Thermo Fisher Scientific (TMO) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue increased 10% year-over-year to $11.99B, with 5% organic growth and strong performance across all major geographies and end markets, especially pharma, biotech, and industrial sectors.

• Adjusted EPS grew 13% to $6.03, and GAAP EPS rose 9% to $4.68, both exceeding prior guidance.

• Customer activity and demand strengthened across all end markets, supporting continued share gains and broad-based momentum.

• Recent acquisitions, including Clario and filtration/separation businesses, are performing well and contributing to growth.

• Announced divestiture of microbiology business, with proceeds used for $1B share repurchase in Q2.

Financial highlights

• Q2 revenue grew 10% year-over-year to $11.99B, with 5% organic growth and 5% from acquisitions.

• Adjusted operating income rose 15% to $2.73B; adjusted operating margin expanded to 22.8%.

• GAAP operating income was $2.09B (+14% YoY); GAAP margin was 17.4%.

• Free cash flow for the first half of 2026 was $2.50B, up from $1.48B in the prior year.

• Ended Q2 with $4.06B cash and $42.55B total debt; leverage ratio at 3.6x gross debt/EBITDA.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $47.4B–$48.1B (6–8% reported growth over 2025); adjusted EPS guidance raised to $24.93–$25.33 (9–11% growth).

• Organic revenue growth expected at upper end of 3–4% range; acquisitions expected to contribute $1.6B revenue and $0.32 EPS for the year.

• Free cash flow expected at $6.9B–$7.4B; $4B in share buybacks and $700M in dividends planned for 2026.

• Q3 adjusted EPS expected to be $0.35–$0.40 higher than Q2.

• GAAP effective tax rate for 2026 expected between 9% and 11%; adjusted tax rate around 11.5%.