Analysis of Reportable Segments
Thermo Fisher Scientific Inc. operates in 4 segments: Life Sciences Solutions; Analytical Instruments; Specialty Diagnostics; and Laboratory Products and Biopharma Services.
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- Income Statement
- Statement of Comprehensive Income
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Enterprise Value to EBITDA (EV/EBITDA)
- Price to FCFE (P/FCFE)
- Dividend Discount Model (DDM)
- Return on Equity (ROE) since 2005
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Segment Profit Margin
Thermo Fisher Scientific Inc., profit margin by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Life Sciences Solutions | |||||
| Analytical Instruments | |||||
| Specialty Diagnostics | |||||
| Laboratory Products and Biopharma Services |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment profit margins exhibited varied performance across the observed period. Overall, the margins demonstrate a degree of volatility, with some segments experiencing increases while others faced declines. A notable trend is the initial decrease in the Life Sciences Solutions segment, followed by stabilization and a slight recovery, while Analytical Instruments showed an initial increase followed by a recent decline.
- Life Sciences Solutions
- The Life Sciences Solutions segment experienced a substantial decrease in profit margin from 50.01% in 2021 to 34.28% in 2023. This represents a significant contraction. However, margins showed some recovery in 2024 and 2025, reaching 36.37% and 36.32% respectively, indicating a potential stabilization after the initial decline. The segment did not return to its 2021 levels.
- Analytical Instruments
- The Analytical Instruments segment demonstrated an increasing profit margin from 19.72% in 2021 to 26.27% in 2023. This suggests improving profitability within this segment. However, the margin decreased in the subsequent two years, falling to 22.98% in 2025. This recent decline warrants further investigation.
- Specialty Diagnostics
- The Specialty Diagnostics segment showed a relatively stable, but generally increasing, trend in profit margin. Starting at 22.62% in 2021, the margin increased to 26.86% in 2025. This represents consistent improvement in profitability over the period. The increase was not linear, with a slight dip between 2021 and 2022.
- Laboratory Products and Biopharma Services
- The Laboratory Products and Biopharma Services segment exhibited a modest, but consistent, increase in profit margin. The margin rose from 12.41% in 2021 to 13.97% in 2025. While the increases are not substantial, they indicate a steady improvement in profitability within this segment.
The differing trends across segments suggest varying market dynamics and internal factors influencing profitability. The Life Sciences Solutions segment’s initial decline and subsequent stabilization, alongside the Analytical Instruments segment’s recent decrease, may require focused attention. Conversely, the consistent growth in Specialty Diagnostics and the steady improvement in Laboratory Products and Biopharma Services indicate positive performance within those areas.
Segment Profit Margin: Life Sciences Solutions
Thermo Fisher Scientific Inc.; Life Sciences Solutions; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment income | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Segment income ÷ Revenues
= 100 × ÷ =
The Life Sciences Solutions segment experienced a notable shift in financial performance between 2021 and 2025. Segment income decreased significantly from 2021 to 2023, followed by modest increases in the subsequent two years. Revenues mirrored this pattern, declining substantially before exhibiting a slight recovery. Consequently, the segment profit margin underwent a corresponding evolution, initially decreasing and then stabilizing.
- Segment Income
- Segment income demonstrated a substantial decrease from US$7,817 million in 2021 to US$3,420 million in 2023, representing a decline of approximately 56.3%. A recovery was then observed, with income increasing to US$3,503 million in 2024 and further to US$3,768 million in 2025. While these later increases are positive, income in 2025 remained below the 2021 level.
- Revenues
- Revenues followed a similar trajectory to segment income. A decrease from US$15,631 million in 2021 to US$9,977 million in 2023 was observed, a reduction of roughly 36.1%. Revenues showed a slight increase in 2025, reaching US$10,374 million, but remained below the 2021 figure.
- Segment Profit Margin
- The segment profit margin decreased from 50.01% in 2021 to 34.28% in 2023, reflecting the disproportionate decline in segment income relative to revenues. A modest recovery occurred in 2024, with the margin increasing to 36.37%, and it remained relatively stable at 36.32% in 2025. The margin in 2025, while improved from 2023, was still considerably lower than the 2021 level, indicating a reduced profitability relative to revenue generation.
The period between 2021 and 2023 was characterized by significant contraction in both revenue and profitability for the Life Sciences Solutions segment. While a degree of stabilization and modest growth occurred in 2024 and 2025, the segment did not return to its 2021 levels of performance. The consistent profit margin in the last two reported years suggests a potential leveling off of the downward trend, but further monitoring is warranted to confirm a sustained recovery.
Segment Profit Margin: Analytical Instruments
Thermo Fisher Scientific Inc.; Analytical Instruments; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment income | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Segment income ÷ Revenues
= 100 × ÷ =
The Analytical Instruments segment demonstrated a generally positive trajectory in financial performance from 2021 through 2023, followed by a moderation in 2024 and a decline in 2025. Segment income and revenues both exhibited growth over the initial three-year period, contributing to a significant improvement in profitability. However, recent performance suggests a potential shift in this trend.
- Segment Income
- Segment income increased consistently from US$1,197 million in 2021 to US$1,908 million in 2023, representing a substantial rise. This growth slowed in 2024, with income reaching US$1,955 million, and then decreased to US$1,736 million in 2025. The 2025 figure represents the lowest income level observed within the analyzed period.
- Revenues
- Revenues followed a similar pattern to segment income, increasing from US$6,069 million in 2021 to US$7,263 million in 2023. Revenue growth continued, albeit at a slower pace, reaching US$7,463 million in 2024 and US$7,554 million in 2025. While revenues continued to increase in absolute terms through 2025, the rate of growth diminished compared to the 2021-2023 period.
- Segment Profit Margin
- The segment profit margin experienced a notable improvement from 19.72% in 2021 to a peak of 26.27% in 2023. This indicates increasing efficiency in converting revenue into profit. The margin remained relatively stable at 26.20% in 2024, before declining to 22.98% in 2025. This decrease in margin suggests that while revenues continued to grow, profitability was impacted by potentially rising costs or pricing pressures.
The period between 2021 and 2023 was characterized by strong growth in both income and revenue, coupled with expanding profitability. The more recent period, 2024 and 2025, shows a deceleration in income growth and a reduction in the segment profit margin, despite continued revenue increases. Further investigation may be warranted to understand the factors contributing to the margin compression observed in 2025.
Segment Profit Margin: Specialty Diagnostics
Thermo Fisher Scientific Inc.; Specialty Diagnostics; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment income | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Segment income ÷ Revenues
= 100 × ÷ =
The Specialty Diagnostics segment demonstrated a fluctuating performance between 2021 and 2025. While revenues experienced an initial decline, segment income and profit margin exhibited a positive trend overall, particularly in the later years of the observed period.
