Thermo Fisher (TMO) AI Stock Analysis

• Market Cap: $216.18B
• Dividend Yield: 0.3%
• Average Volume (3M): 2.52M
• Price to Earnings (P/E): 33.1
• Beta (1Y): 0.79
• Revenue Growth: 3.22%
• EPS Growth: 8.26%
• Country: US
• Employees: 125,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 5.79
• Shares Outstanding: 377,612,120
• 10 Day Avg. Volume: 2,153,216
• 30 Day Avg. Volume: 2,516,766
• 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: 0.96
• Enterprise Value/Revenue: 4.75
• Enterprise Value/Gross Profit: 11.93
• Enterprise Value/Ebitda: 18.67
• 1Y Price Target: $615.76
• Price Target Upside: 9.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 19

• Rating: 73 Outperform
• Price Target: $638.00 ▲(13.16% Upside)

Thermo Fisher's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust profitability and strategic initiatives, such as collaborations and acquisitions, support its growth outlook. However, technical indicators suggest the stock may be overbought, and the high P/E ratio indicates potential overvaluation, which tempers the overall score.

Positive Factors

Revenue Growth

Thermo Fisher's consistent revenue growth reflects its strong market position and effective execution of its growth strategy, ensuring long-term financial stability.

Strategic Collaborations

Collaborations with tech leaders like OpenAI enhance Thermo Fisher's innovation capabilities, supporting long-term growth and competitive advantage in scientific research.

Product Innovation

Innovative product launches, such as the OncoMindDx Express test, strengthen Thermo Fisher's position in precision medicine, driving sustainable growth in healthcare markets.

Negative Factors

Diagnostics Sector Challenges

Ongoing challenges in the diagnostics sector, particularly in China, could hinder Thermo Fisher's growth potential in this segment, impacting overall revenue diversification.

China Market Weakness

Weakness in the China market, driven by pricing and reimbursement pressures, poses a risk to Thermo Fisher's growth in a key international market, affecting global expansion efforts.

Free Cash Flow Challenges

Challenges in converting income into cash could limit Thermo Fisher's ability to invest in growth opportunities and maintain financial flexibility, impacting long-term strategic initiatives.

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. While revenue growth is moderate, the company maintains strong margins and effective debt management, positioning it well within the industry.

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	43.74B	42.88B	42.86B	44.91B	39.21B	32.22B
Gross Profit	17.41B	17.73B	17.19B	19.01B	19.63B	16.03B
EBITDA	11.13B	11.80B	11.20B	11.94B	11.97B	10.11B
Net Income	6.57B	6.33B	6.00B	6.95B	7.72B	6.38B
Balance Sheet
Total Assets	103.02B	97.32B	98.73B	97.15B	95.12B	69.05B
Cash, Cash Equivalents and Short-Term Investments	3.55B	5.57B	8.08B	8.52B	4.48B	10.32B
Total Debt	35.68B	32.77B	36.42B	36.07B	36.34B	22.55B
Total Liabilities	52.00B	47.65B	51.88B	53.01B	54.15B	34.53B
Stockholders Equity	51.02B	49.58B	46.73B	43.98B	40.79B	34.51B
Cash Flow
Free Cash Flow	6.11B	7.27B	6.93B	6.91B	7.02B	6.82B
Operating Cash Flow	7.65B	8.67B	8.41B	9.15B	9.54B	8.29B
Investing Cash Flow	-4.92B	-5.84B	-5.14B	-2.16B	-21.93B	-1.51B
Financing Cash Flow	-5.39B	-6.79B	-3.62B	-2.81B	6.58B	959.00M

Thermo Fisher Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 563.78
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 563.78 is above the 20-day moving average (MA) of 539.70, above the 50-day MA of 505.17, and above the 200-day MA of 478.45, indicating a bullish trend. The MACD of 19.52 indicates Negative momentum. The RSI at 69.35 is Neutral, neither overbought nor oversold. The STOCH value of 84.52 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	―	$41.97B	34.71	19.88%	0.68%	4.48%	-11.52%
IQV	―	$37.49B	31.49	19.80%	―	3.53%	-10.72%
DHR	―	$157.52B	45.90	6.84%	0.56%	2.22%	-7.60%
TMO	―	$216.18B	33.09	13.16%	0.30%	3.22%	8.26%
IDXX	―	$51.27B	53.89	64.87%	―	6.68%	18.84%
WAT	―	$21.40B	31.71	37.03%	―	5.89%	10.61%
Sector *	―	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Thermo Fisher Corporate Events

Thermo Fisher Scientific Reports Strong Q3 2025 Results

Thermo Fisher Scientific Inc. is a global leader in serving science, providing innovative technologies and pharmaceutical services to enhance life sciences research, diagnostics, and the development of life-changing therapies.

Thermo Fisher Scientific Reports Strong Q3 Earnings

Thermo Fisher Scientific’s recent earnings call painted a picture of robust financial health, marked by strong performance across key segments and strategic initiatives. The sentiment was largely positive, underscored by growth in pharma and biotech, and significant collaborations. However, challenges in the diagnostics sector, particularly in China, and pressures in the academic and government sectors were acknowledged.

Thermo Fisher Issues $2.5 Billion in Senior Notes

On October 7, 2025, Thermo Fisher Scientific Inc. issued $2.5 billion in senior notes across four different maturities, with the proceeds intended for general corporate purposes such as acquisitions, debt refinancing, and capital expenditures. The issuance is part of a strategic financial maneuver to strengthen the company’s liquidity and operational flexibility, potentially impacting its market positioning and offering opportunities for growth and investment.

The most recent analyst rating on (TMO) stock is a Buy with a $590.00 price target. To see the full list of analyst forecasts on Thermo Fisher stock, see the TMO Stock Forecast page.

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.

The most recent analyst rating on (TMO) stock is a Buy with a $557.00 price target. To see the full list of analyst forecasts on Thermo Fisher stock, see the TMO Stock Forecast page.