Executive Summary
Thermo Fisher Scientific reported QQ3 2025 revenue of $11.12 billion, up 4.9% year over year and 2.5% quarter over quarter, reflecting resilient demand across the Life Sciences Solutions and Analytical Instruments segments. Gross profit reached $4.652 billion with a gross margin of 41.8%, up from prior periods due to favorable mix and ongoing cost discipline, and operating income of $1.943 billion yielded an operating margin of approximately 17.5%. Net income was $1.616 billion, translating to a net margin of about 14.5% and EPS of $4.28 (diluted $4.27). Despite top-line strength, net income declined modestly year over year (-0.9%) and was flat to slightly down quarter over quarter, underscoring higher operating or non-operating costs and currency effects that impacted profitability, while the company continues to invest in R&D and go-to-market activities. Free cash flow per share stood at $4.85 with operating cash flow per share of $5.92, supporting a conservative payout and strong balance-sheet flexibility. The balance sheet exhibits solid leverage metrics (debt ratio ~0.346; debt to capitalization ~0.412) and a substantial cash generation profile, though working capital dynamics show a cash conversion cycle around 110 days, consistent with a capital-intensive high-margin science tools company.
Key Performance Indicators
Key Insights
Revenue: $11.122B for QQ3 2025, up 4.94% YoY and 2.46% QoQ. Gross Profit: $4.652B; Gross Margin: 41.83% (YoY +7.11%, QoQ +14.92%). Operating Income: $1.943B; Operating Margin: 17.47% (YoY +1.41%, QoQ +1.36%). Net Income: $1.616B; Net Margin: 14.53% (YoY -0.86%, QoQ -0.06%). EPS: $4.28 (diluted $4.27); YoY +0.23%, QoQ flat. EBITDA: $2.634B; EBITDA Margin ~23.68%. Interest Expense: $0.347B; Effective Tax Rate: ~11.3%; Tax expense: $0.207B. Cash Flow: Operating Cash Flow per Share $5.92; Free Cash ...
Financial Highlights
Revenue: $11.122B for QQ3 2025, up 4.94% YoY and 2.46% QoQ. Gross Profit: $4.652B; Gross Margin: 41.83% (YoY +7.11%, QoQ +14.92%). Operating Income: $1.943B; Operating Margin: 17.47% (YoY +1.41%, QoQ +1.36%). Net Income: $1.616B; Net Margin: 14.53% (YoY -0.86%, QoQ -0.06%). EPS: $4.28 (diluted $4.27); YoY +0.23%, QoQ flat. EBITDA: $2.634B; EBITDA Margin ~23.68%. Interest Expense: $0.347B; Effective Tax Rate: ~11.3%; Tax expense: $0.207B. Cash Flow: Operating Cash Flow per Share $5.92; Free Cash Flow per Share $4.85; Cash per Share $9.38; Dividend Payout Ratio 10.1%; Dividend Yield 0.093%. Balance Sheet and Leverage: Debt Ratio 34.6%; Debt to Equity 69.9%; Long-term Debt to Capitalization 38.4%; Total Debt to Capitalization 41.2%; Interest Coverage 5.60x. Efficiency: Receivables Turnover 1.248x; Payables Turnover 2.17x; Inventory Turnover 1.126x; Asset Turnover 0.108x; Capital Expenditure Coverage Ratio 5.54x. Valuation: P/E 27.15x; P/B 3.44x; P/S 15.78x; P/FCF 95.63x; Dividend Yield 0.093%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
11.12B |
4.94% |
2.46% |
| Gross Profit |
4.65B |
7.11% |
14.92% |
| Operating Income |
1.94B |
1.41% |
1.36% |
| Net Income |
1.62B |
-0.86% |
-0.06% |
| EPS |
4.28 |
0.23% |
0.00% |
Key Financial Ratios
operatingProfitMargin
17.5%
operatingCashFlowPerShare
$5.92
freeCashFlowPerShare
$4.85
dividendPayoutRatio
10.1%
Management Commentary
Note: The earnings transcript data is not provided in the dataset. The highlights below synthesize likely themes based on the financials and typical management commentary for Thermo Fisher: (1) Strategy and Growth Path – Management typically emphasizes continued growth in Life Sciences Solutions and Analytical Instruments, with a focus on high-margin consumables and recurring revenue streams; (2) Operational Execution – Commentary often centers on cost discipline, R&D productivity, and go-to-market efficiency to sustain margins amid a dynamic demand environment; (3) Market Conditions – Diagnostics and biopharma demand remain resilient, with potential tailwinds from vaccine production, bioprocessing, and clinical lab capacity expansion; (4) Capital Allocation – Emphasis on generating robust free cash flow to support capital expenditure, acquisitions, and shareholder returns while maintaining a solid balance sheet.
Transcript not available in provided data.
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Transcript not available in provided data.
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Forward Guidance
The dataset does not include formal forward-looking guidance. Based on QQ3 2025 performance and sector dynamics, the near-term trajectory likely hinges on: (i) continued demand resilience in Life Sciences Solutions and Analytical Instruments, (ii) capacity expansion in bioproduction and diagnostics, (iii) currency translation effects given a USD-denominated reporting lens versus international revenue, (iv) ongoing R&D investments and capex cycles that sustain a high-margin product and service mix. Management typically signals confidence in long-term growth drivers, but no explicit targets are provided here. Key factors for investors to monitor include order intake trends in bioprocessing and clinical diagnostics, cadence of new instrument introductions, price realization, and working capital dynamics that influence free cash flow conversion.