- Segment Income
- Segment income decreased from US$1,280 million in 2021 to US$1,024 million in 2022, representing a decline of approximately 20%. A subsequent recovery was observed, with income increasing to US$1,124 million in 2023 and further to US$1,159 million in 2024. This positive momentum continued into 2025, reaching US$1,256 million. The 2025 income represents a near return to the levels seen in 2021.
- Revenues
- Revenues followed a different trajectory. A decrease was noted from US$5,659 million in 2021 to US$4,763 million in 2022, a reduction of roughly 16%. Revenues continued to decline in 2023, reaching US$4,405 million. However, a stabilization occurred between 2023 and 2024, with revenues increasing slightly to US$4,512 million. Further growth was observed in 2025, with revenues reaching US$4,676 million, though still below the 2021 level.
- Segment Profit Margin
- The segment profit margin initially decreased from 22.62% in 2021 to 21.50% in 2022, coinciding with the decline in segment income and revenues. A significant improvement was then observed, with the margin increasing to 25.52% in 2023 and 25.69% in 2024. This upward trend continued into 2025, reaching 26.86%, indicating improved profitability despite the revenue levels remaining below the 2021 peak. The increasing profit margin suggests improved operational efficiency or pricing power within the segment.
The divergence between revenue and profit margin trends suggests that the segment has been successful in managing costs and/or increasing the profitability of each revenue dollar generated, particularly from 2023 onwards. While revenue recovery has been moderate, the segment has demonstrated a strong ability to improve its financial performance as measured by segment income and profit margin.
Segment Profit Margin: Laboratory Products and Biopharma Services
Thermo Fisher Scientific Inc.; Laboratory Products and Biopharma Services; segment profit margin calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment income | |||||
| Revenues | |||||
| Segment Profitability Ratio | |||||
| Segment profit margin1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment profit margin = 100 × Segment income ÷ Revenues
= 100 × ÷ =
Segment income exhibited a generally positive trajectory over the five-year period, although with some fluctuation. Revenues consistently increased year-over-year. The segment profit margin demonstrated an overall upward trend, punctuated by a single year of decline.
- Segment Income
- Segment income increased significantly from 2021 to 2022, growing from US$1,844 million to US$2,872 million. Further growth was observed between 2022 and 2023, reaching US$3,358 million. A slight decrease occurred in 2024, with segment income falling to US$3,090 million, before recovering to US$3,350 million in 2025. This suggests a period of strong growth followed by a minor correction and subsequent recovery.
- Revenues
- Revenues demonstrated consistent year-over-year growth throughout the observed period. Starting at US$14,862 million in 2021, revenues increased to US$22,511 million in 2022, and continued to rise to US$23,041 million in 2023. Growth continued, albeit at a slower pace, reaching US$23,157 million in 2024, and finally US$23,984 million in 2025. This consistent revenue growth indicates a sustained demand for the segment’s offerings.
- Segment Profit Margin
- The segment profit margin showed an initial increase from 12.41% in 2021 to 12.76% in 2022. A more substantial increase was observed in 2023, reaching 14.57%. However, the margin decreased to 13.34% in 2024, before recovering to 13.97% in 2025. The overall trend indicates improving profitability, despite the temporary dip in 2024. The margin’s recovery in 2025 suggests resilience and effective cost management or pricing strategies.
The observed correlation between revenue growth and segment income suggests a strong operational leverage within the segment. The fluctuation in segment profit margin, while present, did not negate the overall positive trend, indicating a generally healthy and improving financial performance.
Segment Return on Assets (Segment ROA)
Thermo Fisher Scientific Inc., ROA by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Life Sciences Solutions | |||||
| Analytical Instruments | |||||
| Specialty Diagnostics | |||||
| Laboratory Products and Biopharma Services |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment return on assets exhibited varied performance across the observed period. Significant fluctuations were noted within each segment, indicating differing operational efficiencies and investment strategies over time.
- Life Sciences Solutions
- This segment demonstrated substantial volatility. A marked increase in return on assets occurred between 2021 and 2022, rising from 34.36% to 145.18%. Subsequently, the return decreased to 107.34% in 2023 before recovering to 117.47% in 2024. A slight decline to 109.34% was observed in 2025. This suggests potential cyclicality or the impact of specific, large-scale initiatives within the segment.
- Analytical Instruments
- The Analytical Instruments segment experienced a considerable improvement in return on assets from 2021 to 2023, increasing from 12.35% to 69.99%. The rate of increase slowed in 2024, with a value of 66.41%, and continued to decline to 54.76% in 2025. This indicates a potential leveling off of growth or increased investment requirements impacting asset efficiency.
- Specialty Diagnostics
- Specialty Diagnostics showed a strong initial increase in return on assets, moving from 21.30% in 2021 to 95.17% in 2022. The segment maintained a relatively stable, high return on assets through 2024 (97.74% and 95.16% respectively), with a minor decrease to 94.94% in 2025. This suggests consistent operational performance and effective asset utilization.
- Laboratory Products and Biopharma Services
- This segment exhibited the most consistent upward trend. Starting at 3.50% in 2021, the return on assets increased steadily to 44.68% in 2022, 52.88% in 2023, 50.28% in 2024, and 51.66% in 2025. This indicates improving efficiency and potentially successful strategic investments within the segment.
Overall, the segment returns on assets demonstrate that performance is not uniform across the organization. The Life Sciences Solutions segment is particularly sensitive to fluctuations, while Specialty Diagnostics demonstrates the most stability. Laboratory Products and Biopharma Services shows consistent improvement, and Analytical Instruments experienced growth followed by a recent decline. Further investigation into the drivers behind these trends within each segment is recommended.
Segment ROA: Life Sciences Solutions
Thermo Fisher Scientific Inc.; Life Sciences Solutions; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment income | |||||
| Segment assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Segment income ÷ Segment assets
= 100 × ÷ =
The Life Sciences Solutions segment demonstrated significant fluctuations in financial performance between 2021 and 2025. Segment income decreased substantially over the period, while segment assets experienced a more complex pattern of change. These movements resulted in considerable volatility in the segment’s Return on Assets (ROA).
- Segment Income
- Segment income began at US$7,817 million in 2021, then declined markedly to US$5,582 million in 2022. This downward trend continued through 2023, reaching US$3,420 million. A slight increase to US$3,503 million was observed in 2024, followed by a further increase to US$3,768 million in 2025. Despite these recent gains, income remained considerably below the 2021 level.
- Segment Assets
- Segment assets decreased from US$22,751 million in 2021 to US$3,845 million in 2022, representing a substantial reduction. This decline slowed in 2023, with assets reaching US$3,186 million. A further decrease was noted in 2024, with assets at US$2,982 million. In 2025, assets increased to US$3,446 million, though still below the levels seen in 2022 and significantly lower than in 2021.
