Thermo Fisher Q2 Earnings & Revenues Beat, Stock Up in Pre-Market
The adjusted number excludes certain expenses, including asset amortization costs and certain restructuring costs.
GAAP EPS was $4.28, up 6% on a year-over-year basis.
Following the earnings announcement, shares of TMO rose 7.7% in pre-market trading today.
TMO's Q2 Revenues in Detail
Revenues in the quarter increased 2.9% year over year to $10.85 billion. Moreover, the top line surpassed the Zacks Consensus Estimate by 1.9%.
Organic revenues in the reported quarter increased 2% year over year.
Thermo Fisher's Segmental Analysis
Thermo Fisher operates under four business segments, as discussed below:
Life Sciences Solutions
Revenues in the Life Sciences Solutions segment (23% of total revenues) increased 6.1% year over year to $2.50 billion. The number surpassed our model's estimate of $2.37 billion.
Analytical Instruments
Revenues in this segment (15.9%) declined 3% year over year to $1.73 billion. The figure missed our model's estimate of $1.84 billion.
Specialty Diagnostics
Revenues in the Specialty Diagnostics segment (10.4%) increased 1.5% year over year to $1.13 billion. The number missed our model's prediction of $1.15 billion.
Laboratory Products and Biopharma Services
Revenues in this segment (55.2%) rose 4.1% year over year to $5.99 billion. Our model's estimate was $5.71 billion. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
TMO's Margin Performance
Gross margin of 41.2% in the second quarter contracted 83 basis points (bps) year over year due to a 4.4% increase in the cost of revenues.
In the quarter, selling, general and administrative expenses rose 5.4% to $1.78 billion. Research and development expenses increased 3.8% to $352 million.
The adjusted operating margin in the quarter was 21.6%, reflecting a contraction of 124 bps.
Thermo Fisher Scientific Inc. Price, Consensus and EPS Surprise
TMO's Financial Position
The company ended the second quarter of 2025 with cash and cash equivalents and short-term investments of $6.39 billion compared with $5.95 billion at the end of the first quarter of 2025.
Cumulative net cash from operating activities at the end of the second quarter was $2.12 billion compared with $3.21 billion a year ago.
Thermo Fisher has a consistent dividend-paying history, with the five-year annualized dividend growth of 14.86%.
Our Take on Thermo Fisher Stock
Thermo Fisher exited the second quarter of 2025 with better-than-expected results, wherein both earnings and revenues beat the respective estimates. Barring the Analytical Instruments segment, all other business segments reported growth during the quarter. However, contraction of both margins in the quarter was discouraging. The company will provide its 2025 guidance on the earnings call today.
During the second quarter, the company advanced in its growth strategy by launching a range of next-generation, high-impact, innovative instruments, including the Thermo Scientific Orbitrap Astral Zoom mass spectrometer, the Thermo Scientific Orbitrap™ Excedion Pro mass spectrometer and the Thermo Scientific Krios 5 Cryo-TEM. These instruments help researchers deepen the understanding of complex diseases, advance precision medicine and enable the development of new therapies. In addition, TMO expanded the DynaDrive single-use bioreactor portfolio for drug production to include a new first-of-its-kind bench-scale system, enabling meaningful workflow efficiencies and seamless scale-up from the bench to commercialization. All these developments translated into meaningful commercial wins for the company in the second quarter, which is encouraging.
TMO's Zacks Rank & Key Picks
Thermo Fisher currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Veeva Systems VEEV and Boston Scientific BSX.
Intuitive Surgical, sporting a Zacks Rank #1 (Strong Buy) at present, posted first-quarter 2025 adjusted EPS of $1.81, which exceeded the Zacks Consensus Estimate by 5.9%. Revenues of $2.25 billion surpassed the Zacks Consensus Estimate by 3.3%. You can see the complete list of today's Zacks #1 Rank stocks here.
ISRG has an estimated long-term earnings growth rate of 15.1% compared with the industry's 14.4%. The company's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 14.6%.
Veeva Systems, currently carrying a Zacks Rank #2 (Buy), reported first-quarter fiscal 2026 adjusted EPS of $1.97, which surpassed the Zacks Consensus Estimate by 13.2%. Revenues of $759 million beat the consensus mark by 4.3%.
VEEV has an estimated long-term earnings growth rate of 23.3% compared with the industry's 19.1%. The company beat on earnings in each of the trailing four quarters, the average surprise being 10%.
Boston Scientific, carrying a Zacks Rank #2 at present, reported a first-quarter 2025 adjusted EPS of 75 cents, which beat the Zacks Consensus Estimate by 0.1%. Revenues of $4.66 billion topped the Zacks Consensus Estimate by 20.9%.
BSX has a long-term earnings growth rate of 13.2% compared with the industry's 13.9%. The company's earnings surpassed estimates in each of the trailing four quarters, the average surprise being 8.8%.
