TMO Thermo Fisher Scientific 10-Q 2026-09-26 section summaries

Thermo Fisher Scientific — Q3 and first nine months of 2026

Consolidated results

Q3 revenue increased 9.1%; service revenue grew 16.2%, substantially faster than product revenue’s 4.1%. For 9M, revenue increased 8.6%, with services up 12.2% and products up 6.1%. Operating income grew 16.6% in Q3 and 13.1% for 9M. Interest expense rose to $417 million from $347 million in Q3 and to $1.172 billion from $1.054 billion for 9M. The 9M effective tax rate was 10.3%, versus 7.6%; 2026 included deferred tax benefits of $175 million, $148 million and $161 million in Q1, Q2 and Q3, partly offset by $171 million of tax expense on the microbiology-business sale in Q3.

Segment performance

Revenue is from external customers; segment income is the company-reported measure.

Life Sciences Solutions revenue growth slowed to 3.9% in Q3 from 9.4% for 9M ($6.853 billion versus $6.263 billion); segment income grew 5.6% in Q3 versus 10.8% for 9M ($3.017 billion versus $2.722 billion). Specialty Diagnostics revenue fell 5.5% in Q3 but was flat for 9M ($3.402 billion in both periods). Laboratory Products and Biopharma Services accelerated: revenue grew 15.1% in Q3 versus 11.4% for 9M ($19.467 billion versus $17.483 billion), while segment income grew 22.9% versus 14.7% ($2.781 billion versus $2.425 billion). Analytical Instruments segment income rose 25.4% in Q3; 9M income grew 14.2% ($1.317 billion versus $1.153 billion).

Cash flow, balance sheet and capital allocation

Equity less goodwill and acquisition-related intangible assets implies tangible equity of negative $17.573 billion, versus negative $11.785 billion at year-end. Debt borrowings at par were $41.405 billion, versus $39.459 billion; the company had no borrowings under its $5.00 billion revolving facility, which expires January 2028. The facility requires a minimum consolidated net interest coverage ratio of 3.5:1.0; the company reported covenant compliance.

Issued shares increased from 445,160,301 at year-end to 446,511,736; treasury shares rose from 68,938,831 to 75,995,868. Implied outstanding shares consequently declined from 376,221,470 to 370,515,868. 9M weighted-average diluted shares were 372 million, versus 378 million.

Acquisitions, portfolio actions and outlook

The March acquisition of Clario Holdings added clinical-trial endpoint data capabilities. Its preliminary purchase price was $9.102 billion, including $5.811 billion cash paid and $3.180 billion of debt settled, net of $117 million cash acquired. Preliminary goodwill was $5.945 billion and is not tax deductible; acquired intangibles included $2.510 billion of customer relationships, $844 million of product technology, $19 million of trade names and $423 million of backlog. The purchase-price allocation remains preliminary.

Thermo Fisher sold its microbiology business for approximately $1.07 billion in cash and a promissory note, recognizing a $72 million pretax gain; revenue through the sale was $294 million. It also recorded a $244 million held-for-sale loss on an agreed sale of a pharma manufacturing facility, contracts and employees. Restructuring charges were $346 million for 9M, including impairments, workforce reductions and facility consolidations; approximately 2% of the workforce was affected in 2026. The company expected approximately $180 million of additional charges, primarily in 2026, and anticipated further actions.

Remaining performance obligations were $29.87 billion, approximately 52% expected to be recognized within 12 months. Many longer-dated obligations relate to contract manufacturing, clinical research and extended-warranty arrangements, typically lasting three to five years.

Thermo Fisher Scientific (TMO) — Q3 and nine months ended September 26, 2026

Consolidated results

Revenue increased 9% in both periods. Organic growth was 6% in Q3 and 4% for 9M; acquisitions added 3 and 4 percentage points, respectively, while currency contributed 0 and 1 point. The stronger Q3 organic rate reflected improving underlying pharma and biotech conditions. Productivity—including tariff refunds—was the principal driver of Q3 margin expansion. GAAP results also benefited from contingent-consideration credits, a microbiology-sale gain and lower restructuring charges, partly offset by a held-for-sale loss. For 9M, productivity was partly offset by unfavorable mix and strategic investment.