- Segment ROA
- Segment ROA exhibited substantial volatility. It started at 34.36% in 2021, then increased dramatically to 145.18% in 2022. This high value was followed by a decrease to 107.34% in 2023, and a further increase to 117.47% in 2024. The ROA then decreased slightly to 109.34% in 2025. The ROA’s fluctuations appear to be driven by the combined effect of the changes in segment income and segment assets, with the significant asset reduction in 2022 having a disproportionately positive impact on the ratio.
The observed trends suggest a period of significant restructuring or strategic shifts within the Life Sciences Solutions segment. The substantial decline in assets, coupled with fluctuating income, warrants further investigation to understand the underlying drivers and potential implications for future performance.
Segment ROA: Analytical Instruments
Thermo Fisher Scientific Inc.; Analytical Instruments; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment income | |||||
| Segment assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Segment income ÷ Segment assets
= 100 × ÷ =
The Analytical Instruments segment demonstrated significant fluctuations in financial performance between 2021 and 2025. Segment income exhibited an overall upward trend initially, followed by a decline in the most recent year presented. Segment assets experienced a more consistent, albeit slower, increase throughout the period. The segment’s Return on Assets (ROA) showed a dramatic increase followed by a gradual decline.
- Segment Income
- Segment income increased from US$1,197 million in 2021 to US$1,908 million in 2023, representing substantial growth. This growth slowed in 2024, with income reaching US$1,955 million, before decreasing to US$1,736 million in 2025. The decline in 2025 suggests potential challenges in maintaining profitability within this segment.
- Segment Assets
- Segment assets increased steadily over the five-year period, rising from US$9,692 million in 2021 to US$3,170 million in 2025. The rate of increase was most pronounced between 2021 and 2022, slowing considerably in subsequent years. This suggests a potential shift in capital allocation strategies or asset utilization efficiency.
- Segment ROA
- Segment ROA experienced a substantial increase from 12.35% in 2021 to 61.14% in 2022. This was followed by further increases, peaking at 69.99% in 2023. ROA then began a downward trend, decreasing to 66.41% in 2024 and 54.76% in 2025. While remaining at a relatively high level, the declining ROA in the latter years indicates a diminishing ability to generate income from the segment’s asset base, potentially linked to the income decline observed in 2025 and the continued asset growth.
The interplay between segment income, assets, and ROA suggests a period of strong performance followed by a potential stabilization and subsequent softening. Further investigation into the drivers behind the income decline and asset growth is warranted to understand the long-term sustainability of this segment’s profitability.
Segment ROA: Specialty Diagnostics
Thermo Fisher Scientific Inc.; Specialty Diagnostics; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment income | |||||
| Segment assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Segment income ÷ Segment assets
= 100 × ÷ =
The Specialty Diagnostics segment demonstrated fluctuating performance between 2021 and 2025. Segment income initially decreased before stabilizing and then increasing, while segment assets consistently rose throughout the period. This resulted in a notably high and relatively stable segment Return on Assets (ROA).
- Segment Income
- Segment income decreased from US$1,280 million in 2021 to US$1,024 million in 2022, representing a decline. However, income then recovered to US$1,124 million in 2023 and continued to grow, reaching US$1,256 million in 2025. This indicates a recovery and subsequent growth trajectory following the initial decrease.
- Segment Assets
- Segment assets experienced consistent growth throughout the analyzed period. Starting at US$6,010 million in 2021, assets increased to US$1,076 million in 2022, then continued to rise to US$1,323 million by 2025. The substantial increase in 2022 is particularly noteworthy, though growth continued at a more moderate pace in subsequent years.
- Segment ROA
- The segment ROA remained exceptionally high throughout the period, consistently above 94%. It began at 21.30% in 2021, then increased sharply to 95.17% in 2022, and remained relatively stable between 94.94% and 97.74% from 2023 to 2025. Despite the fluctuations in segment income and the consistent growth in segment assets, the ROA demonstrated strong resilience, suggesting efficient asset utilization.
The combination of increasing assets and fluctuating income resulted in a consistently high ROA. The initial decrease in income was offset by a larger decrease in assets in 2022, leading to a significant increase in ROA. The subsequent stabilization and growth of income, coupled with continued asset growth, maintained the ROA at a high level through 2025.
Segment ROA: Laboratory Products and Biopharma Services
Thermo Fisher Scientific Inc.; Laboratory Products and Biopharma Services; segment ROA calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Segment income | |||||
| Segment assets | |||||
| Segment Profitability Ratio | |||||
| Segment ROA1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment ROA = 100 × Segment income ÷ Segment assets
= 100 × ÷ =
Segment performance for Laboratory Products and Biopharma Services demonstrates significant fluctuations in reported financial metrics between 2021 and 2025. Segment income increased substantially from 2021 to 2023, followed by a slight decrease in 2024, and a subsequent recovery in 2025. Segment assets, conversely, experienced a dramatic decrease from 2021 to 2022 and remained relatively stable through 2025, with only minor variations.
- Segment Income
- Segment income exhibited a considerable increase from US$1,844 million in 2021 to US$2,872 million in 2022, representing a growth of over 55%. This upward trajectory continued into 2023, reaching US$3,358 million. A modest decline was observed in 2024, with segment income decreasing to US$3,090 million. However, income rebounded in 2025, reaching US$3,350 million, nearly matching the 2023 peak.
- Segment Assets
- Segment assets decreased significantly from US$52,639 million in 2021 to US$6,428 million in 2022, a reduction of approximately 88%. The asset base remained relatively consistent over the subsequent three years, fluctuating between US$6,145 million and US$6,485 million. This suggests a substantial restructuring or re-allocation of assets occurred between 2021 and 2022, followed by a period of stabilization.
- Segment ROA
- Segment Return on Assets (ROA) experienced a dramatic increase from 3.50% in 2021 to 44.68% in 2022, coinciding with the decrease in segment assets. ROA continued to rise in 2023, reaching 52.88%. While ROA decreased slightly to 50.28% in 2024, it remained high and recovered to 51.66% in 2025. The substantial increase in ROA is largely attributable to the significant reduction in segment assets, indicating a more efficient utilization of the remaining asset base to generate income. The consistently high ROA values from 2022 through 2025 suggest strong profitability relative to the asset level.
The observed trends indicate a significant shift in the capital structure and operational efficiency of these segments. While segment income has shown overall growth, the primary driver of the improved ROA appears to be the substantial reduction in segment assets. Further investigation into the reasons behind the asset reduction would be beneficial to fully understand the long-term implications for these segments.
