Thermo Fisher’s second quarter saw a positive market response, as the company surpassed Wall Street’s revenue and adjusted profit expectations. Management attributed the quarter’s performance to robust growth in pharma and biotech, especially in bioproduction and Pharma Services, alongside strong execution in their research and safety market channel. CEO Marc Casper emphasized that “customer uptake is very strong” for the company’s Accelerator Drug Development solution, and highlighted sequential improvement in clinical research. However, Casper also noted mid-single-digit declines in academic and government markets, and low single-digit declines in diagnostics and health care, reflecting ongoing hesitancy and demand headwinds in these segments.
Is now the time to buy TMO? Find out in our full research report (it’s free).
Thermo Fisher (TMO) Q2 CY2025 Highlights:
- Revenue: $10.86 billion vs analyst estimates of $10.69 billion (3% year-on-year growth, 1.6% beat)
- Adjusted EPS: $5.36 vs analyst estimates of $5.23 (2.5% beat)
- Adjusted EBITDA: $2.63 billion vs analyst estimates of $2.59 billion (24.2% margin, 1.7% beat)
- Operating Margin: 16.9%, in line with the same quarter last year
- Organic Revenue rose 2% year on year (-1% in the same quarter last year)
- Market Capitalization: $182 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Thermo Fisher’s Q2 Earnings Call
- Michael Ryskin (Bank of America) asked about the company’s conviction in achieving 7% plus long-term organic growth. CEO Marc Casper explained that stabilizing headwinds in academic and government, coupled with strong industry fundamentals, support this outlook.
- Daniel Arias (Stifel) questioned margin expansion drivers in a subdued environment. CFO Stephen Williamson detailed the use of the PPI Business System and AI capabilities to achieve productivity improvements and maintain margin expansion.
- Jack Meehan (Nephron Research) probed whether the reshoring trend is causing purchasing delays. Casper responded that bioproduction demand remains strong, and capacity expansions are viewed as future tailwinds rather than current disruptions.
- Rachel Vatnsdal Olson (JPMorgan) asked about the outlook for academic and government funding. Casper noted continued caution among customers but maintained that bipartisan support in Congress could lead to a more stable funding environment in the near future.
- Tycho Peterson (Jefferies) inquired about growth prospects in Pharma Services and fill-finish capacity. Casper emphasized strong customer adoption of the Accelerator Drug Development platform and described the Sanofi site acquisition as a cost-effective way to meet customer needs.
Catalysts in Upcoming Quarters
In the quarters ahead, our analyst team will closely watch (1) the pace of recovery in academic and government demand and whether stabilization emerges, (2) the successful integration and performance of Solventum’s Purification & Filtration business and the Sanofi fill-finish facility, and (3) ongoing traction for new analytical instruments and bioproduction solutions. Execution on cost discipline and navigating tariff dynamics will also be key signposts for monitoring Thermo Fisher’s ability to deliver on its outlook.
Thermo Fisher currently trades at $490.51, up from $426.83 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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