Revenue growth accelerated to 10.5% in Q2 2026, with gross margin improving to 41.2% from 37.3% a year earlier, though it remains below peers like Danaher's 60.9%.
Thermo Fisher Scientific Inc. (TMO) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 47.35B | 44.56B | 42.88B | 42.86B | 44.91B | 39.21B | 32.22B | 25.54B | 24.36B | 20.92B | 18.27B | 16.97B | 16.89B | 13.09B | 12.51B | 11.73B | 10.79B | 10.11B | 10.5B | 9.75B | 3.79B | 2.63B | 2.21B | 2.1B | 2.09B | 2.19B | 2.28B | 2.47B | 3.87B | 3.56B | 2.93B |
| Revenue Growth % | 8.27% | 3.91% | 0.05% | -4.58% | 14.55% | 21.71% | 26.14% | 4.86% | 16.45% | 14.47% | 7.71% | 0.45% | 29.02% | 4.64% | 6.69% | 8.69% | 6.72% | -3.7% | 7.71% | 157.05% | 44% | 19.36% | 5.19% | 0.52% | -4.65% | -4.05% | -7.72% | -36.11% | 8.69% | 21.34% | 32.85% |
| Cost of Goods Sold | 27.73B | 26.32B | 25.15B | 25.66B | 25.9B | 19.58B | 16.19B | 14.2B | 13.37B | 11.24B | 9.69B | 9.13B | 9B | 7.46B | 7.1B | 6.69B | 6.12B | 6.04B | 6.26B | 5.85B | 2.1B | 1.4B | 1.19B | 1.15B | 1.16B | 1.23B | 1.26B | 1.26B | 2.02B | 1.84B | 1.54B |
| COGS % of Revenue | - | 59.07% | 58.66% | 59.88% | 57.67% | 49.93% | 50.25% | 55.59% | 54.89% | 53.73% | 53.04% | 53.8% | 53.31% | 57.02% | 56.72% | 57.07% | 56.71% | 59.74% | 59.59% | 60.05% | 55.51% | 53% | 53.96% | 54.79% | 55.55% | 56.19% | 55.19% | 51.19% | 52.35% | 51.64% | 52.6% |
| Gross Profit | 19.62B | 18.24B | 17.73B | 17.19B | 19.01B | 19.63B | 16.03B | 11.34B | 10.99B | 9.68B | 8.58B | 7.84B | 7.89B | 5.63B | 5.41B | 4.87B | 4.27B | 4.07B | 4.24B | 3.89B | 1.69B | 1.24B | 1.02B | 948.01M | 927.38M | 958.62M | 1.02B | 1.21B | 1.84B | 1.72B | 1.39B |
| Gross Margin % | 41.44% | 40.93% | 41.34% | 40.12% | 42.33% | 50.07% | 49.75% | 44.41% | 45.11% | 46.27% | 46.96% | 46.2% | 46.69% | 42.98% | 43.28% | 41.5% | 39.62% | 40.26% | 40.41% | 39.95% | 44.49% | 47% | 46.04% | 45.21% | 44.45% | 43.81% | 44.81% | 48.81% | 47.65% | 48.36% | 47.4% |
| Gross Profit Growth % | - | 2.88% | 3.11% | -9.56% | -3.17% | 22.51% | 41.28% | 3.24% | 13.52% | 12.78% | 9.49% | -0.6% | 40.17% | 3.9% | 11.25% | 13.85% | 5.02% | -4.06% | 8.94% | 130.84% | 36.32% | 21.85% | 7.13% | 2.23% | -3.26% | -6.19% | -15.29% | -34.55% | 7.11% | 23.78% | 28.39% |
| Operating Expenses | 11.11B | 10.13B | 10.07B | 9.75B | 10.49B | 9.32B | 8.13B | 7.08B | 7.12B | 6.41B | 5.72B | 5.34B | 5.54B | 3.83B | 3.79B | 3.39B | 3.01B | 2.95B | 2.98B | 2.83B | 1.32B | 943.68M | 761.14M | 714.53M | 719.78M | 791.72M | 823.68M | 957.7M | 1.47B | 1.31B | 1.11B |
