Thermo Fisher Scientific (TMO) Q3 2025 Financial Results Summary
Thermo Fisher Scientific Inc. (NYSE: TMO), the world leader in serving science, reported its financial results for the third quarter ended September 27, 2025, on October 22, 2025. Below is a summary of the key highlights from the report:
Financial Highlights
- Total Revenue: Revenue for Q3 2025 increased by 5% to $11.12 billion, compared to $10.60 billion in Q3 2024.
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Organic Revenue Growth: The organic revenue growth was 3%.
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Earnings Per Share (EPS):
- GAAP Diluted EPS: Remained relatively stable at $4.27, compared to $4.25 in the prior-year quarter.
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Adjusted EPS: Grew by 10% to $5.79, up from $5.28 in Q3 2024.
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Operating Income:
- GAAP Operating Income: Increased to $1.94 billion from $1.84 billion in the previous year.
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Adjusted Operating Income: Rose to $2.59 billion, up from $2.36 billion in Q3 2024.
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Margins:
- GAAP Operating Margin: Expanded slightly to 17.4%, compared to 17.3% in the same quarter the previous year.
- Adjusted Operating Margin: Improved to 23.3%, compared to 22.3% in Q3 2024.
Business Segment Performance
- Life Sciences Solutions: Revenues reached $2.59 billion (23.3% of total), up from $2.39 billion (22.5% of total).
- Analytical Instruments: Revenues increased to $1.89 billion (17.0% of total) from $1.81 billion (17.1% of total).
- Specialty Diagnostics: Revenues increased to $1.17 billion (10.6% of total) from $1.13 billion (10.7% of total).
- Laboratory Products and Biopharma: Revenues rose to $5.97 billion (53.7% of total) compared to $5.74 billion (54.2% of total).
Operational Highlights
- The company delivered strong operational performance leveraging its established growth strategies and PPI Business System.
- Significant product launches included:
- FDA approval for the Oncomine™ Dx Express Test for non-small cell lung cancer.
- The Olink® Target 48 Neurodegeneration panel for research on neurodegenerative diseases.
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The Thermo Scientific™ Talos™ 12 transmission electron microscope, enhancing imaging capabilities for biological research.
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A strategic collaboration was announced with OpenAI to boost the integration of artificial intelligence into various operations.
Capital Deployment and Shareholder Returns
- The company successfully executed its capital deployment strategy by:
- Acquiring the Filtration and Separation business from Solventum.
- Completing the acquisition of Sanofi’s sterile fill-finish site in New Jersey.
- Share Repurchases: Thermo Fisher repurchased $1.0 billion of its stock during the quarter.
- Dividends Paid: The company paid dividends totaling $474 million, up from $434 million in the prior year.
Cash Flow and Guidance
- Free Cash Flow: For Q3 2025, free cash flow was $1.84 billion.
- The company plans to provide updated guidance for the remainder of 2025 during its earnings conference call.
Summary
Thermo Fisher Scientific’s Q3 2025 results reflect a firm financial footing with notable revenue and earnings growth, alongside strategic acquisitions and substantial investments in innovation. The commitment to returning value to shareholders through dividends and share repurchases further strengthens its outlook as the company aims to achieve its 2025 objectives.
