Thermo Fisher Scientific (TMO) Q3 2025 earnings summary

Executive summary

• Q3 2025 revenue increased 5% year-over-year to $11.12B, with 3% organic growth and adjusted EPS up 10% to $5.79 per share.

• Operational execution exceeded expectations, driven by innovation, new product launches, customer partnerships, and productivity initiatives.

• GAAP diluted EPS for Q3 was $4.27, flat year-over-year; adjusted operating income was $2.59B (23.3% margin).

• Strategic acquisitions included Solventum's Filtration/Separation business, Sanofi's fill-finish site, and Olink Holding AB, enhancing bioproduction and proteomics.

• $4B deployed on acquisitions and $3B on share repurchases YTD, with $1B in buybacks in Q3.

Financial highlights

• Q3 revenue grew 5% year-over-year to $11.12B, including 3% organic growth, 1% from acquisitions, and 1% FX tailwind.

• Adjusted operating income rose 9% to $2.59B; adjusted operating margin expanded 100 bps to 23.3%.

• Adjusted gross margin was 41.9%, up 10 bps year-over-year.

• Free cash flow YTD was $3.32B after $1B in net capital expenditures.

• Ended Q3 with $1.98B in cash and $35.7B in total debt; leverage ratio at 3.2x gross debt to adjusted EBITDA.

Outlook and guidance

• Raised 2025 revenue guidance to $44.1–$44.5B and adjusted EPS to $22.60–$22.86.

• Organic revenue growth at midpoint expected to be 2% for the year, including a 1% headwind from pandemic-related revenue runoff.

• Adjusted operating margin guidance increased to 22.7–22.8%.

• FX expected to be a $230M revenue tailwind and a $0.37 EPS headwind for the full year.

• Expenditures for property, plant, and equipment for 2025 expected between $1.4B and $1.7B.