FINWIRES · TerminalLIVE
FINWIRES

Thermo Fisher Raises 2026 Outlook Despite First-Quarter Organic Revenue Growth Miss

-- Thermo Fisher Scientific (TMO) raised its full-year outlook on Thursday as first-quarter results came in stronger than expected, even as organic growth fell short of analysts' estimates.

The medical-device manufacturer now expects 2026 adjusted per-share earnings of $24.64 to $25.12, indicating an increase of 8% to 10% from the year prior, compared with the previous guidance of $24.22 to $24.80, CEO Marc Casper said during an earnings call, according to a FactSet transcript. Analysts on FactSet are looking for full-year non-GAAP EPS of $24.66.

Full-year revenue outlook is now pegged at $47.3 billion to $48.1 billion, representing a 6% to 8% growth year over year, up from the previous guidance range of $46.3 billion to $47.2 billion, Casper said. The Wall Street consensus is for revenue of $47.09 billion. Casper said the updated estimates continue to assume a 3% to 4% organic revenue growth for the year.

"We are raising our guidance for the full year on the top and bottom line, incorporating the positive impact of (Clario Holdings) and the strong first-quarter earnings performance," Casper said, referring to the provider of endpoint data solutions for clinical trials, which Thermo Fisher recently acquired.

In the three months ended March 28, adjusted EPS rose to $5.44 from $5.15 a year earlier and surpassed the FactSet consensus of $5.25. Revenue grew 6% to $11.01 billion, while analysts expected $10.86 billion.

The company logged organic growth of 1%, trailing the consensus for a 1.3% improvement. The stock fell 7.6% in Thursday trading and has dropped 18% this year.

Revenue in the life sciences solutions segment in the first quarter rose to $2.64 billion from $2.34 billion a year earlier, exceeding the consensus of $2.60 billion. Sales in the analytical instruments division were $1.72 billion, while analysts expected $1.73 billion. Laboratory products and biopharma services revenue climbed to $6.04 billion from $5.46 billion.

"Our end markets and our business are progressing in line with our expectations, and we're on track to deliver a strong year," Casper said.

Chief Financial Officer Jim Meyer said adjusted EPS in the current quarter is expected to be $0.25 to $0.30 higher than the first quarter. Analysts expected $5.82.

Price: $474.71, Change: $-39.27, Percent Change: -7.64%

Related Articles

Research

Research Alert: CFRA Keeps Buy Opinion On Shares Of The Hartford Insurance Group, Inc.

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We trim our 12-month target price by $8 to $155, valuing HIG shares at 11.3x our 2026 operating EPS estimate of $13.75 (cut by $0.45) and at 10.6x our 2027 EPS estimate of $14.65 (cut by $0.30), vs. the shares' one-year average forward multiple of 10.3x and peer average of 13x. Q1 EPS of $3.09 vs. $2.20 a year ago missed our $3.60 estimate and $3.39 consensus view. Operating revenue growth of 6.2% was in line with our 6%-10% forecast, amid 5.3% earned premium growth, 13% higher net investment income, and 7.9% fee revenue growth. Q1 written premium growth of 4% and full-year 2025 growth of 7% bode well for 2026 revenue trends as premiums are earned. Underwriting results improved significantly, with Personal Lines combined ratio improving to 87.7% from 106.1% and underlying combined ratio to 85.0% from 89.7%. Business Insurance combined ratio was stable at 94.8%. Weighing the Q1 EPS miss with HIG's decent top-line growth and discounted valuation to peers, we view the shares as undervalued.

$HIG
Research

Research Alert: CFRA Keeps Strong Buy Opinion On Shares Of Baker Hughes

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We raise our 12-month target price by $14 to $82, reflecting a combination of our sum-of-the-parts (SOTP) and DCF models. For our SOTP model, we presume the oilfield services business (about 50% of BKR's franchise) to be valued at about 10x projected 2027 EBITDA (in line with major peers) and its industrial energy technology business (the other 50%) valued at 14x projected 2027 EBITDA (in line with the peer median). This blended approach, yielding a 12x multiple, implies a value of $73 per share. Meanwhile, our DCF model, using medium-term free cash flow growth of 5% per year, terminal growth of 2.5%, discounted at a WACC of 6.3%, yields intrinsic value of $91 per share. We cut our 2026 EPS estimate by $0.47 to $2.48, but we raise 2027's by $0.07 to $3.24. We acknowledge that the oilfield services business is likely to struggle in 2026 owing to the U.S.-Iran conflict, but the IET business appears quite robust and likely to be a source of both accelerating revenue growth and margins.

$BKR
Research

Research Alert: CFRA Maintains Hold Opinion In Shares Of Wab

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We lift our 12-month target to $285 from $275 following WAB's Q1 earnings print, valuing shares at 24.2x our 2027 EPS outlook of $11.76 (revised from $11.46; 2026 EPS estimate up to $10.57 from $10.50), a slight premium to WAB's long-term historical multiple average given structural improvements in earnings quality. While we are cautious on signs of overcapacity in the freight market, an elevated order backlog (12-month sits at over $9 billion), internal initiatives to shore up margins, and potential synergies from M&A activity positions WAB to continue growing earnings at double-digit rates in 2026-2027, in our view. Despite tariff-related cost pressures, WAB has done a commendable job of defending margins via a mix of pricing, lean manufacturing, and pruning of lower-profit operations. Q1 results were mixed but overall positive, in our view. We maintain our Hold recommendation on shares.

$WAB