What does Thermo Fisher do and what are its main business segments?

What were the key takeaways from Thermo Fisher’s earnings call?

What factors drove the changes in Thermo Fisher's revenue and profit?

What were the key takeaways from Thermo Fisher's earnings call?

What is the revenue and EPS growth rate for Thermo Fisher year over year?

What is the market's earnings forecast for Thermo Fisher next quarter?

What is Thermo Fisher's gross profit margin?

What guidance did Thermo Fisher's management provide for the next earnings period?

- **Q3 Growth**: Revenue up 5% to $11.12 billion, EPS up 10% to $5.79, with full-year guidance raised to $44.1-44.5 billion in revenue and $22.60-22.86 in EPS.
- **Strategic Wins**: OpenAI collaboration to enhance drug development efficiency; $1 billion share buyback and $3.3 billion free cash flow highlight strong capital deployment.
- **Market Momentum**: Pharma & Biotech growth accelerates, while China Diagnostics faces headwinds. U.S. manufacturing reshoring trends position Thermo Fisher for long-term Bioproduction share gains.
- **2025 Outlook**: 22.7-22.8% operating margin target reflects disciplined cost management and strategic investments in innovation.

**【Management Opening Remarks】**
- Rafael Tejada introduced the call, noting the availability of the press release and webcast archive. He emphasized forward-looking statements and the reconciliation of non-GAAP financial measures.

**【CEO Summary Section】**
- **Financial Highlights**: Q3 revenue of $11.12 billion (+5% YoY), adjusted EPS of $5.79 (+10%), and operating margin of 23.3% (up 100bps). Full-year guidance raised to $44.1-44.5 billion in revenue and $22.60-22.86 in adjusted EPS.
- **End Market Performance**: 
  - Pharma & Biotech: Mid-single-digit growth driven by Bioproduction and Analytical Instruments.
  - Academic & Gov: Low-single-digit decline, stable in the U.S. but weak in China.
  - Industrial & Applied: Mid-single-digit growth led by Electron Microscopy.
  - Diagnostics: Low-single-digit decline due to China, with strong Transplant Diagnostics.
- **Strategic Initiatives**: 
  - OpenAI collaboration to enhance product development and operational efficiency.
  - New manufacturing center in Mebane, NC, supporting U.S. supply chain resilience.
  - Acquisitions of Solventum's Filtration business and Sanofi's fill-finish site.

**【CFO Financial Commentary】**
- **Q3 Financials**: 
  - Adjusted operating income: $2.59 billion (+9% YoY).
  - Gross margin: 41.9% (up 10bps YoY).
  - Free cash flow: $3.3 billion (year-to-date).
- **Segment Performance**: 
  - Life Sciences Solutions: 8% revenue growth, 15% operating income growth.
  - Analytical Instruments: 5% revenue growth, 22.6% operating margin (down 230bps YoY).
  - Specialty Diagnostics: 4% revenue growth, 27.4% operating margin (up 150bps YoY).
  - Lab Products & Biopharma: 4% revenue growth, 14.5% operating margin (up 100bps YoY).
- **Guidance Update**: 
  - 2025 revenue: $44.1-44.5 billion (vs. prior $43.7-44.1 billion).
  - Adjusted EPS: $22.60-22.86 (vs. prior $22.30-22.50).
  - FX tailwind: $230 million revenue, $0.37 EPS headwind.

**【Q&A Key Highlights】**
- **Pharma & Biotech**: Strong demand for U.S. manufacturing, with Thermo Fisher's Pharma Services leading the industry. Reshoring trends may drive incremental equipment and consumables demand.
- **China Impact**: Diagnostics down mid-single-digits due to pricing pressures, but Bioproduction shows modest improvement.
- **OpenAI Collaboration**: Early deployment in clinical research to accelerate drug development timelines.
- **2026 Outlook**: Organic growth expected to accelerate beyond 3% as COVID runoff ends, with focus on Bioproduction and Pharma Services.


TMO

TMO fundamentals

You can ask Aime