Executive Summary
Thermo Fisher delivered a solid Q4 2024 across all core dimensions. Revenue reached $11.395 billion, up 10.15% year over year and 7.52% quarter over quarter, powered by broad-based demand across the company’s four segments. Gross margin stood at 39.20%, with operating margin near 19.90% and net margin around 16.10%, underscoring a favorable mix and continued operating leverage. Net income of $1.83 billion and earnings per diluted share of $4.78–$4.79 reflect ongoing cash-generative efficiency even as the company maintains substantial investment in R&D and go-to-market activities.
Free cash flow of $2.81 billion was generated in the period, supported by $3.29 billion of operating cash flow and modest capital expenditure of $0.48 billion. The company also returned capital to shareholders via share repurchases of $1.0 billion and $0.149 billion in dividends, while sustaining a robust balance sheet with cash and cash equivalents of about $4.01 billion and total liquidity including short-term investments of roughly $5.57 billion. Net debt stood at approximately $28.76 billion, reflecting a high absolute leverage level but a capital structure that Thermo Fisher has consistently managed through strong free cash flow generation.
The earnings backdrop reinforces Thermo Fisher’s market leadership in Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Services. The mix and pricing discipline, coupled with sequential margin expansion, position the company to navigate a mix of macro headwinds and persistent secular growth in life sciences. Investors should monitor cadence of demand in biopharma and clinical diagnostics, supply chain dynamics, and any changes in capital allocation tempo as the company balances deleveraging with ongoing strategic investments.
Key Performance Indicators
Key Insights
Revenue: $11.395B, YoY +10.15%, QoQ +7.52%
Gross profit: $4.467B, margin 39.20%, YoY +5.93%, QoQ +2.86%
Operating income: $2.268B, margin 19.90%, YoY +31.86%, QoQ +18.37%
Net income: $1.83B, margin 16.06%, YoY +37.91%, QoQ +12.27%
EPS (diluted): $4.78, YoY +38.04%, QoQ +12.18%
EBITDA: $3.068B, EBITDA margin 26.92%
Cash flow from operations: $3.29B; Free cash flow: $2.81B; Capex: $0.48B
Dividend: $0.149B; Share repurchases: $1.00B
Cash and cash equivalents: $4.01B; Short-term investments: $1.56B;...
Financial Highlights
Revenue: $11.395B, YoY +10.15%, QoQ +7.52%
Gross profit: $4.467B, margin 39.20%, YoY +5.93%, QoQ +2.86%
Operating income: $2.268B, margin 19.90%, YoY +31.86%, QoQ +18.37%
Net income: $1.83B, margin 16.06%, YoY +37.91%, QoQ +12.27%
EPS (diluted): $4.78, YoY +38.04%, QoQ +12.18%
EBITDA: $3.068B, EBITDA margin 26.92%
Cash flow from operations: $3.29B; Free cash flow: $2.81B; Capex: $0.48B
Dividend: $0.149B; Share repurchases: $1.00B
Cash and cash equivalents: $4.01B; Short-term investments: $1.56B; Total cash + equivalents: $5.57B
Total assets: $97.32B; Total liabilities: $47.65B; Stockholders’ equity: $49.58B
Current ratio: 1.66; Net debt: $28.76B; Debt: $32.78B; ROE: 3.69%; ROA: 1.88%; FCF yield and other liquidity metrics provided in ratios section.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
11.40B |
10.15% |
7.52% |
| Gross Profit |
4.47B |
5.93% |
2.86% |
| Operating Income |
2.27B |
31.86% |
18.37% |
| Net Income |
1.83B |
37.91% |
12.27% |
| EPS |
4.79 |
38.04% |
12.18% |
Key Financial Ratios
operatingProfitMargin
19.9%
operatingCashFlowPerShare
$8.61
freeCashFlowPerShare
$7.36
dividendPayoutRatio
8.14%
Management Commentary
Note: No earnings call transcript was provided in the dataset. As a result, transcript-specific highlights and quotes are not available. Management commentary themes are inferred from the reported results and historical commentary, focusing on margin discipline, cash generation, and capital allocation.
Forward Guidance
No formal forward guidance is included in the provided data for QQ4 2024. Thermo Fisher historically guides to continued margin stability and sustainable cash generation, supported by strength in Life Sciences Solutions and Analytical Instruments. Given the backdrop of resilient demand for biotech R&D, clinical diagnostics, and lab automation, investors should monitor: (1) cadence of biopharma capex and vaccine manufacturing spending, (2) diagnostic volumes and pricing discipline, (3) supply chain resilience and potential input cost fluctuations, and (4) ongoing capital allocation strategies (dividends, buybacks, and potential deleveraging). Absent explicit guidance, the directional tone remains positive on revenue growth through mix, and on free cash flow expansion fueled by operating leverage.