Thermo Fisher’s first quarter results were met with a negative market reaction, as investors focused on the company’s exposure to new tariffs and shifting U.S. policy. Management attributed the flat sales to continued strength in core end markets like pharma and biotech, offset by declines in academic and government demand. CEO Marc Casper noted progress in bioproduction and pharma services, as well as robust electron microscopy sales, but acknowledged that macroeconomic uncertainty and reduced vaccine-related business weighed on growth. Casper described execution as "clean across all dimensions," but was cautious about evolving headwinds from global policy changes.
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Thermo Fisher (TMO) Q1 CY2025 Highlights:
- Revenue: $10.36 billion vs analyst estimates of $10.23 billion (flat year on year, 1.3% beat)
- Adjusted EPS: $5.15 vs analyst estimates of $5.10 (0.9% beat)
- Adjusted EBITDA: $2.55 billion vs analyst estimates of $2.55 billion (24.6% margin, in line)
- Operating Margin: 16.6%, in line with the same quarter last year
- Organic Revenue rose 1% year on year (-4% in the same quarter last year)
- Market Capitalization: $152.9 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Thermo Fisher’s Q1 Earnings Call
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Michael Ryskin (BofA Securities) asked about the wider guidance range and scenario planning. CEO Marc Casper explained that the company is “fully mobilized on mitigation actions” to handle both upside and downside scenarios created by policy and tariff changes.
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Matt Sykes (Goldman Sachs) inquired about potential inventory build-ups and manufacturing flexibility. Casper noted there was no evidence of customers pulling forward orders and highlighted Thermo Fisher’s “scale facilities in every major market” allowing for rapid supply chain adjustments.
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Jack Meehan (Nephron Research) probed the impact of proposed pharmacy tariffs and U.S. reshoring. Casper emphasized strong demand for U.S.-based pharma services and significant investments to expand domestic manufacturing and R&D capacity.
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Rachel Vatnsdal (JPMorgan) asked for details on the $500 million guidance reduction from policy changes and pricing assumptions. Casper broke down the impact, citing vaccine trial cancellations and a conservatively modeled, modest price increase of close to 2% to offset inflation and tariffs.
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Doug Schenkel (Wolfe Research) questioned the potential for structurally lower market growth and Thermo Fisher’s ability to gain share. Casper acknowledged industry challenges but said the company’s scale and transparency position it well for both short-term volatility and long-term resilience.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be watching (1) the pace and effectiveness of Thermo Fisher’s tariff mitigation actions and supply chain adjustments, (2) trends in academic and government funding, especially as U.S. policy evolves, and (3) the realization of expected benefits from innovation and new product launches. The successful integration of the Soventum acquisition and continued progress in bioproduction will also be key milestones.
Thermo Fisher currently trades at $391, down from $434.26 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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