Thermo Fisher Scientific Inc.

Thermo Fisher reported Q3 revenue of $12.14 billion, up 9% year over year, including 6% organic growth, 4% contribution from acquisitions, and a 1% decline from the microbiology divestiture. Adjusted EPS was $6.68, up 15%, and GAAP EPS was $4.64, up 9%. Adjusted operating income was $2.97 billion, up 15%, adjusted operating margin was 24.5% (up 120 basis points), and adjusted gross margin was 42.8%. By segment, Life Sciences Solutions revenue rose 5% reported and 1% organic; Analytical Instruments rose 6% reported and 6% organic; Specialty Diagnostics fell 6% reported and was flat organic; Laboratory Products and Biopharma Services rose 15% reported and 10% organic. For full year 2026, management raised revenue guidance to $47.7 billion-$48.2 billion and adjusted EPS guidance to $25.13-$25.43, implying 7%-8% reported revenue growth and 10%-11% EPS growth. Full-year organic revenue growth is now expected to be 4%, and free cash flow guidance was raised to $7 billion-$7.5 billion.

Marc Casper sounded confident and upbeat, repeatedly calling the quarter “excellent” and saying Thermo Fisher is well positioned to deliver a great 2026. His message centered on three pillars: high-impact innovation, trusted customer partnerships, and a strong commercial engine. He emphasized that end-market recovery continued, Pharma Services and biotech were improving, and AI is becoming a real differentiator across products and clinical research. He also framed the company’s 7% organic growth goal as a reasonable long-term target, but not a cap.

Jim Meyer focused on the financial beat versus prior expectations and the drivers behind it. He said Q3 revenue was more than $200 million ahead of guidance, with about two points of stronger organic growth and FX helping, while adjusted EPS was $0.26 above prior guidance; of that, $0.15 came from tariff refund recoveries, $0.08 from operational performance, and $0.03 from FX. He cited $2.97 billion of adjusted operating income, 24.5% adjusted operating margin, 42.8% adjusted gross margin, $5.9 billion of year-to-date operating cash flow, $4.6 billion of free cash flow, $6.1 billion of cash and short-term investments, and $41.4 billion of total debt. He also raised full-year free cash flow guidance to $7 billion-$7.5 billion and reiterated capital returns including $4 billion of share buybacks and about $700 million of dividends.

Analysts focused on whether end-market recovery is broadening, how much of the strength is coming from Pharma Services, and whether AI could raise Thermo Fisher’s long-term growth algorithm. Management said the Q2 improvement carried into Q3, with pharma/biotech, industrial/applied, and China all strengthening, while diagnostics remained low single-digit and academic/government stayed flat. On AI, management said it should improve customers’ ROI and create a virtuous cycle that supports more demand, but they declined to quantify the benefit yet, saying they may address that more fully at a future investor day. They also said Pharma Services timing pulled some demand into Q3 from Q4, but underlying momentum remains strong.