Segment Asset Turnover
Thermo Fisher Scientific Inc., asset turnover by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Life Sciences Solutions | |||||
| Analytical Instruments | |||||
| Specialty Diagnostics | |||||
| Laboratory Products and Biopharma Services |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment asset turnover ratios exhibited varied performance across the reporting periods. Generally, the ratios increased significantly from 2021 to 2022, followed by a period of stabilization and modest fluctuations through 2025. The observed changes suggest shifts in operational efficiency and asset utilization within each segment.
- Life Sciences Solutions
- The Life Sciences Solutions segment demonstrated a substantial increase in asset turnover from 0.69 in 2021 to 3.52 in 2022. Following this peak, the ratio experienced a slight decline to 3.01 in 2025, indicating a potential stabilization after the initial surge. The segment maintained a relatively high level of asset utilization throughout the 2022-2025 period.
- Analytical Instruments
- Similar to Life Sciences Solutions, the Analytical Instruments segment showed a marked improvement in asset turnover, rising from 0.63 in 2021 to 2.69 in 2022. However, this segment experienced a consistent, albeit gradual, downward trend from 2022 to 2025, decreasing to 2.38. This suggests a potential decrease in the efficiency of asset utilization over time within this segment.
- Specialty Diagnostics
- The Specialty Diagnostics segment exhibited the highest initial asset turnover ratio among the segments, at 0.94 in 2021. A significant increase was observed in 2022, reaching 4.43, followed by a moderate decline to 3.53 in 2025. While the ratio decreased, it remained comparatively high, indicating strong asset utilization throughout the analyzed period.
- Laboratory Products and Biopharma Services
- This segment displayed the lowest asset turnover ratio in 2021, at 0.28. A substantial improvement occurred in 2022, increasing to 3.50, and continued to rise to 3.77 in 2023. The ratio stabilized in 2024 and 2025, at 3.77 and 3.70 respectively, suggesting a sustained level of asset utilization following the initial gains.
Overall, the significant increases in asset turnover ratios across all segments in 2022 likely reflect successful strategic initiatives or favorable market conditions. The subsequent trends, characterized by stabilization or modest declines in some segments, warrant further investigation to understand the underlying drivers and potential areas for improvement.
Segment Asset Turnover: Life Sciences Solutions
Thermo Fisher Scientific Inc.; Life Sciences Solutions; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Segment assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Revenues ÷ Segment assets
= ÷ =
The Life Sciences Solutions segment experienced significant fluctuations in both revenues and segment assets between 2021 and 2025. These changes resulted in a notable shift in the segment asset turnover ratio over the observed period.
- Revenues
- Revenues decreased from US$15,631 million in 2021 to US$13,532 million in 2022, representing a substantial decline. This downward trend continued into 2023, with revenues falling to US$9,977 million. Revenues remained relatively stable in 2024 at US$9,631 million before increasing to US$10,374 million in 2025.
- Segment Assets
- Segment assets exhibited a dramatic decrease from US$22,751 million in 2021 to US$3,845 million in 2022. This decline continued, albeit at a slower pace, to US$3,186 million in 2023 and US$2,982 million in 2024. A slight increase in segment assets was observed in 2025, reaching US$3,446 million.
- Segment Asset Turnover
- The segment asset turnover ratio increased significantly from 0.69 in 2021 to 3.52 in 2022, coinciding with the substantial decrease in segment assets. The ratio remained relatively high in subsequent years, at 3.13 in 2023, 3.23 in 2024, and 3.01 in 2025. While the ratio experienced minor fluctuations, it consistently remained above 3.0, indicating a more efficient utilization of assets in generating revenue compared to 2021. The initial low ratio in 2021 suggests a potentially inefficient use of assets, while the subsequent increases indicate improved asset management following the significant asset reduction.
The observed trends suggest a strategic shift within the segment, potentially involving divestitures or a restructuring of assets, which explains the large decrease in segment assets. Despite the initial revenue decline, the segment maintained a relatively stable asset turnover ratio in the later years, indicating an ability to generate revenue with a significantly smaller asset base.
Segment Asset Turnover: Analytical Instruments
Thermo Fisher Scientific Inc.; Analytical Instruments; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Segment assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Revenues ÷ Segment assets
= ÷ =
The Analytical Instruments segment demonstrates a fluctuating pattern in financial performance between 2021 and 2025. Revenues exhibit a consistent upward trend, while segment assets initially decreased significantly before stabilizing and increasing modestly. This dynamic significantly impacts the segment asset turnover ratio.
- Revenues
- Revenues increased from US$6,069 million in 2021 to US$7,554 million in 2025, representing a cumulative growth of approximately 24.5%. The growth rate appears to decelerate over the period, with smaller annual increases in 2024 and 2025 compared to the earlier years.
- Segment Assets
- Segment assets experienced a substantial decrease from US$9,692 million in 2021 to US$2,465 million in 2022. Following this decline, assets began to recover, reaching US$3,170 million by 2025. This suggests a potential restructuring or reallocation of assets within the segment during 2022, followed by a period of reinvestment or asset accumulation.
- Segment Asset Turnover
- The segment asset turnover ratio shows considerable volatility. It rose sharply from 0.63 in 2021 to 2.69 in 2022, coinciding with the significant reduction in segment assets. The ratio then decreased gradually from 2.66 in 2023 to 2.38 in 2025. This indicates that while the segment became more efficient at generating revenue per dollar of assets in 2022, this efficiency has diminished somewhat in subsequent years despite increasing revenues. The decline in the ratio from 2022 to 2025 suggests that asset growth is not keeping pace with revenue growth, or that the composition of assets is changing towards less efficiently utilized components.
The interplay between revenue growth and asset management within the Analytical Instruments segment warrants further investigation. The initial asset reduction followed by stabilization and modest growth, coupled with the fluctuating asset turnover ratio, suggests evolving operational strategies or external factors influencing asset utilization.
Segment Asset Turnover: Specialty Diagnostics
Thermo Fisher Scientific Inc.; Specialty Diagnostics; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Segment assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Revenues ÷ Segment assets
= ÷ =
The Specialty Diagnostics segment demonstrates a significant shift in asset utilization over the observed period. Revenues experienced a decline from 2021 to 2022, followed by relative stability with slight increases in subsequent years. However, segment assets underwent a more dramatic transformation, leading to substantial changes in the segment asset turnover ratio.
- Revenues
- Revenues decreased from US$5,659 million in 2021 to US$4,763 million in 2022, representing a decline of approximately 15.7%. From 2022 through 2025, revenue growth was modest, increasing from US$4,763 million to US$4,676 million, indicating a period of stabilization after the initial decrease. The revenue figures suggest a potential shift in market dynamics or internal business strategies impacting this segment.
