Thermo Fisher Scientific Inc.

What they do

Thermo Fisher provides instruments, reagents, consumables, software, and services across four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Biopharma Services. Its products enable life sciences research, analytical challenges, laboratory productivity, and diagnostics and therapy development. The company operates globally, with international markets contributing a substantial portion of revenues.

Revenue drivers

• Pharma and biotech market — Revenues grew in 2025 and 2026 due to increased customer demand, partially offset by reduced COVID-19 vaccine/therapy related demand. Strong growth in Q2 2026 driven by strengthening market conditions.
• Laboratory Products and Biopharma Services — Led organic revenue contributions in 2025; includes bioprocessing and pharma services, with a new U.S. Bioprocess Design Center opened in Q2 2026 to support drug development and manufacturing.
• Life Sciences Solutions — Co-led organic revenue contributions in 2025; includes proteomics (Olink acquisition) and mass spectrometry, with new Orbitrap platforms launched in Q2 2026.
• Industrial and applied market — Revenues grew in 2025 and 2026, driven by demand for high-end instruments; contributed to overall growth.

Recent performance

In Q2 2026, revenue grew 10% to $11.99 billion, with organic growth of 5%. GAAP diluted EPS rose 9% to $4.68, and adjusted EPS rose 13% to $6.03. GAAP operating margin was 17.4%, up 0.5 pts year-over-year. For full-year 2025, revenue was $44.56 billion (up 4%), with organic growth of 2%. Adjusted operating margin was 22.7% in 2025 and 22.8% in Q2 2026.

Strategy

The company executes a three-pillar growth strategy: high-impact innovation, trusted partner status with customers, and an unparalleled commercial engine. It focuses on launching new products (e.g., Orbitrap mass spectrometers, PCR systems), expanding commercial capabilities, and making acquisitions (e.g., Olink) and divestitures (e.g., microbiology). Capital deployment includes share repurchases ($1.0 billion in Q2 2026) and productivity improvements via the PPI Business System.

Risks

• Market cyclicality — Certain businesses experience periodic downturns; decline or lower-than-expected growth in served markets would reduce demand and hurt financial results.
• Macroeconomic conditions — Elevated inflation and unstable global economic conditions (U.S., Europe) could reduce demand, increase order cancellations, raise inventory risks, and pressure pricing.
• International operations — Currency translation and trade risks (tariffs, sanctions, supply disruptions) could adversely affect revenues and profitability, especially with substantial international sales and emerging market exposure.
• Customer hesitancy — In 2025, academic and government revenue declined due to customer hesitancy in the U.S. and macro conditions in China; continued uncertainty could persist.

Outlook

Management states that end markets continue to strengthen, and the company is positioned to deliver a 'great 2026'. No specific 2026 guidance was provided in the press release; it is to be updated during the earnings call. Historically, the company expects productivity improvements to offset inflation and strategic investments.