Thermo Fisher (TMO) AI Stock Analysis

• Market Cap: $205.16B
• Dividend Yield: 0.31%
• Average Volume (3M): 2.14M
• Price to Earnings (P/E): 31.4
• Beta (1Y): 0.77
• Revenue Growth: 2.05%
• EPS Growth: 7.03%
• Country: US
• Employees: 125,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 5.36
• Shares Outstanding: 377,612,120
• 10 Day Avg. Volume: 3,290,817
• 30 Day Avg. Volume: 2,135,067
• PEG Ratio: 4.64
• Price to Book (P/B): 4.01
• Price to Sales (P/S): 4.63
• P/FCF Ratio: 27.35
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 4.24
• Enterprise Value/Gross Profit: 10.71
• Enterprise Value/Ebitda: 16.08
• 1Y Price Target: $548.56
• Price Target Upside: 0.96% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20

• Rating: 78 Outperform
• Price Target: $605.00 ▲(11.35% Upside)

Thermo Fisher's overall stock score of 78 reflects its robust financial performance and positive earnings call, which highlight strong operational execution and increased guidance. The technical analysis supports a bullish outlook, though the high valuation and external challenges in certain markets temper the score.

Positive Factors

Strategic Partnerships

The partnership with Vaxcyte enhances Thermo Fisher's role in vaccine manufacturing, strengthening its market position and ensuring long-term revenue streams from the healthcare sector.

Innovation in Analytical Instruments

Continuous innovation in high-end instruments supports Thermo Fisher's competitive edge, attracting research institutions and driving sustained demand in analytical solutions.

Raised Annual Guidance

Raising annual guidance indicates confidence in ongoing operational strength and market demand, reflecting positively on long-term growth prospects and financial stability.

Negative Factors

Academic and Government Revenue Decline

Declining revenue from academic and government sectors highlights potential vulnerabilities in these markets, which could affect future growth and diversification efforts.

China Market Headwinds

Ongoing challenges in the China market may limit growth opportunities and affect revenue from a key international market, impacting overall global expansion strategies.

Impact of Tariffs and Policy Environment

Tariffs and regulatory challenges could continue to pressure margins and operational income, posing risks to profitability and cost management in the long term.

Thermo Fisher Business Overview & Revenue Model

Company Description

Thermo Fisher Scientific Inc. (TMO) is a leading global provider of scientific instrumentation, reagents and consumables, and software services. The company operates in various sectors, including life sciences, healthcare, and environmental and industrial markets. Thermo Fisher's core products and services encompass laboratory equipment, analytical instruments, and specialty diagnostics, aimed at accelerating scientific research and enhancing healthcare outcomes.

How the Company Makes Money

Thermo Fisher generates revenue through multiple key streams including the sale of scientific instruments, consumables, and reagents. Its primary revenue sources are divided into four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services. The Life Sciences Solutions segment focuses on products for drug discovery, development, and production, while the Analytical Instruments segment includes high-end analytical instruments used for quality control and research. Specialty Diagnostics comprises in vitro diagnostics and biological safety testing products. Additionally, Laboratory Products and Services includes a range of lab equipment and services. The company also benefits from significant partnerships with academic institutions, research organizations, and pharmaceutical companies, which facilitate the development and commercialization of innovative solutions. Thermo Fisher's strong market presence and diverse product portfolio contribute to its robust earnings and financial stability.

Thermo Fisher Financial Statement Overview

Summary

Thermo Fisher demonstrates robust financial health characterized by stable profitability, a balanced capital structure, and efficient cash flow management. Strong margins, effective debt management, and solid ROE are notable, though revenue growth is moderate.

Income Statement

Thermo Fisher shows strong profitability with a stable Gross Profit Margin of approximately 41.74% for TTM. The Net Profit Margin is 15.24%, indicating efficient cost control and profitability. Revenue growth has been modest with a TTM increase of 0.78% compared to the previous year. EBIT and EBITDA margins are healthy at 17.13% and 19.58%, respectively, reflecting robust operational performance.

