Thermo Fisher beats estimates on strong Q4, OpenAI AI deal
Scientific instruments maker returned $3.6bn to shareholders in 2025 through buybacks and dividends
Thermo Fisher Scientific reported stronger-than-expected fourth-quarter earnings, as the scientific instruments maker continues to benefit from growing demand across healthcare and life sciences markets alongside its strategic push into artificial intelligence.
The Waltham, Massachusetts-based company posted adjusted earnings per share of $6.57 for the quarter ended December 31, 2025, with revenue climbing 7% year-over-year to $12.21 billion. The results exceeded analyst expectations, building on momentum from the prior quarter where the company also delivered an earnings beat.
For the full year 2025, Thermo Fisher generated revenue of $44.56 billion, up 4% from the previous year, while adjusted earnings per share increased 5% to $22.87. The company's performance was supported by organic growth across its business segments, which span laboratory products and services, life sciences solutions, and analytical instruments.
A notable strategic development during the year was Thermo Fisher's collaboration with OpenAI announced in October 2025. The partnership aims to integrate advanced artificial intelligence capabilities into Thermo Fisher's clinical trials business, particularly within its PPD clinical research division. The collaboration will deploy OpenAI's technology to enhance clinical trial efficiency, accelerate drug development timelines, and help identify unsuccessful therapies earlier in the process.
Thermo Fisher plans to integrate AI into its Accelerator™ Drug Development solution to improve speed and scalability across development phases. Additionally, company employees will gain access to ChatGPT Enterprise to build AI proficiency across the organization. The partnership reflects a broader trend of traditional laboratory and diagnostics companies embracing artificial intelligence to streamline research and development processes.
The company also demonstrated its commitment to shareholder returns in 2025. Thermo Fisher's board authorized a new $5 billion share repurchase program in November 2025 with no expiration date. For the full year, the company returned a total of $3.6 billion to shareholders through a combination of stock buybacks and dividends. The company currently pays a quarterly dividend of $0.43 per share, with an annualized dividend of $1.72.
Analysts have maintained a largely positive outlook on Thermo Fisher's prospects. The stock carries a consensus "Buy" rating from Wall Street analysts, with an average one-year price target of approximately $652 to $688 per share, suggesting potential upside from current levels. Recent analyst actions include Goldman Sachs raising its price target to $710 on January 20, 2026, while maintaining a "Buy" rating.
Thermo Fisher shares have gained approximately 7% over the past year, though the stock has faced some volatility in recent sessions. The company's market capitalization stands at roughly $234 billion, reflecting its position as one of the largest companies in the healthcare and life sciences sectors.
Looking ahead, investors will be watching for the integration of OpenAI's technology into Thermo Fisher's clinical trial operations and whether the partnership yields measurable improvements in efficiency and drug development timelines. The company's ability to maintain growth amid mixed macroeconomic conditions, particularly in its pharma services and laboratory equipment businesses, will also be a key focus point for the coming quarters.