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On its third quarter of 2026 earnings call, held on Oct. 21, 2026, Thermo Fisher Scientific(TMO +1.35%) raised its full-year revenue and profit targets following higher demand across biopharmaceutical customer channels. Accelerating research funding and laboratory activity provide durable multiyear visibility for long-term investors across high-margin diagnostic instruments and analytical software. Three things management said on the call stand out.

1. Improving Demand Drives Full-Year Guidance RaiseManagement raised full-year organic revenue growth, which measures underlying sales excluding acquisitions, divestitures, and foreign currency movements, to 4%. Expanding order volume across core biopharmaceutical markets gives leadership room to lift profitability targets.

On the top line, we're raising our full year organic revenue growth outlook to 4%. This reflects exceeding our Q3 organic revenue expectations and maintaining our organic revenue guidance of 4% for the fourth quarter.
-- Jim Meyer, Senior Vice President and Chief Financial Officer2. Artificial Intelligence Integration Speeds Laboratory WorkflowsEmbedding artificial intelligence, or automated algorithms, directly into scientific hardware lowers manual setup time and cuts operational friction. Faster experimental setup boosts laboratory throughput, encouraging higher recurring sales of specialized testing materials.

The technology helps generate even higher quality data while reducing manual step setup time by approximately 90%.
-- Marc Casper, Chairman and Chief Executive Officer3. Strategic Acquisitions Expand Clinical Development CapabilitiesTargeted acquisitions expand clinical trial data platforms and research services across early-stage biopharmaceutical pipelines. Unlocking revenue synergies, or additional sales created by cross-selling complementary product lines, deepens long-term customer relationships.

We're very pleased with the progress of our Clario acquisition. The business is performing well. The integration is going smoothly. And we're excited about the momentum building to deliver meaningful revenue synergies from the acquisition. We are connecting these leading capabilities into our broader offering for clinical development.
-- Marc Casper, Chairman and Chief Executive OfficerLooking AheadBiopharmaceutical research activity is accelerating across key end markets, and customer order flow is gaining momentum. The company holds structural advantages in its global commercial reach, automated diagnostic manufacturing, and proprietary analytical instruments while management keeps an eye on capital spending recovery cycles.

When I think about the quarter, the activity that we saw step up in Q2 in our end markets continued. Actually, the quarter's end markets were very strong. When you look at pharma and biotech, you see that continue to progress and strengthen.
-- Marc Casper, Chairman and Chief Executive OfficerA strengthening customer pipeline across clinical research and life science channels reinforces the company's long-term organic growth trajectory.

The improved end-market conditions we saw in Q2 continued in the third quarter, with strong customer activity, and our team is executing at a very high level, leveraging the power of our PPI Business System to deliver very strong performance and create value for our stakeholders. Our proven growth strategy is resonating more than ever with our customers, and we are well positioned to deliver a great 2026 and build an even brighter future for our company.
-- Marc Casper, Chairman and Chief Executive OfficerThe Motley Fool has positions in and recommends Thermo Fisher Scientific. The Motley Fool has a disclosure policy.

Thermo Fisher Scientific Inc. delivered 6% organic growth, 120 bps margin expansion, and 39% free cash flow growth in Q3, validating the ongoing recovery. I maintain a Strong Buy rating on TMO, supported by accelerating earnings, improved profitability, and a declining net debt/EBITDA ratio (now 2.9x). Laboratory Products and Biopharma Services led with 10% organic growth, while Analytical Instruments posted 430 bps margin expansion, though Life Sciences and Diagnostics remain slower.

Thermo Fisher beats Q3 earnings and revenue estimates, with double-digit profit growth and wider margins, yet shares fall 4.1% in pre-market trading.

U.S. stocks traded higher midway through trading, with the Nasdaq Composite gaining over 1% on Wednesday.

Thermo Fisher Scientific Inc (NYSE:TMO, XETRA:TN8) increased third-quarter revenue by 9% to $12.14 billion, while adjusted earnings per share rose 15% to $6.68. Revenue for the three months ended September 2026 increased from $11.12 billion a year earlier, with organic revenue growth, which excludes the effects of acquisitions, disposals and currency movements, reaching 6%.

-

Revenue Grew 9% Including 6% Organic Revenue Growth

Grew GAAP Diluted EPS 9% and Adjusted EPS 15%

Outstanding performance driven by proven growth strategy and PPI Business System

WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, today reported its financial results for the third quarter ended September 26, 2026.

Third Quarter Highlights

Third quarter revenue grew 9% to $12.14 billion Third quarter GAAP diluted earnings per share (EPS) grew 9% to $4.64 Third quarter adjusted EPS grew 15% to $6.68 “We are very pleased to deliver another excellent quarter, with outstanding financial performance on both the top and bottom line,” said Marc N. Casper, chairman and chief executive officer of Thermo Fisher Scientific. “We’re advancing our proven growth strategy, which is resonating strongly with our customers, and our PPI Business System is enabling outstanding execution across the company.”

Casper added, “Looking ahead, we’re well positioned to deliver an excellent 2026 as we continue to drive long-term value creation for all of our stakeholders and build an even brighter future for our company.”

Growth Strategy and Capital Deployment

Advanced our proven growth strategy, launching a range of high-impact, innovative new products during the quarter. Highlights include the Thermo Scientific™ Orbitrap™ Isora™ mass spectrometer, the first Orbitrap system designed for isotope ratio analysis, enabling faster, simplified workflows and providing deeper insights into the origin and composition of samples for environmental and life sciences research; the Thermo Scientific™ EMPAD™ G2 electron detector enabling faster, more detailed electron microscopy characterization of advanced materials to support the development of next-generation electronics, memory and energy technologies; the FDA-cleared EliA™ CTD 13 Screen in the U.S., a new autoimmune test for systemic connective tissue diseases, including lupus, helping laboratories streamline testing and providing clinicians with reliable information to inform patient care; and the Ion 560 Chip, the highest-throughput sequencing chip for the Ion GeneStudio™ S5 platform, providing nearly twice the sequencing capacity of the prior offering to enable laboratories to process more samples and meet growing genomic profiling needs in oncology research. Strengthened our industry-leading commercial engine and deepened our trusted partner status with customers. In partnership with Mayo Clinic, we launched Precure, a pioneering initiative that will combine data from more than one million patient samples with our differentiated proteomics ecosystem, including Orbitrap™ mass spectrometry and Olink™ technologies, to generate new insights into disease progression, enable earlier detection and advance precision medicine. In South Korea, we opened our first AI-Automation Innovation Center, bringing together our advanced analytical technologies, automation and AI to enable our customers to accelerate innovation and enhance R&D productivity. In our channel businesses, we also opened a highly automated distribution center in Kentucky, to enhance speed, flexibility and assurance of supply for our customers across North America. Continued to successfully execute our capital deployment strategy. During the quarter, we completed our previously announced divestiture of our microbiology business. Financial Results

Revenue for the third quarter of 2026 grew 9% to $12.14 billion, versus $11.12 billion in the same quarter of 2025. Organic revenue growth was 6%.

GAAP Earnings Results

GAAP diluted EPS in the third quarter of 2026 was $4.64, 9% growth versus the third quarter of 2025. GAAP operating income for the third quarter of 2026 was $2.26 billion, 17% higher than the year-ago quarter. GAAP operating margin was 18.6%, compared with 17.4% in the third quarter of 2025.

Non-GAAP Earnings Results

Adjusted EPS for the third quarter of 2026 was $6.68, 15% growth versus the third quarter of 2025. Adjusted operating income for the third quarter of 2026 was $2.97 billion, 15% higher than the year-ago quarter. Adjusted operating margin was 24.5%, compared with 23.3% in the third quarter of 2025.

Annual Guidance for 2026

The company will provide updated 2026 financial guidance during its earnings conference call this morning at 7:00 a.m. Eastern Time.

Use of Non-GAAP Financial Measures

Adjusted EPS, adjusted net income, adjusted operating income, adjusted operating margin, free cash flow, and organic revenue growth are non-GAAP measures that exclude certain items detailed after the tables that accompany this press release, under the heading “Supplemental Information Regarding Non-GAAP Financial Measures.” The reconciliations of GAAP to non-GAAP financial measures are provided in the tables that accompany this press release.

Conference Call

Thermo Fisher Scientific will hold its earnings conference call today, October 21, 2026, at 7:00 a.m. Eastern Time. During the call, the company will discuss its financial performance, as well as future expectations.

The call will be webcast live on the “Investors” section of our website, www.thermofisher.com. You can access the conference call by dialing (833) 461-5787 within the U.S. or +1 (585) 542-9983 outside the U.S. The access code is 500554659.

The earnings press release and related information can also be found on the Investor Relations section of our website, under the heading “Financials”. A replay of the call will be available under “News, Events & Presentations” until the next quarterly earnings call.

About Thermo Fisher Scientific

Thermo Fisher Scientific Inc. is the world leader in serving science, with annual revenue over $45 billion. Our Mission is to enable our customers to make the world healthier, cleaner and safer. Whether our customers are accelerating life sciences research, solving complex analytical challenges, increasing productivity in their laboratories, improving patient health through diagnostics or the development and manufacture of life-changing therapies, we are here to support them. Our global team delivers an unrivaled combination of innovative technologies, purchasing convenience and pharmaceutical services through our industry-leading brands, including Thermo Scientific, Applied Biosystems, Invitrogen, Gibco, Fisher Scientific, Unity Lab Services, Patheon and PPD. For more information, please visit www.thermofisher.com.

