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Thermo Fisher Scientific Inc.'s TMO third-quarter 2025 adjusted earnings per share (EPS) of $5.79 beat the Zacks Consensus Estimate by 5.27%. The figure increased 9.7% year over year.
The adjusted number excludes certain expenses, including asset amortization costs and certain restructuring costs.
GAAP EPS was $4.27, consistent with the year-ago figure.
Revenues in the quarter increased 4.9% year over year to $11.12 billion. The top line surpassed the Zacks Consensus Estimate by 1.99%. Organic revenues in the reported quarter increased 3% year over year.
Following the earnings announcement, shares of TMO rose 2.2% in pre-market trading today.
Thermo Fisher operates under four business segments, as discussed below:
Revenues in the Life Sciences Solutions segment (23.3% of total revenues) increased 8.4% year over year to $2.59 billion. The number surpassed our model’s estimate of $2.41 billion.
Thermo Fisher Scientific Inc. price-consensus-eps-surprise-chart | Thermo Fisher Scientific Inc. Quote
Revenues in this segment (17%) rose 4.7% year over year to $1.89 billion. The figure missed our model’s estimate of $1.87 billion.
Revenues in the Specialty Diagnostics segment (10.6%) increased 4% year over year to $1.17 billion. The number missed our model’s prediction of $1.18 billion.
Revenues in this segment (53.7%) rose 4% year over year to $5.97 billion. Our model’s estimate was $5.89 billion.
The gross margin of 41.8% in the third quarter increased 14 basis points (bps) year over year despite a 4.7% rise in the cost of revenues.
In the quarter, selling, general and administrative expenses rose 3.2% to $1.80 billion. Research and development expenses came in at $346 million, unchanged year over year.
The adjusted operating margin in the quarter was 22.6%, reflecting an expansion of 56 bps.
The company ended the third quarter of 2025 with cash and cash equivalents and short-term investments of $3.55 billion compared with $6.39 billion at the end of the second quarter.
Cumulative net cash from operating activities at the end of the third quarter was $4.36 billion compared with $5.38 billion a year ago.
Thermo Fisher has a consistent dividend-paying history, with the five-year annualized dividend growth of 14.15%.
Thermo Fisher exited the third quarter of 2025 on a solid note, with both earnings and revenues beating respective estimates. The expansion of both margins is highly encouraging. The strong operational performance reflected the effectiveness of the company's proven growth strategy, the PPI Business System and ongoing active management. Thermo Fisher made several high-impact launches in the quarter, including the Olink Target 48 Neurodegeneration panel and the Thermo Scientific Talos 12 transmission electron microscope.
In addition, the company announced a strategic collaboration with OpenAI to increase the use of artificial intelligence (AI) across operations, products and services to accelerate scientific breakthroughs, enhance drug development and drive greater productivity. All these developments are poised to support its growth in the coming quarters.
Thermo Fisher currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the broader medical space are Phibro Animal Health PAHC, Veracyte VCYT and Insulet PODD.
Phibro Animal Health reported a fourth-quarter fiscal 2025 EPS of 57 cents, which beat the Zacks Consensus Estimate by 9.62%. Net sales of $378.7 million topped the consensus estimate by 4.86%. PAHC currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Phibro has an estimated earnings growth rate of 21.1% in fiscal 2026 compared with the industry’s 12.8%. The company’s earnings surpassed estimates in each of the trailing four quarters, the average being 27.88%.
Veracyte, sporting a Zacks Rank #1, reported third-quarter 2025 adjusted EPS of 44 cents, which outpaced the Zacks Consensus Estimate by 41.9%. Revenues of $130.2 million topped the Zacks Consensus Estimate by 7.1%.
VCYT has an estimated earnings growth rate of 19.3% for 2025 compared with the industry’s 12.9%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 242.77%.
Insulet, sporting a Zacks Rank #1, reported a third-quarter 2025 adjusted EPS of $1.17, which outperformed the Zacks Consensus Estimate by 25.81%. Revenues of $649.1 million exceeded the Zacks Consensus Estimate by 5.46%.
PODD has an estimated earnings growth rate of 42.3% for 2025 compared with the industry’s 12.7%. The company surpassed earnings estimates in each of the trailing four quarters, the average being 19.54%.
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This article originally published on Zacks Investment Research (zacks.com).
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