We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
TMO Q2 Earnings & Revenues Top Estimates, Stock Up in Pre-Market
Read MoreHide Full Article
Key Takeaways
TMO posted Q2 adjusted EPS of $6.03 and revenues of $11.99 billion, both above estimates.
Thermo Fisher delivered 5% organic revenue growth with stronger customer activity across end markets.
TMO expanded adjusted operating margin to 22.8% as profitability improved across all four segments.
Thermo Fisher Scientific (TMO - Free Report) delivered second-quarter 2026 adjusted earnings of $6.03 per share, up 13% year over year. The figure beat the Zacks Consensus Estimate by 5.6%.
Revenues rose 10% to $11.99 billion and surpassed the consensus mark by 2.67%. Results were supported by 5% organic revenue growth, while customer activity strengthened across the company’s end markets.
Following the earnings announcement, TMO stock rose 4.4% in pre-market trading today.
TMO's Segmental Growth Broadens
Life Sciences Solutions revenues increased 12.6% year over year to $2.82 billion. Segment income rose to $1.04 billion from $919 million, while the segment income margin expanded 20 basis points to 37%.
Laboratory Products and Biopharma Services remained the largest business, with revenues climbing 11.6% to $6.69 billion. Segment income increased to $936 million from $825 million, and margin improved to 14% from 13.8%. The segment accounted for 55.8% of consolidated revenues before eliminations.
Thermo Fisher Scientific Inc. Price, Consensus and EPS Surprise
Analytical Instruments revenues advanced 6.9% to $1.85 billion. Segment income jumped to $424 million from $325 million, driving margin expansion to 23% from 18.8%. The improvement made this segment the strongest margin gainer in the quarter.
Specialty Diagnostics revenues grew 6.3% to $1.21 billion. Segment income reached $334 million compared with $306 million a year earlier, while margin increased to 27.7% from 27%. Together, the two smaller segments added growth without diluting overall operating profitability.
TMO Expands Operating Leverage
Adjusted operating income increased 15% year over year to $2.74 billion. The adjusted operating margin widened 90 basis points (bps) to 22.8%, reflecting stronger profitability across all four business segments.
On a GAAP basis, operating income rose 14% to $2.09 billion, while the operating margin improved 50 bps year over year. The cost of revenues was $7.05 billion, selling, general and administrative expenses were $1.91 billion, and research and development spending totaled $364 million.
Thermo Fisher ended the second quarter with cash and cash equivalents of $4.06 billion compared with $3.25 billion at the end of the first quarter.
Cumulative net cash provided by operating activities came to $3.32 billion, compared with $2.12 billion in the year-ago period.
The company repurchased $1 billion of stock during the quarter and announced the divestiture of its microbiology business. For the first six months of 2026, acquisitions net of cash acquired totaled $8.87 billion, share repurchases reached $4 billion, and dividends paid amounted to $337 million.
Thermo Fisher Deepens Customer Partnerships
Thermo Fisher opened its flagship U.S. Bioprocess Design Center in Plainville, MA. The site expands its network of collaborative innovation hubs intended to help pharma and biotech customers accelerate drug development and optimize manufacturing.
The company also announced a collaboration with Precision Health Research, Singapore, to support the PRECISE-SG100K population health study. The project will use Thermo Fisher's integrated proteomics capabilities, including Olink technology and the Orbitrap Astral mass spectrometry system.
Our Take
Thermo Fisher ended the second quarter with both earnings and revenues beating respective estimates. Performance reflected the strength of the company’s proven growth strategy, strong execution and the power of the PPI Business System. Expansion of the adjusted operating margin in the quarter is also very promising.
During the quarter, Thermo Fisher launched a range of high-impact, innovative new products, including the next-generation Orbitrap mass spectrometry platforms with AI-driven analytics. It also introduced the Applied Biosystems PowerFlex Thermal Cycler to improve workflow flexibility, speed and reproducibility in molecular biology laboratories.
TMO’s Zacks Rank and Key Picks
Thermo Fisher currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Danaher (DHR - Free Report) and Elevance Health (ELV - Free Report) .
Intuitive Surgical, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $2.80, which surpassed the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion beat the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an earnings yield of 3.1% compared to the industry’s negative 3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 16.53%.
Danaher, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $1.94, exceeding the Zacks Consensus Estimate by 5.44%. Revenues of $6.27 billion topped the Zacks Consensus Estimate by 2.88%.
DHR has an earnings yield of 4.7% compared to the industry’s 4.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.65%.
Elevance Health, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $7.45, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $49.8 billion outperformed the consensus mark by 0.8%.