Safe Harbor Statement

The following constitutes a “Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements that involve a number of risks and uncertainties. Important factors that could cause actual results to differ materially from those indicated by forward-looking statements include risks and uncertainties relating to: the need to develop new products and adapt to significant technological change; implementation of strategies for improving growth; general economic conditions and related uncertainties; dependence on customers' capital spending policies and government funding policies; the effect of economic and political conditions and exchange rate fluctuations on international operations; use and protection of intellectual property; the effect of changes in governmental regulations; any natural disaster, public health crisis or other catastrophic event; and the effect of laws and regulations governing government contracts, as well as the possibility that expected benefits related to recent or pending acquisitions, may not materialize as expected. Additional important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are set forth in our most recent reports on Form 10-K and Form 10-Q under the heading “Risk Factors.” These filings are on file with the SEC and available in the “Investors” section of our website under the heading “SEC Filings.” These forward-looking statements are based on our current expectations and speak only as of the date of this press release. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, in the event of new information, future developments or otherwise.

Condensed Consolidated Statements of Income (unaudited)

Three months ended

September 26,

% of

September 27,

% of

(Dollars in millions except per share amounts)

2026

Revenues

2025

Revenues

Revenues

$

12,137

$

11,122

Costs and operating expenses:

Cost of revenues (a)

6,945

57.2

%

6,470

58.2

%

Selling, general and administrative expenses (b)

1,863

15.3

%

1,795

16.1

%

Amortization of acquisition-related intangible assets

519

4.3

%

435

3.9

%

Research and development expenses

348

2.9

%

346

3.1

%

Restructuring and other costs (c)

199

1.6

%

135

1.2

%

Total costs and operating expenses

9,874

81.4

%

9,182

82.6

%

Operating income

2,263

18.6

%

1,941

17.4

%

Interest income

252

234

Interest expense

(417

)

(347

)

Other income/(expense) (d)

(10

)

(2

)

Income before income taxes

2,088

1,826

Benefit from/(provision for) income taxes (e)

(352

)

(207

)

Equity in earnings/(losses) of unconsolidated entities

(9

)

2

Net income

1,727

1,621

Less: net income/(loss) attributable to noncontrolling interests and redeemable noncontrolling interest

6

5

Net income attributable to Thermo Fisher Scientific Inc.

$

1,721

14.2

%

$

1,616

14.5

%

Earnings per share attributable to Thermo Fisher Scientific Inc.:

Basic

$

4.65

$

4.28

Diluted

$

4.64

$

4.27

Weighted average shares:

Basic

370

378

Diluted

371

378

Reconciliation of adjusted operating income and adjusted operating margin

GAAP operating income

$

2,263

18.6

%

$

1,941

17.4

%

Cost of revenues adjustments (a)

9

0.1

%

10

0.1

%

Selling, general and administrative expenses adjustments (b)

(20

)

-0.2

%

66

0.6

%

Restructuring and other costs (c)

199

1.6

%

135

1.2

%

Amortization of acquisition-related intangible assets

519

4.3

%

435

3.9

%

Adjusted operating income (non-GAAP measure)

$

2,968

24.5

%

$

2,587

23.3

%

Reconciliation of adjusted net income

GAAP net income attributable to Thermo Fisher Scientific Inc.

$

1,721

$

1,616

Cost of revenues adjustments (a)

9

10

Selling, general and administrative expenses adjustments (b)

(20

)

66

Restructuring and other costs (c)

199

135

Amortization of acquisition-related intangible assets

519

435

Other income/expense adjustments (d)

14

(5

)

Income taxes adjustments (e)

27

(64

)

Equity in earnings/losses of unconsolidated entities

9

(2

)

Adjusted net income (non-GAAP measure)

$

2,477

$

2,190

Reconciliation of adjusted earnings per share

GAAP diluted EPS attributable to Thermo Fisher Scientific Inc.

$

4.64

$

4.27

Cost of revenues adjustments (a)

0.02

0.03

Selling, general and administrative expenses adjustments (b)

(0.06

)

0.17

Restructuring and other costs (c)

0.54

0.36

Amortization of acquisition-related intangible assets

1.40

1.15

Other income/expense adjustments (d)

0.04

(0.01

)

Income taxes adjustments (e)

0.07

(0.17

)

Equity in earnings/losses of unconsolidated entities

0.02

(0.01

)

Adjusted EPS (non-GAAP measure)

$

6.68

$

5.79

Reconciliation of free cash flow

GAAP net cash provided by operating activities

$

2,551

$

2,239

Purchases of property, plant and equipment

(437

)

(404

)

Proceeds from sale of property, plant and equipment

1

5

Free cash flow (non-GAAP measure)

$

2,115

$

1,840

Business Segment Information

Three months ended

September 26,

% of

September 27,

% of

(Dollars in millions)

2026

Revenues

2025

Revenues

Revenues

Life Sciences Solutions

$

2,719

22.4

%

$

2,588

23.3

%

Analytical Instruments

2,002

16.5

%

1,893

17.0

%

Specialty Diagnostics

1,098

9.1

%

1,174

10.6

%

Laboratory Products and Biopharma Services

6,863

56.5

%

5,970

53.7

%

Eliminations

(546

)

-4.5

%

(503

)

-4.5

%

Consolidated revenues

$

12,137

100.0

%

$

11,122

100.0

%

Segment income and segment income margin

Life Sciences Solutions

$

1,022

37.6

%

$

968

37.4

%

Analytical Instruments

538

26.9

%

429

22.6

%

Specialty Diagnostics

341

31.0

%

321

27.4

%

Laboratory Products and Biopharma Services

1,067

15.5

%

868

14.5

%

Subtotal reportable segments

2,968

24.5

%

2,587

23.3

%

Cost of revenues adjustments (a)

(9

)

-0.1

%

(10

)

-0.1

%

Selling, general and administrative expenses adjustments (b)

20

0.2

%

(66

)

-0.6

%

Restructuring and other costs (c)

(199

)

-1.6

%

(135

)

-1.2

%

Amortization of acquisition-related intangible assets

(519

)

-4.3

%

(435

)

-3.9

%

Consolidated GAAP operating income

$

2,263

18.6

%

$

1,941

17.4

%

(a) Adjusted results exclude accelerated depreciation on manufacturing assets to be abandoned due to facility consolidations. Adjusted results in 2026 also exclude $7 of transaction-related costs. Adjusted results in 2025 also exclude $8 of charges for the sale of inventory revalued at the date of acquisition.

(b) Adjusted results exclude certain third-party expenses, principally transaction/integration costs, charges/credits for changes in estimates of contingent acquisition consideration, accelerated depreciation on fixed assets to be abandoned due to facility consolidations, and charges for product liability litigation.

(c) Adjusted results exclude restructuring and other costs consisting principally of severance, impairments of long-lived assets, net charges/credits for pre-acquisition litigation and other matters, net gains/losses on the sale of real estate, and abandoned facility and other expenses of headcount reductions and real estate consolidations. Adjusted results in 2026 exclude $72 of gain on the sale of a business and $244 for a held-for-sale loss. Adjusted results in 2025 also exclude $51 of charges for disposition of a consolidated joint venture.

(d) Adjusted results exclude net gains/losses on investments and settlement charges for pension plans.

(e) Adjusted results exclude incremental tax impacts for the reconciling items between GAAP and adjusted net income, incremental tax impacts as a result of tax rate/law changes and the tax impacts from audit settlements.

Note:

Consolidated depreciation expense is $307 and $227 in 2026 and 2025, respectively.

Organic revenue growth

Three months ended

September 26, 2026

Revenue growth

9%

Acquisitions/divestitures

3%

Currency translation

0%

Organic revenue growth (non-GAAP measure)

6%

Note:

For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release.

Condensed Consolidated Statements of Income (unaudited)

Nine months ended

September 26,

% of

September 27,

% of

(Dollars in millions except per share amounts)

2026

Revenues

2025

Revenues

Revenues

$

35,136

$

32,341

Costs and operating expenses:

Cost of revenues (a)

20,525

58.4

%

18,905

58.5

%

Selling, general and administrative expenses (b)

5,570

15.9

%

5,295

16.4

%

Amortization of acquisition-related intangible assets

1,433

4.1

%

1,294

4.0

%

Research and development expenses

1,048

3.0

%

1,041

3.2

%

Restructuring and other costs (c)

346

1.0

%

316

1.0

%

Total costs and operating expenses

28,923

82.3

%

26,850

83.0

%

Operating income

6,213

17.7

%

5,491

17.0

%

Interest income

693

735

Interest expense

(1,172

)

(1,054

)

Other income/(expense) (d)

13

(18

)

Income before income taxes

5,746

5,155

Benefit from/(provision for) income taxes (e)

(590

)

(394

)

Equity in earnings/(losses) of unconsolidated entities

(32

)

(9

)

Net income

5,124

4,751

Less: net income/(loss) attributable to noncontrolling interests and redeemable noncontrolling interest (f)

16

11

Net income attributable to Thermo Fisher Scientific Inc.

$

5,108

14.5

%

$

4,740

14.7

%

Earnings per share attributable to Thermo Fisher Scientific Inc.:

Basic

$

13.77

$

12.55

Diluted

$

13.75

$

12.53

Weighted average shares:

Basic

371

378

Diluted

372

378

Reconciliation of adjusted operating income and adjusted operating margin

GAAP operating income

$

6,213

17.7

%

$

5,491

17.0

%

Cost of revenues adjustments (a)

51

0.1

%

31

0.1

%

Selling, general and administrative expenses adjustments (b)

59

0.2

%

99

0.3

%

Restructuring and other costs (c)

346

1.0

%

316

1.0

%

Amortization of acquisition-related intangible assets

1,433

4.1

%

1,294

4.0

%

Adjusted operating income (non-GAAP measure)

$

8,102

23.1

%

$

7,231

22.4

%

Reconciliation of adjusted net income

GAAP net income attributable to Thermo Fisher Scientific Inc.