5 Stocks Set to Double
Each was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in the coming year. While not all picks can be winners, previous recommendations have soared +112%, +171%, +209% and +232%.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Today, See These 5 Potential Home Runs >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days.
Boston Scientific Corporation (BSX): Free Stock Analysis Report
Intuitive Surgical, Inc. (ISRG): Free Stock Analysis Report
Thermo Fisher Scientific Inc. (TMO): Free Stock Analysis Report
Veeva Systems Inc. (VEEV): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
an hour ago
- Globe and Mail
Franklin (FSP) Q2 Revenue Down 13%
Key Points GAAP EPS loss of $0.08 matched analyst expectations for Q2 2025, signaling ongoing weak profitability. The company reflected a shrinking portfolio and lower occupancy. Portfolio leased percentage slid to 69.1%, continuing a downward trend largely due to lease expirations. These 10 stocks could mint the next wave of millionaires › Franklin Street Properties (NYSEMKT:FSP), an office-focused real estate investment trust, released its financial results on July 29, 2025. The main takeaway was a GAAP net loss in line with muted analyst expectations, with earnings per share (EPS) of $(0.08) (GAAP), matching the estimated figure. Revenue was $26.7 million, driven by shrinking occupancy and reduced rental rates. These numbers highlight persistent operational challenges, including lower portfolio occupancy and ongoing cash flow pressures. The quarter failed to show meaningful operational improvement, with most financial and operating metrics revealing continued softness in the office real estate market. Metric Q2 2025 Q2 2025 Estimate Q2 2024 Y/Y Change EPS (GAAP) ($0.08) ($0.08) ($0.20) ($0.01) Revenue $26.7 million $30.8 million (13.3%) Funds From Operations (FFO) per share $0.02 $0.04 (50.0%) Adjusted Funds From Operations (AFFO) per share ($0.00) $0.01 400.0% Owned Portfolio Leased Percentage 69.1% 70.3%(as of December 31, 2024) (1.2) pp Source: Analyst estimates for the quarter provided by FactSet. Business Overview and Focus Franklin Street Properties specializes in owning and managing office properties in the United States, with a particular emphasis on the Sunbelt and Mountain West regions. The portfolio is concentrated in Texas, Colorado, and Minnesota. As of June 30, 2025, its directly owned portfolio held 14 properties totaling approximately 4.8 million square feet. The company has recently centered its strategy on two primary areas. First, it aims to increase leasing in its existing properties to improve occupancy and rental income. Second, it continues to pursue selective property sales, using the proceeds to pay down debt. Especially while the office leasing environment remains in flux after the pandemic, key success for Franklin Street Properties depends on managing occupancy rates, responding to evolving tenant preferences, and making effective acquisition and disposition decisions. Quarter in Detail: Operational Trends and Financial Results The second quarter revealed persistent challenges in filling available office space. The percentage of the portfolio that was leased slipped to 69.1%, dropping from 70.3% leased at year-end 2024. Year-to-date leasing activity reached 187,000 square feet for the six months ended June 30, 2025, but most of that was due to renewals and expansions, not new tenants. New leasing volume remained limited as potential tenants delayed making long-term decisions. The average lease term on leases signed during the six months ended June 30, 2025, was 6.3 years, matching the average during the year ended December 31, 2024, offering some stability in overall portfolio duration. Rental performance weakened further in the quarter. the portfolio-wide average rent per occupied square foot dropped from $31.77 at year-end 2024 to $30.98 at June 30, 2025. The decrease in the average leased percentage for the six months ended June 30, 2025, resulted mainly from lease expirations outpacing new occupancies. The company reported revenue of $26.7 million, reflecting the combination of falling occupancy and declining rent per square foot. Funds from operations (FFO), a widely used metric in the real estate investment trust (REIT) sector that adjusts net income to account for non-cash charges like depreciation, fell to $0.02 per share. Adjusted funds from operations (AFFO), a non-GAAP metric that further removes capital expenditure costs and other recurring cash items, swung from a slight positive in Q2 2024 to approximately break-even in Q2 2025. The company continued with selective property sales, aiming to reduce its outstanding debt, which stood at about $250 million at March 31, 2025. The total cash balance fell to $30.5 million. The major remaining asset in the Monument Circle REIT was sold this quarter. $8.0 million in capital expenditures for tenant improvements, leasing costs, and necessary property updates during the six months ended June 30, 2025. The portfolio included nearly 44.5% of the portfolio's space in Colorado, Texas accounted for 39.7% of portfolio square footage, and the remainder in Minnesota. Management highlighted continued difficulty in the Minneapolis market, with some optimism that large tenants like Target may boost occupancy, but no immediate improvement was seen. In Texas, especially Houston, management noted relatively firmer tenant demand compared to other regions, although this was not enough to materially change portfolio metrics during the quarter. Franklin Street Properties also remained in a strategic review, exploring options ranging from further property sales to potentially selling the company or refinancing. The review process is continuing without a stated timeline, and no further guidance was given on when an outcome might be expected. The quarterly dividend remained unchanged at $0.01 per share, representing a token payout. This level has persisted despite ongoing negative cash flow on an adjusted basis. No change was declared or announced for the quarter. Looking Ahead Management did not provide financial guidance for the next quarter or for fiscal 2025. The stated reason remains uncertainty surrounding the timing and amounts of proceeds from potential property sales, combined with broader economic conditions affecting leasing demand. Leadership reiterated that its ongoing review will determine medium-term strategy but provided no specifics on likely outcomes or a decision timeline. For investors tracking Franklin Street Properties in the coming quarters, a few indicators will be critical. Occupancy rates, new leasing activity, and progress on asset sales all have direct financial implications. Questions remain about the ability to stabilize cash flow, reduce debt further, and support any meaningful dividend. No guidance was offered by management, leaving near-term prospects highly dependent on progress in those operational and strategic areas. Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,039%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 29, 2025
CBC
an hour ago
- CBC
Announcement coming on future of Inuit Child First Initiative
Indigenous Services Minister Mandy Gull-Masty says an announcement is coming on long-term funding — and she stresses that it must be fiscally sustainable. This comes months after the hamlet food voucher program ended.
