TMO · Q2 FY2026
THERMO FISHER SCIENTIFIC INC. Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $11.994B | $10.855B (yr ago) | Beat |
| EPS | $4.68 GAAP diluted | $4.28 (yr ago) | Beat |
| Free Cash Flow | $1.678B | $1.105B (yr ago) | Beat |
| Gross Margin | 41.2% | 41.2% (yr ago) | Miss |
| Operating Margin | 17.4% GAAP | 16.9% (yr ago) | Beat |
What changed
Revenue increased 10.5% year over year, including 5.0% organic growth, while GAAP operating margin expanded 50 basis points to 17.4%. Free cash flow rose 51.9% to $1.678 billion, but gross margin was unchanged at 41.2% and net debt increased materially following acquisitions and share repurchases.
Impact on the investment thesis
With no prior SageNoodle fair value, we establish rather than revise fair value at $558 per share. Better organic growth, operating leverage and cash conversion support the operating thesis, but higher leverage and a 32.4x TTM P/E prevent a more constructive valuation.