$

5,108

$

4,740

Cost of revenues adjustments (a)

51

31

Selling, general and administrative expenses adjustments (b)

59

99

Restructuring and other costs (c)

346

316

Amortization of acquisition-related intangible assets

1,433

1,294

Other income/expense adjustments (d)

(15

)

(1

)

Income taxes adjustments (e)

(269

)

(320

)

Equity in earnings/losses of unconsolidated entities

32

9

Noncontrolling interests adjustments (f)

—

(1

)

Adjusted net income (non-GAAP measure)

$

6,745

$

6,167

Reconciliation of adjusted earnings per share

GAAP diluted EPS attributable to Thermo Fisher Scientific Inc.

$

13.75

$

12.53

Cost of revenues adjustments (a)

0.14

0.08

Selling, general and administrative expenses adjustments (b)

0.16

0.26

Restructuring and other costs (c)

0.93

0.83

Amortization of acquisition-related intangible assets

3.86

3.42

Other income/expense adjustments (d)

(0.04

)

0.00

Income taxes adjustments (e)

(0.72

)

(0.85

)

Equity in earnings/losses of unconsolidated entities

0.09

0.02

Noncontrolling interests adjustments (f)

—

0.00

Adjusted EPS (non-GAAP measure)

$

18.15

$

16.30

Reconciliation of free cash flow

GAAP net cash provided by operating activities

$

5,867

$

4,361

Purchases of property, plant and equipment

(1,263

)

(1,060

)

Proceeds from sale of property, plant and equipment

14

17

Free cash flow (non-GAAP measure)

$

4,618

$

3,319

Business Segment Information

Nine months ended

September 26,

% of

September 27,

% of

(Dollars in millions)

2026

Revenues

2025

Revenues

Revenues

Life Sciences Solutions

$

8,170

23.3

%

$

7,428

23.0

%

Analytical Instruments

5,564

15.8

%

5,339

16.5

%

Specialty Diagnostics

3,445

9.8

%

3,456

10.7

%

Laboratory Products and Biopharma Services

19,592

55.8

%

17,605

54.4

%

Eliminations

(1,635

)

-4.7

%

(1,487

)

-4.6

%

Consolidated revenues

$

35,136

100.0

%

$

32,341

100.0

%

Segment income and segment income margin

Life Sciences Solutions

$

3,017

36.9

%

$

2,722

36.6

%

Analytical Instruments

1,317

23.7

%

1,153

21.6

%

Specialty Diagnostics

987

28.7

%

932

27.0

%

Laboratory Products and Biopharma Services

2,781

14.2

%

2,425

13.8

%

Subtotal reportable segments

8,102

23.1

%

7,231

22.4

%

Cost of revenues adjustments (a)

(51

)

-0.1

%

(31

)

-0.1

%

Selling, general and administrative expenses adjustments (b)

(59

)

-0.2

%

(99

)

-0.3

%

Restructuring and other costs (c)

(346

)

-1.0

%

(316

)

-1.0

%

Amortization of acquisition-related intangible assets

(1,433

)

-4.1

%

(1,294

)

-4.0

%

Consolidated GAAP operating income

$

6,213

17.7

%

$

5,491

17.0

%

Organic revenue growth

Nine months ended

September 26, 2026

Revenue growth

9%

Acquisitions/divestitures

4%

Currency translation

1%

Organic revenue growth (non-GAAP measure)

4%

Note:

For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release.

Condensed Consolidated Balance Sheets (unaudited)

September 26,

December 31,

(In millions)

2026

2025

Assets

Current assets:

Cash and cash equivalents

$

5,461

$

9,852

Short-term investments

600

253

Accounts receivable, net

9,625

8,900

Inventories

5,643

5,425

Other current assets

4,285

4,278

Total current assets

25,615

28,707

Property, plant and equipment, net

10,577

10,565

Acquisition-related intangible assets, net

18,077

15,838

Other assets

5,701

5,871

Goodwill

54,263

49,362

Total assets

$

114,233

$

110,343

Liabilities, redeemable noncontrolling interest and equity

Current liabilities:

Short-term obligations and current maturities of long-term obligations

$

2,262

$

3,533

Other current liabilities

11,908

11,656

Total current liabilities

14,170

15,189

Other long-term liabilities

6,059

5,766

Long-term obligations

39,108

35,852

Redeemable noncontrolling interest

128

122

Total equity

54,767

53,415

Total liabilities, redeemable noncontrolling interest and equity

$

114,233

$

110,343

Condensed Consolidated Statements of Cash Flows (unaudited)

Nine months ended

September 26,

September 27,

(In millions)

2026

2025

Operating activities

Net income

$

5,124

$

4,751

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization

2,378

2,053

Change in deferred income taxes

(676

)

(728

)

Other net non-cash expenses

621

540

Changes in assets and liabilities, excluding the effects of acquisitions

(1,580

)

(2,255

)

Net cash provided by operating activities

5,867

4,361

Investing activities

Purchases of property, plant and equipment

(1,263

)

(1,060

)

Proceeds from sale of property, plant and equipment

14

17

Proceeds from cross-currency interest rate swap interest settlements

284

218

Acquisitions, net of cash acquired

(8,877

)

(4,037

)

Purchases of investments

(668

)

(351

)

Proceeds from sales and maturities of investments

253

254

Proceeds from sale of business, net of cash divested

1,021

—

Net proceeds from terminations of cross-currency interest rate swaps

388

—

Other investing activities, net

(26

)

20

Net cash used in investing activities

(8,874

)

(4,938

)

Financing activities

Net proceeds from issuance of debt

5,238

2,840

Repayment of debt

(2,519

)

(1,625

)

Proceeds from issuance of commercial paper

389

1,095

Repayment of commercial paper

(389

)

(597

)

Purchases of company common stock

(4,000

)

(2,963

)

Dividends paid

(511

)

(474

)

Other financing activities, net

251

(1

)

Net cash used in financing activities

(1,541

)

(1,725

)

Exchange rate effect on cash

164

273

Increase/(decrease) in cash, cash equivalents and restricted cash

(4,384

)

(2,029

)

Cash, cash equivalents and restricted cash at beginning of period

9,879

4,040

Cash, cash equivalents and restricted cash at end of period

$

5,494

$

2,011

Free cash flow (non-GAAP measure)

$

4,618

$

3,319

Note:

For more information related to non-GAAP financial measures, refer to the section titled “Supplemental Information Regarding Non-GAAP Financial Measures” of this release.

Supplemental Information Regarding Non-GAAP Financial Measures

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), we use certain non-GAAP financial measures such as organic revenue growth, which is reported revenue growth, excluding the impacts of acquisitions/divestitures and the effects of currency translation. We report these measures because Thermo Fisher management believes that in order to understand the company’s short-term and long-term financial trends, investors may wish to consider the impact of acquisitions/divestitures, and/or foreign currency translation on revenues. Thermo Fisher management uses these measures to forecast and evaluate the operational performance of the company as well as to compare revenues of current periods to prior periods.

We report adjusted operating income, adjusted operating margin, adjusted net income, and adjusted EPS. We believe that the use of these non-GAAP financial measures, in addition to GAAP financial measures, helps investors to gain a better understanding of our core operating results and future prospects, consistent with how management measures and forecasts the company’s core operating performance, especially when comparing such results to previous periods, forecasts, and to the performance of our competitors. Such measures are also used by management in their financial and operating decision-making and for compensation purposes. To calculate these measures we exclude, as applicable:

Certain transaction-related costs, including charges for the sale of inventories revalued at the date of acquisition, significant transaction-related third-party costs, changes in estimates of contingent acquisition-related consideration, and other costs associated with obtaining short-term financing commitments for pending/recent acquisitions. We exclude these costs because we do not believe they are indicative of our normal operating costs. Costs/income associated with restructuring activities and large-scale abandonments of product lines, such as reducing overhead and consolidating facilities. We exclude these costs because we believe that the costs related to restructuring activities are not indicative of our normal operating costs. Equity in earnings/losses of unconsolidated entities; impairments of long-lived assets; and certain other gains and losses that are either isolated or cannot be expected to occur again with any predictability, including gains/losses on investments, the sale of businesses, product lines, and real estate, significant litigation-related matters, curtailments/settlements of pension plans, and the early retirement of debt. We exclude these items because they are outside of our normal operations and/or, in certain cases, are difficult to forecast accurately for future periods. The expense associated with the amortization of acquisition-related intangible assets because a significant portion of the purchase price for acquisitions may be allocated to intangible assets that have lives of up to 20 years. Exclusion of the amortization expense allows comparisons of operating results that are consistent over time for both our newly acquired and long-held businesses and with both acquisitive and non-acquisitive peer companies. The noncontrolling interest and tax impacts of the above items and the impact of significant tax audits or events (such as changes in deferred taxes from enacted tax rate/law changes), the latter of which we exclude because they are outside of our normal operations and difficult to forecast accurately for future periods. We report free cash flow, which is operating cash flow less net capital expenditures, to provide a view of the continuing operations’ ability to generate cash for use in acquisitions and other investing and financing activities. The company also uses this measure as an indication of the strength of the company. Free cash flow is not a measure of cash available for discretionary expenditures since we have certain non-discretionary obligations such as debt service that are not deducted from the measure.

Thermo Fisher Scientific does not provide GAAP financial measures on a forward-looking basis because we are unable to predict with reasonable certainty and without unreasonable effort items such as the timing and amount of future restructuring actions, transaction-related charges as well as gains or losses from sales of real estate and businesses, the early retirement of debt and the outcome of legal proceedings. The timing and amount of these items are uncertain and could be material to Thermo Fisher Scientific’s results computed in accordance with GAAP.

The non-GAAP financial measures of Thermo Fisher Scientific’s results of operations and cash flows included in this press release are not meant to be considered superior to or a substitute for Thermo Fisher Scientific’s results of operations prepared in accordance with GAAP. Reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measures are set forth in the tables above.

More News From Thermo Fisher Scientific Inc.

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Thermo Fisher Scientific Inc. (NYSE:TMO) will release its third quarter earnings report before the opening bell on Wednesday, Oct. 21.

