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Thermo Fisher's Q4 Earnings & Revenues Top Estimates, Stock Climbs
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Key Takeaways
TMO reported Q4 adjusted EPS of $6.57, up 7.7% year over year, while revenues rose 7.1% to $12.22B.
TMO saw strength in Life Sciences and Laboratory Products offsetting slower growth in Analytical Instruments.
TMO posted margin contraction as costs rose, even as cash and short-term investments jumped to $10.11B.
Thermo Fisher Scientific Inc.'s (TMO - Free Report) fourth-quarter 2025 adjusted earnings per share (EPS) of $6.57 beat the Zacks Consensus Estimate by 2.1%. The figure increased 7.7% year over year.
The adjusted number excludes certain expenses, including asset amortization costs and certain restructuring costs.
Fourth-quarter GAAP EPS was $5.21, up 9% when compared with the year-ago quarter’s figure.
Full-year adjusted EPS of $22.87 beat the Zacks Consensus Estimate by 0.6%. The figure increased 4.6% year over year.
TMO’s Revenues
Revenues increased 7.1% year over year to $12.22 billion. The top line surpassed the Zacks Consensus Estimate by 2.3%. Organic revenues in the reported quarter increased 3% year over year.
Full-year revenues increased 3.9% year over year to $44.56 billion. The figure surpassed the Zacks Consensus Estimate by 0.6%.
Following the earnings announcement, shares of TMO rose 0.6% in pre-market trading today.
Thermo Fisher’s Q4 Segmental Analysis
Thermo Fisher operates under four business segments, as discussed below:
Life Sciences Solutions
Revenues in the Life Sciences Solutions segment (24.1% of total revenues) increased 13.5% year over year to $2.95 billion.
Analytical Instruments
Revenues in this segment (18.1%) rose 1.4% year over year to $2.22 billion.
Specialty Diagnostics
Revenues in the Specialty Diagnostics segment (10%) increased 5.2% year over year to $1.22 billion.
Laboratory Products and Biopharma Services
Revenues in this segment (52.2%) rose 7.4% year over year to $6.38 billion.
TMO’s Margin Performance
The gross margin of 41.5% in the fourth quarter contracted 150 basis points (bps) year over year due to a 10% rise in the cost of revenues.
In the quarter, selling, general and administrative expenses rose 7.1% to $1.98 billion. Research and development expenses amounted to $357 million, down 4.5% year over year.
The adjusted operating margin in the quarter was 22.4%, reflecting a contraction of 113 bps.
Thermo Fisher Scientific Inc. Price, Consensus and EPS Surprise
The company ended the fourth quarter of 2025 with cash and cash equivalents and short-term investments of $10.11 billion compared with $3.55 billion at the end of the third quarter.
Cumulative net cash from operating activities at the end of the fourth quarter was $7.82 billion compared with $8.67 billion a year ago.
Thermo Fisher exited the fourth quarter of 2025 on a solid note, with both earnings and revenues beating respective estimates. The strong operational performance reflected the effectiveness of the company's proven growth strategy, the PPI Business System and ongoing active management.
Thermo Fisher made several high-impact launches in the fourth quarter, including the Helios MX1 Plasma Focused Ion Beam Scanning Electron Microscope. Additionally, the company received FDA approval for the Ion Torrent Oncomine Dx Target Test and the EXENT System. All these developments are poised to support its growth in the coming quarters.
However, the contraction of both margins is discouraging.
TMO’s Zacks Rank & Key Picks
Thermo Fisher currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are National Vision (EYE - Free Report) , Boston Scientific (BSX - Free Report) and Prestige Consumer Healthcare (PBH - Free Report) .
National Vision, currently carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2025 adjusted EPS of 13 cents, which topped the Zacks Consensus Estimate by 8.3%. Revenues of $487.3 million beat the Zacks Consensus Estimate by 2.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
EYE’s earnings yield of 5.8% compares favorably with the industry’s 2.8% yield. The company beat on earnings in each of the trailing four quarters, with the average surprise being 2.75%.
Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, posted third-quarter 2025 adjusted EPS of 75 cents, which exceeded the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion surpassed the Zacks Consensus Estimate by 1.9%.
BSX has an earnings yield of 3.7% compared with the industry’s 2.3% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 7.4%.
Prestige Consumer Healthcare, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 EPS of $1.07, which surpassed the Zacks Consensus Estimate by 10.3%. Revenues of $274.1 million topped the Zacks Consensus Estimate by 6.9%.
PBH has an earnings yield of 7.1% compared with the industry’s 2.8% yield. The company’s earnings outperformed estimates in three of the trailing four quarters and missed in the other one, with the average surprise being 2.8%.
