TMO

Thermo Fisher remains a high-quality, diversified life-sciences platform that is executing well on what it controls. FY2025 revenue rose 3.9% to $44.6B, net income +5.8% to $6.70B, and diluted EPS +7.3% to $17.74 (adjusted EPS $22.87, +5%). GAAP operating margin expanded to 17.4% (adjusted 22.7%), which the MD&A credits to 'very strong productivity improvements' from its PPI Business System and restructuring actions (~$0.3B of 2025 charges expected to yield ~$0.5B of annual savings). A 1.5% lower share count from $3.0B of buybacks adds to per-share growth. This is a durable, cash-generative franchise.

The catch is the quality of the growth. Of the 4% headline revenue gain, the company itself attributes +1pt to acquisitions and +1pt to currency (a $0.37B FX tailwind from a weaker dollar), leaving organic growth at just 2%. Reported revenue is still only roughly back to the 2022 peak (~$44.9B) after two flat years at $42.9B. The MD&A flags genuine end-market softness: academic & government revenue declined on U.S. 'customer hesitancy in a more uncertain environment' and China macro, sales in China fell, and diagnostics/healthcare was flat — pharma/biotech recovery is doing the heavy lifting. Operating cash flow actually fell 9.8% to $7.82B even as net income rose, worth monitoring on cash conversion.