On October 19, 2026, we conducted a DCF analysis for Thermo Fisher Scientific Inc TMO, a company that has shown impressive price performance over the past year, with a 29.0% increase. The stock has gained 19.4% year-to-date and 6.4% over the past month. However, despite this positive momentum, our valuation models indicate a consensus that TMO is significantly overvalued.

DCF Earnings-based intrinsic value of $421.12 vs current price of $690.00 (margin of safety: -63.9%) DCF FCF-based intrinsic value of $342.92, further confirming overvaluation (margin of safety: -101.2%) GF Score™ of 84/100 suggests a reliable assessment, but the predictability rank of 0/5 stars indicates caution in DCF estimates What Is TMO Worth? DCF Earnings-Based Model The DCF earnings-based model for Thermo Fisher Scientific Inc utilizes a two-stage growth approach. In the first stage, we project earnings per share (EPS) growth at 16.1% annually for the next ten years, followed by a terminal growth phase with a 4% growth rate for the subsequent ten years. The discount rate applied is 12%, which combines the risk-free rate and equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $19.14 10-Year Growth Rate 16.1% 10-Year Treasury Rate 5.08% Discount Rate (ceil(Treasury) + 6%) 12% Terminal Growth Rate 4% The calculation summary for the DCF earnings-based model is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 16.1%, discounted at 12% $234.52 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 12% $186.60 Intrinsic Value Growth + Terminal $421.12 Comparing the current price of $690.00 with the intrinsic value of $421.12 reveals that TMO is significantly overvalued, with a margin of safety of -63.9%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research indicates that stock prices correlate more closely with earnings than with free cash flow. For further analysis, visit the TMO DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for TMO is calculated at $342.92. This value aligns with the earnings-based DCF model, reinforcing the conclusion that TMO is significantly overvalued, with a margin of safety of -101.2%.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Thermo Fisher Scientific Inc stands at $603.82, providing a third perspective on valuation. GF Value™ is derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—agree on the overvaluation of TMO. For more details, visit the GF Value™ page.

What Does TMO's GF Score™ Tell Us? The GF Score™ evaluates a company's financial strength, profitability, growth potential, valuation, and momentum. TMO's score of 84/100 indicates a solid overall performance, though its predictability rank of 0/5 stars suggests that the DCF model may be less reliable for this stock.

Metric Rating GF Score™ 84/100 Financial Strength 5/10 Profitability 8/10 Growth 7/10 Valuation 6/10 Momentum 9/10 For more information on TMO, visit the TMO stock page.

Key Assumptions and Limitations It is crucial to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as TMO's 0/5 stars, tend to yield less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future market conditions.

What This Means for Investors In summary, all three valuation models—DCF earnings, DCF FCF, and GF Value™—point to the conclusion that Thermo Fisher Scientific Inc is significantly overvalued at its current price of $690.00. The consensus across these models suggests caution for potential investors. Furthermore, the guru ownership signal indicates that 30 gurus currently hold TMO, with 15 adding to their positions and 13 trimming them, while insiders have sold a total of $158.1M over the past 12 months. This mixed signal from gurus and insider activity reinforces the notion of caution. For further insights, check out the TMO DCF Calculator.

Frequently Asked Questions What is TMO's intrinsic value based on DCF?

Answer: earnings-based $421.12, FCF-based $342.92

Is TMO overvalued or undervalued?

Answer: TMO is significantly overvalued based on both DCF models and GF Value™.

How reliable is the DCF model for TMO?

Answer: The DCF model is less reliable for TMO due to its predictability rank of 0/5 stars.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Wall Street analysts expect Thermo Fisher Scientific (TMO - Free Report) to post quarterly earnings of $6.40 per share in its upcoming report, which indicates a year-over-year increase of 10.5%. Revenues are expected to be $11.92 billion, up 7.2% from the year-ago quarter.

Over the last 30 days, there has been an upward revision of 0.2% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

With that in mind, let's delve into the average projections of some Thermo Fisher metrics that are commonly tracked and projected by analysts on Wall Street.

Analysts' assessment points toward 'Revenues- Laboratory Products and Biopharma Services' reaching $6.56 billion. The estimate points to a change of +9.9% from the year-ago quarter.

The consensus estimate for 'Revenues- Specialty Diagnostics' stands at $1.14 billion. The estimate points to a change of -3% from the year-ago quarter.

Analysts forecast 'Revenues- Life Sciences Solutions' to reach $2.85 billion. The estimate indicates a change of +10.3% from the prior-year quarter.

Based on the collective assessment of analysts, 'Revenues- Analytical Instruments' should arrive at $1.95 billion. The estimate indicates a change of +2.8% from the prior-year quarter.

The consensus among analysts is that 'Revenue Growth - Organic' will reach 4.2%. Compared to the current estimate, the company reported 3.0% in the same quarter of the previous year.

View all Key Company Metrics for Thermo Fisher here>>>

Thermo Fisher shares have witnessed a change of +5.8% in the past month, in contrast to the Zacks S&P 500 composite's +2.4% move. With a Zacks Rank #2 (Buy), TMO is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

The market expects Thermo Fisher Scientific (TMO - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on October 21, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis maker of scientific instrument and laboratory supplies is expected to post quarterly earnings of $6.40 per share in its upcoming report, which represents a year-over-year change of +10.5%.

Revenues are expected to be $11.91 billion, up 7.1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.14% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Thermo Fisher?For Thermo Fisher, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.12%.

On the other hand, the stock currently carries a Zacks Rank of #2.

So, this combination makes it difficult to conclusively predict that Thermo Fisher will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Thermo Fisher would post earnings of $5.71 per share when it actually produced earnings of $6.03, delivering a surprise of +5.60%.

Over the last four quarters, the company has beaten consensus EPS estimates four times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Thermo Fisher doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Thermo Fisher Scientific (TMO - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

As such, the Zacks rating upgrade for Thermo Fisher is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

For Thermo Fisher, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.

Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Thermo FisherFor the fiscal year ending December 2026, this maker of scientific instrument and laboratory supplies is expected to earn $25.13 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Thermo Fisher. Over the past three months, the Zacks Consensus Estimate for the company has increased 1.1%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Thermo Fisher to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

Thermo Fisher Scientific Inc. (NYSE:TMO – Get Free Report)’s stock price hit a new 52-week high on Tuesday. The company traded as high as $694.33 and last traded at $678.8880, with a volume of 218570 shares. The stock had previously closed at $676.76.

Trending Headlines about Thermo Fisher Scientific Here are the key news stories impacting Thermo Fisher Scientific this week:

Positive Sentiment: Thermo Fisher’s PPD clinical research business signed an agreement with Quantum BioPharma (NASDAQ: QNTM) to initiate a randomized, placebo-controlled Phase 2 trial of Lucid-MS, a potential treatment for multiple sclerosis. The contract expands PPD’s clinical research work and provides evidence of continued demand for Thermo Fisher’s drug-development services. The financial terms were not disclosed. Thermo Fisher supports Quantum BioPharma multiple sclerosis trial Positive Sentiment: At CPHI Milan 2026, Thermo Fisher is showcasing expanded drug-development, manufacturing and clinical capabilities, including its OSD Express solution designed to improve predictability in oral solid-dose manufacturing. The offerings could strengthen the company’s position as pharmaceutical and biotechnology customers seek integrated commercialization support. Thermo Fisher CPHI Milan capabilities announcement Positive Sentiment: A collaboration with PRECISE and Nanyang Technological University used Thermo Fisher proteomics technologies to identify more than 2,500 previously unreported genetic-protein associations. The research reinforces the company’s technology credentials and could support future demand for proteomics tools. Thermo Fisher proteomics study announcement Neutral Sentiment: JPMorgan reportedly added Thermo Fisher to its October stock picks, while industry commentary highlighted opportunities from generative AI alongside regulatory and adoption risks. These developments may influence sentiment but do not change the company’s financial outlook. JPMorgan October stock picks Analyst Ratings Changes A number of equities research analysts recently weighed in on the stock. Scotiabank began coverage on shares of Thermo Fisher Scientific in a research report on Wednesday, September 9th. They set an “outperform” rating for the company. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $720.00 price target on shares of Thermo Fisher Scientific in a research report on Friday, September 25th. Sanford C. Bernstein assumed coverage on Thermo Fisher Scientific in a research report on Friday, June 26th. They set a “market perform” rating and a $520.00 price objective for the company. Morgan Stanley upped their target price on shares of Thermo Fisher Scientific from $620.00 to $650.00 and gave the stock an “overweight” rating in a research report on Friday, July 24th. Finally, Piper Sandler began coverage on Thermo Fisher Scientific in a report on Wednesday, September 9th. They set an “overweight” rating on the stock. Two analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, four have given a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, Thermo Fisher Scientific currently has a consensus rating of “Moderate Buy” and an average target price of $628.78.

Read Our Latest Stock Report on TMO Thermo Fisher Scientific Stock Performance The company has a fifty day moving average price of $620.96 and a two-hundred day moving average price of $536.59. The firm has a market cap of $243.92 billion, a price-to-earnings ratio of 35.31, a price-to-earnings-growth ratio of 2.74 and a beta of 0.87. The company has a debt-to-equity ratio of 0.74, a current ratio of 1.55 and a quick ratio of 1.18.

Thermo Fisher Scientific (NYSE:TMO – Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The medical research company reported $6.03 EPS for the quarter, topping the consensus estimate of $5.71 by $0.32. Thermo Fisher Scientific had a net margin of 15.04% and a return on equity of 17.09%. The firm had revenue of $11.99 billion for the quarter, compared to analysts’ expectations of $11.71 billion. During the same period in the previous year, the business earned $4.28 earnings per share. Thermo Fisher Scientific’s revenue for the quarter was up 10.5% compared to the same quarter last year. Thermo Fisher Scientific has set its FY 2026 guidance at 24.930-25.330 EPS. As a group, equities research analysts expect that Thermo Fisher Scientific Inc. will post 25.13 EPS for the current year.