ELV has an earnings yield of 6.9% compared to the industry’s 4.1% yield. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.65%.
View the Zacks #1 Rank List
Image: Bigstock
TMO Q2 Earnings & Revenues Top Estimates, Stock Up in Pre-Market
Key Takeaways
Thermo Fisher Scientific (TMO - Free Report) delivered second-quarter 2026 adjusted earnings of $6.03 per share, up 13% year over year. The figure beat the Zacks Consensus Estimate by 5.6%.
Revenues rose 10% to $11.99 billion and surpassed the consensus mark by 2.67%. Results were supported by 5% organic revenue growth, while customer activity strengthened across the company’s end markets.
Following the earnings announcement, TMO stock rose 4.4% in pre-market trading today.
TMO's Segmental Growth Broadens
Life Sciences Solutions revenues increased 12.6% year over year to $2.82 billion. Segment income rose to $1.04 billion from $919 million, while the segment income margin expanded 20 basis points to 37%.
Laboratory Products and Biopharma Services remained the largest business, with revenues climbing 11.6% to $6.69 billion. Segment income increased to $936 million from $825 million, and margin improved to 14% from 13.8%. The segment accounted for 55.8% of consolidated revenues before eliminations.
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 revenues advanced 6.9% to $1.85 billion. Segment income jumped to $424 million from $325 million, driving margin expansion to 23% from 18.8%. The improvement made this segment the strongest margin gainer in the quarter.
Specialty Diagnostics revenues grew 6.3% to $1.21 billion. Segment income reached $334 million compared with $306 million a year earlier, while margin increased to 27.7% from 27%. Together, the two smaller segments added growth without diluting overall operating profitability.
TMO Expands Operating Leverage
Adjusted operating income increased 15% year over year to $2.74 billion. The adjusted operating margin widened 90 basis points (bps) to 22.8%, reflecting stronger profitability across all four business segments.
On a GAAP basis, operating income rose 14% to $2.09 billion, while the operating margin improved 50 bps year over year. The cost of revenues was $7.05 billion, selling, general and administrative expenses were $1.91 billion, and research and development spending totaled $364 million.
Thermo Fisher’s Cash Deployment Reflects Strategic Moves
Thermo Fisher ended the second quarter with cash and cash equivalents of $4.06 billion compared with $3.25 billion at the end of the first quarter.
Cumulative net cash provided by operating activities came to $3.32 billion, compared with $2.12 billion in the year-ago period.
The company repurchased $1 billion of stock during the quarter and announced the divestiture of its microbiology business. For the first six months of 2026, acquisitions net of cash acquired totaled $8.87 billion, share repurchases reached $4 billion, and dividends paid amounted to $337 million.
Thermo Fisher Deepens Customer Partnerships
Thermo Fisher opened its flagship U.S. Bioprocess Design Center in Plainville, MA. The site expands its network of collaborative innovation hubs intended to help pharma and biotech customers accelerate drug development and optimize manufacturing.
The company also announced a collaboration with Precision Health Research, Singapore, to support the PRECISE-SG100K population health study. The project will use Thermo Fisher's integrated proteomics capabilities, including Olink technology and the Orbitrap Astral mass spectrometry system.
Our Take
Thermo Fisher ended the second quarter with both earnings and revenues beating respective estimates. Performance reflected the strength of the company’s proven growth strategy, strong execution and the power of the PPI Business System. Expansion of the adjusted operating margin in the quarter is also very promising.
During the quarter, Thermo Fisher launched a range of high-impact, innovative new products, including the next-generation Orbitrap mass spectrometry platforms with AI-driven analytics. It also introduced the Applied Biosystems PowerFlex Thermal Cycler to improve workflow flexibility, speed and reproducibility in molecular biology laboratories.
TMO’s Zacks Rank and Key Picks
Thermo Fisher currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical (ISRG - Free Report) , Danaher (DHR - Free Report) and Elevance Health (ELV - Free Report) .
Intuitive Surgical, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $2.80, which surpassed the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion beat the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ISRG has an earnings yield of 3.1% compared to the industry’s negative 3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 16.53%.
Danaher, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $1.94, exceeding the Zacks Consensus Estimate by 5.44%. Revenues of $6.27 billion topped the Zacks Consensus Estimate by 2.88%.
DHR has an earnings yield of 4.7% compared to the industry’s 4.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.65%.
Elevance Health, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $7.45, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $49.8 billion outperformed the consensus mark by 0.8%.
ELV has an earnings yield of 6.9% compared to the industry’s 4.1% yield. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.65%.