Shares of Thermo Fisher Scientific Inc (NYSE:TMO, XETRA:TN8) were down more than 7.5% on Thursday after investors weighed a stronger-than-expected quarterly profit against muted underlying growth and a still-cautious outlook despite an upgraded full-year revenue forecast.
The life sciences tools and services company reported adjusted earnings per share of $5.44 for the first quarter of fiscal 2026, beating analyst expectations of $5.25.
Revenue rose 6% year-on-year to $11.01 billion, also ahead of estimates of $10.87 billion.
However, much of the top-line growth was driven by acquisitions, which contributed 3 percentage points, while organic growth remained modest at just 1%.
Adjusted operating income increased 6% from a year earlier to $2.4 billion. The adjusted operating margin came in at 21.8%, slightly below 21.9% in the same quarter last year, reflecting broadly stable profitability despite mixed segment performance.
The company noted flat performance in its Analytical Instruments and Specialty Diagnostics businesses, which weighed on organic expansion during the quarter.
Despite the softer underlying growth trends, Thermo Fisher raised its full-year revenue outlook for fiscal 2026 to a range of $47.3 billion to $48.1 billion, up from a prior forecast of $46.3 billion to $47.2 billion. The updated range sits slightly below the consensus estimate of $47.7 billion.