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Thermo Fisher's Q4 Earnings & Revenues Top Estimates, Stock Climbs
Key Takeaways
Thermo Fisher Scientific Inc.'s (TMO - Free Report) fourth-quarter 2025 adjusted earnings per share (EPS) of $6.57 beat the Zacks Consensus Estimate by 2.1%. The figure increased 7.7% year over year.
The adjusted number excludes certain expenses, including asset amortization costs and certain restructuring costs.
Fourth-quarter GAAP EPS was $5.21, up 9% when compared with the year-ago quarter’s figure.
Full-year adjusted EPS of $22.87 beat the Zacks Consensus Estimate by 0.6%. The figure increased 4.6% year over year.
TMO’s Revenues
Revenues increased 7.1% year over year to $12.22 billion. The top line surpassed the Zacks Consensus Estimate by 2.3%. Organic revenues in the reported quarter increased 3% year over year.
Full-year revenues increased 3.9% year over year to $44.56 billion. The figure surpassed the Zacks Consensus Estimate by 0.6%.
Following the earnings announcement, shares of TMO rose 0.6% in pre-market trading today.
Thermo Fisher’s Q4 Segmental Analysis
Thermo Fisher operates under four business segments, as discussed below:
Life Sciences Solutions
Revenues in the Life Sciences Solutions segment (24.1% of total revenues) increased 13.5% year over year to $2.95 billion.
Analytical Instruments
Revenues in this segment (18.1%) rose 1.4% year over year to $2.22 billion.
Specialty Diagnostics
Revenues in the Specialty Diagnostics segment (10%) increased 5.2% year over year to $1.22 billion.
Laboratory Products and Biopharma Services
Revenues in this segment (52.2%) rose 7.4% year over year to $6.38 billion.
TMO’s Margin Performance
The gross margin of 41.5% in the fourth quarter contracted 150 basis points (bps) year over year due to a 10% rise in the cost of revenues.
In the quarter, selling, general and administrative expenses rose 7.1% to $1.98 billion. Research and development expenses amounted to $357 million, down 4.5% year over year.
The adjusted operating margin in the quarter was 22.4%, reflecting a contraction of 113 bps.
Thermo Fisher Scientific Inc. Price, Consensus and EPS Surprise
Thermo Fisher Scientific Inc. price-consensus-eps-surprise-chart | Thermo Fisher Scientific Inc. Quote
TMO’s Financial Position
The company ended the fourth quarter of 2025 with cash and cash equivalents and short-term investments of $10.11 billion compared with $3.55 billion at the end of the third quarter.
Cumulative net cash from operating activities at the end of the fourth quarter was $7.82 billion compared with $8.67 billion a year ago.
Thermo Fisher has a consistent dividend-paying history, with the five-year annualized dividend growth of 12.98%.
Our Take on Thermo Fisher Stock
Thermo Fisher exited the fourth quarter of 2025 on a solid note, with both earnings and revenues beating respective estimates. The strong operational performance reflected the effectiveness of the company's proven growth strategy, the PPI Business System and ongoing active management.
Thermo Fisher made several high-impact launches in the fourth quarter, including the Helios MX1 Plasma Focused Ion Beam Scanning Electron Microscope. Additionally, the company received FDA approval for the Ion Torrent Oncomine Dx Target Test and the EXENT System. All these developments are poised to support its growth in the coming quarters.
However, the contraction of both margins is discouraging.
TMO’s Zacks Rank & Key Picks
Thermo Fisher currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are National Vision (EYE - Free Report) , Boston Scientific (BSX - Free Report) and Prestige Consumer Healthcare (PBH - Free Report) .
National Vision, currently carrying a Zacks Rank #1 (Strong Buy), reported third-quarter 2025 adjusted EPS of 13 cents, which topped the Zacks Consensus Estimate by 8.3%. Revenues of $487.3 million beat the Zacks Consensus Estimate by 2.7%. You can see the complete list of today’s Zacks #1 Rank stocks here.
EYE’s earnings yield of 5.8% compares favorably with the industry’s 2.8% yield. The company beat on earnings in each of the trailing four quarters, with the average surprise being 2.75%.
Boston Scientific, carrying a Zacks Rank #2 (Buy) at present, posted third-quarter 2025 adjusted EPS of 75 cents, which exceeded the Zacks Consensus Estimate by 5.6%. Revenues of $5.07 billion surpassed the Zacks Consensus Estimate by 1.9%.
BSX has an earnings yield of 3.7% compared with the industry’s 2.3% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, with the average surprise being 7.4%.
Prestige Consumer Healthcare, carrying a Zacks Rank #2 at present, reported a second-quarter fiscal 2026 EPS of $1.07, which surpassed the Zacks Consensus Estimate by 10.3%. Revenues of $274.1 million topped the Zacks Consensus Estimate by 6.9%.
PBH has an earnings yield of 7.1% compared with the industry’s 2.8% yield. The company’s earnings outperformed estimates in three of the trailing four quarters and missed in the other one, with the average surprise being 2.8%.