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Thermo Fisher
(NYSE:TMO)
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Rating:76Outperform
Price Target:
$647.00
▲(13.86% Upside)
Action:Reiterated
Date:07/24/26
The score is driven primarily by strong underlying financial quality (especially free cash flow) and a positive, guidance-raising earnings update with expected margin expansion and sizable buybacks. Technicals also support the outlook with clear bullish trend signals, though the elevated RSI raises pullback risk. The main constraints are a higher valuation (P/E ~30.7 with a low yield) and leverage/governance overhangs (notably the say-on-pay rejection and higher financing costs).
Positive Factors
Strong free cash flow and conversion
Thermo Fisher's robust cash generation (TTM operating cash flow ~$9.0B and FCF ~$7.3B, converting ~81% of net income) provides durable funding for R&D, capex, buybacks and M&A. This high-quality FCF underpins strategic flexibility and resilience across business cycles over the next months.
Negative Factors
Elevated leverage and interest costs
Higher absolute debt (~$42.5B) and leverage (~3.6x gross debt/EBITDA) increase sensitivity to higher interest rates and reduce financial flexibility. Ongoing net interest (~$660M projected) constrains FCF allocation to growth investments or buybacks and raises refinancing risk if macro conditions deteriorate.
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Positive Factors
Negative Factors
Strong free cash flow and conversion
Thermo Fisher's robust cash generation (TTM operating cash flow ~$9.0B and FCF ~$7.3B, converting ~81% of net income) provides durable funding for R&D, capex, buybacks and M&A. This high-quality FCF underpins strategic flexibility and resilience across business cycles over the next months.
Read all positive factors
Thermo Fisher Key Performance Indicators (KPIs)
Any
Operating Income by Segment
Shows the profitability of different business segments, highlighting which areas are driving earnings and where there may be opportunities or challenges.
Shows the profitability of different business segments, highlighting which areas are driving earnings and where there may be opportunities or challenges.
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The Fly
The FlyThermo Fisher (TMO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$214.22B
Dividend Yield0.31%
Average Volume (3M)2.19M
Price to Earnings (P/E)31.0
Beta (1Y)0.68
Revenue Growth7.23%
EPS Growth7.47%
CountryUS
Employees125,000
SectorHealthcare
Sector Strength45
IndustryMedical - Diagnostics & Research
Share Statistics
EPS (TTM)18.62
Shares Outstanding371,621,460
10 Day Avg. Volume2,494,628
30 Day Avg. Volume2,192,417
Financial Highlights & Ratios
PEG Ratio4.54
Price to Book (P/B)4.08
Price to Sales (P/S)4.89
P/FCF Ratio34.62
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$614.41Price Target Upside8.12% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering19
EPS Forecast (FY)25.08
Revenue Forecast (FY)$47.85B
Thermo Fisher Business Overview & Revenue Model
Company Description
Thermo Fisher Scientific Inc. is a global leader in scientific services, providing a comprehensive range of offerings that include life sciences solutions, advanced analytical instruments, specialized diagnostic products, and an extensive portfoli...
How the Company Makes Money
Thermo Fisher primarily makes money by selling products and services that support the full lifecycle of scientific research, clinical testing, and biopharma development and manufacturing. Key revenue streams include: (1) Consumables, reagents, and...
Thermo Fisher Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational execution: double-digit reported revenue growth, a clean beat to prior guidance, margin expansion, robust free cash flow, successful acquisition integration, numerous product launches and an upward revision to full-year guidance. The primary negatives were modest and manageable: the planned microbiology divestiture (small near-term revenue and EPS drag and future dilution), lingering softness in certain end markets (academic/government and parts of China), some unfavorable product mix impacts, a reduced FX tailwind and elevated leverage. Overall, the positives in the quarter — including beats, guidance raise, margin expansion and strong cash generation — substantially outweigh the lowlights.Positive Updates
Strong Top-Line and EPS Beat
Q2 reported revenue grew 10% year-over-year to $11.99 billion, driven by 5% organic growth and a 5% contribution from acquisitions; adjusted EPS grew 13% to $6.03 and GAAP EPS was $4.68 (up 9%). Q2 revenue was approximately $300 million ahead of prior guidance and adjusted EPS was $0.30 ahead.
Negative Updates
Microbiology Divestiture Reduces Revenue and EPS
Announced divestiture of microbiology business (expected Q3 close). The business had $645 million revenue in 2025; transaction reduces 2026 revenue by ~ $200 million (net of retained channel business) and reduces 2026 adjusted EPS by $0.05, with an expected ~ $0.15 EPS dilution in the first full year after close.
