Thermo Fisher Scientific (TMO) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue increased 5% year-over-year to $11.4B, with adjusted EPS up 8% to $6.10 and GAAP diluted EPS up 14% to $4.78.

• Full year 2024 revenue was $42.9B, adjusted operating income $9.71B, and adjusted EPS $21.86; GAAP diluted EPS up 7% to $16.53.

• All end markets contributed to Q4 growth, with innovation, customer partnerships, and commercial execution driving market share gains.

• Strategic acquisitions, including Olink, and expanded partnerships with UAMS and the National Cancer Institute enhanced capabilities.

• $4.6B returned to shareholders in 2024 via buybacks and dividends.

Financial highlights

• Q4 revenue grew 5% year-over-year to $11.4B; adjusted operating income up 7% to $2.72B; organic revenue growth was 4%.

• Adjusted operating margin expanded by 50 bps to 23.9%; Q4 GAAP operating margin was 17.7%.

• Full year 2024: revenue $42.9B, adjusted operating income $9.71B, adjusted EPS $21.86, GAAP operating income $7.34B.

• Free cash flow for 2024 was $7.32B; cash and short-term investments at $5.6B, total debt $31.3B.

• Adjusted ROIC was 11.6% for the year.

Outlook and guidance

• 2025 revenue guidance: $43.5B–$44B, assuming 3%-4% organic growth.

• Adjusted EPS guidance: $23.10–$23.50, representing 6%-8% growth.

• Guidance includes a 1% headwind from pandemic revenue runoff and 1.5% headwind from FX.

• Assumes 90 bps of adjusted operating margin expansion and $2B in share buybacks (already completed in January 2025).

• Free cash flow expected between $7B–$7.4B for 2025.