Why Artisan Value Fund is Confident in Thermo Fisher Scientific (TMO) Investment

Artisan Value Fund's Investor Class ARTLX returned 5.99% in Q2 2025 compared to a 3.79% return for the Russell 1000 Value Index. The fund highlighted Thermo Fisher Scientific Inc. (NYSE:TMO) as a confident investment, citing the company's leading industry position, solid balance sheet, and history of good capital allocation. The fund believes TMO's recurring revenue and consumables business model gives it increased confidence in its investment case.

Artisan Value Fund's Investor Class ARTLX returned 5.99% in the second quarter of 2025, outperforming the Russell 1000 Value Index's 3.79% return. The fund highlighted Thermo Fisher Scientific Inc. (NYSE: TMO) as a confident investment, citing the company's leading industry position, solid balance sheet, and history of good capital allocation. The fund believes TMO's recurring revenue and consumables business model gives it increased confidence in its investment case.

Thermo Fisher Scientific (TMO) has been a cornerstone of the life sciences sector and has recently made strategic adjustments that have elevated its appeal for long-term investors. The company optimized its $4 billion acquisition of Solventum's Purification & Filtration business, excluding low-margin water filtration, to accelerate closure by the end of 2025. This move adds $1 billion in annual revenue and enhances TMO's biologics manufacturing capabilities [2].

The company's core business showed 1% organic growth in Q1 2025, driven by Specialty Diagnostics and R&D-driven innovations like Vulcan Automated Lab. TMO's financial discipline supports its $43.6–$44.2 billion 2025 revenue guidance and a buy rating. The company's recent strategic moves and operational execution have positioned it as a compelling buy in 2025 [2].

Additionally, TMO is setting up two major facilities in Genome Valley, Hyderabad, by the end of 2025. The Customer Experience Centre (CEC) will showcase advanced instrumentation and workflow solutions, while the Bioprocess Design Centre (BDC) will provide expertise in bioprocessing and process scale-up [3].

The fund's confidence in TMO stems from the company's strong balance sheet, with $7.27 billion in free cash flow and a $4.6 billion shareholder return in 2024. TMO's ability to execute on strategic initiatives, coupled with its financial strength, makes it a standout in a sector increasingly defined by innovation and scale.

References:
[1] https://finance.yahoo.com/news/why-dollar-general-dg-continued-132812698.html
[2] https://www.ainvest.com/news/thermo-fisher-scientific-tmo-buy-rating-reinforced-strategic-adjustments-strong-earnings-momentum-2508/
[3] https://www.thehindubusinessline.com/companies/thermo-fisher-scientific-to-set-up-two-facilities-in-hyderabad/article69959827.ece