Thermo Fisher Scientific Dividend Announcement The firm also recently announced a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Tuesday, September 15th will be paid a dividend of $0.47 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.88 annualized dividend and a yield of 0.3%. Thermo Fisher Scientific’s dividend payout ratio is currently 10.11%.

Insiders Place Their Bets In other Thermo Fisher Scientific news, VP Lisa P. Britt sold 11,440 shares of Thermo Fisher Scientific stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $613.12, for a total transaction of $7,014,092.80. Following the transaction, the vice president directly owned 14,784 shares in the company, valued at approximately $9,064,366.08. The trade was a 43.62% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, CAO Joseph R. Holmes sold 420 shares of the company’s stock in a transaction on Friday, August 7th. The shares were sold at an average price of $584.81, for a total value of $245,620.20. Following the transaction, the chief accounting officer directly owned 2,966 shares in the company, valued at $1,734,546.46. The trade was a 12.40% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 73,768 shares of company stock worth $44,122,820 over the last three months. Company insiders own 0.33% of the company’s stock.

Hedge Funds Weigh In On Thermo Fisher Scientific Large investors have recently made changes to their positions in the business. Legacy Wealth Managment LLC ID increased its stake in Thermo Fisher Scientific by 78.6% in the 1st quarter. Legacy Wealth Managment LLC ID now owns 50 shares of the medical research company’s stock valued at $25,000 after buying an additional 22 shares during the period. Kilter Group LLC purchased a new position in shares of Thermo Fisher Scientific during the 2nd quarter valued at $25,000. Allied Private Wealth LLC acquired a new position in shares of Thermo Fisher Scientific in the second quarter worth $26,000. MBM Wealth Consultants LLC purchased a new stake in shares of Thermo Fisher Scientific during the first quarter worth $29,000. Finally, Pingora Partners LLC acquired a new stake in Thermo Fisher Scientific during the second quarter valued at $30,000. Institutional investors and hedge funds own 89.23% of the company’s stock.

(Get Free Report)

Thermo Fisher Scientific Inc is a global provider of laboratory products, analytical instruments, reagents, consumables, software and services. Its offerings support research, drug discovery and development, clinical diagnostics, biotechnology and pharmaceutical manufacturing, as well as environmental, industrial and other applied markets.

The company’s portfolio includes mass spectrometers, genetic analysis and sequencing systems, electron microscopes, chromatography equipment, laboratory plastics, cell culture products, antibodies, protein and molecular biology reagents, and diagnostic testing solutions.

Featured Articles Five stocks we like better than Thermo Fisher Scientific AI Chip Demand Gives Linde a New Growth Catalyst Qualcomm’s Huawei Deal Adds Strategic Depth to Its AI Expansion 3 Sectors Where Volatility Is Creating Entry Points, Not Exit Signals D-Wave’s Gate-Model Tech Notches a Major Milestone Receive News & Ratings for Thermo Fisher Scientific Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Thermo Fisher Scientific and related companies with MarketBeat.com's FREE daily email newsletter.

For Immediate ReleaseChicago, IL – October 6, 2026 – Today, Zacks Equity as Globus Medical (GMED - Free Report) , Intuitive Surgical (ISRG - Free Report) and Thermo Fisher Scientific (TMO - Free Report) .

Industry: Medical Instruments

Link: https://www.zacks.com/commentary/2999820/3-medical-instruments-stocks-using-genai-to-navigate-industry-woes

Generative AI (GenAI) is gaining traction across the Medical Instruments industry as companies move from experimentation to practical applications. The technology is being used to generate synthetic medical images, simulate disease progression, create potential drug molecules and predict their effects, helping accelerate drug development. 

According to a McKinsey article, half of surveyed U.S. healthcare leaders say their organizations have implemented GenAI, while more than 80% have deployed their first use cases to end users. Another BCG survey finds that GenAI tools such as ChatGPT and Google Gemini are becoming a first destination for many patients seeking quick and convenient health advice. Adoption has been fastest among internet-connected consumers in emerging markets, including India and China.

The regulatory framework is evolving, too. The European Union’s landmark AI Act 2024 introduced strict requirements for high-risk AI systems, including AI-based medical software. In August 2026, the FDA released a discussion paper, highlighting the benefits and distinct risks of GenAI-enabled medical devices and seeking stakeholder input on regulatory approaches.

Fortune Business Insights projects the AI-enabled medical devices market to expand at a CAGR of 19.9% through 2026-2034, creating growth opportunities for companies like Globus Medical, Intuitive Surgical and Thermo Fisher Scientific.

Industry DescriptionThe Zacks Medical - Instruments industry is highly fragmented, with participants engaged in research and development (R&D) in therapeutic areas. This FDA-regulated sector encompasses a vast array of products, from transcatheter valves and orthopedic devices to advanced imaging equipment and robotics. 

Recent trends highlight the integration of AI in diagnostics, the expansion of telemedicine, the rise of robotic-assisted surgeries and developments in 3D printing, continuous glucose monitoring systems and gene editing. The rise of GenAI is also reshaping MedTech, from speeding up patient recruitment to optimizing trial designs and improving regulatory processes. The FDA’s Total Product Life Cycle approach supports faster development of safe and effective medical devices critical to public health.

3 Trends Shaping the Future of the Medical Instruments IndustryGenAI Revolution: Over the past couple of years, GenAI adoption in the medical instrument space has increased significantly,with hyper-personalization being the primary feature of GenAI-driven treatment options. By analyzing vast and complex genetic and molecular data, GenAI is expected to help healthcare reach new heights in terms of predictive treatment options and smart hospital systems. 

According to Grand View Research, the global GenAI in healthcare market is projected to witness a 33.3% CAGR between 2026 and 2033. Rising demand for personalized healthcare solutions is driving growth, with GenAI enabling tailored treatment plans, more accurate diagnoses and streamlined administrative tasks. AI-driven documentation tools integrated into leading EHR platforms are also accelerating adoption by streamlining physician workflows, reducing manual data entry, improving documentation accuracy and easing burnout. AI applications in diagnostics are expanding rapidly, with the market expected to expand at a 46.1% CAGR through 2034.

M&A Trend: The medical instrument space has been benefiting from the ongoing merger and acquisition (M&A) trend. Smaller and midsized companies are turning to consolidation to gain scale and strengthen their competitive position, while larger players are pursuing acquisitions to enter niche markets and add specialized products and technologies to their portfolios. 

According to PWC’s Medtech: US Deals 2026 midyear outlook, Medtech M&A remained strong in the first half of 2026, supported by large strategic and sponsor-backed deals and sustained interest in high-growth categories. Deal value totaled $36.5 billion, following a decade-high level of M&A activity in 2025. 

Key transactions included Boston Scientific’s $15 billion agreement to acquire Penumbra and Danaher’s $10 billion acquisition of Masimo. M&A momentum in the second half of 2026 continues to be supported by investments in innovation-led areas such as cardiovascular and neurostimulation, connected care and workflow platforms, as well as ongoing carve-outs, take-privates and other portfolio reshaping activity.

Business Trend Disruption: The IMF’s July 2026 World Economic Outlook projects global growth of 3% in 2026 and 3.4% in 2027, below the 3.5% average observed in 2024-25 but broadly unchanged from its April forecast on a cumulative basis. The outlook remains uneven, with the Middle East war shock weighing on energy importers and vulnerable economies, while AI-driven demand supports countries integrated into the global technology value chain. 

The impact varies based on countries’ exposure to the conflict and their role in the technology supply chain. Global headline inflation is expected to rise from 4.1% in 2025 to 4.7% in 2026 before easing to 3.9% in 2027. The projections were revised slightly higher from April, suggesting that the disinflation trend that began in early 2024 has stalled. The prospect of renewed conflict in the Middle East remains and could extend commodity price volatility, disrupt supply chains, raise prices and weigh on financial conditions.

Zacks Industry Rank Indicates Bright ProspectsThe Zacks Medical Instruments industry’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates upbeat near-term prospects. The industry, housed within the broader Zacks Medical sector, currently carries a Zacks Industry Rank #86, which places it in the top 35% of 247 Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

We will present a few stocks that have the potential to outperform the market based on a strong earnings outlook. It is worth taking a look at the industry’s shareholder returns and current valuation first.

Industry Underperforms S&P 500 & SectorThe industry has lagged the Zacks S&P 500 composite and the sector over the past year. The industry has gained 2.7% compared with the broader sector’s rise of 4.1%. The S&P 500 has returned 15.4% in a year.

Industry's Current ValuationOn the basis of the forward 12-month price-to-earnings (P/E), which is commonly used for valuing medical stocks, the industry is currently trading at 26.57X compared with the broader sector’s 20.66X and the S&P 500’s 19.76X.

Over the past five years, the industry has traded as high as 41.07X, as low as 24.72X and at the median of 31.24X.

3 Stocks to Buy Right NowGlobus Medical: Based in Audubon, PA, Globus Medical specializes in technologies that address a variety of musculoskeletal pathologies, anatomies and surgical approaches. The company has launched more than 25 products in recent years, reflecting its focus on organic product development. Through the NuVasive and Nevro Mergers, it has significantly grown its U.S. sales force. In August, Globus Medical acquired Higgs Boson Health and its digital solutions, advancing its strategy to enhance the Globus ecosystem.

GMED sports a Zacks Rank #1 (Strong Buy) at present. The Zacks Consensus Estimate for the company’s 2026 EPS and revenues calls for 25.4% and 8.8% growth, respectively. 

You can see the complete list of today's Zacks #1 Rank stocks here. 

