Thermo Fisher Sees Stronger Demand, Calls 2026 an ‘Outstanding Year'

Thermo Fisher raised its outlook after returning to 5% organic growth in the second quarter, with adjusted EPS up 13%. CEO Marc Casper expects about 4% organic growth in 2026 and called it an “outstanding year,” citing orders running ahead of revenue. Pharma and biotech demand is strengthening as customers invest in drug-development pipelines, AI, and emerging therapies. Recovering biotech funding, mergers and acquisitions, and IPO activity are also supporting spending across clinical research, laboratory supplies, and bioproduction. U.S. pharmaceutical reshoring could provide additional growth through 2028 via domestic CDMO contracts, expansions of existing facilities, and new manufacturing plants. Thermo Fisher also sees longer-term support from stabilizing academic markets, improving China demand, and continued investment in clinical research and bioproduction. Five stocks we like better than Thermo Fisher Scientific . The Market Is Selling Everything, but These 5 Stocks Aren't Breaking Down Thermo Fisher Scientific NYSE: TMO Chairman and Chief Executive Officer Marc Casper said the company is seeing improving demand across several end markets and expects 2026 to be an “outstanding year,” supported by stronger customer activity and operational execution. Speaking at Morgan Stanley’s Global Healthcare Conference, Casper said Thermo Fisher returned to 5% organic growth in the second quarter, its strongest organic growth rate since 2021, while adjusted earnings per share increased 13% in the quarter. The company raised its full-year outlook and now expects approximately 4% organic growth for 2026. Get TMO alerts: Sign Up The Often-Missed Corner of Healthcare That Wall Street Is Loving “We are seeing our orders running ahead of revenue, so that bodes well for the future,” Casper said. He added that Thermo Fisher expects roughly 4% organic growth in both the third and fourth quarters and said the company is confident in its full-year outlook. Pharma and Biotech Demand Strengthens Pharma and biotech, which account for about 60% of Thermo Fisher’s revenue, grew at a mid-single-digit rate in the second quarter, according to Casper. He said pharmaceutical customers are investing in their pipelines and increasingly view artificial intelligence as a tool to improve returns in drug development. Sector Rotation: 2 Smart Money Moves for 2026 Biotechnology demand is also improving as funding conditions recover. Casper said increased venture capital investment, industry mergers and acquisitions, and IPO activity have contributed to healthier customer sentiment and spending. Thermo Fisher saw broad strength in clinical research, its Fisher Scientific research and safety market channel, and bioproduction. Casper said biotech funding typically takes two to three quarters to translate into revenue, with initial spending commonly directed toward clinical research before moving into laboratory supplies and, later, high-technology reagents. Casper also pointed to increased interest in personalized mRNA cancer vaccines following recent clinical data in the field. While he said the significance extends beyond spending by any individual customer, he expects promising new therapeutic approaches to encourage further investment across the industry. Reshoring Could Support Growth Through 2028 Casper said efforts to shift pharmaceutical production to the United States could provide a one-time growth benefit over the next several years. He described three stages of the trend: U.S. CDMO contracts: Customers can commit to domestic production through contract development and manufacturing organizations without building new plants. Casper said Thermo Fisher has secured several large contracts in this area. Expansion of ex...