| OpEx % of Revenue | - | 22.73% | 23.48% | 22.75% | 23.35% | 23.76% | 25.23% | 27.74% | 29.21% | 30.65% | 31.32% | 31.5% | 32.78% | 29.24% | 30.26% | 28.87% | 27.9% | 29.2% | 28.35% | 29.02% | 34.86% | 35.84% | 34.5% | 34.07% | 34.5% | 36.18% | 36.12% | 38.75% | 37.94% | 36.92% | 37.71% |
| Selling, General & Admin | 7.92B | 8.73B | 8.68B | 8.41B | 9.02B | 7.91B | 6.95B | 6.06B | 6.03B | 5.41B | 4.87B | 4.57B | 4.77B | 3.36B | 3.34B | 3.04B | 2.73B | 2.67B | 2.69B | 2.55B | 1.11B | 761.79M | 626.46M | 568.14M | 564.66M | 620.1M | 646.92M | 673M | 937.6M | 840.7M | 990.7M |
| SG&A % of Revenue | - | 19.6% | 20.23% | 19.63% | 20.07% | 20.17% | 21.57% | 23.73% | 24.75% | 25.88% | 26.66% | 26.91% | 28.21% | 25.67% | 26.72% | 25.97% | 25.27% | 26.38% | 25.65% | 26.15% | 29.28% | 28.93% | 28.4% | 27.09% | 27.06% | 28.34% | 28.37% | 27.23% | 24.24% | 23.63% | 33.78% |
| Research & Development | 1.41B | 1.4B | 1.39B | 1.34B | 1.47B | 1.41B | 1.18B | 1B | 967M | 888M | 754.8M | 692.3M | 691.1M | 395.5M | 376.4M | 340.2M | 284.4M | 246.1M | 249.1M | 238.7M | 170.18M | 152.78M | 134.68M | 146.39M | 155.12M | 171.61M | 176.76M | 171.1M | 367.3M | 337.3M | 0 |
| R&D % of Revenue | - | 3.14% | 3.24% | 3.12% | 3.28% | 3.59% | 3.67% | 3.93% | 3.97% | 4.25% | 4.13% | 4.08% | 4.09% | 3.02% | 3.01% | 2.9% | 2.64% | 2.43% | 2.37% | 2.45% | 4.49% | 5.8% | 6.11% | 6.98% | 7.43% | 7.84% | 7.75% | 6.92% | 9.5% | 9.48% | - |
| Other Operating Expenses | 3M | 0 | 0 | 0 | 0 | 0 | 0 | 20M | 121M | 110M | 96.2M | 85.4M | 80.6M | 70.7M | 66.2M | 0 | 0 | 38.9M | 34.7M | 40.5M | 41.26M | 29.12M | 0 | 0 | 0 | 0 | 0 | 113.6M | 162.3M | 135.7M | 115.2M |
| Operating Income | 8.52B | 8.11B | 7.66B | 7.45B | 8.53B | 10.32B | 7.9B | 4.26B | 3.87B | 3.27B | 2.86B | 2.49B | 2.35B | 1.8B | 1.63B | 1.48B | 1.26B | 1.12B | 1.27B | 1.07B | 365.3M | 293.77M | 254.44M | 184.77M | 155.45M | 34.2M | 198.16M | 248.6M | 375.8M | 407M | 284.2M |
| Operating Margin % | 17.98% | 18.2% | 17.87% | 17.37% | 18.98% | 26.31% | 24.51% | 16.67% | 15.9% | 15.62% | 15.64% | 14.7% | 13.9% | 13.74% | 13.02% | 12.63% | 11.72% | 11.06% | 12.06% | 10.94% | 9.63% | 11.16% | 11.53% | 8.81% | 7.45% | 1.56% | 8.69% | 10.06% | 9.72% | 11.44% | 9.69% |
| Operating Income Growth % | - | 5.83% | 2.9% | -12.66% | -17.38% | 30.66% | 85.42% | 9.99% | 18.52% | 14.27% | 14.61% | 6.22% | 30.56% | 10.4% | 9.98% | 17.15% | 13.11% | -11.72% | 18.81% | 191.76% | 24.35% | 15.46% | 37.7% | 18.86% | 354.51% | -82.74% | -20.29% | -33.85% | -7.67% | 43.21% | 14.92% |
