It has been about a month since the last earnings report for Thermo Fisher Scientific (TMO). Shares have added about 0.2% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Thermo Fisher due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Thermo Fisher's Q3 Earnings & Revenues Top Estimates
Thermo Fisher Scientific Inc.'s third-quarter 2025 adjusted earnings per share 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 earnings per share was $4.27, consistent with the year-ago figure.
TMO’s Q3 Revenues
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.
Thermo Fisher’s Q3 Segmental Analysis
Thermo Fisher operates under four business segments, as discussed below:
Life Sciences Solutions
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.
Analytical Instruments
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.
Specialty Diagnostics
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.
Laboratory Products and Biopharma Services
Revenues in this segment (53.7%) rose 4% year over year to $5.97 billion. Our model’s estimate was $5.89 billion.
TMO’s Margin Performance
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.
TMO’s Financial Position
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%.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in fresh estimates.
VGM Scores
Currently, Thermo Fisher has a poor Growth Score of F, a score with the same score on the momentum front. However, the stock was allocated a grade of C on the value side, putting it in the middle 20% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Thermo Fisher has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Thermo Fisher belongs to the Zacks Medical - Instruments industry. Another stock from the same industry, Intuitive Surgical, Inc. (ISRG), has gained 0.2% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Intuitive Surgical reported revenues of $2.51 billion in the last reported quarter, representing a year-over-year change of +22.9%. EPS of $2.40 for the same period compares with $1.84 a year ago.
Intuitive Surgical is expected to post earnings of $2.25 per share for the current quarter, representing a year-over-year change of +1.8%. Over the last 30 days, the Zacks Consensus Estimate has changed +2.2%.
Intuitive Surgical has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
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Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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