Biotechnology research firm Thermo Fisher Scientific is reportedly looking to sell part of its diagnostics business amid industrywide concerns about federal cutbacks in spending on research.
TMO grapples with macro pressures, rising expenses and fierce competition, but bets on acquisitions to fuel recovery.
Thermo Fisher debuts two advanced MSs, Orbitrap Astral Zoom and Orbitrap Excedion Pro, to accelerate precision medicine and drug discovery breakthroughs.
The neutral DCF model implemented in this article suggests that Thermo Fisher is undervalued by 29.24%. Thermo Fisher has invested, on average, 16.51% of its revenues in capex between 2019 and 2024. Due to the significant investment in capex, Thermo Fisher's revenues have increased at a 12.95% CAGR between 2019 and 2024.
Thermo Fisher's 2025 headwinds from tariffs and US research funding cuts are real but temporary, not reflective of structural weakness in its fundamentals. The company is mitigating trade impacts by investing $2B in US manufacturing, leveraging diversification and innovation, and expects headwinds to peak this year. Biopharma growth, strategic acquisitions, and rapid product innovation position TMO for long-term outperformance versus less diversified peers.
TMO unveils spectral-enabled Attune Xenith Flow Cytometer to streamline workflows and boost research accuracy.
Thermo Fisher launches new TruNarc analyzers to help law enforcement quickly detect 1,200+ substances, boosting field safety and drug interdiction efforts.
Thermo Fisher (TMO) reported earnings 30 days ago. What's next for the stock?
Thermo Fisher Scientific Inc. (NYSE:TMO ) BofA Securities 2025 Healthcare Conference May 13, 2025 11:40 AM ET Company Participants Marc Casper - Chairman, President & Chief Executive Officer Conference Call Participants Michael Ryskin - Bank of America Michael Ryskin To kick things off, my name is Mike Ryskin. I'm on the Bank of America Life Science Tools and Diagnostics team, and I'm excited to welcome everyone to Las Vegas for our Healthcare Conference 2025 edition.
The macro environment has clearly deteriorated, with tariffs and U.S. policy weighing on short-term earnings. Management revised EPS down ~$1, but revenue guidance held as pricing and FX helped offset volume pressure. Tariff-related headwinds are expected to be fully mitigated by 2026 through supply chain adjustments.
Thermo Fisher's updated 2025 guidance shows a $1 EPS, or 4.2% hit from tariffs and government spending cuts. Thermo can mitigate the tariff issues by next year, as its scale gives it options to source from different locations. Despite short-term challenges, Thermo Fisher aims for 7-9% long-term sales growth, leveraging its diverse product range and strategic acquisitions.
TMO continues to advance its growth strategy and trusted partner status with customers in the first quarter of 2025.