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TMO Q1 Earnings & Revenues Top Estimates, Stock Down in Pre-Market
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Key Takeaways
TMO's Q1 EPS rose 6% to $5.44, beating estimates by 4.67%, with GAAP EPS up 11%.
TMO's revenues grew 6% to $11.01B, boosted by acquisitions, currency and strong free cash flow.
Thermo Fisher's Analytical Instruments posted flat revenues, while Life Sciences led gains.
Thermo Fisher Scientific Inc. (TMO - Free Report) delivered a solid first quarter of 2026, with adjusted earnings per share (EPS) rising 6% year over year to $5.44. The reported figure surpassed the Zacks Consensus Estimate by 4.67%. GAAP diluted EPS increased 11% to $4.43.
Revenues grew 6% from the year-ago quarter to $11.01 billion. The figure came 1.62% higher than the Zacks Consensus Estimate. Results reflected contributions from acquisitions and currency, while the company also generated free cash flow of $825 million, more than doubling the year-ago quarter’s level.
Following the earnings announcement, TMO shares dipped nearly 4.1% in the pre-market trading today.
Laboratory Products and Biopharma Services continued to anchor the revenue base. Segment revenues increased to $6.04 billion from $5.64 billion, and segment income rose to $778 million from $731 million. Segment income margin eased slightly to 12.9% from 13%, indicating some pressure from mix and cost dynamics, even as demand improved.
Life Sciences Solutions remained a growth standout. Segment revenues increased to $2.64 billion from $2.34 billion in the prior-year quarter, while segment income rose to $954 million from $834 million. Segment income margin improved to 36.2% from 35.6%, suggesting healthy flow-through as volumes improved.
Thermo Fisher Scientific Inc. Price, Consensus and EPS Surprise
Analytical Instruments was comparatively flat on the top line, with revenues of $1.72 billion versus $1.72 billion a year ago. Profitability was the bigger story, as segment income declined to $355 million from $399 million, pushing segment income margin down to 20.7% from 23.2%.
Specialty Diagnostics posted a modest year-over-year decline in revenues to $1.14 billion from $1.15 billion. Still, the segment improved profitability, with segment income rising to $313 million from $304 million and segment income margin expanding to 27.4% from 26.5%.
TMO Margins Hold Steady on an Adjusted Basis
On a GAAP basis, operating income grew to $1.86 billion from $1.72 billion in the first quarter of 2025. GAAP operating margin edged up to 16.9% from 16.6%. Restructuring and other costs were lower year over year, helping support operating leverage.
Adjusted operating income increased to $2.40 billion from $2.27 billion. Adjusted operating margin was 21.8%, essentially steady but slightly below the 21.9% posted in the year-ago quarter. Expense lines moved in line with revenue growth, including the cost of revenues of $6.53 billion and selling, general and administrative expenses of $1.80 billion. Research and development spending was $336 million.
Thermo Fisher’s Cash Deployment Reflects Big Moves
Thermo Fisher ended the first quarter with cash and cash equivalents of $3.25 billion compared with $9.85 billion at the end of 2025. Operating cash flow strengthened materially, with net cash provided by operating activities rising to $1.19 billion from $723 million in the prior-year quarter. After capital spending of $376 million, free cash flow increased to $825 million, providing added financial flexibility.
Thermo Fisher completed the acquisition of Clario, with acquisitions (net of cash acquired) totaling $8.87 billion. The company also repurchased $3.0 billion of stock, paid $162 million in dividends and increased its dividend by 10%.
TMO Expands Portfolio With Products and Partnerships
Notable launches made in the quarter included the Thermo Scientific Glacios 3 Cryo-TEM, the TSQ Certis triple quadrupole mass spectrometer, the Niton XL5e handheld XRF analyzer and the Gibco CTS Compleo Fill and Finish System. The company also announced strategic collaborations with NVIDIA to combine lab technologies with AI capabilities and with SHL Medical to support integrated fill-finish and device assembly solutions.
Our Take
Thermo Fisher exited the first quarter of 2026 with both earnings and revenues beating respective estimates. The metrics also increased on a year-over-year basis. The company highlighted continued execution of its growth strategy and the PPI Business System, which it uses to drive operational discipline. Management pointed to a range of new product launches aimed at broadening access and improving productivity in customer workflows.
The addition of the Clario business strengthens Thermo Fisher’s Laboratory Products and Biopharma Services segment. Meanwhile, Specialty Diagnostics saw a slight revenue dip, yet delivered better profitability. Adjusted operating margin in the quarter also held firm.
TMO’s Zacks Rank & Key Picks
Thermo Fisher currently has a Zacks Rank #3 (Hold).
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $1.28, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an earnings yield of 4.7% compared with the industry’s negative 1.4% yield. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.79%.
Stryker, carrying a Zacks Rank #2 (Buy) at present, posted a fourth-quarter 2025 adjusted EPS of $4.47, exceeding the Zacks Consensus Estimate by 1.71%. Revenues of $7.17 billion topped the Zacks Consensus Estimate by 0.61%.
SYK has an earnings yield of 4.5% compared with the industry’s 2.5% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 2.38%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of 87 cents, exceeding the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.
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TMO Q1 Earnings & Revenues Top Estimates, Stock Down in Pre-Market
Key Takeaways
Thermo Fisher Scientific Inc. (TMO - Free Report) delivered a solid first quarter of 2026, with adjusted earnings per share (EPS) rising 6% year over year to $5.44. The reported figure surpassed the Zacks Consensus Estimate by 4.67%. GAAP diluted EPS increased 11% to $4.43.
