Thermo Fisher Scientific (NYSE:TMO) reported stronger-than-expected second-quarter 2026 results and raised its full-year outlook, citing improving customer activity across end markets, broad-based growth and contributions from recent acquisitions.
Chairman and Chief Executive Officer Marc Casper said the company delivered an “outstanding quarter,” with revenue rising 10% to $11.99 billion. Adjusted operating income increased 15% to $2.73 billion, while adjusted operating margin expanded 90 basis points to 22.8%. Adjusted earnings per share grew 13% to $6.03.
Customer Activity Strengthens Across End Markets
Thermo Fisher reported 5% organic revenue growth in the quarter. Casper said customer activity continued to improve across the company’s end markets, with particular strength in pharma and biotech, the company’s largest end market.
In pharma and biotech, revenue grew in the mid-single digits, led by bioproduction, clinical research and the research and safety market channel. Casper said biotech spending improved and began translating into revenue after earlier signs of increased activity.
Academic and government revenue grew in the low single digits, driven by chromatography and mass spectrometry. Casper said the market is stabilizing, with strong adoption of new instruments globally and U.S. academic and government revenue returning to growth, though he cautioned that the company is not yet calling it a sustained new trend.
Industrial and applied revenue grew in the mid-single digits, led by electron microscopy, chemical analysis and the research and safety market channel. Diagnostics and healthcare also grew in the mid-single digits, driven by the healthcare market channel and immunodiagnostics.
Segment Results Show Broad Growth
Meyer said all four business segments contributed to the quarter’s performance. In Life Sciences Solutions, reported revenue increased 13%, while organic revenue grew 3%. Growth was led by bioproduction, which Meyer said had another quarter of excellent organic growth. Adjusted operating margin in the segment rose 20 basis points to 37.0%.
Analytical Instruments posted 7% growth on both a reported and organic basis. Meyer said all three businesses in the segment grew, led by electron microscopy. Adjusted operating income increased 30%, and adjusted operating margin expanded 420 basis points to 23.0%.
Specialty Diagnostics revenue increased 6% on a reported basis and 5% organically. Growth was led by the healthcare market channel, immunodiagnostics and transplant diagnostics. Adjusted operating margin rose 70 basis points to 27.7%.
Laboratory Products and Biopharma Services reported 12% revenue growth and 5% organic revenue growth. The research and safety market channel and clinical research business led growth. Adjusted operating margin increased 20 basis points to 14.0%.
Innovation and Acquisitions Remain Key Priorities
Casper highlighted several product launches during the quarter, including next-generation Orbitrap platforms and AI-driven capabilities introduced at the American Society for Mass Spectrometry conference. He pointed to the Thermo Scientific Orbitrap Tribrid Apex Mass Spectrometer and Orbitrap Excedion Mass Spectrometer as tools designed to support research and drug development applications.
The company also launched the Thermo Scientific Vanquish Amplify UHPLC system and the Applied Biosystems PowerFlex Thermal Cycler. Casper said customer adoption of recent innovations has been strong, particularly in analytical instruments.
Thermo Fisher also discussed progress integrating recent acquisitions. Casper said the Clario acquisition, completed in late March, delivered a strong second quarter, with integration progressing smoothly and revenue synergy opportunities building. He said the filtration and separation business also continues to perform well, with positive customer feedback and strong demand.
The company also expects to close the divestiture of its microbiology business in the third quarter. Meyer said the transaction is expected to reduce 2026 revenue by about $200 million, net of the retained channel business, and reduce 2026 adjusted EPS by $0.05. Thermo Fisher used anticipated net proceeds from the transaction to repurchase $1 billion of shares in the second quarter.
Full-Year Guidance Raised
Thermo Fisher raised its 2026 revenue guidance to a range of $47.4 billion to $48.1 billion, representing 6% to 8% reported revenue growth over 2025. The company now expects full-year organic revenue growth of about 4%, at the upper end of its 3% to 4% guidance range.
The company also increased adjusted EPS guidance to a range of $24.93 to $25.33, representing 9% to 11% growth over 2025 and a $0.25 increase at the midpoint from prior guidance.
Meyer said the revised EPS midpoint reflects $0.30 from second-quarter outperformance and $0.05 from a higher second-half revenue outlook, partially offset by a $0.05 impact from the microbiology divestiture and a $0.05 foreign exchange headwind in the second half.
Thermo Fisher now expects acquisitions to contribute $1.6 billion of revenue and $0.32 of adjusted EPS for the year. The company continues to expect free cash flow of $6.9 billion to $7.4 billion and net capital expenditures of $1.9 billion to $2.1 billion.
Management Cites Pharma, Biotech and China Improvement
During the question-and-answer session, Casper said the improved second-half outlook is primarily driven by pharma and biotech. He said clinical research had an excellent quarter, with strong organic revenue growth and authorizations, while pharma services delivered modest growth in line with expectations and is expected to strengthen in the second half based on production schedules and customer campaigns.
Casper also said China, which represents about 7.5% of company revenue, returned to low-single-digit growth. He said growth there was driven by pharma and biotech as well as industrial and applied markets, while academic and government demand in China remained muted.
On bioproduction, Casper said Thermo Fisher’s position across upstream and downstream workflows supported the strong quarter. He noted leadership in cell culture media and single-use technologies, a growing purification position and added filtration capabilities from the Solventum filtration and separation acquisition.
Casper closed the call by saying Thermo Fisher is “on track to deliver a strong year” as it continues to execute its growth strategy and manage the business through innovation, acquisitions and capital returns.
About Thermo Fisher Scientific (NYSE:TMO)
Thermo Fisher Scientific (NYSE: TMO) is a global provider of scientific instrumentation, reagents and consumables, software, and services that support research, clinical, and industrial laboratories. The company supplies analytical instruments and laboratory equipment, life sciences reagents and kits, specialty diagnostics, and a broad range of consumables used by researchers, clinicians, and manufacturers. Its offerings also include laboratory information management and data-analysis software, as well as service solutions such as instrument maintenance, validation, and logistics that help customers run complex workflows efficiently.
Thermo Fisher operates through multiple business areas that broadly cover life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma services, including contract development and manufacturing for pharmaceutical and biotechnology companies.