Intuitive Surgical: Sunnyvale, CA-based Intuitive Surgical develops minimally invasive care technologies and robotic-assisted surgical systems. The company’s technologies include the da Vinci surgical systems and the Ion endoluminal system. In the second quarter of 2026, worldwide procedures grew 16% year over year, with da Vinci procedures rising almost 15% and Ion procedures growing nearly 36%. To reach more patients, Intuitive Surgical is advancing several early-stage R&D programs exploring the use of robotic-assisted technologies across new disease states.

ISRG carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate calls for 25.4% EPS growth and 8.8% revenue growth for the company in 2026.

Thermo Fisher Scientific: Waltham, MA-based Thermo Fisher Scientific develops technologies, instruments and solutions to help accelerate life sciences research, solve complex analytical challenges, increase laboratory productivity and improve patient health. It mainly serves pharmaceutical and biotech, academic and government, industrial and applied, as well as healthcare and diagnostics markets. Strategic M&A and partnerships are also a part of Thermo Fisher’s growth strategy, including the acquisitions of Solventum’s Purification & Filtration business and Clario Holdings.

TMO carries a Zacks Rank #2. The Zacks Consensus Estimate for the company’s 2026 EPS and revenues implies 9.9% and 7.3% growth, respectively. 

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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.

Thermo Fisher Scientific, the laboratory-equipment and life-sciences services company
TMO +3.35% 84

, joined JPMorgan's
JPM 85

October growth selections, with shares up approximately 1.1% to $662.27 at around 11:30 a.m. ET on Oct. 5. According to TipRanks, the bank's picks included Thermo Fisher. The investment case has a clear test: turn stronger customer demand and smarter laboratory tools into lasting earnings growth.

The company's second-quarter results showed operating profit growing faster than sales. Revenue climbed 10% to $11.99 billion, including 5% organic growth, while GAAP operating income increased 14% to $2.09 billion. Operating margin reached 17.4%, up from 16.9%. That half-percentage-point improvement matters. Thermo Fisher kept more profit from each dollar of revenue.

The valuation picture raises the bar: shares sit 10.06% above the $601.75 GF Value estimate. That premium leaves less room for disappointing results. Thermo Fisher also introduced Orbitrap platforms with AI-driven analytics during the quarter, but new technology must translate into customer spending. Sustained organic growth and further margin gains would give investors stronger reasons to pay up.

Check the Warning Signs for

TMO

now!

Rockland Trust Co. decreased its holdings in shares of Thermo Fisher Scientific Inc. (NYSE:TMO – Free Report) by 46.3% during the third quarter, according to its most recent filing with the SEC. The firm owned 34,723 shares of the medical research company’s stock after selling 29,916 shares during the period. Rockland Trust Co.’s holdings in Thermo Fisher Scientific were worth $23,440,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently modified their holdings of the company. Legacy Wealth Managment LLC ID raised its stake in Thermo Fisher Scientific by 78.6% in the first quarter. Legacy Wealth Managment LLC ID now owns 50 shares of the medical research company’s stock worth $25,000 after buying an additional 22 shares in the last quarter. Kilter Group LLC bought a new stake in Thermo Fisher Scientific during the 2nd quarter valued at $25,000. Allied Private Wealth LLC purchased a new position in shares of Thermo Fisher Scientific in the 2nd quarter valued at $26,000. MBM Wealth Consultants LLC purchased a new stake in shares of Thermo Fisher Scientific during the 1st quarter worth $29,000. Finally, Pingora Partners LLC bought a new stake in Thermo Fisher Scientific during the second quarter valued at about $30,000. 89.23% of the stock is currently owned by institutional investors.

Insiders Place Their Bets In other news, CAO Joseph Holmes sold 420 shares of the firm’s stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $584.81, for a total value of $245,620.20. Following the completion of the transaction, the chief accounting officer directly owned 2,966 shares in the company, valued at $1,734,546.46. This trade represents a 12.40% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Also, COO Gianluca Pettiti sold 400 shares of the company’s stock in a transaction that occurred on Monday, July 27th. The shares were sold at an average price of $565.00, for a total value of $226,000.00. Following the completion of the sale, the chief operating officer owned 24,651 shares in the company, valued at approximately $13,927,815. This represents a 1.60% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders sold 73,768 shares of company stock valued at $44,122,820. Insiders own 0.33% of the company’s stock.

Thermo Fisher Scientific Stock Performance TMO stock traded up $12.17 during trading on Monday, reaching $666.97. The company had a trading volume of 640,221 shares, compared to its average volume of 2,243,463. The company has a market cap of $246.61 billion, a price-to-earnings ratio of 35.87, a price-to-earnings-growth ratio of 2.74 and a beta of 0.87. Thermo Fisher Scientific Inc. has a twelve month low of $435.27 and a twelve month high of $683.63. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.18 and a current ratio of 1.55. The firm has a 50-day simple moving average of $618.62 and a 200-day simple moving average of $535.16. Thermo Fisher Scientific (NYSE:TMO – Get Free Report) last posted its quarterly earnings results on Thursday, July 23rd. The medical research company reported $6.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $5.71 by $0.32. Thermo Fisher Scientific had a net margin of 15.04% and a return on equity of 17.09%. The business had revenue of $11.99 billion during the quarter, compared to analysts’ expectations of $11.71 billion. During the same quarter last year, the company posted $4.28 earnings per share. The business’s quarterly revenue was up 10.5% on a year-over-year basis. Thermo Fisher Scientific has set its FY 2026 guidance at 24.930-25.330 EPS. As a group, sell-side analysts expect that Thermo Fisher Scientific Inc. will post 25.13 earnings per share for the current year.

Thermo Fisher Scientific Dividend Announcement The company also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be given a dividend of $0.47 per share. The ex-dividend date of this dividend is Tuesday, September 15th. This represents a $1.88 dividend on an annualized basis and a yield of 0.3%. Thermo Fisher Scientific’s payout ratio is currently 10.11%.

Analysts Set New Price Targets A number of equities analysts have commented on TMO shares. Citigroup downgraded shares of Thermo Fisher Scientific from a “buy” rating to an “underperform” rating in a report on Wednesday, September 9th. CLSA started coverage on shares of Thermo Fisher Scientific in a research report on Thursday, September 3rd. They issued an “outperform” rating and a C$748.00 price objective on the stock. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and set a $720.00 price objective on shares of Thermo Fisher Scientific in a research note on Friday, September 25th. Weiss Ratings upgraded shares of Thermo Fisher Scientific from a “hold (c)” rating to a “hold (c+)” rating in a research note on Friday, August 28th. Finally, HSBC raised Thermo Fisher Scientific from a “hold” rating to a “strong-buy” rating in a research report on Tuesday, September 1st. Two research analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, four have issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat.com, Thermo Fisher Scientific has an average rating of “Moderate Buy” and a consensus target price of $628.78.

Read Our Latest Stock Report on Thermo Fisher Scientific

Thermo Fisher Scientific Company Profile (Free Report)

Thermo Fisher Scientific Inc is a global provider of laboratory products, analytical instruments, reagents, consumables, software and services. Its offerings support research, drug discovery and development, clinical diagnostics, biotechnology and pharmaceutical manufacturing, as well as environmental, industrial and other applied markets.

The company’s portfolio includes mass spectrometers, genetic analysis and sequencing systems, electron microscopes, chromatography equipment, laboratory plastics, cell culture products, antibodies, protein and molecular biology reagents, and diagnostic testing solutions.

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WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific Inc., the world leader in serving science, today announced that its strategic collaboration with Precision Health Research, Singapore (PRECISE) and Nanyang Technological University, Singapore (NTU Singapore) has led to the discovery of more than 2,500 previously unreported genetic-protein associations. By combining Thermo Fisher's complementary proteomics technologies with PRECISE-SG100K's large-scale health and genomic data, researchers.

Shares of Thermo Fisher Scientific Inc. (NYSE:TMO – Get Free Report) hit a new 52-week high during trading on Wednesday. The stock traded as high as $671.47 and last traded at $663.61, with a volume of 110382 shares. The stock had previously closed at $658.52.

Thermo Fisher Scientific News Roundup Here are the key news stories impacting Thermo Fisher Scientific this week:

Positive Sentiment: Thermo Fisher launched the Gibco CHO-K1 Catalog Panel, a cGMP-ready, chemically defined and animal-origin-free media portfolio for biologics and biosimilar developers. The product is designed to improve cell growth, protein yield, scalability and manufacturing flexibility, supporting demand from biopharmaceutical customers. Thermo Fisher Scientific Rolls Out New Media Panel for Biologics Development Positive Sentiment: Industry forecasts point to strong long-term growth in cell isolation, cell separation, cell culture media and reusable bioreactors, driven by biologics, cell and gene therapies, personalized medicine, automation and advanced diagnostics. Thermo Fisher is profiled as a participant in each market, highlighting its potential end-market growth opportunities. Cell Isolation and Cell Separation Market Forecast Positive Sentiment: Analyst commentary also identifies Thermo Fisher as an AI-enabled medical and life-science company, with applications in precision medicine and drug development. This reinforces the broader investment case for its technology and research-tools businesses. AI-Powered Medical Stocks Positive Sentiment: Biodesix reported progress in molecular residual disease monitoring programs involving Bio-Rad and Thermo Fisher. The collaboration expands Thermo Fisher’s relevance in circulating-tumor-DNA testing and oncology research. Biodesix Advances MRD Monitoring Programs Neutral Sentiment: The new product launch supports the company’s growth narrative, but one report frames the shares as a “fair value” question after a strong recent run, suggesting valuation could limit additional upside even as operating prospects remain favorable. Thermo Fisher Scientific Launches Gibco CHO-K1 Panel Wall Street Analysts Forecast Growth Several equities research analysts have issued reports on the stock. Scotiabank initiated coverage on shares of Thermo Fisher Scientific in a report on Wednesday, September 9th. They issued an “outperform” rating on the stock. UBS Group upgraded shares of Thermo Fisher Scientific from a “neutral” rating to a “buy” rating and lifted their target price for the company from $540.00 to $730.00 in a research report on Tuesday, September 8th. Citigroup cut shares of Thermo Fisher Scientific from a “buy” rating to an “underperform” rating in a research note on Wednesday, September 9th. HSBC upgraded shares of Thermo Fisher Scientific from a “hold” rating to a “strong-buy” rating in a research note on Tuesday, September 1st. Finally, Wolfe Research initiated coverage on Thermo Fisher Scientific in a research note on Tuesday, June 2nd. They issued an “outperform” rating and a $535.00 price objective on the stock. Two analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, five have given a Hold rating and two have issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and a consensus price target of $624.64.

