Thermo Fisher Scientific (NYSE:TMO) said it delivered a “strong year” in 2025, closing with what management described as an excellent fourth quarter marked by stronger-than-expected operational performance and continued share gains. On the company’s fourth-quarter earnings call, Chairman, President and CEO Marc Casper and CFO Stephen Williamson highlighted growth in core pharma- and biotech-related businesses, progress on strategic partnerships and acquisitions, and an initial 2026 outlook calling for mid-single-digit reported revenue growth and faster earnings expansion.
Fourth-quarter and full-year results
For the fourth quarter, Thermo Fisher reported revenue growth of 7% year over year to $12.21 billion. Adjusted operating income rose 6% to $2.88 billion, with adjusted operating margin of 23.6%. Adjusted earnings per share grew 8% to $6.57, while GAAP EPS was $5.21.
Williamson said fourth-quarter results exceeded prior guidance assumptions at the midpoint, with revenue about $250 million ahead and adjusted EPS $0.14 ahead. He attributed the EPS upside to “very strong operational performance,” partially offset by a higher-than-expected foreign exchange headwind. He also noted that volatility in currency rates related to trade tensions added incremental margin pressure versus the company’s prior expectations.
End-market performance and geographic trends
Casper said pharma and biotech delivered high single-digit growth in the fourth quarter and mid-single-digit growth for the full year, with strength led by BioProduction and the Research and Safety Market channel. He added that Clinical Research “continues to strengthen,” delivering mid-single-digit growth in the quarter.
Academic and government declined in the low single digits in both the quarter and full year, which management tied to macro conditions in the U.S. and China. Industrial and applied declined in the low single digits in the quarter but grew in the low single digits for the full year, with Casper citing electron microscopy and the Research and Safety Market channel as highlights. Diagnostics and healthcare posted low single-digit growth in the fourth quarter, while the full-year result was flat, with transplant diagnostics and immunodiagnostics cited as contributors.
On an organic basis by geography in the fourth quarter, Thermo Fisher said North America grew low single digits, Europe grew mid single digits, and Asia Pacific grew low single digits, with China declining low single digits. For the full year, the company reported similar regional trends, with China down mid single digits organically.
Segment results and margin drivers
Thermo Fisher’s Life Sciences Solutions segment posted 13% reported revenue growth in the fourth quarter and 4% organic growth, with Williamson citing another quarter of “excellent” BioProduction growth. Segment adjusted operating margin was 35.5%, down 110 basis points year over year, which management said reflected mix, strategic investments, and the impact of the filtration and separation acquisition, offset in part by productivity and volume leverage.
Analytical Instruments delivered 1% reported revenue growth in both the quarter and full year, with flat organic growth. Fourth-quarter adjusted operating margin fell to 26.3%, down 420 basis points year over year, which management said was “majority” driven by tariffs and related FX. Casper said the team performed well despite headwinds in academic/government funding and pressure in China, while noting solid performance with pharma and biotech customers and pointing to innovation as a key demand driver.
In Specialty Diagnostics, fourth-quarter reported revenue rose 5% and organic growth was 3%, led by clinical diagnostics, transplant diagnostics and immunodiagnostics. Segment adjusted operating margin expanded to 26.6%, up 300 basis points, as management cited productivity, volume leverage and favorable mix, partially offset by FX headwinds.
Laboratory Products and Biopharma Services posted 7% reported revenue growth in the quarter and 5% organic growth, with Williamson pointing to broad-based strength across the Research and Safety Market channel and pharma services and Clinical Research. Segment adjusted operating margin was 14.5%, up 50 basis points.
At the consolidated level, Williamson said adjusted operating margins included “over 100 basis points” of headwind from tariffs and related FX in both the quarter and full year. Adjusted gross margin was 41.8% in the quarter and 41.7% for the full year. Adjusted SG&A improved as a percentage of revenue, and total R&D spending was $357 million in the quarter and $1.4 billion for the year, up 1%.
