TMO
Thermo Fisher Scientific Inc.
Healthcare · Diagnostics & Research · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- Strong financial health metrics — a debt-to-equity ratio of 0.73 and total assets of $110,343,000,000 — and a near-perfect dividend growth trend from $1.20 to $1.72 per share anchor the composite score.
- A solid 17.4% operating margin and positive year-over-year EPS growth of 7.3% contribute above-midpoint scores in profitability and growth, supporting a medium-risk, research-candidate classification.
- The composite score of 61.8/100 reflects the drag from decelerating quarterly momentum and the absence of any macro theme assignment, which together offset the company's otherwise healthy fundamentals.
Why Not Higher
- The 2026Q1 pullback in both revenue to $11,005,000,000 and operating income to $1,863,000,000 after the 2025Q4 peak weighed on the momentum score, limiting upside to the composite.
- With no macro theme assignment, the model applies no thematic tailwind, and top-line revenue growth of only 3.9% falls short of the higher-growth thresholds that would push the growth score meaningfully above its current midpoint level.
Data Confidence
10 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from $42,879,000,000 in FY2024 to $44,556,000,000 in FY2025, a gain of 3.9%, while diluted EPS rose from $16.53 in FY2024 to $17.74 in FY2025, a gain of 7.3%.
The model appears to reward the positive direction of both revenue and earnings growth, but the relatively modest 3.9% top-line expansion likely tempered the score to the midpoint range, with EPS growth providing a partial offset.
Thermo Fisher Scientific reported an operating margin of 17.4% in FY2025.
A 17.4% operating margin reflects solid cost discipline and pricing power, which the model rewarded with a above-midpoint score; the remaining gap to a perfect score may reflect that margins in this range, while healthy, fall short of the highest-tier thresholds the model uses.
In FY2025, Thermo Fisher reported a debt-to-equity ratio of 0.73 and total assets of $110,343,000,000.
A debt-to-equity ratio of 0.73 in FY2025 indicates a manageable leverage profile relative to equity, and the substantial total asset base of $110,343,000,000 signals significant scale; together these metrics appear to have driven a strong financial health score.
Quarterly revenue rose from $10,855,000,000 in 2025Q2 to $11,122,000,000 in 2025Q3 and peaked at $12,215,000,000 in 2025Q4, then pulled back to $11,005,000,000 in 2026Q1. Operating income followed a similar arc: $1,834,000,000 in 2025Q2, $1,941,000,000 in 2025Q3, $2,255,000,000 in 2025Q4, and $1,863,000,000 in 2026Q1.
The pattern shows a strong seasonal peak in 2025Q4 followed by a notable step-down in 2026Q1 for both revenue and operating income, suggesting decelerating momentum entering the most recent quarter, which likely weighed on the model's score.
Dividends per share have increased each year from $1.20 in FY2022 to $1.40 in FY2023, $1.56 in FY2024, and $1.72 in FY2025, representing consistent annual growth across the period.
The model appears to reward this unbroken multi-year streak of dividend increases, reflecting a reliable and growing return of capital to shareholders that places the score near the top of the range.
Thermo Fisher Scientific is not currently assigned to any of the 24 tracked macro themes.
The absence of a theme assignment means the model did not apply any thematic tailwind to this security's score; this is a neutral classification rather than a negative signal about the company's business.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Thermo Fisher Scientific posted modest but positive annual revenue growth of 3.9% to $44,556,000,000 in FY2025, accompanied by stronger diluted EPS growth of 7.3% to $17.74, reflecting solid earnings leverage on a large revenue base. The company maintains a healthy operating margin of 17.4%, a manageable debt-to-equity ratio of 0.73, and a substantial total asset base of $110,343,000,000, underscoring financial stability at scale. Dividend growth has been consistent and unbroken from $1.20 per share in FY2022 to $1.72 in FY2025, a notable shareholder return signal. However, recent quarterly momentum shows a step-down in both revenue and operating income in 2026Q1 following a seasonal peak in 2025Q4, and the absence of a macro theme assignment means no thematic tailwind is currently applied to the composite score.
Plain English
Thermo Fisher is a large, financially stable company that is growing steadily and reliably raising its dividend every year, but its recent quarterly results dipped after a strong holiday-season quarter, and it doesn't currently benefit from any special macro trend boost in this model.
Bull Case vs. Bear Case
Bull Case
- Consistent dividend growth every year from $1.20 in FY2022 to $1.72 in FY2025 signals disciplined capital return and management confidence in ongoing cash generation.
- A debt-to-equity ratio of 0.73 and total assets of $110,343,000,000 reflect a well-capitalized balance sheet with manageable leverage, providing financial flexibility.
- Diluted EPS grew 7.3% year-over-year to $17.74 in FY2025, outpacing the 3.9% revenue gain and suggesting improving earnings efficiency on the existing revenue base.
Bear Case
- Revenue growth of only 3.9% in FY2025 is relatively modest for a company of this scale, indicating limited top-line acceleration.
- Quarterly revenue and operating income both pulled back in 2026Q1 after peaking in 2025Q4, suggesting decelerating near-term momentum entering the most recent period.
- Thermo Fisher is not assigned to any of the 24 tracked macro themes, meaning the model applies no thematic tailwind to its composite score.
What Could Change the Picture
Bullish Triggers
- A sustained reacceleration in quarterly revenue and operating income beyond the 2025Q4 peak levels would signal that the 2026Q1 step-down was transitory rather than a trend.
- Assignment to one or more macro themes could add a meaningful thematic tailwind to the composite score, improving the overall ranking.
Bearish Triggers
- If operating margins were to compress meaningfully below the current 17.4% level, it would undermine the profitability case that currently supports the above-midpoint score.
- A reversal in the multi-year dividend growth streak would remove one of the strongest positive signals in the current composite assessment.
Risk Profile
Medium RiskThermo Fisher's debt-to-equity ratio of 0.73 and $110,343,000,000 total asset base suggest a manageable financial risk profile with significant scale. However, the step-down in quarterly revenue and operating income in 2026Q1 following the 2025Q4 peak introduces near-term execution uncertainty that warrants monitoring.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.