Thermo Fisher's Q3 Earnings & Revenues Top Estimates, Stock Climbs

Core Insights - Thermo Fisher Scientific Inc. reported third-quarter 2025 adjusted earnings per share (EPS) of $5.79, exceeding the Zacks Consensus Estimate by 5.27% and reflecting a year-over-year increase of 9.7% [1][8] - The company's revenues for the quarter rose 4.9% year over year to $11.12 billion, surpassing the Zacks Consensus Estimate by 1.99% [2][8] Revenue Breakdown - Life Sciences Solutions segment, accounting for 23.3% of total revenues, saw an 8.4% year-over-year increase to $2.59 billion, exceeding estimates [3] - Analytical Instruments segment, representing 17% of total revenues, reported a 4.7% year-over-year increase to $1.89 billion, slightly missing estimates [4] - Specialty Diagnostics segment, making up 10.6% of total revenues, increased 4% year over year to $1.17 billion, also missing estimates [5] - Laboratory Products and Biopharma Services segment, which constitutes 53.7% of total revenues, rose 4% year over year to $5.97 billion, surpassing estimates [6] Margin Performance - Gross margin for the quarter was 41.8%, an increase of 14 basis points year over year, despite a 4.7% rise in the cost of revenues [7] - Adjusted operating margin expanded to 22.6%, reflecting a 56 basis points increase [7][8] Financial Position - At the end of Q3 2025, the company had cash and cash equivalents and short-term investments totaling $3.55 billion, down from $6.39 billion at the end of Q2 [9] - Cumulative net cash from operating activities was $4.36 billion, compared to $5.38 billion a year ago [9] - The company has a strong dividend-paying history, with a five-year annualized dividend growth of 14.15% [9] Strategic Developments - The company announced a strategic collaboration with OpenAI to enhance the use of artificial intelligence across its operations, products, and services, aimed at accelerating scientific breakthroughs and improving productivity [11] - Recent product launches include the Olink Target 48 Neurodegeneration panel and the Thermo Scientific Talos 12 transmission electron microscope, contributing to growth [10][11]