| EBITDA | 11.04B | 10.89B | 10.77B | 10.85B | 11.91B | 12.91B | 10.22B | 6.54B | 6.14B | 5.3B | 4.62B | 4.18B | 4.03B | 2.8B | 2.61B | 2.34B | 2B | 1.91B | 2.06B | 1.82B | 606.07M | 417.05M | 320.58M | 243.32M | 211.83M | 132.72M | 295.65M | 362.2M | 538.1M | 542.7M | 399.4M |
| EBITDA Margin % | 23.31% | 24.44% | 25.12% | 25.32% | 26.51% | 32.92% | 31.73% | 25.59% | 25.2% | 25.34% | 25.26% | 24.65% | 23.88% | 21.38% | 20.89% | 19.96% | 18.58% | 18.85% | 19.61% | 18.7% | 15.98% | 15.84% | 14.53% | 11.6% | 10.15% | 6.07% | 12.96% | 14.66% | 13.91% | 15.25% | 13.62% |
| EBITDA Growth % | 1.33% | 1.1% | -0.76% | -8.85% | -7.78% | 26.3% | 56.4% | 6.47% | 15.83% | 14.8% | 10.38% | 3.71% | 44.11% | 7.1% | 11.62% | 16.8% | 5.2% | -7.47% | 12.97% | 200.72% | 45.32% | 30.09% | 31.75% | 14.87% | 59.6% | -55.11% | -18.37% | -32.69% | -0.85% | 35.88% | 20.19% |
| D&A (Non-Cash Add-back) | 2.28B | 2.78B | 3.11B | 3.41B | 3.38B | 2.59B | 2.33B | 2.28B | 2.27B | 2.03B | 1.76B | 1.69B | 1.68B | 999.9M | 983.7M | 859.6M | 739.7M | 787.3M | 792.7M | 756.8M | 240.77M | 123.27M | 66.14M | 58.55M | 56.38M | 98.52M | 97.49M | 113.6M | 162.3M | 135.7M | 115.2M |
| EBIT | 8.96B | 8.69B | 8.69B | 7.79B | 8.56B | 9.38B | 7.78B | 4.75B | 3.93B | 3.02B | 2.49B | 2.35B | 2.57B | 1.58B | 1.51B | 1.32B | 1.17B | 1.05B | 1.28B | 1.02B | 261.3M | 312.61M | 270.2M | 232.58M | 207.55M | 166.9M | 198.16M | 248.6M | 257.3M | 285.5M | 284.2M |
| Net Interest Income | -587M | -426M | -576M | -612M | -454M | -493M | -488M | -452M | -530M | -511M | -421.2M | -384.3M | -432.2M | -234.3M | -216.4M | -165M | -72.3M | -102M | -78.2M | -93.3M | -35.51M | -15.15M | -1.96M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 950M | 993M | 1.08B | 879M | 272M | 43M | 65M | 224M | 137M | 81M | 48.4M | 30.6M | 47.7M | 28M | 25.2M | 26.8M | 12.4M | 16.1M | 51.7M | 46.5M | 16.42M | 11.57M | 9.02M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.54B | 1.42B | 1.65B | 1.49B | 726M | 536M | 553M | 676M | 667M | 592M | 469.6M | 414.9M | 479.9M | 262.3M | 241.6M | 191.8M | 84.7M | 118.1M | 129.9M | 139.8M | 51.93M | 26.71M | 10.98M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -646M | -842M | -667M | -1.21B | -862M | -1.48B | -670M | -189M | -610M | -838M | -835M | -558.1M | -261.2M | -479.2M | -359.9M | -348.6M | -176.8M | -190.8M | -116.7M | -184.5M | -155.93M | -7.88M | 4.78M | 35.25M | 131.5M | 42.32M | -23.9M | -230.1M | -28.3M | -100.3M | 17.4M |