View Our Latest Report on TMO Thermo Fisher Scientific Price Performance The company has a market cap of $251.15 billion, a price-to-earnings ratio of 36.54, a P/E/G ratio of 2.75 and a beta of 0.85. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.18 and a current ratio of 1.55. The company’s 50 day moving average price is $603.20 and its 200 day moving average price is $527.41.

Thermo Fisher Scientific (NYSE:TMO – Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The medical research company reported $6.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.71 by $0.32. The firm had revenue of $11.99 billion during the quarter, compared to the consensus estimate of $11.71 billion. Thermo Fisher Scientific had a net margin of 15.04% and a return on equity of 17.09%. The firm’s quarterly revenue was up 10.5% on a year-over-year basis. During the same period last year, the firm posted $4.28 EPS. Thermo Fisher Scientific has set its FY 2026 guidance at 24.930-25.330 EPS. On average, equities research analysts predict that Thermo Fisher Scientific Inc. will post 25.13 earnings per share for the current fiscal year.

Thermo Fisher Scientific Announces Dividend The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 15th. Investors of record on Tuesday, September 15th will be given a dividend of $0.47 per share. The ex-dividend date is Tuesday, September 15th. This represents a $1.88 dividend on an annualized basis and a yield of 0.3%. Thermo Fisher Scientific’s dividend payout ratio is 10.11%.

Insider Transactions at Thermo Fisher Scientific In related news, CAO Joseph R. Holmes sold 420 shares of Thermo Fisher Scientific stock in a transaction dated Friday, August 7th. The stock was sold at an average price of $584.81, for a total value of $245,620.20. Following the completion of the transaction, the chief accounting officer directly owned 2,966 shares of the company’s stock, valued at $1,734,546.46. The trade was a 12.40% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CEO Marc N. Casper sold 10,000 shares of the company’s stock in a transaction dated Thursday, August 20th. The stock was sold at an average price of $629.27, for a total transaction of $6,292,700.00. Following the transaction, the chief executive officer owned 123,925 shares in the company, valued at approximately $77,982,284.75. This trade represents a 7.47% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders have sold 73,768 shares of company stock worth $44,122,820. 0.33% of the stock is owned by company insiders.

Hedge Funds Weigh In On Thermo Fisher Scientific A number of large investors have recently modified their holdings of TMO. BlackRock Inc. bought a new position in Thermo Fisher Scientific in the 2nd quarter worth approximately $15,501,867,000. State Street Corp raised its position in shares of Thermo Fisher Scientific by 1.4% during the fourth quarter. State Street Corp now owns 16,613,761 shares of the medical research company’s stock worth $9,633,991,000 after acquiring an additional 229,630 shares during the last quarter. Capital World Investors lifted its stake in shares of Thermo Fisher Scientific by 7.0% during the fourth quarter. Capital World Investors now owns 11,003,814 shares of the medical research company’s stock valued at $6,376,229,000 after acquiring an additional 718,669 shares during the period. Geode Capital Management LLC boosted its holdings in Thermo Fisher Scientific by 0.3% in the fourth quarter. Geode Capital Management LLC now owns 8,196,477 shares of the medical research company’s stock valued at $4,728,129,000 after acquiring an additional 26,425 shares during the last quarter. Finally, Franklin Resources Inc. increased its position in Thermo Fisher Scientific by 7.1% in the fourth quarter. Franklin Resources Inc. now owns 6,346,512 shares of the medical research company’s stock worth $3,677,486,000 after purchasing an additional 420,841 shares during the period. 89.23% of the stock is currently owned by institutional investors and hedge funds.

Thermo Fisher Scientific Company Profile (Get Free Report)

Thermo Fisher Scientific Inc is a global supplier of scientific equipment, laboratory services and analytical technologies. The company serves pharmaceutical and biotechnology companies, clinical laboratories, academic and government institutions, industrial businesses and other research organizations.

Its products and services include laboratory instruments, analytical systems, reagents, consumables, software and related services. Thermo Fisher also provides laboratory supplies and equipment, bioproduction solutions, genetic analysis technologies, clinical diagnostics, specialty diagnostic products and contract research and manufacturing services through its laboratory services businesses.

The company was formed in 2006 through the merger of Thermo Electron Corporation and Fisher Scientific International.

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Key Takeaways Intuitive Surgical is adding AI and digital tools to its robotic surgery ecosystem to enhance workflows.Tempus AI uses patient data and AI to support personalized care, treatment decisions and drug discovery.Thermo Fisher is using AI to drug development, productivity and customer solutions through new partnerships. Rising demand for precision and personalized medicine has significantly augmented the need for artificial intelligence (AI)-enabled medical devices to deliver highly individualized diagnostics and treatments.

Over the past several months, generative AI in the medical devices industry has moved from experimental to operational use. Applications include generating synthetic medical images, simulating disease progression, creating potential drug molecules and simulating their effects, to accelerate the long and costly drug development process.

Here, we recommend three medical devices stocks with a favorable Zacks Rank to invest in for the rest of 2026. Despite a volatile September, these stocks have provided more than 5% returns in the past month beating the S&P 500 index’s 1.2% return. 

These stocks are: Intuitive Surgical Inc. (ISRG - Free Report) , Tempus AI Inc. (TEM - Free Report) and Thermo Fisher Scientific Inc. (TMO - Free Report) . Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The chart below shows the price performance of our three picks in the past month.

Image Source: Zacks Investment Research

Intuitive Surgical Inc.Intuitive Surgical is increasingly embedding AI and digital tools into its robotic ecosystem. ISRG operates in the robotic surgery market for soft tissue procedures, where adoption is supported by the shift toward minimally invasive care. The company’s platforms include the da Vinci surgical system and the Ion endoluminal system.

ISRG continues to add digital capabilities that can improve training, workflow and hospital program management. The first phase of more than 100 da Vinci 5 updates targets telepresence, simulation-based training and care-team workflow. 

ISRG also executed its first My Intuitive+ renewals, covering telepresence, simulation and AI-driven case insights, and no customer in the initial cohort opted out. These tools can increase the utility of the installed base and reinforce customer engagement. 

Strong Estimate RevisionsIntuitive Surgical has an expected revenue and earnings growth rate of 16.7% and 20.3%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 2.6% over the last 60 days.

ISRG has an expected revenue and earnings growth rate of 12.5% and 11.6%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.1% over the last 30 days.

Tempus AI Inc.Tempus AI is a technology company advancing precision medicine through the practical application of AI principally in healthcare. TEM provides AI-enabled precision medicine solutions to physicians so that they can deliver personalized patient care, and parallel facilitates for the discovery, development and delivery of optimal therapeutics.

TEM’s AI applications include analyzing patient data, generating clinical notes, identifying care gaps, and assisting with treatment decisions, particularly in oncology and cardiology. TEM integrates data including phenotypic, morphologic, and molecular data from different sources to provide a more comprehensive view of a patient's condition.

Strong Estimate RevisionsTempus AI has an expected revenue and earnings growth rate of 25.5% and 55.7%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 22.9% over the last 60 days.

TEM has an expected revenue and earnings growth rate of 24.4% and more than 100%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved more than 100% over the last 60 days.

Thermo Fisher Scientific Inc.Thermo Fisher Scientific is expanding AI capabilities across its software portfolio and using AI within its PPI Business System to improve productivity, quality and customer responsiveness. TMO integrates AI into drug development, helping researchers identify and eliminate ineffective drug candidates faster and shorten clinical trial cycle times through its partnership with Open AI.

TMO is also strengthening customer collaboration through its new U.S. Bioprocess Design Center and a precision health partnership in Singapore that combines Olink proteomics with the Orbitrap Astral platform. The commercial engine supports adoption by linking new technologies with a broad customer base and integrated service offering.

Strong Estimate RevisionsThermo Fisher Scientific has an expected revenue and earnings growth rate of 7.3% and 9.9%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved 0.4% over the last 60 days.

TMO has an expected revenue and earnings growth rate of 5.1% and 9.5%, respectively, for the next year. The Zacks Consensus Estimate for next year’s earnings has improved 0.3% over the last 60 days.

WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific, the world leader in serving science, today announced the Gibco™ CHO-K1 Catalog Panel, a cGMP-ready portfolio of basal and feed media designed to support strong cell growth and protein production across CHO-K1 cell lines. Available in liquid and dry powder media (DPM) formats, the panel can offer flexible options for process development, scale-up, and manufacturing. The panel consists of multiple basal media and feed combinations designe.

Thermo Fisher Scientific Inc. (TMO) Presents at Morgan Stanley 24th Annual Global Healthcare Conference Transcript

Baird Financial Group Inc. lowered its stake in shares of Thermo Fisher Scientific Inc. (NYSE:TMO – Free Report) by 18.9% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The firm owned 167,777 shares of the medical research company’s stock after selling 39,226 shares during the quarter. Baird Financial Group Inc.’s holdings in Thermo Fisher Scientific were worth $84,117,000 as of its most recent filing with the Securities and Exchange Commission.

