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FINWIRES

Research Alert: Thermo Fisher Scientific: Q1 Results Top Estimates As Clario Acquisition Closes

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

TMO delivered Q1 top- and bottom-line beats with adjusted EPS of $5.44 vs. the $5.15 consensus and revenue of $11.01B (+6% Y/Y), though organic growth remained modest at 1% as the $8.9B Clario acquisition contributed significantly to performance. Mixed segment performance showed Life Sciences Solutions strength at $2.64B (+13% Y/Y) with improved 36.2% margin benefiting from the Solventum acquisition, while Analytical Instruments faced flat revenue and significant margin compression to 20.7% from 23.2% the prior year reflecting ongoing equipment spending pressures. FCF surged to $825M from $373M, supporting return of capital to shareholders. TMO returned $3.0B through share repurchases and increased its dividend 10%. The company plans to update 2026 financial guidance during the upcoming earnings call. We believe the robust cash flow performance and disciplined capital allocation activities support TMO's operational resilience despite the challenging life sciences tools operating environment.

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Research

Research Alert: CFRA Maintains Buy Rating On Shares Of Ibm Corporation

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lower our price target by $37 to $296, 23x our 2026 EPS view, above IBM's three-year average (~20x) on AI tailwinds and growing software exposure. We raise our 2026 EPS view by $0.07 to $12.86 and lift 2027's by $0.03 to $13.90. Q1 results offered a mixed response to the AI competition threat. Bears will focus on Software growth (ex-FX) decelerating to 8% from 11% in Q4 with the segment's 2026 outlook improving only slightly to 10%+ from 10% despite the Confluent acquisition closing early (providing a ~50-bp Software growth boost). Some analysts expected more out of Consulting and will point to its modest 1% sales growth as indicative of COBOL modernization pressure from emerging AI tools. We take a more bullish stance and see Consulting results as resilient, with sales/signings both growing despite ongoing macroeconomic pressures and 2026 growth still forecasted near 5%. On the Software side, ARR again grew 10% Y/Y (consistent with prior periods) and Red Hat encouragingly rebounded to 10% from 8% in Q4.

$IBM
Australia

Regeneron Says FDA Granted Accelerated Approval for Genetic Hearing Loss Therapy

Regeneron (REGN) said Thursday that the US Food and Drug Administration has granted accelerated approval for Otarmeni therapy indicated for the treatment of pediatric and adult patients with OTOF gene-related hearing loss.FDA's approval was based on the ongoing Chord trial that showed 16 of 20 participants experienced hearing improvements per pure tone audiometry assessments, while 14 out of 20 demonstrated an auditory brainstem response, according to a statement.Otarmeni's continued approval may be contingent upon verification and description of clinical benefit in the confirmatory portion of the Chord trial, Regeneron said.The company said it will provide Otarmeni at no cost to clinically eligible individuals in the US.Shares of the company were up 2% in Thursday trading.Price: $761.47, Change: $+14.89, Percent Change: +1.99%

$REGN
Sectors

Sector Update: Health Care

Health care stocks declined Thursday afternoon, with the NYSE Health Care Index decreasing 0.5% and the State Street Health Care Select Sector SPDR ETF (XLV) shedding 0.7%.The iShares Biotechnology ETF (IBB) fell 1.9%.In corporate news, Thermo Fisher Scientific (TMO) raised its full-year outlook on Thursday as Q1 results came in stronger than expected, even as organic growth fell short of analysts' estimates. Its shares fell 10.9%.

$TMO