| Pretax Income | 7.87B | 7.27B | 7B | 6.24B | 7.66B | 8.84B | 7.23B | 4.07B | 3.26B | 2.43B | 2.02B | 1.94B | 2.09B | 1.32B | 1.27B | 1.13B | 1.09B | 927.1M | 1.15B | 881.3M | 209.37M | 285.9M | 259.22M | 218.63M | 287.99M | 76.52M | 174.26M | 18.5M | 347.5M | 414M | 301.6M |
| Pretax Margin % | 16.62% | 16.31% | 16.31% | 14.56% | 17.06% | 22.54% | 22.43% | 15.93% | 13.39% | 11.61% | 11.08% | 11.41% | 12.36% | 10.08% | 10.15% | 9.66% | 10.08% | 9.17% | 10.95% | 9.04% | 5.52% | 10.86% | 11.75% | 10.43% | 13.8% | 3.5% | 7.64% | 0.75% | 8.98% | 11.63% | 10.28% |
| Income Tax | 742M | 547M | 657M | 284M | 703M | 1.11B | 850M | 374M | 324M | 201M | -1.4M | -43.9M | 191.7M | 40.4M | 11M | 109.4M | 101.6M | 75.8M | 160.9M | 101.7M | 43.05M | 87.6M | 40.85M | 45.94M | 92.99M | 26.93M | 112.22M | 33.1M | 170.7M | 174.7M | 110.8M |
| Effective Tax Rate % | 9.43% | 7.53% | 9.39% | 4.55% | 9.17% | 12.55% | 11.76% | 9.19% | 9.93% | 8.28% | -0.07% | -2.27% | 9.18% | 3.06% | 0.87% | 9.66% | 9.34% | 8.18% | 14% | 11.54% | 20.56% | 30.64% | 15.76% | 21.01% | 32.29% | 35.19% | 64.39% | 178.92% | 49.12% | 42.2% | 36.74% |
| Net Income | 7.08B | 6.74B | 6.33B | 6B | 6.95B | 7.72B | 6.38B | 3.7B | 2.94B | 2.23B | 2.02B | 1.98B | 1.89B | 1.27B | 1.18B | 1.33B | 1.04B | 850.3M | 994.2M | 761.1M | 168.94M | 223.22M | 361.84M | 200.01M | 309.73M | -781K | -36.11M | -174.6M | 181.9M | 239.3M | 190.8M |
| Net Margin % | 14.96% | 15.12% | 14.77% | 13.99% | 15.47% | 19.7% | 19.79% | 14.47% | 12.06% | 10.64% | 11.06% | 11.64% | 11.22% | 9.73% | 9.42% | 11.34% | 9.6% | 8.41% | 9.47% | 7.81% | 4.46% | 8.48% | 16.4% | 9.54% | 14.85% | -0.04% | -1.58% | -7.07% | 4.7% | 6.73% | 6.51% |
| Net Income Growth % | 7.81% | 6.35% | 5.67% | -13.74% | -10.03% | 21.18% | 72.48% | 25.8% | 32.04% | 10.05% | 2.35% | 4.28% | 48.78% | 8.1% | -11.43% | 28.42% | 21.79% | -14.47% | 30.63% | 350.53% | -24.32% | -38.31% | 80.91% | -35.42% | 39758.13% | 97.84% | 79.32% | -195.99% | -23.99% | 25.42% | 36.19% |
| Net Income (Continuing) | 7.13B | 6.72B | 6.34B | 5.96B | 6.96B | 7.73B | 6.38B | 3.7B | 2.94B | 2.23B | 2.03B | 1.98B | 1.9B | 1.28B | 1.26B | 1.02B | 986.1M | 851.3M | 988.7M | 779.6M | 166.32M | 198.3M | 218.37M | 175.21M | 203.42M | 49.59M | 62.05M | -14.6M | 114.7M | 174.7M | 190.8M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 6M | 129M | 87M | 107M | 170M | 184M | 10M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6.9M | 24.74M | 372M | 649.4M | 719.6M | 684.1M |
