Overview
Thermo Fisher Scientific
TMO · NYSEQ3 2026Life Sciences · Lab Equipment and Biopharma Services
Since the Report + 0.1%
Revenue grew 9.1% year over year, EPS beat the estimate by 4.4%; the stock rose 1.0% in its first reaction.
- RevenueQ3
- $12.14B
- Estimate $11.95B · 1.6% Beat
- EPSAdjusted
- $6.68
- Estimate $6.40 · 4.4% Beat
Verdict
HOLDThermo Fisher beat expectations on revenue and earnings and raised its full-year guidance. The stock fell before the open, then turned higher and approached its 52-week high; the early selling reflected the fact that part of the earnings beat came from one-time tariff refunds. The next thing to watch is whether fourth-quarter organic growth comes in above 4%.
Close on Report DayOct 21
$694.02▲ 1.0%Report-Day Move
- Market Cap(Today)
- ≈ $257 B
- 1Y Return(At Report)
- + 28%
- P/E(At Today's Price · $24.72 · Trailing 12M)
- 28.1
- PEG(Company Guidance 2026)
- 2.68
- Net Margin(Trailing 12M)
- 14.9%
Earnings Summary
In 30 Seconds- Revenue of $12.14 billion beat estimates by 1.6%, and adjusted EPS of $6.68 beat by 4.4%.
- Organic growth accelerated to 6%; full-year revenue and EPS guidance were revised up.
- The stock fell before the open, then neared its 52-week high and closed up 1.0%.
The Numbers
Organic Growth
6%
Q1 1% · Q2 5%
Adjusted Operating Margin
24.5%
▲ 1.2 Points YoY
Free Cash Flow
$2.12B
▲ 15% YoY
Stock Reaction
▲ 1.0%
Close to Close · Oct 21
Quarterly Revenue ($ Billion)
11.12
Q3 25 · $11.1 B
12.21
Q4 25 · $12.2 B · QoQ + 9.8%
11.01
Q1 26 · $11.0 B · QoQ − 9.8%
11.99
Q2 26 · $12.0 B · QoQ + 8.9%
12.14
Q3 26 · $12.1 B · QoQ + 1.2% · YoY + 9.1%
- Q3 25
- Q4 25
- Q1 26
- Q2 26
- Q3 26
Q4 2026 Company Guidance
- Full-Year Revenue47.7 – 48.2 billion47.7 billion48.2 billion
Midpoint 47.95 · Estimate 47.87 · Prior 47.4–48.1Revised Up 0.4% ▲
- Full-Year Adjusted EPS25.13 – 25.43 $25.13 $25.43 $
Midpoint 25.28 · Estimate 25.13 · Prior 24.93–25.33Revised Up 0.6% ▲
- Full-Year Organic Growth4%
Second Half ~5% · Q4 ~4%
- Adj. Operating Margin Gain0.8 points
Approximately · Unchanged
How to Read the Chart
The blue band is the company's low-high range; its length shows how much room the company left itself. The black triangle and the line beneath it mark where the market expected, and the notch in the band is the range's midpoint. The triangle appears only where a market expectation is known. When the company gave a single number rather than a range and no market expectation is known, that row gets no band at all: there is no length to measure and no position to compare. Axis is ±0.7% around the midpoint.
Segment and KPI Data
Revenue by Segment
- Laboratory Products and Biopharma Services$6.86 BShare 54.1%▲ 15.0% YoY
- Life Sciences Solutions$2.72 BShare 21.4%▲ 5.1% YoY
- Analytical Instruments$2.00 BShare 15.8%▲ 5.8% YoY
- Specialty Diagnostics$1.10 BShare 8.7%▼ 6.5% YoY
Microbiology business sold
Key Metrics
Free Cash Flow
$2.12 B
▲ 14.9% YoYPress Release
Operating Cash Flow
$2.55 B
▲ 13.9% YoYPress Release
Adjusted Operating Margin
24.5%
Press Release
Shares are computed over the segment total: $12.7 B. The segment total differs from consolidated revenue ($12.1 B); the company's eliminations and other lines are not in this table. Source: Press Release.
Metrics come only from the company's own filings; each one names the document it was taken from.
“We are very pleased to deliver another excellent quarter, with outstanding financial performance on both the top and bottom line. Looking ahead, we're well positioned to deliver an excellent 2026 as we continue to drive long-term value creation for all of our stakeholders and build an even brighter future for our company.”
- Tariff Refunds
- Strength in Biopharma Services
- Microbiology Sale Completed
Summary and Review
Summary
Thermo Fisher reported third-quarter revenue of $12.14 billion. That is up 9.1% year over year, with organic growth of 6%. Revenue beat the $11.95 billion market expectation by 1.6%, which leaves that gate in line. Adjusted EPS was $6.68, 4.4% above the $6.40 estimate. The earnings gate is open. The midpoint of full-year EPS guidance rose to $25.28. That is only 0.6% above the $25.13 estimate, so the guidance gate is also in line.