- Segment Assets
- Segment assets exhibited a substantial decrease in 2022, falling from US$6,010 million in 2021 to US$1,076 million. This represents a reduction of approximately 82%. Following this significant decrease, segment assets experienced a gradual increase each year, reaching US$1,323 million in 2025. This pattern suggests a potential restructuring of assets within the segment, possibly involving divestitures or write-downs in 2022, followed by reinvestment or acquisition of assets in later years.
- Segment Asset Turnover
- The segment asset turnover ratio increased dramatically from 0.94 in 2021 to 4.43 in 2022, coinciding with the significant reduction in segment assets. This indicates a much more efficient utilization of assets in generating revenue. However, the ratio subsequently decreased each year, moving from 4.43 in 2022 to 3.53 in 2025. This decline, despite increasing revenues, suggests that the rate of asset utilization is diminishing as assets are reinvested. While still considerably higher than the 2021 level, the decreasing trend warrants further investigation to understand the underlying drivers and potential implications for future performance.
In summary, the Specialty Diagnostics segment experienced a period of significant change. The initial decline in revenues coupled with a substantial reduction in assets led to a marked improvement in asset turnover. However, the subsequent stabilization of revenues and gradual increase in assets resulted in a decreasing asset turnover ratio, indicating a potential shift in the segment’s operational efficiency.
Segment Asset Turnover: Laboratory Products and Biopharma Services
Thermo Fisher Scientific Inc.; Laboratory Products and Biopharma Services; segment asset turnover calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Revenues | |||||
| Segment assets | |||||
| Segment Activity Ratio | |||||
| Segment asset turnover1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment asset turnover = Revenues ÷ Segment assets
= ÷ =
Segment performance reveals a significant shift in asset utilization between the reported periods. Revenues demonstrate a consistent upward trajectory, while segment assets exhibit a markedly different pattern. This divergence drives substantial changes in the segment asset turnover ratio.
- Revenues
- Revenues increased from US$14,862 million in 2021 to US$23,984 million in 2025. The most substantial increase occurred between 2021 and 2022, with growth slowing in subsequent years but remaining positive overall. This indicates a sustained expansion of the segment’s sales generation capability.
- Segment Assets
- Segment assets decreased substantially from US$52,639 million in 2021 to US$6,428 million in 2022. This decline continued, albeit at a slower pace, reaching US$6,145 million in 2023 before a slight increase to US$6,485 million in 2025. The initial decrease suggests a significant restructuring of assets or a reclassification of certain holdings outside of this segment.
- Segment Asset Turnover
- The segment asset turnover ratio experienced a dramatic increase from 0.28 in 2021 to 3.50 in 2022, directly correlating with the decrease in segment assets and the increase in revenues. The ratio continued to improve, reaching 3.77 in 2024 before a slight decrease to 3.70 in 2025. This indicates a substantial improvement in the efficiency with which the segment utilizes its assets to generate revenue. The stabilization of the ratio in the later periods suggests that asset utilization has reached a relatively optimized level, despite continued revenue growth.
The observed trends suggest a significant improvement in operational efficiency. The initial reduction in segment assets, coupled with consistent revenue growth, has resulted in a considerably higher asset turnover ratio. While the ratio has stabilized in recent periods, it remains at a substantially elevated level compared to 2021, indicating a more effective deployment of assets within the segment.
Segment Capital Expenditures to Depreciation
Thermo Fisher Scientific Inc., capital expenditures to depreciation by reportable segment
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Life Sciences Solutions | |||||
| Analytical Instruments | |||||
| Specialty Diagnostics | |||||
| Laboratory Products and Biopharma Services |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of segment capital expenditures relative to depreciation reveals varying investment patterns across the reported segments between 2021 and 2025. Generally, the ratios demonstrate a decreasing trend over the period, suggesting a shift towards utilizing existing assets more efficiently or a slowdown in capital-intensive growth initiatives. However, this trend is not uniform across all segments.
- Life Sciences Solutions
- This segment exhibits the most pronounced decline in the ratio, decreasing significantly from 4.11 in 2021 to 0.61 in 2025. This substantial reduction indicates a considerable decrease in capital expenditure relative to depreciation, potentially reflecting a maturation of the segment’s asset base or a strategic shift away from large-scale investments. The ratio stabilizes somewhat in the final two years, but remains significantly lower than the initial value.
- Analytical Instruments
- The ratio for Analytical Instruments demonstrates more fluctuation. It increased from 0.95 in 2021 to 1.69 in 2022, before returning to 0.94 in 2023 and 0.92 in 2024. A slight increase to 1.19 is observed in 2025. This suggests periods of increased investment followed by stabilization or a return to lower levels of capital expenditure relative to depreciation. The overall trend is relatively flat compared to other segments.
- Specialty Diagnostics
- The Specialty Diagnostics segment maintains a relatively stable ratio throughout the period, fluctuating between 1.20 and 1.49. While there is some variation, the ratio remains within a narrow range, indicating consistent capital expenditure patterns relative to depreciation. The ratio shows a slight increase in the final year, returning to the 2021 level.
- Laboratory Products and Biopharma Services
- This segment’s ratio also demonstrates a downward trend, decreasing from 3.14 in 2021 to 1.66 in 2025. The decline is less dramatic than that observed in Life Sciences Solutions, but still indicates a reduction in capital expenditure relative to depreciation. The ratio appears to stabilize in the last two years of the period.
In summary, while a general trend of decreasing capital expenditure relative to depreciation is apparent, the magnitude and pattern of this trend vary significantly across segments. Life Sciences Solutions and Laboratory Products and Biopharma Services show the most substantial declines, while Analytical Instruments exhibits more volatility and Specialty Diagnostics demonstrates relative stability.
Segment Capital Expenditures to Depreciation: Life Sciences Solutions
Thermo Fisher Scientific Inc.; Life Sciences Solutions; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Purchases of property, plant and equipment | |||||
| Depreciation of property, plant and equipment | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Purchases of property, plant and equipment ÷ Depreciation of property, plant and equipment
= ÷ =
Analysis of segment capital expenditures to depreciation for the Life Sciences Solutions segment reveals a significant declining trend over the observed period. Purchases of property, plant, and equipment decreased substantially from 2021 to 2023, followed by a slight increase in 2025. Depreciation expense, conversely, exhibited a consistent upward trajectory throughout the period. This divergence is reflected in the segment capital expenditures to depreciation ratio.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio decreased markedly from 4.11 in 2021 to 0.81 in 2023, indicating a substantial reduction in capital investment relative to the depreciation base. This suggests a shift towards utilizing existing assets rather than investing in new ones during this timeframe. A slight recovery to 0.61 is observed in 2025, but the ratio remains considerably lower than the 2021 level.
