TMO
Thermo Fisher Scientific (NYSE: TMO) reported strong Q2 revenue and earnings growth of 10% year-over-year,...
Article Summary
BUY- Thermo Fisher Scientific (NYSE: TMO) reported strong Q2 revenue and earnings growth of 10% year-over-year, prompting Thermo Fisher Scientific to raise its outlook for 2026 earnings and revenue.
- Thermo Fisher Scientific's laboratory products and biopharma services segment delivered strong performance, contributing 55.8% of the quarter's earnings, while life science solutions and analytical instruments delivered 23.5% and 15.4% respectively.
- Speciality diagnostics remained the lowest revenue driver at around $1.2 billion, reflecting the company's decision to sell its microbiology business to Astorg in April 2026.
- Analysts believe the divestment reflects Thermo's move out of the in vitro diagnostic space, with microbiology expected to become less relevant as newer technologies replace the need to culture bacteria and viruses for pathological investigations.
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Growth Stock Scoring Breakdown
| METRIC | VALUE | WEIGHT | ANALYSIS |
|---|---|---|---|
| Sales Growth TTM ? | 7.2% | 25% | 35.0 ptsBelow Screener (7.2%) - Weak growth |
| EPS Growth Next 5Y ? | 9.7% | 25% | 20.0 ptsWeak (9.7%) - Low expectations |
| Target Price Upside ? | 10.1% | 20% | 50.0 ptsMeets Minimum (10.1%) - Target: $620.75 vs Current: $563.58 |
| Gross Margin % ? | 39.2% | 15% | 60.0 ptsSolid (39.2%) - Decent margins |
| Drawdown from 52-Wk High ? | -12.5% | 15% | 40.0 ptsMild Pullback (-12.5%) - Light entry opportunity |
Disclaimer: This rating is for informational purposes only and is not financial advice.
All data sourced from Finviz.
Always conduct your own research and consult with a financial advisor before making investment decisions.
Past performance does not guarantee future results.
About TMO
- Thermo Fisher Scientific Inc. provides life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services in the North America, Europe, Asia-Pacific, and internationally.
- It operates through four segments: Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Biopharma Services.
- The Life Sciences Solutions segment includes reagents, instruments, and consumables for biological and medical research; discovery and production of drugs and vaccines; and diagnosis of infections and diseases.
- Its Analytical Instruments segment provides instruments, consumables, software, and services for pharmaceutical, biotechnology, academic, government, environmental, and other research and industrial markets, as well as clinical laboratories.
- The Specialty Diagnostics segment offers clinical diagnostics products, such as liquid ready-to-use and lyophilized immunodiagnostic reagent kits, calibrators, controls, protein detection assays, and instruments; immunodiagnostic offerings comprising developing, manufacturing, and marketing of complete blood-test systems for the clinical diagnosis and monitoring of allergy, asthma and autoimmune diseases; microbiology offerings, such as dehydrated and prepared culture media, collection and transport systems, instrumentation and consumables to detect pathogens in blood, diagnostic and rapid direct specimen tests, quality-control products, and associated products; transplant diagnostics products, including human leukocyte antigen typing and testing for the organ transplant market; and healthcare market channel offerings.
- Its Laboratory Products and Biopharma Services segment provides laboratory products, research and safety market channel, and pharma services and clinical research.
- Thermo Fisher Scientific Inc. was founded in 1956 and is headquartered in Waltham, Massachusetts.