Globe and Mail
an hour ago
- Globe and Mail
Revive Therapeutics Announces Proposed Private Placement and Debt Settlement
TORONTO, July 30, 2025 (GLOBE NEWSWIRE) -- Revive Therapeutics Ltd. ('Revive' or the 'Company') (OTCQB: RVVTF) (CSE: RVV) (FRANKFURT: 31R), a specialty life sciences company dedicated to developing innovative therapeutics for critical medical needs, announces that it is proposing to arrange a private placement offering of up to 30,952,381 units, at a price of $0.021 per unit, for gross proceeds to Revive of up to $650,000, and to settle $67,400 owing pursuant to an arm's length note payable by the issuance of 3,209,523 units, at a price of $0.021 per unit, being the same issue price and security being offering pursuant to the private placement. Each unit will consist of one common share of the Company and one common share purchase warrant. Each warrant will entitle the holder to acquire one common share at an exercise price of $0.05 for a period of 36 months following the closing. The issue price per unit is based upon the 20-day VWAP of the shares traded on the CSE at the time that the Company obtained price protection. The gross proceeds from the private placement offering will be used for working capital and payment of certain trade payables. The proposed private placement may close in one or more tranches. The Company believes that it is desirable to settle the outstanding note payable by the issuance of securities in order to preserve the Company's cash for ongoing operations. Closing of the private placement and the debt settlement is subject to customary closing conditions and the Company intends to close as soon as practicable. All of the securities will be subject to a hold period of four months and one day from the date of issuance. About Revive Therapeutics Ltd. Revive Therapeutics is a specialty life sciences company dedicated to developing innovative therapeutics for critical medical needs. Revive strategically prioritizes its drug development pipeline to leverage FDA regulatory incentives like Emergency Use Authorization, Orphan Drug, Fast Track, and Breakthrough Therapy designations, positioning for rapid advancement and market entry. Currently, our efforts are concentrated on unlocking the vast potential of Bucillamine for infectious diseases and medical countermeasures, including the pioneering treatment of nerve agent exposure. Furthermore, Revive is vigorously advancing our Psilocybin and molecular hydrogen therapeutic programs, exploring new frontiers in medical science. For more information, visit For more information, please contact: Michael Frank Chief Executive Officer Revive Therapeutics Ltd. Tel: 1 888 901 0036 Email: mfrank@ Website: Neither the Canadian Securities Exchange nor its Regulation Services Provider has reviewed or accepts responsibility for the adequacy or accuracy of this release. Cautionary Statement This press release contains 'forward-looking information' within the meaning of applicable Canadian securities legislation. These statements relate to future events or future performance. The use of any of the words 'may', 'could', 'intend', 'expect', 'believe', 'will', 'projected', 'estimated' and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on Revive's current belief or assumptions as to the outcome and timing of such future events. Forward looking information in this press release includes information with respect to the Company's cannabinoids, psychedelics and infectious diseases programs. Forward-looking information is based on reasonable assumptions that have been made by Revive at the date of the information and is subject to known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in the forward-looking information. Given these risks, uncertainties and assumptions, you should not unduly rely on these forward-looking statements. The forward-looking information contained in this press release is made as of the date hereof, and Revive is not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. The foregoing statements expressly qualify any forward-looking information contained herein. Reference is made to the risk factors disclosed under the heading 'Risk Factors' in the Company's management's discussion and analysis for the three and nine months ended March 31, 2025 ("MD&A"), dated May 29, 2025, which is available on the Company's profile at
