Thermo Fisher Scientific (TMO) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue increased 6% year-over-year to $11.01 billion, led by pharma and biotech growth, while academic/government and diagnostics declined.

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

• Completed the $9.1 billion acquisition of Clario, enhancing digital endpoint data and clinical research capabilities.

• Raised full-year 2026 revenue and adjusted EPS guidance, reflecting strong Q1 and Clario's contribution.

• Announced divestiture of microbiology business for $1.075 billion, expected to close in H2 2026.

Financial highlights

• Q1 adjusted operating income grew 6% to $2.4 billion; adjusted operating margin was 21.8%.

• GAAP operating income rose 9% to $1.86 billion (16.9% margin).

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

• Free cash flow was $825–$830 million after $370 million in net capital expenditures.

• $3 billion in share buybacks and a 10% dividend increase executed in Q1.

Outlook and guidance

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

• Adjusted EPS guidance increased to $24.64–$25.12 (8–10% growth over 2025).

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

• Assumes $300 million FX tailwind and 70 basis points of operating margin expansion.

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