10-QPeriod: Q1 FY2026

THERMO FISHER SCIENTIFIC INC. Quarterly Report for Q1 Ended Mar 28, 2026

Filed May 1, 2026For Securities:TMO

Summary

Thermo Fisher Scientific Inc. reported strong revenue growth of 6% for the first quarter of 2026, reaching $11.0 billion, driven by robust performance in the pharmaceutical and biotech sectors. While overall revenue saw a healthy increase, the academic and government, and diagnostics and healthcare markets experienced declines. The company demonstrated significant strategic activity with the acquisition of Clario Holdings, Inc. for $9.099 billion, expanding its clinical trial data solutions capabilities. Conversely, Thermo Fisher also announced the divestiture of its microbiology business for approximately $1.075 billion, expected to close in the second half of 2026. These strategic moves, alongside a substantial $3 billion in share repurchases and $0.16 billion in dividends paid, highlight the company's active capital allocation strategy.

Financial Highlights

55 data points
Beta

Revenue

$11.01B

Net Income

$1.66B

15.0% Net Margin

EPS (Diluted)

$4.43

Total Assets

$113.28B

Cash & Equivalents

$3.28B

Free Cash Flow

$816.00M

Financial Statements
Beta
Revenue$11.01B
R&D Expenses$336.00M
SG&A Expenses$2.18B
Operating Expenses$9.14B
Operating Income$1.86B
Net Income$1.66B
EPS (Basic)$4.44
EPS (Diluted)$4.43
Shares Outstanding (Basic)372.00M
Shares Outstanding (Diluted)373.00M

Key Highlights

  • 1Total revenues increased by 6% to $11.0 billion compared to the prior year's first quarter.
  • 2The company completed a significant acquisition of Clario Holdings, Inc. for $9.099 billion to bolster its clinical trial data solutions.
  • 3Thermo Fisher announced the planned divestiture of its microbiology business for approximately $1.075 billion, expected to close in late 2026.
  • 4Share repurchases totaled $3.0 billion in the first quarter, demonstrating a commitment to returning capital to shareholders.
  • 5Operating income grew by 9% to $1.9 billion, with an operating margin of 16.9%.
  • 6Cash provided by operating activities increased significantly to $1.2 billion, and free cash flow more than doubled to $825 million.
  • 7The company reported a substantial increase in goodwill on the balance sheet, largely driven by the Clario acquisition.

Frequently Asked Questions

Revenue growth was primarily driven by strong performance in the pharmaceutical and biotech market, which benefited from strengthening underlying market conditions. The Laboratory Products and Biopharma Services segment and, to a lesser extent, the Life Sciences Solutions segment were key contributors to organic revenue growth.

The acquisition of Clario Holdings, Inc. significantly increased the company's total assets and goodwill. The purchase price was approximately $9.1 billion, funded through a combination of cash, debt settlement, and other considerations. This strategic move aims to expand the company's clinical research offerings.

Total debt increased to $43.2 billion from $39.4 billion at the end of the prior year. This increase is largely due to debt issuance to finance acquisitions, share repurchases, and general corporate purposes. The company maintains a revolving credit facility and has access to capital markets, with management believing its liquidity will be sufficient for at least the next 24 months.

Thermo Fisher Scientific is actively managing its capital through a combination of strategic acquisitions (like Clario), planned divestitures (microbiology business), significant share repurchases totaling $3.0 billion in the quarter, and dividend payments of $0.16 billion. The company continues to prioritize mergers and acquisitions, followed by share buybacks and dividends.