
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.
Data provided by:
The Fly
The FlyThermo Fisher Earnings Call Summary
Earnings Call Date:Jan 29, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented a largely positive operational and financial picture: solid top-line growth, strong adjusted EPS growth, robust cash generation, aggressive strategic M&A and product innovation, and constructive 2026 guidance (3%–4% organic growth and 6%–8% EPS growth). Headwinds from tariffs, foreign exchange volatility, China and academic/government softness, margin pressure in Analytical Instruments, and elevated leverage represent notable near-term risks but appear manageable given the company’s PPI-driven productivity, capital deployment discipline, and pipeline of innovations and strategic deals.Positive Updates
Quarterly Revenue and EPS Growth
Q4 reported revenue rose 7% year-over-year to $12.21 billion and adjusted EPS increased 8% to $6.57 per share, driven by 3% organic growth, 2% from acquisitions, and a 2% FX tailwind.
Negative Updates
Tariffs and Foreign Exchange Headwinds
Tariffs and FX created over 100 basis points of margin headwind in 2025; Q4 margins included an incremental ~65 bps FX-related headwind relative to prior guidance and FX reduced Q4 EPS by ~$0.11.
Read all updates
Q4-2025 Updates
Positive
Negative
Quarterly Revenue and EPS Growth
Q4 reported revenue rose 7% year-over-year to $12.21 billion and adjusted EPS increased 8% to $6.57 per share, driven by 3% organic growth, 2% from acquisitions, and a 2% FX tailwind.
Read all positive updates
Company Guidance
Thermo Fisher guided 2026 revenue of $46.3B–$47.2B (4%–6% reported growth vs. 2025), implying 3%–4% organic growth and incorporating a $300M FX tailwind and roughly $600M of inorganic revenue from 2025 deals; adjusted EPS is guided to $24.22–$24.80 (6%–8% growth) with ~50 basis points of adjusted operating margin expansion (the 2025 acquisitions are expected to contribute $60M of adjusted operating income, ~20 bps margin headwind and ~7¢ of EPS dilution). The guide assumes ~$500M net interest expense, an 11.5% adjusted tax rate, $1.8B–$2.0B of net capex, $6.8B–$7.3B of free cash flow, $3B of share buybacks (completed in January), ~$700M of dividends, and a 370–375M average diluted share count; Q1 is expected to be a couple points below full‑year organic growth with low single‑digit adjusted EPS growth, and the pending Clario deal (not included) would add roughly $0.20–$0.25 to 2026 adjusted EPS if closed.Thermo Fisher Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
67
Positive
Cash Flow
70
Positive
| 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 | 11.47B | 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 | 40.85B | 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
Negative
488.19
Price Trends
518.23
Negative
553.29
Negative
518.13
Negative
Market Momentum
-7.39
Negative
46.01
Neutral
62.45
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 488.19 is above the 20-day moving average (MA) of 483.16, below the 50-day MA of 518.23, and below the 200-day MA of 518.13, indicating a neutral trend. The MACD of -7.39 indicates Negative momentum. The RSI at 46.01 is Neutral, neither overbought nor oversold. The STOCH value of 62.45 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $135.86B | 44.80 | 6.99% | 0.53% | 2.90% | -4.81% | |
67 Neutral | $45.98B | 51.15 | 69.78% | ― | 8.39% | 21.44% | |
66 Neutral | $32.45B | 31.05 | 19.73% | 0.72% | 6.73% | 3.34% | |
66 Neutral | $25.74B | 33.06 | -487.21% | ― | 4.77% | 7.93% | |
66 Neutral | $29.83B | 35.17 | 28.52% | ― | 6.90% | 3.86% | |
63 Neutral | $181.35B | 32.34 | 13.15% | 0.30% | 3.91% | 7.09% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
TMO
Thermo Fisher
488.19
70.42
16.86%
A
Agilent
114.84
16.36
16.61%
DHR
Danaher
192.12
18.68
10.77%
IDXX
Idexx Laboratories
577.44
216.40
59.94%
MTD
Mettler-Toledo
1,266.63
294.12
30.24%
WAT
Waters
304.09
-3.62
-1.18%
Thermo Fisher Corporate Events
Business Operations and StrategyM&A Transactions
Thermo Fisher Completes Strategic Acquisition of Clario Holdings
Positive
Mar 24, 2026
On March 24, 2026, Thermo Fisher Scientific announced it had completed the $8.875 billion cash acquisition of Clario Holdings, Inc., a leading provider of endpoint data solutions for clinical trials, with additional deferred and performance-based ...
Business Operations and StrategyM&A TransactionsPrivate Placements and Financing
Thermo Fisher Issues $3.8 Billion Notes for Acquisition
Positive
Feb 12, 2026
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 c...
Business Operations and StrategyExecutive/Board Changes
Thermo Fisher Announces Planned Executive Leadership Transitions
Neutral
Jan 12, 2026
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...
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.