Thermo Fisher Scientific Inc (NYSE:TMO, XETRA:TN8) delivered a fourth quarter earnings beat, but its shares moved lower as investors focused on margin pressures and cautious earnings guidance for 2026.
The life sciences tools and diagnostics company guided 2026 revenue to a range of $46.3 billion to $47.2 billion, implying 4% to 6% growth and organic growth of 3% to 4%, broadly in line with consensus expectations and indicating continued modest demand across biopharma and life sciences end markets.
However, its adjusted EPS outlook of $24.22 to $24.80 came in below prior analyst estimates at the midpoint, contributing to the post-earnings share price decline.
Thermo Fisher said it expects operating margin to expand by about 50 basis points in 2026, partially offset by roughly 20 basis points of dilution from recent acquisitions.
For the fourth quarter, Thermo Fisher posted earnings of $6.57 per share, topping analysts’ estimates of about $6.45.
Revenue rose 7% year over year to $12.21 billion, also ahead of expectations of roughly $11.96 billion, supported by 3% organic growth.
Despite the earnings beat, profitability metrics weakened. Gross margin declined 150 basis points to 41.5%, reflecting a roughly 10% increase in cost of revenues. Adjusted operating margin fell 113 basis points to 22.4%, as selling, general and administrative expenses increased 7.1%.
For the full year 2025, Thermo Fisher reported revenue of $44.56 billion, up 4% from the prior year, with organic growth of 2%.
Adjusted earnings per share rose 5% to $22.87, while GAAP diluted EPS increased 7% to $17.74. Full-year adjusted operating margin edged up to 22.7%.
"We enter 2026 from a position of strength," Thermo Fisher CEO Marc Casper said. "Our growth strategy is resonating with customers, positioning us for continued share gain, and our PPI Business System provides a strong foundation to continue our excellent operational performance."
Shares of Thermo Fisher traded down 3.9% at $584 post-earnings.