| EPS (Diluted) | 19.09 | 17.74 | 16.53 | 15.45 | 17.64 | 19.46 | 15.98 | 9.17 | 7.24 | 5.59 | 5.09 | 4.92 | 4.71 | 3.48 | 3.21 | 3.46 | 2.53 | 2.01 | 2.25 | 1.72 | 0.84 | 1.36 | 2.17 | 1.20 | 1.73 | -0.00 | -0.22 | -1.10 | 1.08 | 1.41 | 1.22 |
| EPS Growth % | 9.53% | 7.32% | 6.99% | -12.41% | -9.35% | 21.78% | 74.26% | 26.66% | 29.52% | 9.82% | 3.46% | 4.46% | 35.34% | 8.41% | -7.23% | 36.76% | 25.87% | -10.67% | 30.81% | 104.76% | -38.24% | -37.33% | 80.83% | -30.64% | - | 98.09% | 80% | -201.85% | -23.4% | 15.57% | 23.23% |
| EPS (Basic) | - | 17.77 | 16.58 | 15.53 | 17.73 | 19.61 | 16.10 | 9.24 | 7.31 | 5.64 | 5.12 | 4.96 | 4.76 | 3.53 | 3.24 | 3.49 | 2.57 | 2.06 | 2.34 | 1.81 | 0.86 | 1.38 | 2.22 | 1.23 | 1.84 | -0.00 | -0.22 | -1.11 | 1.12 | 1.57 | 1.35 |
| Diluted Shares Outstanding | 371M | 377M | 383M | 388M | 394M | 397M | 399M | 403M | 406M | 398M | 397.4M | 401.9M | 402.3M | 365.8M | 366.6M | 384.8M | 409.4M | 423.03M | 434.7M | 443.7M | 203.7M | 165.33M | 167.64M | 170.73M | 179.03M | 185.02M | 164.14M | 158.22M | 168.43M | 169.79M | 175.7M |
| Basic Shares Outstanding | 370M | 376M | 382M | 386M | 392M | 394M | 396M | 400M | 402M | 395M | 394.8M | 398.7M | 398.2M | 360.3M | 363.8M | 380.8M | 403.3M | 412.4M | 418.2M | 421.5M | 196.1M | 161.59M | 163.13M | 162.71M | 168.33M | 181.59M | 164.14M | 157.99M | 162.41M | 152.48M | 141.53M |
| Dividend Payout Ratio | - | 9.44% | 9.2% | 8.72% | 6.55% | 5.11% | 5.29% | 8.04% | 9.05% | 10.65% | 11.79% | 12.18% | 12.39% | 16.98% | 12.07% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying TMO stock.
For fiscal year 2025, Thermo Fisher Scientific Inc. (TMO) reported total revenue of $44.56B. This represents a 1419.4% increase compared to $2.93B in 1996.
Thermo Fisher Scientific Inc. (TMO) is profitable, generating $6.74B in net income for the fiscal year ending 2025 with a net profit margin of 15.1%.
Thermo Fisher Scientific Inc. (TMO) reported an operating income of $8.11B, resulting in an operating profit margin of 18.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Thermo Fisher Scientific Inc. (TMO) generated $18.24B in gross profit for the year, representing a gross profit margin of 40.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Margin pressure from mix shift
Metrics are mathematically derived from official filings.
Revenue Rebound Gains Traction
TMO's revenue growth accelerated to 10.5% in Q2 2026, up from 3.0% a year earlier, according to recent financial statements, signaling a robust recovery in demand across its life sciences and diagnostics portfolio.