Innovation, partnerships, and capital deployment
Casper emphasized new product launches across the portfolio, including the Thermo Scientific Orbitrap Astral Zoom in mass spectrometry, the 5 L DynaDrive Single-Use Bioreactor in BioProduction, the Krios 5 Cryo-TEM and the Helios MX1 Plasma Focused Ion Beam SEM in electron microscopy, and two U.S. regulatory milestones in diagnostics: an additional FDA companion diagnostic approval for Ion Torrent Oncomine Dx Target Test and 510(k) clearance for the EXENT System.
On partnerships, Casper cited a technology alliance with the Chan Zuckerberg Institute for Advanced Biological Imaging, and a strategic collaboration with OpenAI intended to increase use of artificial intelligence across operations and embed AI capabilities in products and services. He also referenced expansion of bioprocess design centers in Asia, including opening a new site in India.
Thermo Fisher said it deployed approximately $16.5 billion in 2025, including $13 billion committed to M&A and $3.6 billion returned to shareholders through buybacks and dividends. Williamson said the company spent $4 billion on acquisitions completed in 2025, including the filtration and separation business from Solventum and Sanofi’s sterile fill-finish site in New Jersey.
In the fourth quarter, Thermo Fisher announced a definitive agreement to acquire Clario, which management described as a market leader in digital endpoint data solutions for clinical trials. Casper said Clario generated approximately $1.25 billion in 2025 revenue and is expected to be accretive to organic growth and adjusted operating margin over time. He said Thermo Fisher expects the deal to be accretive to adjusted EPS by about $0.45 in the first 12 months of ownership, with an expected closing by mid-2026. Williamson added the purchase price is approximately $9 billion in cash plus potential future performance-based payments, and that Clario will become part of the Laboratory Products and Biopharma Services segment when it closes.
2026 outlook and key assumptions
For 2026, Thermo Fisher initiated revenue guidance of $46.3 billion to $47.2 billion, representing 4% to 6% reported growth and assuming 3% to 4% organic growth. Adjusted EPS is expected to be $24.22 to $24.80, implying 6% to 8% growth. Williamson said the outlook assumes a $300 million revenue tailwind from FX and 50 basis points of adjusted operating margin expansion.
Management said the 2026 guidance does not include the benefit of the pending Clario acquisition. However, Williamson said if the transaction closes by mid-2026, Thermo Fisher would expect $0.20 to $0.25 of incremental adjusted EPS for 2026. The guidance also assumes tariffs “in place as of today” and does not contemplate future changes to tariffs or related FX impacts.
Other modeling items provided on the call included:
- Net interest expense of approximately $500 million in 2026
- Adjusted tax rate of 11.5% in 2026
- Net capital expenditures of $1.8 billion to $2.0 billion, driven by investment in U.S. manufacturing
- Free cash flow expected to be $6.8 billion to $7.3 billion
- $3 billion of share buybacks (already completed in January) and about $700 million of dividends
Williamson also said the company expects first-quarter organic growth to be “a couple of points lower” than the full-year rate, with low single-digit adjusted EPS growth in Q1, citing selling days and expected phasing in Pharma Services revenue.
Casper noted Williamson will retire at the end of March, and said Jim Meyer will take over as CFO after 17 years at the company.
About Thermo Fisher Scientific (NYSE:TMO)
Thermo Fisher Scientific (NYSE: TMO) is a global provider of scientific instrumentation, reagents and consumables, software, and services that support research, clinical, and industrial laboratories. The company supplies analytical instruments and laboratory equipment, life sciences reagents and kits, specialty diagnostics, and a broad range of consumables used by researchers, clinicians, and manufacturers. Its offerings also include laboratory information management and data-analysis software, as well as service solutions such as instrument maintenance, validation, and logistics that help customers run complex workflows efficiently.
Thermo Fisher operates through multiple business areas that broadly cover life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services, including contract development and manufacturing for pharmaceutical and biotechnology companies.