Segment results

Segment income is Thermo Fisher’s reported segment measure. Q3 figures are shown for all segments; 9M figures are included where the reported growth trend differed materially from Q3.

Life Sciences Solutions’ Q3 growth was led by bioproduction, whose reported revenue increased $79M, including contribution from the 2025 Solventum filtration and separation acquisition. Analytical Instruments benefited from electron microscopy and chromatography/mass spectrometry, up $94M and $18M, respectively. Specialty Diagnostics’ reported decline primarily reflected the microbiology divestiture; organic revenue was flat. Laboratory Products and Biopharma Services grew on pharma services, research and safety, and clinical research. Clinical research increased $425M in Q3, primarily due to Clario; pharma services grew $306M and research and safety $169M. Clinical research grew approximately $1.05B for 9M, primarily reflecting Clario.

Demand was strong in pharma and biotech and industrial/applied markets, supported by high-end instruments. Academic and government revenue was flat, while diagnostics and healthcare grew slightly. Sales increased across major geographies, with strong growth in North America and Europe and very strong growth in Asia-Pacific, including China.

Cash flow and capital allocation

Nine-month acquisitions used $8.88B, compared with $4.04B a year earlier; the microbiology business sale provided $1.02B. Capacity and capability capital spending was $1.26B, and full-year net PP&E spending is expected to be $1.9B–$2.0B. Working capital used cash, including a $540M increase in accounts receivable and a $430M decrease in accounts payable. Income-tax payments were $940M, down from $1.60B.

Nine-month debt issuance provided $5.24B and repayments used $2.52B. Share repurchases totaled $4.00B for 6.9M shares, versus $3.00B for 5.8M shares in 9M 2025; $1.00B remained under the November 2025 authorization at October 30, 2026. Dividends were $510M versus $470M. Repurchases, net of option dilution, contributed to the decline in weighted-average diluted shares.

Liquidity, transactions and taxes

Short-term obligations and current maturities totaled $2.26B. Thermo Fisher had no borrowings under its $5.00B unsecured multicurrency revolver. Management expects cash, future operating cash flow and available revolver capacity to cover business needs for at least 24 months. Approximately half of cash and operating cash flows are generated outside the U.S.; the company expects overseas cash to support local needs and to be transferable to the U.S. through specified transactions without material adverse liquidity effects. Management prioritizes M&A, followed by repurchases and dividends.

The company acquired Clario on March 24, 2026, adding clinical-trial endpoint data capabilities, and sold its Specialty Diagnostics microbiology business on August 12. The 2025 Solventum acquisition broadened bioproduction and industrial filtration exposure, including battery, semiconductor and medical-device markets.

Q3 GAAP and adjusted tax rates were 16.9% and 11.6%, respectively, versus 11.3% and 11.0%; 9M rates were 10.3% and 11.3%, versus 7.6% and 10.4%. 2026 tax items included domestication-related deferred tax benefits of $161M in Q3 and $175M for 9M, a $171M Q3 tax expense tied to the microbiology-sale tax gain, and a further $148M 9M deferred tax benefit as certain tax assets became expected to be realizable. Management expects a 9%–11% full-year GAAP tax rate and approximately 11.5% adjusted rate; cash tax payments are expected to be about $1.5B, in part because intangible amortization is generally nondeductible.

Interest-rate and foreign-currency exchange-rate market-risk exposures had not changed materially from those disclosed in Thermo Fisher Scientific’s Form 10-K for the year ended December 31, 2025.

Item 4 — Controls and Procedures

Management, including the CEO and CFO, concluded that Thermo Fisher Scientific’s disclosure controls and procedures were effective at the reasonable-assurance level as of September 26, 2026. During the fiscal quarter ended that date, no changes materially affected, or were reasonably likely to materially affect, the company’s internal control over financial reporting.

This section provides no specific risk factors or updates to the company’s risk profile. It directs investors to the “Risk Factors” section of Thermo Fisher Scientific’s Form 10-K for the year ended December 31, 2025, filed with the SEC. No financial metrics or business developments are disclosed here.

For the three months ended September 26, 2026, no Thermo Fisher director or executive officer adopted, modified, or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement. This section reports no financial results or other material business developments.