TMO Stock Forecast & Price Target

Thermo Fisher Scientific is projected to see revenue growth across its segments, particularly with lab products and services (LPBS), which is expected to grow at a 5.4% compound annual rate over the next three years, following a robust 16.9% growth from 2019 to 2024. The company is also anticipated to gain market share in the contract research organization (CRO) sector, buoyed by favorable trends in biopharma clinical trial outsourcing, demonstrating strong demand for its expansive solution offerings. Additionally, adjusted earnings per share (EPS) are forecasted to increase at an 8.5% compound annual rate over the next four years, reflecting the firm's solid financial trajectory and operational efficiency.

Thermo Fisher Scientific has experienced a significant decline in its adjusted EBIT margin, which fell approximately 830 basis points to 22.6% from 2021 to 2024, primarily due to a notable 940-basis-point decrease in adjusted gross margin. The company's adjusted gross margin also decreased to 42.2%, approximately 420 basis points lower than the 2019 figure of 46.4%. Furthermore, despite a projected improvement in biotech customer sentiment, funding for the sector in 2025 has begun slowly, with a 45% year-over-year drop in raised capital during the first half of the year, indicating potential challenges ahead.