Thermo Fisher Scientific (TMO) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 9% to $12.14B, including 6% organic growth; adjusted EPS increased 15% to $6.68 and adjusted operating margin expanded 120 bps to 24.5%.

• Strong execution, the growth strategy and PPI Business System supported results above prior guidance; FY26 revenue, adjusted EPS and free cash flow guidance increased.

Financial highlights

• Revenue growth comprised 6% organic growth, 4% from acquisitions and a 1% decrease from the microbiology divestiture; currency translation was 0%.

• Adjusted operating income increased 15% to $2.968B; GAAP operating income was $2.263B, up 17%.

• GAAP diluted EPS rose 9% to $4.64; adjusted net income was $2.477B versus $2.190B in Q3 2025.

• Adjusted gross margin was 42.8%; adjusted SG&A was 15.5% of revenue and R&D expense was $350M.

• 9M revenue was $35.136B versus $32.341B; GAAP diluted EPS was $13.75 versus $12.53 and adjusted EPS was $18.15 versus $16.30.

Outlook and guidance

• FY26 revenue guidance rose to $47.7B-$48.2B, representing 7%-8% reported growth; organic revenue growth outlook increased to 4%.

• FY26 adjusted EPS guidance increased to $25.13-$25.43, representing 10%-11% growth; adjusted operating income margin expansion assumption remains 80 bps.

• FY26 free cash flow guidance rose to $7B-$7.5B; net capex is expected at $1.9B-$2B, net interest expense at ~$650M and adjusted tax rate at 11.5%.

• H2 organic growth outlook increased to 5%; Q4 organic growth guidance remained 4%, with Q3 Pharma Services activity partly shifted forward from Q4.

• Management expects progress toward a more normal growth environment by late 2027 to H1 2028; 7% organic growth is viewed as a reasonable normal-period outlook, not a ceiling.