TMO Stock Forecast & Price Target

Thermo Fisher Scientific is projected to experience steady revenue growth across its various segments, with lab products and services (LPBS) 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. Additionally, the company anticipates solid performance in its analytical instruments segment, with revenue growth expected at 2.5% per annum, compared to a previous annual growth rate of 6.2%. Overall, an anticipated 8.5% compound annual growth rate in adjusted earnings per share over the next four years further supports a positive outlook on the company's financial trajectory.

Thermo Fisher Scientific has experienced a significant decline in its adjusted EBIT margin, which deteriorated by approximately 830 basis points to 22.6% from 2021 to 2024, largely driven by a 940-basis-point drop in adjusted gross margin. The company’s adjusted gross margin fell to 42.2%, which is about 420 basis points lower than the 46.4% recorded in 2019, indicating weakened profitability over the period. Furthermore, despite claims of improved customer sentiment in the biotech sector, funding in 2025 has lagged, with a 45% year-over-year decrease in capital raised during the first half, raising concerns about future revenue growth.