Thermo Fisher Scientific (NYSE:TMO) FY Conference Transcript

Thermo Fisher Scientific FY Conference Summary Company Overview - Company: Thermo Fisher Scientific (NYSE:TMO) - Revenue: $44 billion - Employees: 120,000 - R&D Investment: Approximately $1 billion annually - Market Share: About 20% in the life sciences tools and diagnostics industry [4][7][20] Key Points from 2025 Performance - Operational Success: 2025 was characterized by excellent performance and effective navigation of market conditions, leading to significant advancements in growth strategy [3][12] - End Markets: The company serves four primary end markets: Pharma and biotech (56% of revenue), diagnostics and healthcare, academic and government, and industrial and applied [6][8] - Market Trends: Aging population and increasing demand for affordable healthcare are driving growth in the industry [8][9] - Financial Growth: Averaged 10% growth in top line over the last decade, with low double-digit growth in adjusted earnings per share and free cash flow [11] 2026 Outlook - Market Context: Positive sentiment in the biotech sector with improving funding and confidence in pharmaceutical investments [28] - Growth Strategy: Focus on executing growth strategy, gaining market share, and leveraging advanced AI capabilities for operational excellence [25][26] - Revenue Growth Expectations: Projected organic revenue growth of 3%-6% for 2026 and 2027, with expectations of 7%+ growth in 2028 and beyond [50][52] Capital Deployment and Acquisitions - M&A Activity: Active year with acquisitions including Solventum's purification and filtration business, a Sanofi manufacturing site, and a $9 billion acquisition of Clario [19][22] - Strategic Fit: Clario is expected to enhance Thermo Fisher's capabilities in clinical development and is projected to be accretive to earnings [48][49] Business Segment Performance - Pharma Services: High single-digit growth expected, benefiting from reshoring efforts and strong execution in clinical trials and drug product capabilities [34][36] - Bioproduction: Strong growth driven by leadership in media and single-use technologies, with the addition of Solventum expected to enhance the portfolio [37][38] - Clinical Research: Strong visibility and momentum in bookings, with a focus on accelerating drug development capabilities [40] - Analytical Instruments: Low single-digit organic growth, driven by innovation and demand from leading researchers despite a muted funding environment [41][43] Corporate Social Responsibility - Environmental Initiatives: Over 56% of global electricity sourced from renewable energy, on track to reach 80% by 2030 [24] - Community Engagement: Active in facilitating education and health equity initiatives globally [24] Conclusion - Future Prospects: Thermo Fisher is well-positioned for continued growth with a strong strategy, innovative product launches, and a commitment to operational excellence and corporate responsibility [26][29]