Why Is Thermo Fisher (TMO) Up 0.2% Since Last Earnings Report?

Core Viewpoint - Thermo Fisher Scientific's recent earnings report shows strong performance, with adjusted earnings per share exceeding estimates and revenues growing year over year, but there are concerns about future estimates trending downward [2][3][11]. Financial Performance - Adjusted earnings per share for Q3 2025 were $5.79, beating the Zacks Consensus Estimate by 5.27% and reflecting a 9.7% increase year over year [2]. - Total revenues for the quarter reached $11.12 billion, a 4.9% increase year over year, surpassing the Zacks Consensus Estimate by 1.99% [3]. - Organic revenues increased by 3% year over year [3]. Segment Analysis - Life Sciences Solutions segment revenues (23.3% of total) rose 8.4% year over year to $2.59 billion, exceeding estimates [4]. - Analytical Instruments segment revenues (17%) increased 4.7% year over year to $1.89 billion, slightly missing estimates [5]. - Specialty Diagnostics segment revenues (10.6%) grew 4% year over year to $1.17 billion, also missing estimates [6]. - Laboratory Products and Biopharma Services segment revenues (53.7%) rose 4% year over year to $5.97 billion, surpassing estimates [7]. Margin Performance - Gross margin for Q3 was 41.8%, an increase of 14 basis points year over year, despite a 4.7% rise in the cost of revenues [8]. - Selling, general and administrative expenses rose 3.2% to $1.80 billion, while research and development expenses remained unchanged at $346 million [8]. - Adjusted operating margin was 22.6%, reflecting an expansion of 56 basis points [8]. Financial Position - At the end of Q3 2025, cash and cash equivalents and short-term investments totaled $3.55 billion, down from $6.39 billion at the end of Q2 [10]. - Cumulative net cash from operating activities was $4.36 billion, compared to $5.38 billion a year ago [10]. - The company has a consistent dividend-paying history, with a five-year annualized dividend growth of 14.15% [10]. Outlook - There has been a downward trend in estimates for Thermo Fisher, indicating a potential shift in investor sentiment [11][13]. - The company currently holds a Zacks Rank 3 (Hold), suggesting an expectation of in-line returns in the coming months [13]. Industry Comparison - Thermo Fisher operates within the Zacks Medical - Instruments industry, where competitor Intuitive Surgical, Inc. reported a year-over-year revenue increase of 22.9% and an EPS of $2.40, compared to $1.84 a year ago [14]. - Intuitive Surgical's earnings estimate for the current quarter reflects a year-over-year change of +1.8%, with a Zacks Rank 3 (Hold) [15].