Thermo Fisher Scientific Inc
TMO · NYSE
Next quarter
Expected to report Jan 28, 2027 — estimated from last year’s reporting date.
Consensus is $7.13 EPS for Dec 2026 across 8 estimates, ranging $7.09 to $7.25.
TMO Sep 2026
- 4.37%
- $6.40
- $6.68
- —
- $12.14B
Reported results
- $12.14B
- $2.26B
- 18.65%
- $1.72B
- $4.64
Highlights
- Revenue: Third-quarter sales rose 9% year over year to $12.14 billion, including 6% organic growth; acquisitions and divestitures contributed 3 percentage points and currency was neutral.
- Adjusted EPS: $6.68 was 15% above the year-ago quarter and beat the $6.40 consensus estimate by 4.37%.
- Margins: Adjusted operating income increased 15% to $2.97 billion and adjusted operating margin expanded 1.2 percentage points to 24.5%; GAAP operating margin rose to 18.6% from 17.4%.
- Quarter-on-quarter: Revenue increased from $11.99 billion in Q2 to $12.14 billion, while GAAP diluted EPS eased from $4.68 to $4.64.
- Segment mix: Laboratory Products and Biopharma Services revenue grew 15% to $6.86 billion; Specialty Diagnostics revenue declined 6% to $1.10 billion.
- Cash generation: Quarterly free cash flow was $2.12 billion, up from $1.84 billion a year earlier; nine-month free cash flow rose to $4.62 billion from $3.32 billion.
- Portfolio actions: Thermo Fisher completed the previously announced divestiture of its microbiology business during the quarter.
Analysis
Thermo Fisher delivered a broad-based earnings beat in Q3 FY2026: adjusted EPS of $6.68 exceeded the $6.40 consensus by 4.37%, while revenue rose 9% year over year to $12.14 billion. Organic growth was 6%, with acquisitions and divestitures adding 3 percentage points and currency having no effect. Adjusted EPS grew 15% from $5.79, and GAAP diluted EPS increased 9% to $4.64 from $4.27. Revenue was modestly higher than Q2’s $11.99 billion, but GAAP EPS was just below the prior quarter’s $4.68.
The print’s defining feature was margin expansion alongside growth: adjusted operating income rose 15% to $2.97 billion and adjusted margin widened to 24.5% from 23.3%; GAAP operating income increased 17% to $2.26 billion. Growth was strongest in Laboratory Products and Biopharma Services, while Specialty Diagnostics contracted. Cash generation also improved, with $2.12 billion of quarterly free cash flow versus $1.84 billion a year ago. The company highlighted new product launches, customer initiatives and completion of its microbiology divestiture, but the supplied materials do not provide the updated 2026 guidance referenced in the release.
Revenue and earnings
Revenue growth translated into faster adjusted earnings growth, while the GAAP and adjusted measures both improved year over year. The sequential picture was more moderate: sales advanced from Q2, but GAAP diluted EPS was slightly lower.
- Revenue: $12.137 billion, up 9.1% from $11.122 billion a year ago and about 1.2% from $11.99 billion in Q2. Organic growth was 6%; acquisitions and divestitures added 3 percentage points, with no currency contribution.
- Adjusted EPS: $6.68 versus $5.79 a year ago, a 15% increase, and $0.28 above the $6.40 consensus.
- GAAP results: Diluted EPS was $4.64 versus $4.27 a year ago and $4.68 in Q2. Net income attributable to Thermo Fisher was $1.72 billion, compared with $1.62 billion a year ago and $1.74 billion in Q2.
Margin expansion
Operating leverage was a central strength of the quarter. Lower cost of revenues and selling, general and administrative expense as a share of sales helped lift reported GAAP margin, while adjusted results also showed meaningful expansion. Adjusted measures exclude specified items, including acquisition-related amortization and restructuring costs.
- GAAP operations: Operating income rose 17% to $2.26 billion from $1.94 billion; margin expanded to 18.6% from 17.4%.
- Adjusted operations: Operating income increased 15% to $2.97 billion from $2.59 billion; adjusted margin reached 24.5%, up from 23.3%.
- Reported costs: Cost of revenues declined to 57.2% of sales from 58.2%, and SG&A to 15.3% from 16.1%. Acquisition-related intangible amortization increased to $519 million from $435 million.
Segment performance
Laboratory Products and Biopharma Services was the largest growth contributor by reported segment revenue, while Specialty Diagnostics was the clear weak spot. Analytical Instruments combined mid-single-digit revenue growth with a substantial improvement in segment margin.
- Laboratory Products and Biopharma Services: Revenue grew 15% to $6.86 billion; segment income increased to $1.07 billion from $868 million, and margin rose to 15.5% from 14.5%.
- Life Sciences Solutions: Revenue increased 5% to $2.72 billion; segment income was $1.02 billion versus $968 million, with margin up to 37.6% from 37.4%.
- Analytical Instruments: Revenue rose 6% to $2.00 billion; segment income grew to $538 million from $429 million and margin expanded to 26.9% from 22.6%.
- Specialty Diagnostics: Revenue declined 6% to $1.10 billion from $1.17 billion. Segment income increased to $341 million from $321 million, with margin improving to 31.0% from 27.4%.
Cash generation
Free cash flow rose both for the quarter and year to date, supported by higher operating cash flow. Capital spending also increased, so the improvement in free cash flow was smaller than the increase in operating cash flow.
- Third quarter: Free cash flow was $2.12 billion versus $1.84 billion a year earlier; operating cash flow increased to $2.55 billion from $2.24 billion, while capital expenditures were $437 million versus $404 million.
- Nine months: Free cash flow reached $4.62 billion, up from $3.32 billion; operating cash flow was $5.87 billion versus $4.36 billion, and capital expenditures were $1.26 billion versus $1.06 billion.
Portfolio and innovation
Thermo Fisher emphasized continued investment in its product and commercial capabilities alongside portfolio management. It completed the previously announced microbiology divestiture; the release also cited several product introductions and customer-facing initiatives.
- Product launches: New offerings included the Orbitrap Isora mass spectrometer for isotope ratio analysis, the EMPAD G2 electron detector, the FDA-cleared EliA CTD 13 Screen autoimmune test, and the Ion 560 sequencing chip.
- Customer initiatives: In partnership with Mayo Clinic, Thermo Fisher launched Precure, combining data from more than one million patient samples with its proteomics technologies. It also opened an AI-Automation Innovation Center in South Korea and a distribution center in Kentucky.
- Capital deployment: The microbiology business divestiture was completed during the quarter. The release said updated 2026 guidance would be discussed on the earnings call, but that guidance is not included in the supplied materials.