Balance Sheet

The company's financial position is solid with a manageable Debt-to-Equity Ratio of 0.70. Return on Equity (ROE) stands at 13.05%, showcasing effective use of equity. The Equity Ratio of 49.85% highlights a balanced capital structure. Overall, the balance sheet indicates stability with a slight increase in liabilities over time.

Cash Flow

Operating Cash Flow to Net Income Ratio is 1.15, indicating strong cash generation. The Free Cash Flow has decreased by 15.09% from the previous year, reflecting higher capital expenditures. The Free Cash Flow to Net Income Ratio is 0.94, suggesting efficient cash flow management despite investment activities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.21B	42.88B	42.86B	44.91B	39.21B	32.22B
Gross Profit	17.10B	17.73B	17.19B	19.01B	19.63B	16.03B
EBITDA	11.40B	11.80B	11.20B	11.94B	11.97B	10.11B
Net Income	6.58B	6.33B	6.00B	6.95B	7.72B	6.38B
Balance Sheet
Total Assets	101.23B	97.32B	98.73B	97.15B	95.12B	69.05B
Cash, Cash Equivalents and Short-Term Investments	6.39B	5.57B	8.08B	8.52B	4.48B	10.32B
Total Debt	35.23B	32.77B	36.42B	36.07B	36.34B	22.55B
Total Liabilities	50.63B	47.65B	51.88B	53.01B	54.15B	34.53B
Stockholders Equity	50.51B	49.58B	46.73B	43.98B	40.79B	34.51B
Cash Flow
Free Cash Flow	6.17B	7.27B	6.93B	6.91B	7.02B	6.82B
Operating Cash Flow	7.58B	8.67B	8.41B	9.15B	9.54B	8.29B
Investing Cash Flow	-4.37B	-5.84B	-5.14B	-2.16B	-21.93B	-1.51B
Financing Cash Flow	-5.95B	-6.79B	-3.62B	-2.81B	6.58B	959.00M

Thermo Fisher Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 543.32
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TMO, the sentiment is Positive. The current price of 543.32 is above the 20-day moving average (MA) of 484.30, above the 50-day MA of 481.82, and above the 200-day MA of 477.01, indicating a bullish trend. The MACD of 9.83 indicates Negative momentum. The RSI at 71.57 is Negative, neither overbought nor oversold. The STOCH value of 91.44 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TMO.

Thermo Fisher Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A	79 Outperform	$40.16B	33.21	19.88%	0.70%	4.48%	-11.52%
IQV	79 Outperform	$35.13B	29.93	19.80%	―	3.53%	-10.72%
TMO	78 Outperform	$205.16B	31.45	13.44%	0.31%	2.05%	7.03%
IDXX	77 Outperform	$50.50B	52.54	64.87%	―	6.68%	18.84%
DHR	69 Neutral	$153.94B	45.66	6.68%	0.57%	-3.24%	-16.60%
WAT	69 Neutral	$19.55B	29.60	37.03%	―	5.89%	10.61%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Thermo Fisher Corporate Events

Thermo Fisher Completes $4 Billion Solventum Acquisition

On September 2, 2025, Thermo Fisher Scientific completed its $4.0 billion acquisition of Solventum Corporation’s purification and filtration business, enhancing its bioprocessing and adjacent market offerings. The acquisition is expected to generate $750 million in revenue for 2025 and provide significant growth and synergy opportunities, although it will initially be dilutive to adjusted EPS by $0.06. The transaction strengthens Thermo Fisher’s portfolio with advanced filtration technologies, expanding its reach in industries requiring ultra-pure water, such as battery, semiconductor, and medical device manufacturing.

Thermo Fisher Announces CFO Retirement and Successor

On July 23, 2025, Thermo Fisher Scientific Inc. announced that its Senior Vice President and Chief Financial Officer, Stephen Williamson, will retire effective March 31, 2026. James R. Meyer, currently Vice President of Financial Operations, will succeed Williamson as CFO starting March 1, 2026, bringing extensive experience within the company since joining in 2009.