Why Thermo Fisher (TMO) Stock Is Nosediving
Shares of life sciences company Thermo Fisher (NYSE:TMO) fell 10.5% in the afternoon session after the company reported first-quarter results that revealed weak underlying growth in its core business.
Although Thermo Fisher posted higher-than-expected revenue of $11.01 billion and adjusted earnings per share of $5.44, investors focused on the source of the growth. The company’s organic revenue, which strips out one-time events like acquisitions and currency fluctuations, grew by only 1% year on year. This figure missed expectations and signaled a slowdown in the company’s main business. The weak underlying performance appeared to outweigh the headline beats on revenue and earnings, prompting a negative reaction from the market as investors seemed to be hoping for a stronger result.
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Thermo Fisher’s shares are not very volatile and have only had 5 moves greater than 5% over the last year. Moves this big are rare for Thermo Fisher and indicate this news significantly impacted the market’s perception of the business.
The biggest move we wrote about over the last year was 9 months ago when the stock gained 12.3% on the news that the company reported second-quarter earnings and revenue that surpassed Wall Street estimates and raised its full-year financial guidance. The company posted adjusted earnings per share (EPS) of $5.36 on revenue of $10.85 billion.
These results topped the average analyst estimates, which had projected an EPS of $5.22 on revenue of $10.65 billion. EPS is a widely used metric of a company’s profitability. Following the strong quarterly performance, Thermo Fisher lifted its outlook for the full year. The company now expected 2025 revenue to be between $43.6 billion and $44.2 billion, raising the lower end of its previous forecast. It also increased its adjusted EPS guidance to a range of $22.22 to $22.84. The better-than-expected results were driven by growth in its Life Sciences Solutions and Lab Products & Biopharma Services divisions.
Thermo Fisher is down 22.3% since the beginning of the year, and at $460.48 per share, it is trading 28% below its 52-week high of $639.45 from January 2026. Investors who bought $1,000 worth of Thermo Fisher’s shares 5 years ago would now be looking at only $943.42.
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