FINWIRES · TerminalLIVE
FINWIRES

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

By

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

US Markets

Nasdaq, S&P 500 Notch Peaks as Earnings Fuel Optimism

The Nasdaq Composite and the S&P 500 hit record highs on Wednesday as upbeat corporate results overshadowed a rise in oil prices following Iran's seizure of two container ships in the Strait of Hormuz.The Nasdaq rose 1.6% to 24,657.6, while the S&P 500 climbed 1.1% to 7,137.9, both finishing at all-time highs after a two-day losing streak. The Dow Jones Industrial Average added 0.7% to 49,490.Most sectors were in the green, led by technology's 2.3% advance, while real estate saw the steepest decline.Boeing's (BA) first-quarter loss unexpectedly narrowed as commercial aircraft deliveries rose, while the plane maker reported a smaller cash burn year over year. The stock jumped 5.5%, the best performer on the Dow.Boston Scientific (BSX) shares surged 9%, the third-biggest gain on the S&P 500. The medical device supplier's first-quarter results exceeded Wall Street's estimates, but it lowered its full-year guidance.Philip Morris International (PM) reported first-quarter results above market estimates, while lowering its full-year earnings outlook. The cigarette and vape maker's shares jumped 7%.A number of tech stocks climbed, with Micron (MU) up 8.5%, among the biggest gains on the S&P 500. Apple (AAPL) rose 2.6%, the second-best performer on the Dow. Microsoft (MSFT) and Salesforce (CRM) also rose.West Texas Intermediate crude rose 3.3% to $92.58 per barrel in Wednesday late-afternoon trade, while Brent jumped 3% to $101.44.Iran said it seized two container ships attempting to cross the Strait of Hormuz, a key oil chokepoint. US President Donald Trump extended a ceasefire with Tehran late Tuesday, though he said the naval blockade of Iranian ports would continue.The status of a second round of peace talks between the US and Iran remained unclear.Trump does not consider Iran's claim that it seized two ships as a violation of the ceasefire, CNN reported, citing White House Press Secretary Karoline Leavitt.Tehran welcomes dialogue, but "breach of commitments, blockade and threats are main obstacles to genuine negotiations," Iranian President Masoud Pezeshkian said in a post on X on Wednesday."Oil prices continue to whipsaw as traders respond to a confusing and often contradictory flow of headlines, underscoring the deep mistrust between Tehran and Washington," Saxo Bank Head of Commodity Strategy Ole Hansen said in a report on Wednesday.US Treasury yields were mixed, with the 10-year rate little changed at 4.31% and the two-year rate up 2.7 basis points at 3.81%.Gold was up 0.9% at $4,759.60 per troy ounce, while silver gained 1.7% to $77.75 per ounce.

Dow JonesNasdaq CompositeS&P 500$AAPL$BA$BSX$CRM$MSFT$MU$PM
US Markets

Tesla Tops First-Quarter Views as Asia Pacific, South America Help Buoy Results

Tesla (TSLA) reported stronger-than-expected first-quarter results as the electric vehicle manufacturer benefited from demand growth in Asia Pacific and South America.Adjusted earnings increased to $0.41 per share from $0.27 a year earlier, compared with the consensus on FactSet of $0.36. Revenue rose 16% to $22.39 billion, higher than Wall Street's $22.10 billion view.Tesla's shares were up 3.7% in after-hours trading. The stock is down nearly 14% this year through Wednesday close."Our focus on affordability and utility across our vehicle lineup continues to be a key competitive advantage, particularly as gas-powered alternatives become more expensive due to their reliance on a more sensitive and less flexible energy supply chain," the company said.Tesla reported vehicle demand growth in Asia-Pacific and South America, as well as a rebound across North America and Europe, the Middle East and Africa. Consolidated automotive revenue grew 16% to $16.23 billion, while the energy generation and storage segment fell 12% to $2.41 billion.Earlier this month, the company posted a sequential decline in first-quarter deliveries, missing Wall Street's estimates. At the time, Wedbush Securities said the EV maker faced a tough demand environment and European regulatory hurdles for its Full-Self Driving software.Besides demand concerns, rising costs and slow progress on Robotaxi and Optimus have weighed on Tesla's share price, UBS Securities said in a note last week.Tesla said Wednesday it made "meaningful progress" on the build out of the infrastructure and artificial intelligence software that underpins its Robotaxi and future robotics businesses."We are excited about Tesla's positioning in 2026 with tailwinds persisting for the autos business, our continued progress on FSD (Supervised), the ramp of Robotaxi, progress on Optimus ahead of mass production and the growth of our energy production capacity," the company said.

$TSLA
US Markets

Share of Home-Sale Deals Falling Through in March Rises Annually Amid Macro Woes, Redfin Says

The share of US home-sale agreements falling through in March rose year over year amid ongoing economic uncertainty and high housing costs, Redfin said Wednesday.Roughly 53,000 deals fell through last month, equal to 13.4% of homes that went under contract in the period and up from 12.5% a year earlier. The online real estate brokerage said that's level with 2023 as the highest March cancellation share on record, barring 2020."Buyers are getting cold feet," Redfin Premier agent Patricia Ammann said. "There have been layoffs, ups and downs in the market and geopolitical turmoil -- and on top of all that, housing costs are still high."Last month, mortgage rates "jumped" in the wake of the US-Israel war with Iran that started at the end of February, while home-sale prices are increasing, according to the report."Because buyers are considering committing to spending so much money in uncertain times, they're extremely picky, which is leading some of them to back out before a deal closes," Ammann said.Late Tuesday, US President Donald Trump extended a ceasefire with Iran, though he said the naval blockade of Iranian ports would continue.Among major US metros, contract cancellations were most common last month in markets such as San Antonio and Orlando, where home searchers have plenty of options. They were least common in Nassau County, New York, the Redfin report showed.Earlier this month, data from the National Association of Realtors showed that US existing home sales decreased in March, while pending home sales increased more than expected.