3. Thermo Fisher Scientific Inc. (NYSE:TMO)
Number of Hedge Fund Holders: 118
Supplied Share-Price Snapshot: $724.61, up 0.89%
Laboratory Demand Supports Revenue and Profit Growth
Thermo Fisher Scientific Inc. (NYSE: TMO) occupies an important position behind the scenes of the healthcare industry. Its scientific instruments, laboratory services, diagnostics, and pharmaceutical research and manufacturing technologies support customers across multiple stages of development and production. The business therefore offers exposure to a broad range of scientific activity, reducing reliance on the commercial success of any single medicine while retaining sensitivity to customer spending cycles.
Third-quarter 2026 revenue increased 9% year over year to $12.14 billion, including 6% organic growth. GAAP diluted earnings per share rose 9% to $4.64, while adjusted earnings per share increased 15% to $6.68. Both earnings measures improved, giving investors evidence that the quarter’s expansion extended beyond the top line. The difference between GAAP and adjusted results still warrants attention because excluded expenses affect the view of underlying profitability.
Organic growth is particularly relevant when assessing laboratory equipment and life sciences stocks. It helps investors distinguish demand within existing operations from revenue added through acquisitions and other changes. Continued spending on pharmaceutical development, laboratory services, and scientific equipment remains important to the outlook. The company’s diversified customer base provides breadth, but it does not eliminate the effects of delayed projects or tighter research budgets. The investment case rests on maintaining that organic momentum and converting additional sales into durable earnings and cash generation.
Ranking Rationale
Thermo Fisher Scientific Inc. (NYSE: TMO) ranks third with 118 hedge fund holders, narrowly ahead of the fourth-ranked company. Its broad role in scientific research and manufacturing, together with organic growth and improving earnings, supports its inclusion, while customer budgets remain a key operating variable.
