Core Insights - Thermo Fisher Scientific Inc. reported second-quarter 2025 adjusted earnings per share (EPS) of $5.36, exceeding the Zacks Consensus Estimate by 2.7%, but down 0.2% year over year [1] - The company's revenues for the quarter increased by 2.9% year over year to $10.85 billion, surpassing the Zacks Consensus Estimate by 1.9% [2] - The GAAP EPS was $4.28, reflecting a 6% increase year over year [1] Revenue Breakdown - Life Sciences Solutions segment revenues increased by 6.1% year over year to $2.50 billion, exceeding the model's estimate of $2.37 billion [3] - Analytical Instruments segment revenues declined by 3% year over year to $1.73 billion, missing the model's estimate of $1.84 billion [4] - Specialty Diagnostics segment revenues rose by 1.5% year over year to $1.13 billion, falling short of the model's prediction of $1.15 billion [5] - Laboratory Products and Biopharma Services segment revenues increased by 4.1% year over year to $5.99 billion, surpassing the model's estimate of $5.71 billion [6] Margin Performance - Gross margin for the second quarter was 41.2%, a contraction of 83 basis points year over year due to a 4.4% increase in the cost of revenues [6] - Selling, general and administrative expenses rose by 5.4% to $1.78 billion, while research and development expenses increased by 3.8% to $352 million [7] - The adjusted operating margin was 21.6%, reflecting a contraction of 124 basis points [7] Financial Position - At the end of the second quarter, the company had cash and cash equivalents and short-term investments of $6.39 billion, up from $5.95 billion at the end of the first quarter [9] - Cumulative net cash from operating activities was $2.12 billion, down from $3.21 billion a year ago [9] Strategic Developments - The company launched several next-generation instruments, including the Thermo Scientific Orbitrap Astral Zoom mass spectrometer and the DynaDrive single-use bioreactor portfolio, which contributed to commercial performance [12] - These innovations are aimed at enhancing research capabilities in complex diseases and advancing precision medicine [12] Overall Assessment - Thermo Fisher's second-quarter results exceeded expectations, with growth in most segments except Analytical Instruments [11] - The contraction in margins is a point of concern, but the company is expected to provide guidance for 2025 in the upcoming earnings call [11]