Thermo Fisher (NYSE: TMO) lifts revenue 9% and completes microbiology divestiture
by Danessa Lincoln · The Markets DailyWhat happened
Thermo Fisher Scientific Inc. (NYSE: TMO) said third-quarter revenue rose 9% to $12.14 billion on October 21, 2026. Organic revenue growth was 6%. GAAP diluted EPS rose 9% to $4.64, and adjusted EPS rose 15% to $6.68. GAAP operating income rose 17% to $2.26 billion, and adjusted operating income rose 15% to $2.97 billion. The company also said it completed its previously announced divestiture of its microbiology business during the quarter.
Laboratory Products and Biopharma Services generated $6.86 billion of revenue. Life Sciences Solutions generated $2.72 billion, Analytical Instruments $2 billion, and Specialty Diagnostics $1.1 billion. For the nine months ended September 26, 2026, revenue was $35.14 billion, up from $32.34 billion. Net income attributable to Thermo Fisher Scientific Inc. was $1.72 billion, versus $1.62 billion.
Key numbers
| Metric | Latest | Change | Source |
|---|---|---|---|
| Third-quarter revenue | $12.14 billion | from $11.12 billion, +9% | Q3 2026 earnings press release |
| GAAP diluted EPS | $4.64 | from $4.27, +9% | Q3 2026 earnings press release |
| Adjusted EPS | $6.68 | from $5.79, +15% | Q3 2026 earnings press release |
| GAAP operating income | $2.26 billion | from $1.94 billion, +17% | Q3 2026 earnings press release |
| GAAP operating margin | 18.6% | from 17.4%, +1.2 percentage points | Q3 2026 earnings press release |
Read more: Thermo Fisher Scientific (TMO) stock analysis and investment case
Why it matters
Revenue increased by $1.02 billion from $11.12 billion a year earlier, and GAAP operating margin widened to 18.6% from 17.4%. OptimistFi's case is that Thermo Fisher turns installed bases into recurring revenue and uses scale and M&A to lift margins and EPS over time. This quarter strengthens that view.
Adjusted operating margin improved to 24.5% from 23.3%, and nine-month adjusted EPS rose to $18.15 from $16.30. Net cash provided by operating activities rose to $5.87 billion from $4.36 billion, and free cash flow rose to $4.62 billion from $3.32 billion. The balance sheet also carried $39.11 billion of long-term obligations, versus $35.85 billion at December 31, 2025.
The quarter still included restructuring and other costs, amortization of acquisition-related intangible assets, and a gain on the sale of a business plus a held-for-sale loss.
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What's next
Thermo Fisher said it will provide updated 2026 financial guidance during its earnings conference call on October 21, 2026, at 7:00 a.m. Eastern Time. Guidance that sustains revenue, margin and EPS growth would strengthen the case, while a softer outlook would weaken it.
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Sources
- Thermo Fisher Scientific reports third quarter 2026 results — Earnings press release dated October 21, 2026.
- Thermo Fisher Scientific Inc. Form 8-K — Current report filed October 21, 2026.
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Originally published on OptimistFi, evidence-first equity research. More at optimistfi.com.