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Q2-2026 Updates
Positive
Negative
Strong Top-Line and EPS Beat
Q2 reported revenue grew 10% year-over-year to $11.99 billion, driven by 5% organic growth and a 5% contribution from acquisitions; adjusted EPS grew 13% to $6.03 and GAAP EPS was $4.68 (up 9%). Q2 revenue was approximately $300 million ahead of prior guidance and adjusted EPS was $0.30 ahead.
Read all positive updates
Company Guidance
Thermo Fisher raised its 2026 outlook, now targeting revenue of $47.4 billion to $48.1 billion (3%–4% organic growth, now expected at about 4% at the upper end) and adjusted EPS of $24.93 to $25.33 (9%–11% growth vs. 2025, with a $0.25 midpoint increase), with embedded adjusted operating margin expansion of ~80 basis points; Q3 adjusted EPS is expected to be $0.35–$0.40 higher than Q2. Key assumptions include a $200 million FX revenue tailwind (about $100 million below prior view), acquisitions contributing ~$1.6 billion of revenue and $0.32 of EPS, the pending microbiology divestiture reducing 2026 revenue by ~ $200 million and EPS by $0.05 (and ~-$0.15 EPS in the first full year post-close), net interest of ~$660 million, an adjusted tax rate of 11.5%, free cash flow of $6.9–$7.4 billion (capex $1.9–$2.1 billion), $4 billion of share buybacks assumed (with $3B done in January and $1B in Q2), ~$700 million of dividends, and a full‑year diluted share count of ~370–373 million.Thermo Fisher Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
70
Positive
Cash Flow
82
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 46.34B | 44.56B | 42.88B | 42.86B | 44.91B | 39.21B |
| Gross Profit | 18.71B | 16.78B | 17.73B | 17.19B | 19.01B | 19.63B |
| EBITDA | 10.94B | 11.47B | 11.80B | 11.20B | 11.94B | 11.97B |
| Net Income | 6.98B | 6.74B | 6.33B | 6.00B | 6.95B | 7.72B |
Balance Sheet | ||||||
| Total Assets | 113.17B | 110.34B | 97.32B | 98.73B | 97.15B | 95.12B |
| Cash, Cash Equivalents and Short-Term Investments | 4.06B | 10.11B | 5.58B | 8.08B | 8.52B | 4.48B |
| Total Debt | 42.55B | 40.85B | 32.77B | 36.42B | 36.07B | 36.34B |
| Total Liabilities | 60.49B | 56.81B | 47.65B | 51.88B | 53.01B | 54.15B |
| Stockholders Equity | 52.69B | 53.41B | 49.58B | 46.73B | 43.98B | 40.79B |
Cash Flow | ||||||
| Free Cash Flow | 7.32B | 6.29B | 7.27B | 6.93B | 6.91B | 7.02B |
| Operating Cash Flow | 9.01B | 7.82B | 8.67B | 8.41B | 9.15B | 9.54B |
| Investing Cash Flow | -12.03B | -4.05B | -5.84B | -5.14B | -2.16B | -21.93B |
| Financing Cash Flow | 1.42B | 1.80B | -6.79B | -3.62B | -2.81B | 6.58B |
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 |
|---|---|---|---|---|---|---|---|
76 Outperform | $214.22B | 30.96 | 13.35% | 0.32% | 7.23% | 7.47% | |
73 Outperform | $28.05B | 32.48 | -610.32% | ― | 6.78% | 6.19% | |
72 Outperform | $44.95B | 41.66 | 70.87% | ― | 13.08% | 25.40% | |
71 Outperform | $39.63B | 28.18 | 20.84% | 0.59% | 9.11% | 22.77% | |
69 Neutral | $37.26B | 48.72 | 8.04% | ― | 26.39% | -28.79% | |
68 Neutral | $138.13B | 35.24 | 7.66% | 0.75% | 4.56% | 19.34% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
TMO
Thermo Fisher
576.77
110.79
23.78%
A
Agilent
138.71
24.81
21.79%
DHR
Danaher
196.17
0.45
0.23%
IDXX
Idexx Laboratories
558.80
24.49
4.58%
MTD
Mettler-Toledo
1,380.61
146.93
11.91%
WAT
Waters
380.30
91.54
31.70%
Thermo Fisher Corporate Events
Executive/Board ChangesShareholder Meetings
Thermo Fisher shareholders reject say-on-pay at annual meeting
Negative
May 26, 2026
At Thermo Fisher Scientific’s annual meeting on May 20, 2026, shareholders elected all nominated directors to one-year terms expiring at the 2027 meeting, reaffirming the existing board slate despite varying vote margins across individual no...
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.