| Revenues | Three months ended | |
|---|---|---|
| September 27, 2025 | September 28, 2024 | |
| Cost of revenues (a) | 11,122 | 10,598 |
| Selling, general and administrative expenses (b) | 6,470 | 6,180 |
| Amortization of acquisition-related intangible assets | 1,795 | 1,739 |
| Research and development expenses | 435 | 450 |
| Restructuring and other costs (c) | 346 | 346 |
| Total costs and operating expenses | 135 | 45 |
| Operating income | 9,182 | 8,759 |
| Interest income | 1,941 | 1,838 |
| Other income/(expense) (d) | 234 | 277 |
| Income before income taxes | (347) | (356) |
| Benefit from/(provision for) income taxes (e) | (2) | (16) |
| Equity in earnings/(losses) of unconsolidated entities | 1,826 | 1,742 |
| Net income | (207) | (99) |
| Less: net income/(losses) attributable to noncontrolling interests and redeemable noncontrolling interest (f) | 2 | (14) |
| Net income attributable to Thermo Fisher Scientific Inc. | 1,621 | 1,629 |
| Earnings per share attributable to Thermo Fisher Scientific Inc. | 5 | — |
| Basic | $4.28 | $4.26 |
| Diluted | $4.27 | $4.25 |
| Weighted average shares: | ||
| Basic | 378 | 382 |
| Diluted | 378 | 384 |
| Reconciliation of adjusted operating | ||
| income and adjusted operating margin | ||
| GAAP operating income | $1,941 | $1,838 |
| Cost of revenues adjustments (a) | 10 | 9 |
| Selling, general and administrative expenses adjustments (b) | 66 | 21 |
| Restructuring and other costs (c) | 135 | 45 |
| Amortization of acquisition-related intangible assets | 435 | 450 |
| Adjusted operating income (non-GAAP measure) | $2,587 | $2,362 |
| Reconciliation of adjusted net income | ||
| GAAP net income attributable to Thermo Fisher Scientific Inc. | $1,616 | $1,630 |
| Cost of revenues adjustments (a) | 10 | 9 |
| Selling, general and administrative expenses adjustments (b) | 66 | 21 |
| Restructuring and other costs (c) | 135 | 45 |
| Amortization of acquisition-related intangible assets | 435 | 450 |
| Other income/expense adjustments (d) | -5 | 3 |
| Income taxes adjustments (e) | -64 | -139 |
| Equity in earnings/losses of unconsolidated entities | -2 | 14 |
| Noncontrolling interests adjustments (f) | — | -6 |
| Adjusted net income (non-GAAP measure) | $2,190 | $2,026 |
| Reconciliation of adjusted earnings per share | ||
| GAAP diluted EPS attributable to Thermo Fisher Scientific Inc. | $4.27 | $4.25 |
| Cost of revenues adjustments (a) | 0.03 | 0.02 |
| Selling, general and administrative expenses adjustments (b) | 0.17 | 0.05 |
| Restructuring and other costs (c) | 0.36 | 0.12 |
| Amortization of acquisition-related intangible assets | 1.15 | 1.17 |
| Other income/expense adjustments (d) | -0.01 | 0.01 |
| Income taxes adjustments (e) | -0.17 | -0.36 |
| Equity in earnings/losses of unconsolidated entities | -0.01 | 0.04 |
| Noncontrolling interests adjustments (f) | 0.00 | -0.02 |
| Adjusted EPS (non-GAAP measure) | $5.79 | $5.28 |
| Reconciliation of free cash flow | ||
| GAAP net cash provided by operating activities | $2,239 | $2,167 |
| Purchases of property, plant and equipment | -404 | -271 |
| Proceeds from sale of property, plant and equipment | 5 | 20 |
| Free cash flow (non-GAAP measure) | $1,840 | $1,915 |
| Assets | September 27, 2025 | December 31, 2024 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $1,982 | $4,009 |
| Short-term investments | 1,564 | 1,561 |
| Accounts receivable, net | 8,911 | 8,191 |
| Inventories | 5,745 | 4,978 |
| Other current assets | 4,092 | 3,399 |
| Total current assets | 22,295 | 22,137 |
| Property, plant and equipment, net | 10,177 | 9,306 |
| Acquisition-related intangible assets, net | 16,242 | 15,533 |
| Other assets | 5,019 | 4,492 |
| Goodwill | 49,287 | 45,853 |
| Total assets | $103,020 | $97,321 |
| Liabilities, redeemable noncontrolling interests and equity | ||
| Current liabilities: | ||
| Short-term obligations and current maturities of long-term obligations | $3,823 | $2,214 |
| Other current liabilities | 11,065 | 11,118 |
| Total current liabilities | 14,888 | 13,332 |
| Other long-term liabilities | 5,120 | 5,257 |
| Long-term obligations | 31,857 | 29,061 |
| Redeemable noncontrolling interest | 129 | 120 |
| Total equity | 51,024 | 49,551 |
| Total liabilities, redeemable noncontrolling interest and equity | $103,020 | $97,321 |