The stock fell nearly 2.5% before the open and dropped as low as $661 during the session. Then it reversed. The stock closed at $694.02, up 1.0% close to close. The intraday high of $702.65 sat just below the 52-week record. The early selling reflected the fact that part of the earnings beat came from one-time tariff refunds. Raised guidance and faster organic growth brought buyers back.
Score 62, verdict hold. The quarter was clean: organic growth rose from 1% in the first quarter to 6%. Adjusted operating margin also widened by 1.2 points. But 15 cents of the earnings beat came from tariff refunds. Some biopharma services work was pulled forward from the fourth quarter. The guidance raise only modestly exceeds expectations. The stock also trades 6.6% above the average analyst target. Two gates are in line and one is open.
Full Review
Organic growth accelerated.
Organic growth was 1% in the first quarter and 5% in the second. In the third quarter it rose to 6%. Of the 9.1% reported growth, 3 points came from acquisitions, net of divestitures. Currency had no effect. Over nine months, reported growth was 9% and organic growth 4%. So the second half of the year is clearly stronger. The company raised its second-half organic growth expectation from 4% to 5%. For the full year it expects about 4%. According to the earnings call, revenue beat the company's own prior guidance by more than $200 million. This acceleration largely puts to rest the weak-demand worries from early in the year. Still, the fourth-quarter outlook was held at 4%. That caution shows management is accounting for the work pulled forward.
Biopharma services carry the load.
Laboratory Products and Biopharma Services revenue was $6.86 billion. That is up 15.0% year over year and 10% organically. This segment alone accounts for more than half of total revenue. But on the call, management said some biopharma services work was pulled into the third quarter from the fourth. It argues fourth-quarter momentum will offset that. Life Sciences Solutions grew 5.1% to $2.72 billion, but its organic growth was only 1%. Analytical Instruments grew 5.8% to $2.0 billion. Specialty Diagnostics revenue fell 6.5% to $1.10 billion. The decline reflects the sale of the microbiology business during the quarter. That sale has closed. Segment revenues add up to more than consolidated revenue because of $546 million in intersegment eliminations. Strength in biopharma shows drugmakers' manufacturing and clinical research spending remains healthy.
Part of the profit is one-time.
Adjusted EPS rose 15% year over year to $6.68. That beat the company's own prior guidance by 26 cents. Of that gap, 8 cents came from operations and 3 cents from currency. The largest piece, 15 cents, came from tariff refunds. The refunds added about $60 million to adjusted operating income. That is roughly 0.5 points of margin. The company reinvested part of the refund in AI, biopharma capacity and staff. Adjusted operating margin rose from 23.3% to 24.5%. Reported EPS rose 9% to $4.64. That figure includes a $72 million gain on a business sale and a $244 million held-for-sale loss. Even with one-time items stripped out, earnings growth stays in double digits.
Strong cash, buyback complete.
Free cash flow was $2.12 billion in the quarter. That is up 15% from $1.84 billion a year ago. Operating cash flow was $2.55 billion and capital spending $437 million. Nine-month free cash flow reached $4.62 billion. The company has completed its planned $4 billion of share buybacks for the year. There were no buybacks in the third quarter. Annual dividend payments are about $700 million. At $700, the stock trades 6.6% above the $654 average analyst target. That suggests recently raised targets are not yet reflected in the average. Before the quarter, several brokers lifted their targets into the $730-760 range. Strong cash generation also leaves room for new acquisitions.
Next quarter, watch one line.
The organic growth rate is the key to this report. The company guides to about 4% for the fourth quarter. The third quarter came in at 6%, helped by work pulled forward. If fourth-quarter organic growth comes in at 5% or more, the pulled-forward gap has been filled. Then the acceleration can be considered durable. If it falls below 4%, the third quarter will read as a peak inflated by timing. The second gauge is adjusted operating margin. Full-year expansion is expected to be about 0.8 points. That expansion needs to hold without tariff refunds. If margin holds this base, it creates a solid starting point for 2027 guidance. For a general method, see our guide on how to read earnings day.
Looking Ahead
Strengths and Risks
5 Strengths · 4 RisksStrengths
5- Organic growth accelerated from 1% in the first quarter to 6% in the third.
- Laboratory Products and Biopharma Services revenue rose 15.0% year over year to $6.86 billion.
- Adjusted operating margin widened 1.2 points year over year to 24.5%.
- Full-year revenue and EPS guidance were revised up.
- Free cash flow rose 15% year over year to $2.12 billion.
Risks
4- Fifteen cents of the earnings beat came from tariff refunds that will not repeat.
- Some biopharma services work was pulled forward from the fourth quarter.
- Organic growth in Life Sciences Solutions was only 1%.
- The stock trades 6.6% above the average analyst target.
What to Watch
2- Fourth-quarter and full-year results are expected in late January 2027, along with 2027 guidance.
- After the microbiology sale, Specialty Diagnostics will report from a smaller base.
Upcoming Earnings
To Understand This