Thermo Fisher's third-quarter revenue climbs 9% from a year earlier to $12.14 billion

Thermo Fisher Scientific reported third-quarter revenue of $12.14 billion, up 9% from $11.12 billion a year earlier, with organic growth of 6% and acquisitions and divestitures adding 3 points. GAAP diluted EPS rose 9% from a year earlier to $4.64 and adjusted EPS rose 15% to $6.68 as operating margins widened.

Revenue rose to $12.14 billion from $11.12 billion a year earlier, and the company attributed 6 points of the 9% increase to organic growth. Acquisitions and divestitures, net, added 3 points and currency translation added nothing, a cleaner mix than the first nine months, when currency contributed 1 point and organic growth was 4%.

Segment mix leans on laboratory products and biopharma services

Laboratory Products and Biopharma Services was 56.5% of revenue, against 53.7% a year earlier, and its segment income margin widened to 15.5% from 14.5%. Analytical Instruments lifted its segment margin to 26.9% from 22.6%. Specialty Diagnostics was the only segment to shrink, with revenue 6.5% lower than a year earlier, in the quarter the company said it completed the previously announced divestiture of its microbiology business. The release does not split the change between acquisitions, divestitures and underlying demand, so the 3-point consolidated figure is the only guide it offers.

Margins expand as production costs take a smaller share

Cost of revenues fell to 57.2% of revenue from 58.2%, and the gross-margin gain carried down the income statement. GAAP operating income rose 17% to $2.26 billion, lifting GAAP operating margin to 18.6% from 17.4%. Adjusted operating income, which excludes restructuring, amortization of acquired intangibles and transaction items, rose 15% to $2.97 billion and adjusted operating margin widened to 24.5% from 23.3%. Marc N. Casper, chairman and chief executive officer, said “We are very pleased to deliver another excellent quarter, with outstanding financial performance on both the top and bottom line”. Specialty Diagnostics also expanded its segment margin, to 31.0% from 27.4%, even on lower revenue.

A held-for-sale loss and a higher tax rate widen the gap to adjusted EPS

GAAP diluted EPS rose 9% to $4.64 from a year earlier, half the 15% pace of adjusted EPS at $6.68. The reconciliations show where the difference sits. Restructuring and other costs include $72 million of gain on the sale of a business and $244 million for a held-for-sale loss, and the adjusted figures exclude both along with amortization of acquired intangibles. Below the operating line, interest expense rose to $417 million from $347 million a year earlier, and the effective tax rate climbed to 16.9% from 11.3% a year earlier. Net income attributable to the company was therefore 14.2% of revenue against 14.5%, even though operating income rose 17%.

Acquisitions absorb cash while free cash flow improves

Third-quarter free cash flow was $2.12 billion against $1.84 billion a year earlier. The larger use of cash was acquisition spending, which reached $8.88 billion net of cash acquired in the first nine months against $4.04 billion a year earlier. Cash and equivalents fell to $5.46 billion from $9.85 billion at December 31, 2025, and long-term obligations rose to $39.11 billion from $35.85 billion, so the deals were funded partly from the balance sheet. Share repurchases continued through the period, which leaves less room for a larger buyback without more borrowing.

Guidance waits for the 7 a.m. call

The release, filed as Exhibit 99.1 to a Form 8-K that carries Item 2.02, sets no updated 2026 revenue, EPS or margin outlook; it says only that the company will provide one on its earnings call at 7:00 a.m. Eastern Time today. Nine-month adjusted EPS was $18.15 against $16.30, which sets the base for whatever the company says about the fourth quarter. The release offers no comparison with analyst estimates, and this article asserts no beat or miss. The call is the next checkpoint; the filing gives no date for the fourth-quarter report.