Thermo Fisher Scientific (TMO) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue increased 7% year-over-year to $12.21B, with organic growth of 3%, and adjusted EPS up 8% to $6.57.

• Full-year 2025 revenue rose 4% to $44.56B, with organic growth of 2%, and adjusted EPS up 5% to $22.87.

• GAAP diluted EPS grew 9% in Q4 to $5.21 and 7% for the year to $17.74.

• Operational performance was driven by new product launches, strategic collaborations, innovation, and share gains.

• Entering 2026 with strong momentum, continued share gains, and a robust growth strategy.

Financial highlights

• Q4 adjusted operating income was $2.88B (up 6%), with adjusted operating margin at 23.6%.

• Full-year adjusted operating income was $10.11B (up 4%), with adjusted operating margin at 22.7%.

• Adjusted gross margin for the year was 41.7%; adjusted SG&A was 15.9% of revenue; R&D expense was $1.4B (7% of manufacturing revenue).

• Free cash flow for 2025 was $6.34B; ended year with $10.1B in cash and $39.4B in total debt.

• Adjusted ROIC was 11.3%.

Outlook and guidance

• 2026 revenue guidance: $46.3B–$47.2B (4%–6% growth), with 3%–4% organic growth.

• Adjusted EPS guidance: $24.22–$24.80 (6%–8% growth); Clario acquisition could add $0.20–$0.25 EPS if closed mid-2026.

• Guidance assumes $600M inorganic revenue from 2025 acquisitions, $500M net interest expense, 11.5% tax rate, and $6.8B–$7.3B free cash flow.

• Q1 2026 organic revenue growth expected to be a couple points lower than full year; low single-digit EPS growth in Q1.

• Management expects continued share gains and strong operational performance in 2026.