Thermo Fisher's third quarter results drew a positive market response, with management attributing outperformance to robust momentum in bioproduction, analytical instruments, and clinical research businesses. CEO Marc Casper highlighted the successful integration of recent acquisitions and an active capital deployment strategy as core contributors. The company also benefited from operational execution and productivity improvements, particularly through its Practical Process Improvement (PPI) business system, which enabled margin stability despite ongoing pressures in China and muted academic and government demand.
Is now the time to buy TMO? Find out in our full research report (it’s free for active Edge members).
Thermo Fisher (TMO) Q3 CY2025 Highlights:
- Revenue: $11.12 billion vs analyst estimates of $10.92 billion (4.9% year-on-year growth, 1.9% beat)
- Adjusted EPS: $5.79 vs analyst estimates of $5.50 (5.4% beat)
- Adjusted EBITDA: $2.81 billion vs analyst estimates of $2.70 billion (25.3% margin, 4.1% beat)
- Operating Margin: 17.5%, in line with the same quarter last year
- Organic Revenue rose 3% year on year vs analyst estimates of 2.7% growth (31.6 basis point beat)
- Market Capitalization: $210.6 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Thermo Fisher’s Q3 Earnings Call
- Michael Ryskin (Bank of America) asked how reshoring and U.S. policy shifts affect demand for Thermo Fisher’s products. CEO Marc Casper explained the company is directly engaged with customers planning new sites, with benefits expected to flow through bioproduction and analytical instruments over the coming years.
- Tycho Peterson (Jefferies) inquired about drivers of analytical instruments growth and momentum into year-end. Casper credited recent mass spectrometry and cryo-EM launches and noted strong customer adoption, while cautioning that Q4 faces a tough comparison from high prior-year growth.
- Jack Meehan (Nephron Research) pressed on the sustainability of 3–6% organic growth targets. Casper affirmed confidence in these projections, citing underlying market recovery and the diminishing impact of COVID-related revenue declines, with additional tailwinds from recent M&A.
- Daniel Arias (Stifel) questioned the impact of China’s pricing controls on non-diagnostics segments. Casper clarified that pricing dynamics are more manageable in research and industrial markets, and China’s share of company revenue has declined, reducing overall exposure.
- Andrew Tupa (Raymond James) sought details on traction for the bundled accelerator clinical research program. Casper described strong adoption, especially among biotech firms, and highlighted the value of integrated offerings in streamlining trial design and drug development.
Catalysts in Upcoming Quarters
In upcoming quarters, the StockStory team will focus on (1) measuring the adoption and financial impact of new product launches, particularly in bioproduction and analytical instruments, (2) monitoring the realization of synergies and margin improvement from recent acquisitions, and (3) assessing progress in AI integration and its effect on clinical research operations. We will also track stabilization in China and academic/government markets as indicators of broader market recovery.
Thermo Fisher currently trades at $555, in line with $557.66 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free for active Edge members).
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