Common-Size Income Statement
Quarterly Data
Thermo Fisher Scientific Inc., common-size consolidated income statement (quarterly data)
Based on: 10-Q (reporting date: 2026-09-26), 10-Q (reporting date: 2026-06-27), 10-Q (reporting date: 2026-03-28), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-27), 10-Q (reporting date: 2025-06-28), 10-Q (reporting date: 2025-03-29), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-28), 10-Q (reporting date: 2024-06-29), 10-Q (reporting date: 2024-03-30), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-07-01), 10-Q (reporting date: 2023-04-01), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-10-01), 10-Q (reporting date: 2022-07-02), 10-Q (reporting date: 2022-04-02), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-02), 10-Q (reporting date: 2021-07-03), 10-Q (reporting date: 2021-04-03).
A significant structural transformation in revenue composition is evident over the analyzed period. There is a consistent migration from product-based revenue to service-based revenue. Product revenues, which initially accounted for 79.31% of total revenues in April 2021, declined steadily to 55.64% by September 2026. Conversely, service revenues grew from 20.69% to 44.36% during the same timeframe, indicating a strategic shift toward a service-oriented business model.
- Gross Profitability and Cost Structure
- Gross profit margins experienced an initial contraction, falling from a peak of 52.58% in April 2021 to a low of 38.66% in April 2023. This decline is closely linked to the changing revenue mix; while the cost of product revenues as a percentage of total revenue decreased from 33.59% to 27.50%, the cost of service revenues rose sharply from 13.83% to 30.22%. Following the April 2023 trough, gross margins showed a gradual recovery, ending the period at 42.28% in September 2026.
- Operating Expense Management
- Selling, general, and administrative (SG&A) expenses remained relatively stable, fluctuating within a narrow band between 19.12% and 21.48% of revenues. Research and development (R&D) spending exhibited high consistency, generally maintaining a level around 3% of revenues. Restructuring and other costs remained low but volatile, with periodic spikes, most notably in December 2024 and September 2026, which exerted temporary pressure on operating results.
- Operating Income Trends
- Operating income as a percentage of revenues followed a U-shaped trajectory. A sharp decline was observed from 30.78% in early 2021 to 14.59% in April 2023. This compression aligns with the period of most rapid transition in the revenue mix and the associated increase in service costs. However, operating margins recovered steadily thereafter, reaching 18.65% by September 2026, suggesting improved operational efficiency in the service-heavy model.
- Non-Operating Financial Items
- There is a visible increase in both interest income and interest expense. Interest income rose from 0.12% to 2.08%, while interest expense increased from 1.26% to 3.44% over the period. This indicates a higher absolute volume of both cash holdings and debt obligations, or an impact from a rising interest rate environment.
- Net Profitability
- Net income attributable to the company mirrored the trend of operating income, starting at 23.59% in April 2021 and reaching a minimum of 12.04% in April 2023. The margin eventually stabilized, closing at 14.18% in September 2026. The overall reduction in net profit margin compared to the start of the period is primarily attributed to the higher cost profile of the expanded service revenue stream.
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