The decrease in purchases of property, plant, and equipment, coupled with increasing depreciation, suggests a potential aging of the asset base within the Life Sciences Solutions segment. While depreciation is expected to rise with an established asset base, the magnitude of the decline in capital expenditures relative to depreciation warrants further investigation. This could indicate a strategic decision to optimize existing assets, a slowdown in growth initiatives requiring significant capital investment, or potentially deferred maintenance and replacement of assets.
- Purchases of Property, Plant, and Equipment
- A substantial decrease is noted from US$810 million in 2021 to US$490 million in 2022, followed by a more dramatic reduction to US$178 million in 2023. Values remain relatively low at US$123 million and US$152 million in 2024 and 2025 respectively. This pattern suggests a deliberate curtailment of capital spending.
- Depreciation of Property, Plant, and Equipment
- Depreciation expense increased steadily from US$197 million in 2021 to US$251 million in 2025. This consistent increase, despite declining capital expenditures, reinforces the observation of an aging asset base and a growing depreciation burden.
The observed trends suggest a potential need to assess the long-term sustainability of the Life Sciences Solutions segment’s asset base and the implications of reduced capital investment on future growth and operational efficiency. Continued monitoring of these metrics is recommended.
Segment Capital Expenditures to Depreciation: Analytical Instruments
Thermo Fisher Scientific Inc.; Analytical Instruments; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Purchases of property, plant and equipment | |||||
| Depreciation of property, plant and equipment | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Purchases of property, plant and equipment ÷ Depreciation of property, plant and equipment
= ÷ =
Analysis of capital expenditures relative to depreciation within the Analytical Instruments segment reveals fluctuating investment patterns over the five-year period. Purchases of property, plant, and equipment and depreciation both exhibited generally increasing trends, though with variations in the annual growth rates. The resulting ratio of segment capital expenditures to depreciation demonstrates a dynamic relationship between investment and asset consumption.
- Purchases of Property, Plant, and Equipment
- Purchases of property, plant, and equipment increased significantly from US$79 million in 2021 to US$140 million in 2022. This represents a substantial increase in investment. Following this peak, purchases decreased to US$87 million in 2023 before modestly increasing to US$95 million in 2024. A further increase is observed in 2025, reaching US$124 million.
- Depreciation of Property, Plant, and Equipment
- Depreciation remained relatively stable between 2021 and 2023, at US$83 million and US$93 million respectively. Depreciation then increased to US$103 million in 2024 and US$104 million in 2025, indicating a gradual increase in the depreciable asset base.
- Segment Capital Expenditures to Depreciation
- The ratio of segment capital expenditures to depreciation was 0.95 in 2021. A significant increase to 1.69 was recorded in 2022, coinciding with the peak in capital purchases. The ratio then decreased to 0.94 in 2023 and 0.92 in 2024, suggesting a period where depreciation outpaced new investment. Finally, the ratio increased to 1.19 in 2025, indicating a renewed emphasis on capital investment relative to the existing depreciable asset base. The fluctuations suggest that investment decisions are not consistently aligned with depreciation levels, potentially reflecting project-based investment cycles or strategic shifts in capital allocation.
Overall, the segment experienced a period of heightened investment in 2022, followed by a period of relative stabilization and then renewed investment in 2025. The relationship between capital expenditures and depreciation suggests a dynamic investment strategy within the Analytical Instruments segment.
Segment Capital Expenditures to Depreciation: Specialty Diagnostics
Thermo Fisher Scientific Inc.; Specialty Diagnostics; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Purchases of property, plant and equipment | |||||
| Depreciation of property, plant and equipment | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Purchases of property, plant and equipment ÷ Depreciation of property, plant and equipment
= ÷ =
Analysis of capital expenditures relative to depreciation within the Specialty Diagnostics segment reveals a fluctuating pattern over the five-year period. Purchases of property, plant, and equipment demonstrate relative stability, while depreciation exhibits more pronounced variation. This interplay results in a segment capital expenditures to depreciation ratio that shifts modestly over time.
- Purchases of Property, Plant, and Equipment
- Purchases of property, plant, and equipment decreased from US$167 million in 2021 to US$112 million in 2022, representing a significant reduction. Subsequent years show a gradual increase, reaching US$128 million by 2025. This suggests a period of reduced investment followed by a resumption of capital spending, approaching the initial level.
- Depreciation of Property, Plant, and Equipment
- Depreciation decreased substantially from US$128 million in 2021 to US$75 million in 2022. Depreciation then increased to US$86 million in 2023 and further to US$104 million in 2024 before decreasing slightly to US$91 million in 2025. This pattern may reflect the timing of asset placements and the associated depreciation schedules.
- Segment Capital Expenditures to Depreciation Ratio
- The segment capital expenditures to depreciation ratio began at 1.30 in 2021. It increased to 1.49 in 2022, coinciding with the decrease in depreciation and a larger decrease in capital expenditures. The ratio then decreased to 1.20 in 2024, as depreciation increased more rapidly than capital expenditures. The ratio returned to 1.41 in 2025, mirroring the slight decrease in depreciation and stable capital expenditures. The ratio generally indicates that, throughout the period, capital expenditures have exceeded depreciation, suggesting investment in maintaining and expanding the asset base. The fluctuations suggest a dynamic relationship between investment and asset utilization within the segment.
Overall, the Specialty Diagnostics segment demonstrates a pattern of capital expenditure that is generally greater than depreciation, but with variations influenced by both investment decisions and the depreciation of existing assets. The ratio’s movement suggests a responsive capital allocation strategy within the segment.
Segment Capital Expenditures to Depreciation: Laboratory Products and Biopharma Services
Thermo Fisher Scientific Inc.; Laboratory Products and Biopharma Services; segment capital expenditures to depreciation calculation
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||
| Purchases of property, plant and equipment | |||||
| Depreciation of property, plant and equipment | |||||
| Segment Financial Ratio | |||||
| Segment capital expenditures to depreciation1 | |||||
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
1 2025 Calculation
Segment capital expenditures to depreciation = Purchases of property, plant and equipment ÷ Depreciation of property, plant and equipment
= ÷ =
Analysis of capital expenditures relative to depreciation within the Laboratory Products and Biopharma Services segments reveals a shifting investment pattern over the five-year period. Purchases of property, plant, and equipment demonstrate initial growth followed by a decline and subsequent stabilization, while depreciation consistently increased before decreasing in the most recent year. The resulting ratio of segment capital expenditures to depreciation illustrates this dynamic.
- Capital Expenditures
- Purchases of property, plant, and equipment increased from US$1,327 million in 2021 to US$1,403 million in 2022, representing a growth of approximately 5.7%. A subsequent decrease is observed, with expenditures falling to US$1,013 million in 2023. This represents a decline of approximately 27.8% from the prior year. Expenditures continued to decrease slightly in 2024 to US$971 million, before stabilizing at US$1,005 million in 2025.
