Thermo Fisher Scientific (TMO -0.48%), a leading provider of scientific instrumentation, reagents and consumables, and specialty diagnostics, reported its second quarter results for fiscal 2025 on July 23, 2025. The company delivered higher revenue and non-GAAP earnings per share than Wall Street estimates, with revenue (GAAP) was $10.85 billion versus the $10.68 billion analyst consensus, and Adjusted EPS was $5.36 against a $5.23 estimate. While overall revenue (GAAP) grew and product launches remained strong, profit margins again fell from last year. The quarter reflected the company’s innovation and ability to navigate a complicated policy and demand environment, despite ongoing pressures.
| Metric | Q2 2025 | Q2 2025 Estimate | Q2 2024 | Y/Y Change |
|---|---|---|---|---|
| EPS (Non-GAAP) | $5.36 | $5.23 | $5.37 | -0.2 % |
| Revenue (GAAP) | $10.85 billion | $10.68 billion | $10.54 billion | 2.9 % |
| Operating Margin (GAAP) | 16.9 % | 17.3 % | (0.4 pp) | |
| Free Cash Flow (Non-GAAP) | $1.11 billion | $1.67 billion | (33.5 %) | |
| Revenue – Life Sciences Solutions | $2.50 billion | $2.36 billion | 5.9 % |
Source: Analyst estimates for the quarter provided by FactSet.
About Thermo Fisher Scientific and Its Strategy
Thermo Fisher Scientific is a global science and diagnostics company serving pharmaceutical, biotechnology, healthcare, academic, and government customers. It is known for instruments, chemicals, and clinical diagnostic tools that support laboratory research, drug manufacturing, and clinical care.
The company’s business strategy centers on high-impact innovation and research and development (R&D), complemented by strategic acquisitions. It invests heavily in new technology to meet evolving customer needs in life sciences and diagnostics. Key growth factors include successful product launches, a broad and balanced portfolio, and its emphasis on operational and regulatory excellence across diverse markets.
Quarter in Detail: Segment Shifts, Innovation, and Operational Trends
Thermo Fisher’s quarterly performance shows a mix of revenue growth and ongoing cost headwinds. Overall revenue (GAAP) reached $10.85 billion, up 3% from the prior year, and Both revenue (GAAP) and non-GAAP EPS surpassed analyst estimates. Revenue from the Life Sciences Solutions segment, which includes products like cell culture media and bioproduction systems, rose 6.1% to $2,499 million. That segment benefits from pharmaceutical R&D and manufacturing demand, including business won to replace post-pandemic COVID capacity.
The Analytical Instruments segment, which offers complex devices like mass spectrometers and electron microscopes, experienced a 3.0% year-over-year GAAP revenue decline compared to Q2 2024. Segment operating margin for Analytical Instruments also fell significantly, down 5.8 percentage points to an adjusted 18.8%.
Innovation remains a pillar of the company’s performance. In the quarter, Thermo Fisher launched several next-generation scientific instruments, including the Orbitrap Astral Zoom mass spectrometer and Krios 5 Cryo-TEM transmission electron microscope. These tools support precise analysis for disease understanding and drug development. R&D spend increased to $352 million, or 3.2% of revenue, reflecting steady commitment to new product development. New product launches and expansion of technologies for drug manufacturing reinforce its position in life sciences and pharmaceutical markets.
The company’s quarterly numbers were shaped by operational and macroeconomic forces. GAAP operating margin compressed by 0.4 percentage points, while Free cash flow (non-GAAP) fell sharply by 34.0% to $1.11 billion. Cost management, proactive pricing actions, and supply chain mitigation helped offset known tariff and policy impacts, but these actions did not fully counteract the pressure on profits. The quarter also included a modest positive impact from currency and acquisitions played a minimal role in quarterly revenue growth. Cash and equivalents rose compared to year end.
Strategic moves outside the quarter included acquiring Sanofi’s Ridgefield, New Jersey sterile fill-finish facility after quarter end, expanding U.S. manufacturing for pharmaceutical partners. The company also has a large pending acquisition—Solventum filtration—expected to close by year end. While these are expected to build future capacity, acquisitions did not add to the quarter’s organic growth.
Thermo Fisher’s efforts to balance market risks through product, customer, and geographic diversification continued. Its revenue base draws on biopharmaceutical, diagnostic, academic, and government sales, helping buffer one area’s slowdowns with gains elsewhere. Segment results this period reflected stable performance in diagnostics and pharmaceutical services.
Financial Outlook and What to Watch Going Forward
The outlook points to revenue between $43.3 billion and $44.2 billion and adjusted EPS in the range of $21.76 to $22.84 for FY2025. This guidance for FY2025 incorporates effects from current tariffs, U.S. policy changes, and anticipated mitigation strategies. Management expects to complete supply chain actions to offset most tariff-related cost pressures by next year (2026)
Investors should pay close attention to several factors going forward: margins in the Analytical Instruments segment, and the company’s ability to adapt to further policy and funding changes—especially involving U.S.-China trade and U.S. government funding for research institutions. Any new developments regarding Thermo Fisher Scientific’s dividend policy are worth monitoring, as the company pays a dividend and raised its quarterly payout earlier in the year.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