Other hedge funds and other institutional investors have also recently bought and sold shares of the company. Legacy Wealth Managment LLC ID raised its holdings in Thermo Fisher Scientific by 78.6% in the first quarter. Legacy Wealth Managment LLC ID now owns 50 shares of the medical research company’s stock valued at $25,000 after acquiring an additional 22 shares in the last quarter. Kilter Group LLC acquired a new position in Thermo Fisher Scientific during the 2nd quarter worth approximately $25,000. Allied Private Wealth LLC purchased a new stake in shares of Thermo Fisher Scientific in the 2nd quarter valued at approximately $26,000. High Note Wealth LLC raised its holdings in shares of Thermo Fisher Scientific by 170.6% in the 4th quarter. High Note Wealth LLC now owns 46 shares of the medical research company’s stock valued at $27,000 after purchasing an additional 29 shares in the last quarter. Finally, Swiss RE Ltd. purchased a new stake in shares of Thermo Fisher Scientific during the 4th quarter worth $28,000. 89.23% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Upgrades and Downgrades TMO has been the topic of several recent analyst reports. CLSA began coverage on Thermo Fisher Scientific in a report on Thursday, September 3rd. They issued an “outperform” rating and a C$748.00 target price on the stock. Royal Bank Of Canada upped their price objective on Thermo Fisher Scientific from $490.00 to $580.00 and gave the stock a “sector perform” rating in a research report on Friday, July 24th. Sanford C. Bernstein started coverage on Thermo Fisher Scientific in a research report on Friday, June 26th. They set a “market perform” rating and a $520.00 target price on the stock. Wall Street Zen upgraded Thermo Fisher Scientific from a “hold” rating to a “buy” rating in a research note on Saturday, August 1st. Finally, Wolfe Research initiated coverage on shares of Thermo Fisher Scientific in a research note on Tuesday, June 2nd. They issued an “outperform” rating and a $535.00 price target on the stock. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, five have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus price target of $624.64.

View Our Latest Report on TMO Thermo Fisher Scientific Price Performance Shares of NYSE:TMO opened at $607.23 on Thursday. Thermo Fisher Scientific Inc. has a one year low of $435.27 and a one year high of $647.00. The stock has a market capitalization of $224.52 billion, a price-to-earnings ratio of 32.66, a PEG ratio of 2.52 and a beta of 0.85. The company has a 50-day simple moving average of $577.00 and a 200-day simple moving average of $517.24. The company has a debt-to-equity ratio of 0.74, a quick ratio of 1.18 and a current ratio of 1.55.

Thermo Fisher Scientific (NYSE:TMO – Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The medical research company reported $6.03 earnings per share (EPS) for the quarter, beating the consensus estimate of $5.71 by $0.32. Thermo Fisher Scientific had a return on equity of 17.09% and a net margin of 15.04%.The firm had revenue of $11.99 billion for the quarter, compared to analysts’ expectations of $11.71 billion. During the same quarter in the previous year, the firm posted $4.28 EPS. The firm’s revenue for the quarter was up 10.5% on a year-over-year basis. Thermo Fisher Scientific has set its FY 2026 guidance at 24.930-25.330 EPS. On average, analysts predict that Thermo Fisher Scientific Inc. will post 25.13 EPS for the current year.

Thermo Fisher Scientific Dividend Announcement The company also recently disclosed a quarterly dividend, which will be paid on Thursday, October 15th. Shareholders of record on Tuesday, September 15th will be given a dividend of $0.47 per share. The ex-dividend date is Tuesday, September 15th. This represents a $1.88 dividend on an annualized basis and a yield of 0.3%. Thermo Fisher Scientific’s dividend payout ratio is presently 10.11%.

Insider Activity In other Thermo Fisher Scientific news, CEO Marc N. Casper sold 275 shares of the business’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $627.05, for a total transaction of $172,438.75. Following the transaction, the chief executive officer owned 123,925 shares in the company, valued at approximately $77,707,171.25. The trade was a 0.22% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Joseph R. Holmes sold 420 shares of the stock in a transaction that occurred on Friday, August 7th. The stock was sold at an average price of $584.81, for a total value of $245,620.20. Following the transaction, the chief accounting officer directly owned 2,966 shares of the company’s stock, valued at approximately $1,734,546.46. This trade represents a 12.40% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 73,768 shares of company stock worth $44,122,820 over the last quarter. Insiders own 0.33% of the company’s stock.

Thermo Fisher Scientific Company Profile (Free Report)

Thermo Fisher Scientific Inc is a global supplier of scientific equipment, laboratory services and analytical technologies. The company serves pharmaceutical and biotechnology companies, clinical laboratories, academic and government institutions, industrial businesses and other research organizations.

Its products and services include laboratory instruments, analytical systems, reagents, consumables, software and related services. Thermo Fisher also provides laboratory supplies and equipment, bioproduction solutions, genetic analysis technologies, clinical diagnostics, specialty diagnostic products and contract research and manufacturing services through its laboratory services businesses.

The company was formed in 2006 through the merger of Thermo Electron Corporation and Fisher Scientific International.

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Thermo Fisher's growth is gaining momentum as acquisitions strengthen its life sciences reach, but macro risks and competition remain concerns.

Key Takeaways Thermo Fisher launched EMPAD G2 to enable faster, detailed 4D STEM materials analysis in a single scan. TMO's EMPAD G2 runs at 10,000 frames per second and supports advanced atomic-scale characterization. Thermo Fisher integrates EMPAD G2 with Velox software to simplify analysis and improve repeatable results. Thermo Fisher Scientific Inc. (TMO - Free Report) recently unveiled the Thermo Scientific EMPAD G2 detector to help researchers analyze materials in unprecedented detail. This development is expected to bolster the company’s Analytical Instruments segment. 

TMO Stock Outlook Following the NewsAfter the announcement, TMO shares dipped slightly by 0.8% last Thursday. 

On a positive note, Thermo Fisher has steadily ramped up R&D investments in recent years, fueling new product launches and enhancing its portfolio. We expect the latest development to improve investor sentiment toward TMO stock and support its upward momentum in the near term.

Thermo Fisher has a market capitalization of $233.20 billion. The company’s earnings yield of 4% is well ahead of the industry’s -1.3% yield. It surpassed earnings estimates in each of the trailing four quarters, delivering an average surprise of 4.4%. 

About TMO’s EMPAD G2 DetectorEMPAD G2 enables high-speed four-dimensional scanning transmission electron microscopy (4D STEM), an advanced form of electron microscopy. It aims to help researchers capture more information about materials in a single scan, recording both the strongest and weakest signals without sacrificing imaging speed or data quality. 

The advanced 4D STEM technology offers faster, more reliable and user-friendly performance, helping researchers accelerate discoveries in semiconductors, energy and advanced materials while supporting the development of technologies with real-world applications.

Performance and Workflow of TMO’s EMPAD G2EMPAD G2 runs at 10,000 frames per second (0.1 ms/frame), with exceptionally high single-frame dynamic range (>10???), single-electron sensitivity and operation across the full 30–300 kV range. EMPAD G2 supports advanced applications, ranging from strain mapping and differential phase contrast (DPC) to multi-slice electron ptychography for three-dimensional characterization at the atomic scale.

EMPAD G2 is also fully integrated with the user-friendly Thermo Scientific Velox software. Researchers can collect and analyze multiple types of data, including simultaneous 4D STEM and energy-dispersive x-ray spectroscopy (EDS) within a single workflow. This integration helps simplify advanced materials analysis and supports more reliable, repeatable results.

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Industry Prospects Favor TMOPer a QYResearch report, the global 4D STEM market was valued at an estimated $68 million in 2024 and is projected to reach $110 million by 2031, reflecting a CAGR of 6.6% from 2025 to 2031.

As 4D STEM becomes more widely adopted in academic and industrial research, detector performance is becoming increasingly important. Researchers need to capture large volumes of information rapidly while accurately measuring signals ranging from extremely strong to extremely weak. EMPAD G2 is specifically designed to meet these demands, enabling researchers to obtain reliable quantitative information from a single acquisition.

TMO: Another Key DevelopmentThermo Fisher recently launched Thermo Scientific Orbitrap Isora Mass Spectrometer and Orbitrap Isora Pro Mass Spectrometer, the company’s first Orbitrap instruments with a dedicated isotope ratio analysis mode. Combined with the Thermo Scientific Vanquish Duo UHPLC System and new Isotope Discoverer Software, the instruments form an integrated workflow designed to make molecular-level isotope ratio analysis accessible to more laboratories and researchers worldwide.

TMO Stock Price PerformanceIn the past year, TMO shares have risen 25.3% against the industry’s 4.1% decline. 

TMO’s Zacks Rank and Key PicksThermo Fisher currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader medical space are Globus Medical (GMED - Free Report) , Veracyte (VCYT - Free Report) and Illumina (ILMN - Free Report) .

Globus Medical has an earnings yield of 5.8% against the industry’s negative 1.7% yield. Its earnings surpassed estimates in each of the trailing four quarters, with the average surprise being 27.9%. GMED’s shares have rallied 42.3% against the industry’s 6.3% decline over the past year.

GMED sports a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Veracyte, sporting a Zacks Rank #1 at present, has an earnings yield of 4.6% against the industry’s negative 1.7% yield. Shares of the company have risen 38% against the industry’s 6.3% decline. VCYT’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 41.8%. 

Illumina, presently carrying a Zacks Rank #2 (Buy), has an estimated long-term earnings growth rate of 13% compared with the industry’s 23% growth. Its earnings beat estimates in each of the trailing four quarters, the average surprise being 9.7%. ILMN’s shares have rallied 194.6% compared with the industry’s 24.6% growth over the past year.

WALTHAM, Mass.--(BUSINESS WIRE)--Thermo Fisher Scientific Inc., the world leader in serving science, today introduced the Thermo Scientific™ EMPAD™ G2 detector, a new detector designed to help researchers see and understand materials in unprecedented detail. EMPAD G2 enables high-speed four-dimensional scanning transmission electron microscopy (4D STEM), an advanced form of electron microscopy that captures far more information about a material than a standard image, helping researchers better.