Thermo Fisher (TMO) AI Stock Analysis

• Market Cap: $222.89B
• Dividend Yield: 0.29%
• Average Volume (3M): 1.82M
• Price to Earnings (P/E): 34.3
• Beta (1Y): 0.71
• 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: 1,706,420
• 30 Day Avg. Volume: 1,815,205
• 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: 0.93
• Enterprise Value/Revenue: 4.75
• Enterprise Value/Gross Profit: 11.93
• Enterprise Value/Ebitda: 18.33
• 1Y Price Target: $615.44
• Price Target Upside: 3.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 22.74
• Revenue Forecast (FY): $44.29B

• Rating: 73 Outperform
• Price Target: $638.00 ▲(7.54% Upside)

Thermo Fisher's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust profitability and strategic initiatives, such as collaborations and acquisitions, support its growth outlook. However, technical indicators suggest the stock may be overbought, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Thermo Fisher's consistent revenue growth reflects its strong market position and effective execution of its growth strategy, ensuring long-term financial stability.

Strategic Collaborations

Collaborations with tech leaders like OpenAI enhance Thermo Fisher's innovation capabilities, supporting long-term growth and competitive advantage in scientific research.

Product Innovation

Innovative product launches, such as the OncoMindDx Express test, strengthen Thermo Fisher's position in precision medicine, driving sustainable growth in healthcare markets.

Negative Factors

Diagnostics Sector Challenges

Ongoing challenges in the diagnostics sector, particularly in China, could hinder Thermo Fisher's growth potential in this segment, impacting overall revenue diversification.

China Market Weakness

Weakness in the China market, driven by pricing and reimbursement pressures, poses a risk to Thermo Fisher's growth in a key international market, affecting global expansion efforts.

Free Cash Flow Challenges

Challenges in converting income into cash could limit Thermo Fisher's ability to invest in growth opportunities and maintain financial flexibility, impacting long-term strategic initiatives.

Thermo Fisher Business Overview & Revenue Model

Company Description

Thermo Fisher Scientific Inc. (TMO) is a global leader in serving science, providing a comprehensive range of products and services for laboratories, healthcare, and industrial applications. The company operates through four main segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services. Its core offerings include reagents, consumables, instruments, software, and services aimed at accelerating scientific research, improving patient diagnostics, and enhancing laboratory productivity.

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: 593.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 593.25 is above the 20-day moving average (MA) of 576.19, above the 50-day MA of 543.85, and above the 200-day MA of 479.00, indicating a bullish trend. The MACD of 12.05 indicates Positive momentum. The RSI at 65.60 is Neutral, neither overbought nor oversold. The STOCH value of 80.24 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	$60.36B	59.93	64.63%	―	8.39%	21.44%
IQV	77 Outperform	$39.48B	31.82	19.55%	―	3.85%	-4.74%
DHR	75 Outperform	$161.37B	47.02	6.84%	0.54%	2.22%	-7.60%
A	75 Outperform	$43.76B	33.78	20.62%	0.68%	6.73%	3.34%
TMO	73 Outperform	$222.89B	34.28	13.14%	0.29%	3.22%	8.26%
WAT	70 Outperform	$24.24B	37.43	32.99%	―	6.90%	3.86%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Thermo Fisher Corporate Events

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.

The most recent analyst rating on (TMO) stock is a Buy with a $656.00 price target. To see the full list of analyst forecasts on Thermo Fisher stock, see the TMO Stock Forecast page.

Thermo Fisher Scientific Reports Strong Q3 2025 Results

Thermo Fisher Scientific Inc. is a global leader in serving science, providing innovative technologies and pharmaceutical services to enhance life sciences research, diagnostics, and the development of life-changing therapies.

Thermo Fisher Scientific Reports Strong Q3 Earnings

Thermo Fisher Scientific’s recent earnings call painted a picture of robust financial health, marked by strong performance across key segments and strategic initiatives. The sentiment was largely positive, underscored by growth in pharma and biotech, and significant collaborations. However, challenges in the diagnostics sector, particularly in China, and pressures in the academic and government sectors were acknowledged.

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.

The most recent analyst rating on (TMO) stock is a Buy with a $590.00 price target. To see the full list of analyst forecasts on Thermo Fisher stock, see the TMO Stock Forecast page.

Thermo Fisher Completes $4 Billion Solventum Acquisition

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.

The most recent analyst rating on (TMO) stock is a Buy with a $557.00 price target. To see the full list of analyst forecasts on Thermo Fisher stock, see the TMO Stock Forecast page.