TMO · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

THERMO FISHER SCIENTIFIC INC. · 2026-10-30 · Importance 31 · Surprise 40

Consolidated GAAP operating margin increased to 18.6% in the third quarter of 2026 from 17.4% in the prior-year quarter and to 17.7% for the first nine months from 17.0%. Adjusted operating margin rose to 24.5% in the quarter from 23.3% and to 23.1% for the nine months from 22.4%. Management attributed the increases primarily to strong productivity improvements, with strategic investments and, for the nine-month period, unfavorable business mix offsetting some gains. Third-quarter GAAP margin also benefited from $72 million of gain on the microbiology business sale and lower restructuring costs, but was partly offset by a $244 million held-for-sale loss.

Key facts

• Thermo Fisher Scientific Inc.’s third-quarter 2026 GAAP operating income margin also benefited from net credits for changes in contingent consideration that did not occur in 2025, a gain on the sale of its microbiology business, and lower restructuring and other charges than in the third quarter of 2025; these benefits were largely offset by a held-for-sale loss. source
• Thermo Fisher Scientific Inc.’s GAAP and adjusted operating income margins increased in the third quarter of 2026, primarily due to very strong productivity improvements, including realized tariff refunds, partly offset by strategic investments. source
• Thermo Fisher Scientific Inc.’s GAAP and adjusted operating income margins increased in the first nine months of 2026 primarily due to very strong productivity improvements, partly offset by unfavorable business mix and strategic investments. source
• Thermo Fisher Scientific Inc.’s Life Sciences Solutions segment income margin increased in the third quarter of 2026 primarily from exceptionally strong productivity improvements, partly offset by unfavorable business mix and the filtration and separation acquisition. source
• Thermo Fisher Scientific Inc.’s Life Sciences Solutions segment income margin increased in the first nine months of 2026 primarily due to exceptionally strong productivity improvements, partly offset by the filtration and separation acquisition and unfavorable business mix. source
• Thermo Fisher Scientific Inc.’s Analytical Instruments segment income margin increased in the third quarter of 2026 due to very strong productivity improvements, favorable volume leverage and business mix, partly offset by strategic investments. source
• Thermo Fisher Scientific Inc.’s Analytical Instruments segment income margin increased in the first nine months of 2026 primarily due to strong productivity improvements. source
• Thermo Fisher Scientific Inc.’s Specialty Diagnostics segment income margin increased in the third quarter of 2026 due to exceptionally strong productivity improvements. source