Thermo Fisher Scientific (TMO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue increased 6% year-over-year to $11.01 billion, with strong growth in pharma/biotech and declines in academic/government and diagnostics/healthcare markets.

• Adjusted operating income grew 6% to $2.4 billion (21.8% margin); GAAP operating income rose 9% to $1.86 billion (16.9% margin).

• Adjusted EPS rose 6% to $5.44; GAAP diluted EPS increased 11% to $4.43.

• Completed $9.1 billion acquisition of Clario, contributing to clinical research capabilities; $3.0 billion in share repurchases and a 10% dividend increase.

• Strategic collaborations with NVIDIA and SHL Medical, and new product launches supported innovation.

Financial highlights

• Organic revenue growth was 1%, with 3% from acquisitions and 2% FX tailwind.

• Free cash flow was $825 million after $370 million capex; cash from operations $1.19 billion.

• Cash and cash equivalents at quarter-end were $3.28 billion; total debt $43.16 billion.

• $3.0 billion share buybacks and $160 million dividends paid in Q1.

• Net income attributable to shareholders was $1.65 billion, up from $1.51 billion in Q1 2025.

Outlook and guidance

• 2026 revenue guidance raised to $47.3B–$48.1B (6–8% growth over 2025); organic growth 3–4%.

• Adjusted EPS guidance increased to $24.64–$25.12 (8–10% growth over 2025); adjusted operating margin expansion of 70 bps expected.

• Guidance includes $900 million higher revenue and $0.32 EPS from Clario.

• Capital expenditures for 2026 projected at $1.9–$2.1 billion; free cash flow $6.9–$7.4 billion.

• GAAP effective tax rate for 2026 expected between 9% and 11%; adjusted tax rate around 11.5%.