Thermo Fisher Scientific has held its ground even amid a wild run of economic policy shifts. The company posted solid revenue growth in its core product line and raised its full-year outlook for the second time this year despite tariffs and research funding cuts.
The life science laboratory giant pulled in $11.12 billion in third-quarter revenue. That is up 5% from a year earlier and above analyst forecasts. Net income slipped slightly to $1.62 billion. Adjusted earnings per share grew 10% to $5.79, in line with Wall Street estimates.
Stronger-than-expected biopharma demand, along with easing tariff pressures after a rocky start to the year, helped the company raise its full-year sales guidance to a range of $44.1 billion to $44.5 billion, from $43.6 billion to $44.2 billion.
Analysts say Thermo Fisher has largely avoided serious setbacks from pockets of weakness, particularly in its China market and academic and government revenue. Pressure points are, at the moment, manageable, and areas of unpredictability are beginning to stabilize.
“This quarter was a bit of a non-event, which might be exactly what the company needed after the challenges of the past two years,” said Alex Morozov, health science analyst at Morningstar. “Thermo Fisher delivered within expectations, showing signs of a gradual return to normal, even if we’re not fully there yet.”
Shares of the company have climbed roughly 10% over the past year, closing Thursday at $570.98. They took an early hit during the first quarter amid Trump-era trade tensions but have steadily been on the path toward recovery since July.
U.S. research funding continues to cast a shadow over Thermo Fisher’s academic and government sales. Proposed cuts to the National Institute of Health budget — once as steep as 40% under the Trump administration — along with grant reimbursement overhauls, touched off legal challenges and temporary funding freezes that stalled projects nationwide.
With Congress deadlocked and the government in shutdown last month, most analysts now expect NIH appropriations to remain flat for the year.
On a call with analysts, Thermo Fisher CEO Marc Casper said customers “felt more confident” about a stable funding environment, which should “ease a key headwind as the market stabilizes.”
But others say that even a flat NIH budget is effectively a cut.
“Rising research costs from more sophisticated projects and pricier equipment mean each dollar stretches less than before,” said Heather Pierce, senior director of science policy at the Association of American Medical Colleges.
The squeeze on academic research may take years to fully materialize, potentially limiting spending on new lab tools and equipment, a development that could temper growth for suppliers like Thermo Fisher.