Revenues grew 6% from the year-ago quarter to $11.01 billion. The figure came 1.62% higher than the Zacks Consensus Estimate. Results reflected contributions from acquisitions and currency, while the company also generated free cash flow of $825 million, more than doubling the year-ago quarter’s level.
Following the earnings announcement, TMO shares dipped nearly 4.1% in the pre-market trading today.
Thermo Fisher’s Segment Mix Shows Uneven Growth Rates
Laboratory Products and Biopharma Services continued to anchor the revenue base. Segment revenues increased to $6.04 billion from $5.64 billion, and segment income rose to $778 million from $731 million. Segment income margin eased slightly to 12.9% from 13%, indicating some pressure from mix and cost dynamics, even as demand improved.
Life Sciences Solutions remained a growth standout. Segment revenues increased to $2.64 billion from $2.34 billion in the prior-year quarter, while segment income rose to $954 million from $834 million. Segment income margin improved to 36.2% from 35.6%, suggesting healthy flow-through as volumes improved.
Thermo Fisher Scientific Inc. Price, Consensus and EPS Surprise
Thermo Fisher Scientific Inc. price-consensus-eps-surprise-chart | Thermo Fisher Scientific Inc. Quote
Analytical Instruments was comparatively flat on the top line, with revenues of $1.72 billion versus $1.72 billion a year ago. Profitability was the bigger story, as segment income declined to $355 million from $399 million, pushing segment income margin down to 20.7% from 23.2%.
Specialty Diagnostics posted a modest year-over-year decline in revenues to $1.14 billion from $1.15 billion. Still, the segment improved profitability, with segment income rising to $313 million from $304 million and segment income margin expanding to 27.4% from 26.5%.
TMO Margins Hold Steady on an Adjusted Basis
On a GAAP basis, operating income grew to $1.86 billion from $1.72 billion in the first quarter of 2025. GAAP operating margin edged up to 16.9% from 16.6%. Restructuring and other costs were lower year over year, helping support operating leverage.
Adjusted operating income increased to $2.40 billion from $2.27 billion. Adjusted operating margin was 21.8%, essentially steady but slightly below the 21.9% posted in the year-ago quarter. Expense lines moved in line with revenue growth, including the cost of revenues of $6.53 billion and selling, general and administrative expenses of $1.80 billion. Research and development spending was $336 million.
Thermo Fisher’s Cash Deployment Reflects Big Moves
Thermo Fisher ended the first quarter with cash and cash equivalents of $3.25 billion compared with $9.85 billion at the end of 2025. Operating cash flow strengthened materially, with net cash provided by operating activities rising to $1.19 billion from $723 million in the prior-year quarter. After capital spending of $376 million, free cash flow increased to $825 million, providing added financial flexibility.
Thermo Fisher completed the acquisition of Clario, with acquisitions (net of cash acquired) totaling $8.87 billion. The company also repurchased $3.0 billion of stock, paid $162 million in dividends and increased its dividend by 10%.
TMO Expands Portfolio With Products and Partnerships
Notable launches made in the quarter included the Thermo Scientific Glacios 3 Cryo-TEM, the TSQ Certis triple quadrupole mass spectrometer, the Niton XL5e handheld XRF analyzer and the Gibco CTS Compleo Fill and Finish System. The company also announced strategic collaborations with NVIDIA to combine lab technologies with AI capabilities and with SHL Medical to support integrated fill-finish and device assembly solutions.
Our Take
Thermo Fisher exited the first quarter of 2026 with both earnings and revenues beating respective estimates. The metrics also increased on a year-over-year basis. The company highlighted continued execution of its growth strategy and the PPI Business System, which it uses to drive operational discipline. Management pointed to a range of new product launches aimed at broadening access and improving productivity in customer workflows.
The addition of the Clario business strengthens Thermo Fisher’s Laboratory Products and Biopharma Services segment. Meanwhile, Specialty Diagnostics saw a slight revenue dip, yet delivered better profitability. Adjusted operating margin in the quarter also held firm.
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 Globus Medical (GMED - Free Report) , Stryker (SYK - Free Report) and Phibro Animal Health (PAHC - Free Report) .
Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a fourth-quarter 2025 adjusted EPS of $1.28, which surpassed the Zacks Consensus Estimate by 20.8%. Revenues of $826.4 million beat the Zacks Consensus Estimate by 4.9%. You can see the complete list of today’s Zacks #1 Rank stocks here.
GMED has an earnings yield of 4.7% compared with the industry’s negative 1.4% yield. The company beat earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 18.79%.
Stryker, carrying a Zacks Rank #2 (Buy) at present, posted a fourth-quarter 2025 adjusted EPS of $4.47, exceeding the Zacks Consensus Estimate by 1.71%. Revenues of $7.17 billion topped the Zacks Consensus Estimate by 0.61%.
SYK has an earnings yield of 4.5% compared with the industry’s 2.5% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 2.38%.
Phibro Animal Health, carrying a Zacks Rank #2 at present, posted a second-quarter fiscal 2026 adjusted EPS of 87 cents, exceeding the Zacks Consensus Estimate by 27.01%. Revenues of $373.9 million outperformed the Zacks Consensus Estimate by 4.72%.
PAHC has an estimated long-term earnings growth rate of 21.5% compared with the industry’s 12.1% growth. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 20.15%.