The sequential acceleration from 6.2% in Q1 2026 to 10.5% in Q2 2026 suggests that the destocking headwinds that plagued the industry are abating, and underlying demand is normalizing. The growth appears broad-based, with the Laboratory Products and Biopharma Services segment likely benefiting from increased pharma outsourcing, while the Analytical Instruments segment may be recovering as biotech funding stabilizes. However, the sustainability of this growth hinges on continued biotech funding and China's demand recovery, which remains uncertain.
Gross Margin Expansion Tempered by Mix
Gross margin improved to 41.2% in Q2 2026 from 37.3% in the year-ago quarter, as reported in the income statement, but remains below the 60%+ levels of peers like Danaher, reflecting TMO's higher mix of lower-margin distribution and services.
The 390 basis point year-over-year gross margin expansion is notable, but it appears to be driven by favorable mix and cost controls rather than pricing power. TMO's gross margin is structurally lower than Danaher's 60.9% and Agilent's 52.4%, which suggests that its distribution-heavy model inherently caps margin potential. Investors should monitor whether the mix shift toward higher-margin proprietary consumables can offset the drag from the services segment, as wage inflation in PPD could pressure margins.
Operating Leverage Emerging
Operating income grew 10.5% year-over-year in Q2 2026, outpacing revenue growth of 10.5%, according to the latest quarterly data, indicating that SG&A and R&D expenses are scaling efficiently with the revenue rebound.
The operating margin of 17.4% in Q2 2026 is slightly below the 17.7% reported in Q2 2025, but the absolute operating income growth suggests that the company is beginning to realize operating leverage as volumes recover. SG&A as a percentage of revenue declined to 15.8% from 16.5% a year ago, while R&D remained relatively stable at around 3% of revenue. This efficiency may indicate that management's cost discipline is paying off, but the sustainability of this leverage depends on maintaining revenue growth momentum.
EPS Growth Outpaces Net Income
Diluted EPS grew 9.3% year-over-year in Q2 2026, while net income grew only 6.3%, according to the income statement, suggesting that share buybacks or a lower share count are boosting per-share metrics.
The divergence between EPS growth and net income growth indicates that the company is returning capital to shareholders through buybacks, which enhances EPS even when net income growth is modest. However, the reported SBC for Q2 2026 is zero, which is unusual given that SBC was $84M in Q4 2025 and $68M in Q3 2024; this may indicate a data reporting anomaly or a change in accounting treatment. Investors should scrutinize the quality of earnings, as the EPS beat in Q2 2026 ($4.68 actual vs. $4.41 estimated) may be flattered by buybacks rather than operational strength.
COGS Pressure Eases, SG&A Fluctuates
COGS as a percentage of revenue fell to 58.8% in Q2 2026 from 62.7% in the prior-year quarter, as per the income statement, while SG&A rose to $1.9B, reflecting variable costs tied to the services segment.
The improvement in gross margin is largely attributable to lower COGS, which may reflect easing input costs and better manufacturing utilization. However, SG&A has been volatile, ranging from $1.8B to $2.4B over the past year, with Q3 2025 showing a spike to $2.4B that compressed operating margins. This volatility suggests that the company's cost structure is sensitive to one-time items or investments in growth initiatives, and investors should monitor whether SG&A discipline can be maintained as revenue grows.
Margin Gap vs. Peers Persists
Despite recent improvements, TMO's gross margin of 41.2% in Q2 2026 remains far below Danaher's 60.9% and Agilent's 52.4%, as shown in peer data, raising questions about the long-term profitability of its business mix.
Short-sellers could argue that TMO's lower margins are not just a function of its distribution model but also indicate a lack of pricing power in its services-heavy segments. The company's operating margin of 17.4% is also below Danaher's 20.9% and Waters' 28.2%, suggesting that TMO may be sacrificing profitability for scale. If the mix shift toward lower-margin clinical services continues, margin expansion could be limited, and the market may continue to discount TMO's earnings quality relative to peers.