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With a market cap of $155.6 billion, Thermo Fisher Scientific Inc. (TMO) is a global leader in serving science, offering innovative technologies, services, and solutions to accelerate research and improve healthcare. The company now operates through key segments including Life Sciences Solutions, Analytical Instruments, Specialty Diagnostics, and Laboratory Products and Biopharma Services.
Shares of the Waltham, Massachusetts-based company have underperformed the broader market over the past 52 weeks. TMO has decreased 31% over this time frame, while the broader S&P 500 Index ($SPX) has gained 12.5%. Moreover, TMO stock has dropped 20.8% on a YTD basis, compared to SPX's 1.3% rise.
Looking closer, the maker of scientific instrument and laboratory supplies has also lagged behind the Health Care Select Sector SPDR Fund's (XLV) 8.9% decline over the past 52 weeks.
Despite reporting better-than-expected Q1 2025 adjusted EPS of $5.15 and revenue of $10.4 billion, TMO shares fell marginally on Apr. 23. Revenue from the Laboratory Products and Biopharma Services segment, which accounts for 54.4% of total revenue, declined 1.4% year-over-year to $5.6 billion, slightly missing expectations. Additionally, net cash from operating activities dropped significantly to $723 million.
For the fiscal year ending in December 2025, analysts expect TMO’s adjusted EPS to grow 2.2% year-over-year to $22.33. The company's earnings surprise history is promising. It topped the consensus estimates in the last four quarters.
Among the 24 analysts covering the stock, the consensus rating is a “Strong Buy.” That’s based on 17 “Strong Buy” ratings, three “Moderate Buys,” and four “Holds.”
This configuration is slightly less bullish than three months ago, with 18 “Strong Buy” ratings on the stock.
On Apr. 29, Argus lowered Thermo Fisher's price target to $470 but maintained a “Buy” rating, citing improving biopharma market conditions despite headwinds from trade tariffs and U.S. policy changes.
As of writing, TMO is trading below the mean price target of $560.62. The Street-high price target of $650 implies a modest potential upside of 57.7% from the current price levels.