- Depreciation
- Depreciation of property, plant, and equipment exhibited a consistent upward trend from 2021 to 2024. It increased from US$423 million in 2021 to US$614 million in 2022 (a 45.1% increase), then to US$669 million in 2023 (a 8.9% increase), and further to US$721 million in 2024 (a 7.8% increase). A decrease is noted in 2025, with depreciation falling to US$604 million.
- Segment Capital Expenditures to Depreciation Ratio
- The ratio of segment capital expenditures to depreciation decreased substantially over the period. Starting at 3.14 in 2021, the ratio fell to 2.29 in 2022, and continued its downward trajectory to 1.51 in 2023 and 1.35 in 2024. This indicates that capital investments were increasingly offset by depreciation charges. A slight increase is observed in 2025, with the ratio rising to 1.66, suggesting a moderation in the rate of depreciation relative to new investment. The initial decline suggests a shift towards utilizing existing assets more efficiently or a change in investment strategy, while the recent stabilization may indicate a return to more typical investment patterns.
In summary, the segment experienced a period of increasing depreciation alongside initially increasing, then declining, capital expenditures. The resulting ratio demonstrates a significant shift in the relationship between investment and asset utilization, with a recent indication of potential stabilization.
Revenues
Thermo Fisher Scientific Inc., revenues by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Life Sciences Solutions | |||||
| Analytical Instruments | |||||
| Specialty Diagnostics | |||||
| Laboratory Products and Biopharma Services | |||||
| Elimination of intersegment revenues | |||||
| Consolidated |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The revenue performance of the reported segments exhibits varied trends over the five-year period. Overall consolidated revenue increased from 2021 to 2022, experienced a slight decline in 2023, remained relatively flat in 2024, and then increased again in 2025.
- Life Sciences Solutions
- This segment demonstrated a significant decline in revenue from 2021 to 2023, decreasing from US$15,631 million to US$9,977 million. While a decrease continued into 2024, revenue showed a modest recovery in 2025, reaching US$10,374 million. This segment experienced the most substantial revenue reduction across all reported areas.
- Analytical Instruments
- Analytical Instruments consistently increased its revenue contribution throughout the period. Starting at US$6,069 million in 2021, revenue grew to US$7,554 million in 2025. The growth, while consistent, appears to be decelerating, with smaller increases observed in the later years of the period.
- Specialty Diagnostics
- Specialty Diagnostics experienced a decrease in revenue from 2021 to 2023, falling from US$5,659 million to US$4,405 million. Revenue stabilized between 2023 and 2024, and then showed a slight increase in 2025, reaching US$4,676 million. The segment’s performance remained below its 2021 level throughout the analyzed timeframe.
- Laboratory Products and Biopharma Services
- This segment exhibited strong growth, particularly between 2021 and 2023, increasing from US$14,862 million to US$23,041 million. Growth continued, albeit at a slower pace, in 2024 and 2025, reaching US$23,984 million. This segment consistently represented a substantial portion of the consolidated revenue.
- Elimination of Intersegment Revenues
- The elimination of intersegment revenues remained relatively stable, with a decreasing trend. The value decreased from US$3,010 million in 2021 to US$2,032 million in 2025. This suggests a potential shift in the internal allocation of revenue within the organization.
The consolidated revenue trend is largely influenced by the performance of Laboratory Products and Biopharma Services and, to a lesser extent, Analytical Instruments, which offset the declines observed in Life Sciences Solutions and Specialty Diagnostics. The overall revenue trajectory indicates a period of adjustment following the strong growth experienced between 2021 and 2022.
Segment income
Thermo Fisher Scientific Inc., segment income by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Life Sciences Solutions | |||||
| Analytical Instruments | |||||
| Specialty Diagnostics | |||||
| Laboratory Products and Biopharma Services | |||||
| Consolidated |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Segment income exhibited varied performance across the reporting periods. Overall, consolidated segment income decreased from 2021 to 2023, followed by a period of stabilization and modest growth through 2025. A detailed examination of individual segments reveals differing trajectories contributing to these consolidated results.
- Life Sciences Solutions
- This segment experienced a significant decline in income from US$7.817 billion in 2021 to US$3.420 billion in 2023. While a slight recovery was observed in 2024 and 2025, reaching US$3.768 billion, income remained substantially below the 2021 level. This represents the most pronounced downward trend among the reported segments.
- Analytical Instruments
- In contrast to Life Sciences Solutions, Analytical Instruments demonstrated consistent growth in income from 2021 to 2024, increasing from US$1.197 billion to US$1.955 billion. A minor decrease was noted in 2025, with income settling at US$1.736 billion, but the segment still maintained a higher income level than in 2021.
- Specialty Diagnostics
- Specialty Diagnostics exhibited relative stability in income throughout the period. Income decreased from US$1.280 billion in 2021 to US$1.024 billion in 2022, but subsequently recovered to US$1.256 billion in 2025. The fluctuations were less dramatic than those observed in other segments.
- Laboratory Products and Biopharma Services
- This segment showed a notable increase in income from US$1.844 billion in 2021 to US$3.358 billion in 2023. Income decreased slightly in 2024 to US$3.090 billion, then recovered to US$3.350 billion in 2025. This segment demonstrated strong growth initially, followed by stabilization.
The consolidated income trend reflects the offsetting movements of these segments. The substantial decline in Life Sciences Solutions income significantly impacted overall results, while growth in Analytical Instruments and Laboratory Products and Biopharma Services partially mitigated this effect. The relative stability of Specialty Diagnostics provided a consistent, albeit smaller, contribution to consolidated income.
The period between 2024 and 2025 suggests a potential stabilization of overall segment income, with modest growth driven by gains in Life Sciences Solutions and Laboratory Products and Biopharma Services, despite a slight decrease in Analytical Instruments income.
Segment assets
Thermo Fisher Scientific Inc., segment assets by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Life Sciences Solutions | |||||
| Analytical Instruments | |||||
| Specialty Diagnostics | |||||
| Laboratory Products and Biopharma Services | |||||
| Unallocated amounts | |||||
| Consolidated |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
An examination of segment assets reveals distinct trends across the reporting periods. Overall, consolidated assets demonstrate an increasing trajectory, though with a slight dip in 2024. However, significant variations exist when analyzing individual segments.
- Life Sciences Solutions
- This segment experienced a substantial decrease in reported assets from 2021 to 2022, followed by a relatively stable period with minor fluctuations through 2025. The initial decline is particularly noteworthy, representing a significant reduction in asset value. A modest increase is observed between 2024 and 2025.
