Thermo Fisher Scientific Inc. Q1 FY2026 earnings call

Mark began by recapping first quarter financials. End markets: Pharma and biotech had mid-single digit growth; Academic and Government had low single digit decline; Industrial and Applied was flat; Diagnostics and Healthcare had mid-single digit decline. Innovation: Launched technologies like thermoscientific Glacios III CryoTEM, TSQ-CIRTIS triple-quad mass spectrometer, etc. Strategic collaborations: With NVIDIA and SHL Medical. Commercial engine: Opened a new Cryo-EM drug discovery center. Completed acquisition of Clario, adding $30 million revenue and one cent to adjusted EPS. PPI business system focused on cost productivity, AI deployment, and tariff mitigation.

Revenue reached $11.01 billion with a 6% growth. Adjusted operating income was $2.4 billion, up 6%. Adjusted operating margin was 21.8% and adjusted EPS was $5.44 per share, up 6%. By product segment: Life Sciences Solutions saw a 13% increase in Q1 reported revenue vs prior year, 1% organic growth, adjusted operating income up 14% with a 36.2% margin. Analytical Instruments had flat Q1 reported revenue, 2% organic revenue decline y/y, adjusted operating income down 11% with a 20.7% margin. Specialty Diagnostics had 1% y/y revenue decline, 3% organic revenue decline, adjusted operating income up 3% with a 27.4% margin. Laboratory Products and Biopharma Services had 7% revenue increase, 4% organic growth, adjusted operating income up 6% with a 12.9% margin.

Full-year revenue guidance revised to $47.3 billion - $48.1 billion from $46.3 billion - $47.2 billion, representing 6% - 8% reported revenue growth over 2025 with 3% - 4% organic revenue growth. Adjusted EPS expected in $24.64 - $25.12 range, 8% - 10% growth over 2025. Q2 expected 3% organic revenue growth, Q2 adjusted EPS to be 25 - 30 cents higher than Q1.

Forward-looking statements may differ from actual results due to factors in Form 10-K and 10-Q risk factors. Middle East conflict causing inflationary pressure. Inflation volatility potentially impacting results if not mitigated.

Q: Michael Riskin from Bank of America inquired about assuaging fears regarding the ramp to hit the full year guide.

A: Mark stated customers are focused on pipelines and scientific advances, markets played out as expected, Jim discussed phasing.

Q: Tycho Peterson from Jefferies asked about the biopharma thread, PPD, biotech funding, and Clario.

A: Mark said clinical research had an excellent quarter, biotech environment improving, Clario early feedback positive.

Q: Jack Meehan from Nefron Research asked about AI, customer spending behavior, and analyst day.

A: Mark mentioned analyst day on May 20th, AI accelerating scientific discovery, Jim talked about higher inflation and mitigation strategy.

Q: Dan Arias from Stackful asked about retire risk and pharma services phasing.

A: Mark said the team is focused on offsetting inflation, Jim talked about selling days and phasing.

Q: Matt LaRue from William Blair asked about AI, insurance innovation, and reshoring.

A: Mark talked about AI, reshoring momentum.

Q: Dan Brennan from TD Cowan asked about pharma preclinical and U.S. academic and government.

A: Mark talked about pharma preclinical and U.S. academic and government conditions.

Q: Casey Woodring from JP Morgan asked about specialty diagnostics performance and China.

A: Mark talked about specialty diagnostics phasing and China's position.

Q: Justin Bowers from Deutsche Bank asked about research and safety market channel and clinical business.

A: Mark talked about research and safety market channel and clinical business appetite.