Thermo Fisher Scientific (TMO)
NYSEHealth CareMedical - Diagnostics & ResearchSnapshot 2026-09-04
$613.78-0.75%
Close 2026-09-04 · 1-day change
NYSEHealth CareMedical - Diagnostics & ResearchSnapshot 2026-09-04
Intact: The reason to own it still holds.
Thermo Fisher grows sales about 7% a year, helped by acquisitions like Clario. Profit margins stay solid with EPS near $25 in 2026. Cash from operations rose from $723 million to $1.192 billion in one year. The company keeps buying back shares to return capital.
Growth could slow if acquisitions like Clario do not integrate well. Profit margins might weaken if costs rise or demand softens. Cash flow growth could stall, limiting share buybacks and investments.
The price is about 8% above our fair value near $479 and below the Street median of $555. Analysts expect about 7.5% revenue growth, which aligns with recent trends. Our view is more cautious than the Street on valuation but agrees on steady growth.
Breaks if: No buyback program announced or executed in next year
Breaks if: Quarterly cash from operations falls below $1 billion
EPS falls below $23 next year
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This is a durable compounder with a focus on growth through strategic acquisitions and innovation. The current thesis state is intact, supported by strong recent financial performance and management's commitment to disciplined capital allocation.
The market appears to have priced in a low expectations gap, indicating that TMO is viewed as cheap compared to its peers. The valuation has risen recently, suggesting that the market is recognizing the company's strong performance and growth potential.
Fundamentals are likely to remain strong, driven by management's focus on acquisitions and product innovation. However, there is a moderate risk due to potential economic downturns that could impact cyclical healthcare names like TMO.
The long-term thesis hinges on management's ability to execute on strategic acquisitions and maintain growth through innovation. Additionally, sector performance and broader economic indicators, such as job reports, will play a critical role in shaping TMO's trajectory.
The most important moves since the prior daily snapshot.
Valuation rose by 10.8 points (from 37.9 to 48.7).
Yes, our read has strengthened. The latest earnings beat supports the positive outlook. The company is advancing its growth strategy with innovative product launches. Stronger demand for biosimilars in India also boosts expectations.
as of 2026-09-04
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Breaks if: YoY revenue growth falls below 5% next year
Overall, TMO's fundamentals and strategic direction support a positive long-term view, but external economic factors could introduce risks. Not investment advice.