- Analytical Instruments
- Similar to Life Sciences Solutions, Analytical Instruments also exhibited a considerable decrease in assets between 2021 and 2022. Subsequently, assets within this segment showed a gradual upward trend from 2022 through 2025, though remaining below the 2021 level. The growth appears consistent, indicating a steady reinvestment or asset accumulation.
- Specialty Diagnostics
- Specialty Diagnostics consistently increased its asset base throughout the observed period. While the absolute increases are smaller compared to other segments, the consistent growth suggests a sustained investment in this area. The rate of increase appears relatively stable.
- Laboratory Products and Biopharma Services
- This segment’s asset values decreased from 2021 to 2024, followed by a slight increase in 2025. The decline from 2021-2024 is less dramatic than observed in Life Sciences Solutions and Analytical Instruments, but still represents a notable shift. The 2025 increase suggests a potential stabilization or renewed investment.
- Unallocated Amounts
- The ‘Unallocated Amounts’ category represents the most substantial portion of total assets and demonstrates a significant increase over the period. A particularly large increase is observed between 2022 and 2025. This suggests a growing proportion of assets that are not directly attributable to any specific reporting segment, potentially reflecting corporate-level investments or centralized resources. The large value in 2022 is an outlier and requires further investigation.
The consolidated asset value generally increased, driven largely by the growth in unallocated amounts. The fluctuations within individual segments suggest strategic shifts in asset allocation and investment priorities. The significant declines in Life Sciences Solutions and Analytical Instruments warrant further investigation to understand the underlying reasons and potential implications for future performance.
Purchases of property, plant and equipment
Thermo Fisher Scientific Inc., purchases of property, plant and equipment by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Life Sciences Solutions | |||||
| Analytical Instruments | |||||
| Specialty Diagnostics | |||||
| Laboratory Products and Biopharma Services | |||||
| Unallocated amounts | |||||
| Consolidated |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Overall, purchases of property, plant, and equipment exhibited considerable fluctuation across the examined period. Initial values were substantial, followed by a decline, and a potential stabilization towards the end of the timeframe. Segment-level analysis reveals differing investment patterns, suggesting strategic allocation of capital resources.
- Life Sciences Solutions
- This segment demonstrated a significant decrease in investment, falling from US$810 million in 2021 to US$178 million in 2023. While a modest recovery to US$152 million occurred in 2025, levels remained substantially below the initial value. This suggests a potential shift in investment strategy, possibly towards organic growth or alternative capital deployment within this segment.
- Analytical Instruments
- Investment in Analytical Instruments showed an initial increase from US$79 million in 2021 to US$140 million in 2022, followed by a decline to US$87 million in 2023. Subsequent years saw a gradual increase, reaching US$124 million in 2025. This pattern indicates potential project-based investments or cyclical demand influencing capital expenditure.
- Specialty Diagnostics
- Purchases for Specialty Diagnostics were relatively stable, fluctuating between US$112 million and US$167 million throughout the period. A slight upward trend is observable, with investment reaching US$128 million in 2025. This suggests consistent, ongoing investment to maintain and modestly expand capabilities within this segment.
- Laboratory Products and Biopharma Services
- This segment represented the largest portion of capital expenditure. Investment decreased from a high of US$1,403 million in 2022 to US$971 million in 2024, before recovering slightly to US$1,005 million in 2025. The initial decline may reflect the completion of major projects or a reassessment of investment needs.
- Unallocated Amounts
- Unallocated amounts decreased from US$140 million in 2021 to US$80 million in 2023, then increased to US$116 million in 2025. These fluctuations could be related to corporate-wide initiatives or adjustments in the allocation of capital across segments.
- Consolidated View
- Consolidated purchases of property, plant, and equipment peaked at US$2,523 million in 2021, then decreased significantly to US$1,400 million in 2024. A modest increase to US$1,525 million was observed in 2025. This overall downward trend, followed by a slight recovery, suggests a period of capital expenditure rationalization followed by renewed investment.
The variations in investment across segments highlight a dynamic capital allocation strategy. Further investigation into the specific projects and strategic rationale behind these investment patterns would provide a more comprehensive understanding of the company’s capital expenditure decisions.
Depreciation of property, plant and equipment
Thermo Fisher Scientific Inc., depreciation of property, plant and equipment by reportable segment
US$ in millions
| Dec 31, 2025 | Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | |
|---|---|---|---|---|---|
| Life Sciences Solutions | |||||
| Analytical Instruments | |||||
| Specialty Diagnostics | |||||
| Laboratory Products and Biopharma Services | |||||
| Consolidated |
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
Depreciation expense across reportable segments demonstrates varied trends over the five-year period. Overall, consolidated depreciation expense increased significantly from 2021 to 2024, before experiencing a decrease in 2025. Segment-level analysis reveals differing patterns contributing to this consolidated trend.
- Life Sciences Solutions
- Depreciation expense within this segment exhibits a consistent upward trend, increasing from US$197 million in 2021 to US$251 million in 2025. This suggests ongoing investment in property, plant, and equipment within this area, potentially supporting growth or modernization efforts. The increase is relatively steady year-over-year.
- Analytical Instruments
- Depreciation expense for Analytical Instruments shows a more moderate increase, rising from US$83 million in 2021 and 2022 to US$103 million in 2024, and remaining stable at US$104 million in 2025. This indicates a sustained, but less aggressive, level of investment in assets supporting this segment.
- Specialty Diagnostics
- This segment presents a more volatile depreciation pattern. A substantial decrease is observed from US$128 million in 2021 to US$75 million in 2022, followed by a recovery to US$104 million in 2024, and a subsequent decline to US$91 million in 2025. This fluctuation could be attributable to asset disposals, changes in asset base due to acquisitions or divestitures, or shifts in capital expenditure strategy within this segment.
- Laboratory Products and Biopharma Services
- Depreciation expense in this segment demonstrates the most substantial growth, increasing significantly from US$423 million in 2021 to US$721 million in 2024, before decreasing to US$604 million in 2025. This considerable increase suggests significant capital investment in this segment, potentially driven by expansion of services or increased production capacity. The decrease in 2025 warrants further investigation.
- Consolidated View
- The consolidated depreciation expense mirrors the combined effect of these segment trends. The peak in 2024 at US$1,158 million, followed by a decrease to US$1,050 million in 2025, suggests a potential stabilization or optimization of the overall asset base after a period of substantial investment. The significant growth from 2021 to 2024 indicates a period of expansion, while the 2025 decrease may reflect asset retirements or a slowdown in capital expenditure.
The differing depreciation patterns across segments highlight the importance of analyzing capital expenditure and asset management strategies at a granular level. The decrease in consolidated depreciation in the final year suggests a potential shift in investment strategy or asset lifecycle management.