Can Thermo Fisher (TMO) Balance Biomanufacturing Expansion and AI Ambitions to Shape Its Long-Term Edge?

Vaxcyte announced a new agreement with Thermo Fisher Scientific to provide up to US$1 billion in long-term commercial fill-finish capacity for pneumococcal conjugate vaccines at Thermo Fisher's Greenville, North Carolina facility. Thermo Fisher also entered partnerships with BenchSci to develop AI-powered research tools and with AstraZeneca’s BioVentureHub for collaborative R&D in chromatography, genomics, and proteomics. These collaborations highlight Thermo Fisher's dual focus on expanding its global biomanufacturing footprint and advancing AI-driven capabilities to accelerate scientific discovery and pharmaceutical development. We'll now examine how Thermo Fisher's expanded biomanufacturing agreement with Vaxcyte could impact its investment narrative and growth prospects.

The latest GPUs need a type of rare earth metal called Neodymium and there are only 33 companies in the world exploring or producing it. Find the list for free.

Thermo Fisher Scientific Investment Narrative Recap

To own shares of Thermo Fisher Scientific, investors need confidence in its ability to drive long-term growth by serving as a leading partner to the pharma and biotech industries, while managing near-term margin headwinds from global policy shifts and trade challenges. The recent Vaxcyte agreement strengthens Thermo Fisher’s core pharmaceutical manufacturing business, reinforcing a key short-term growth catalyst, but does not materially change persistent margin risks tied to tariffs, FX, and China’s economic uncertainty.

One announcement closely connected to this story is Thermo Fisher’s partnership with AstraZeneca’s BioVentureHub to co-locate R&D teams in Sweden and invest in advanced bioanalytical facilities. This move highlights the momentum behind Thermo Fisher’s integrated approach across R&D and manufacturing, a theme that could underpin ongoing revenue opportunities as the company expands its reach in high-growth therapeutic areas.

Yet, in contrast to these ambitious expansions, investors should be aware that ongoing margin pressures in Analytical Instruments, fueled by tariffs and currency swings, may...

Read the full narrative on Thermo Fisher Scientific (it's free!)

Thermo Fisher Scientific's outlook anticipates $50.0 billion in revenue and $9.0 billion in earnings by 2028. This projection relies on a 5.0% annual revenue growth rate and a $2.4 billion increase in earnings from the current $6.6 billion.

Uncover how Thermo Fisher Scientific's forecasts yield a $546.76 fair value, a 3% upside to its current price.

Story Continues

Exploring Other PerspectivesTMO Community Fair Values as at Oct 2025

Fifteen community members on Simply Wall St peg fair value estimates from US$415,600 to US$663,679 per share, showing wide differences in outlook. Margin headwinds tied to tariffs and FX remain a point of focus and could color performance expectations for many.

Explore 15 other fair value estimates on Thermo Fisher Scientific - why the stock might be worth as much as 25% more than the current price!

Build Your Own Thermo Fisher Scientific Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

A great starting point for your Thermo Fisher Scientific research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Thermo Fisher Scientific research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Thermo Fisher Scientific's overall financial health at a glance.

Searching For A Fresh Perspective?

These stocks are moving-our analysis flagged them today. Act fast before the price catches up:

The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 23 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. Trump's oil boom is here - pipelines are primed to profit. Discover the 22 US stocks riding the wave. AI is about to change healthcare. These 31 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include TMO.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

View Comments