Thermo Fisher Scientific (TMO) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue was $10.54 billion, down 1% year-over-year; adjusted operating income was $2.35 billion and adjusted EPS rose 4% to $5.37, while GAAP EPS increased 15% to $4.04.

• Sequential improvement in growth across all four end markets, with share gains and strong execution.

• Raised 2024 guidance for both revenue and adjusted EPS, reflecting continued strong performance.

• Innovation and sustainability initiatives advanced, including new product launches and progress on environmental goals.

• Acquisition of Olink completed, enhancing proteomics and precision medicine capabilities.

Financial highlights

• Adjusted operating margin increased to 22.3% in Q2, up 10 basis points year-over-year; GAAP operating margin improved to 17.3% from 14.8%.

• Adjusted gross margin was 42.1%, up 110 basis points year-over-year.

• Free cash flow for the first half was $2.58 billion, up from $1.54 billion year-over-year.

• Ended Q2 with $8.8 billion in cash and $35.4 billion in total debt; total assets at June 29, 2024 were $98.5 billion.

• GAAP net income attributable to shareholders was $1.55 billion for Q2 2024.

Outlook and guidance

• 2024 revenue guidance raised to $42.4–$43.3 billion; adjusted EPS guidance raised to $21.29–$22.07.

• Core organic revenue growth for 2024 expected between -1% and +1%.

• Adjusted operating income margin expected between 22.5% and 22.8%.

• Free cash flow for 2024 projected at $6.5–$7 billion.

• GAAP effective tax rate for 2024 expected between 9% and 11%; adjusted tax rate around 10.5%.