THERMO FISHER SCIENTIFIC INC. 10-Q

Item 1. Financial Statements CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) June 28, December 31, (In millions except share and per share amounts) 2025 2024 Assets Current assets: Cash and cash equivalents $ 4,576 $ 4,009 Short-term investments 1,814 1,561 Accounts receivable, less allowances of $ 160 and $ 173 8,594 8,191 Inventories 5,559 4,978 Contract assets, net 1,441 1,435 Other current assets 2,599 1,964 Total current assets 24,584 22,137 Property, plant and equipment, net 9,635 9,306 Acquisition-related intangible assets, net 15,148 15,533 Other assets 4,615 4,492 Goodwill 47,249 45,853 Total assets $ 101,230 $ 97,321 Liabilities, redeemable noncontrolling interest and equity Current liabilities: Short-term obligations and current maturities of long-term obligations $ 2,214 $ 2,214 Accounts payable 2,980 3,079 Accrued payroll and employee benefits 1,518 1,988 Contract liabilities 2,805 2,852 Other accrued expenses 3,200 3,199 Total current liabilities 12,718 13,332 Deferred income taxes 624 1,268 Other long-term liabilities 4,270 3,989 Long-term obligations 33,015 29,061 Redeemable noncontrolling interest 126 120 Equity: Thermo Fisher Scientific Inc. shareholders’ equity: Preferred stock, $ 100 par value, 50,000 shares authorized; none issued — — Common stock, $ 1 par value, 1,200,000,000 shares authorized; 444,366,652 and 443,841,240 shares issued 444 444 Capital in excess of par value 18,232 17,962 Retained earnings 55,901 53,102 Treasury stock at cost, 66,754,531 and 63,066,906 shares ( 21,269 ) ( 19,226 ) Accumulated other comprehensive income/(loss) ( 2,797 ) ( 2,697 ) Total Thermo Fisher Scientific Inc. shareholders’ equity 50,512 49,584 Noncontrolling interests ( 35 ) ( 33 ) Total equity 50,476 49,551 Total liabilities, redeemable noncontrolling interest and equity $ 101,230 $ 97,321 The accompanying notes are an integral part of these condensed consolidated financial statements. 3 THERMO FISHER SCIENTIFIC INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three months ended Six months ended June 28, June 29, June 28, June 29, (In millions except per share amounts) 2025 2024 2025 2024 Revenues Product revenues $ 6,249 $ 6,163 $ 12,229 $ 12,118 Service revenues 4,605 4,378 8,990 8,768 Total revenues 10,855 10,541 21,219 20,886 Costs and operating expenses: Cost of product revenues 3,239 3,080 6,364 6,019 Cost of service revenues 3,207 3,114 6,212 6,315 Selling, general and administrative expenses 2,140 2,111 4,218 4,293 Research and development expenses 352 339 695 670 Restructuring and other costs 82 77 180 106 Total costs and operating expenses 9,021 8,722 17,668 17,404 Operating income 1,834 1,820 3,551 3,483 Interest income 297 295 501 574 Interest expense ( 404 ) ( 354 ) ( 707 ) ( 717 ) Other income/(expense) ( 19 ) 5 ( 16 ) 14 Income before income taxes 1,709 1,765 3,329 3,354 Benefit from/(provision for) income taxes ( 92 ) ( 128 ) ( 187 ) ( 408 ) Equity in earnings/(losses) of unconsolidated entities 2 ( 84 ) ( 12 ) ( 61 ) Net income 1,618 1,553 3,130 2,885 Less: net income/(losses) attributable to noncontrolling interests and redeemable noncontrolling interest 2 6 6 9 Net income attributable to Thermo Fisher Scientific Inc. $ 1,617 $ 1,548 $ 3,124 $ 2,875 Earnings per share attributable to Thermo Fisher Scientific Inc. Basic $ 4.28 $ 4.05 $ 8.27 $ 7.53 Diluted $ 4.28 $ 4.04 $ 8.26 $ 7.50 Weighted average shares Basic 378 382 378 382 Diluted 378 383 378 383 The accompanying notes are an integral part of these condensed consolidated financial statements. 4 THERMO FISHER SCIENTIFIC INC. CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) Three months ended Six months ended June 28, June 29, June 28, June 29, (In millions) 2025 2024 2025 2024 Comprehensive income/(loss) Net income $ 1,618 1,553 $ 3,130 $ 2,885 Other comprehensive income/(loss): Currency translation adjustment: Currency translation adjustment (net of tax provision (benefit) of $( 207 ), $ 88 , $( 414 ) and $ 255 ) ( 447 ) 346 ( 87 ) 802 Unrealized gains/(losses) on available-for-sale debt securities Unrealized holding losses arising during the period (net of tax (provision) benefit of $ 0 , $ 0 , $ 0 and $ 0 ) — — — ( 1 ) Unrealized gains/(losses) on hedging instruments: Reclassification adjustment for losses included in net income (net of tax (provision) benefit of $ 0 , $ 0 , $ 0 and $ 0 ) 1 1 1 1 Pension and other postretirement benefit liability adjustments: Pension and other postretirement benefit liability adjustments arising during the period (net of tax (provision) benefit of $ 3 , $ 0 , $ 4 and $ 0 ) ( 8 ) — ( 11 ) 1 Amortization of net loss included in net periodic pension cost (net of tax (provision) benefit of $ 1 , $ 0 , $ 1 and $ 0 ) 3 1 4 1 Total other comprehensive income/(loss) ( 451 ) 348 ( 93 ) 805 Comprehensive income/(loss) 1,168 1,901 3,037 3,689 Less: comprehensive income/(loss) attributable to noncontrolling interests and redeemable noncontrolling interest 4 3 12 3 Comprehensive income attributable to Thermo Fisher Scientific Inc. $ 1,164 $ 1,899 $ 3,025 $ 3,686 The accompanying notes are an integral part of these condensed consolidated financial statements. 5 THERMO FISHER SCIENTIFIC INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Six months ended June 28, June 29, (In millions) 2025 2024 Operating activities Net income $ 3,130 $ 2,885 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation of property, plant and equipment 532 562 Amortization of acquisition-related intangible assets 859 1,065 Change in deferred income taxes ( 601 ) ( 607 ) Stock-based compensation 156 154 Other net non-cash expenses 198 157 Changes in assets and liabilities, excluding the effects of acquisitions ( 2,151 ) ( 1,003 ) Net cash provided by operating activities 2,122 3,211 Investing activities Purchases of property, plant and equipment ( 656 ) ( 648 ) Proceeds from sale of property, plant and equipment 13 20 Proceeds from cross-currency interest rate swap interest settlements 134 111 Purchases of investments ( 311 ) ( 1,778 ) Other investing activities, net 6 12 Net cash used in investing activities ( 815 ) ( 2,283 ) Financing activities Net proceeds from issuance of debt 2,840 1,204 Repayment of debt ( 1,625 ) — Purchases of company common stock ( 2,000 ) ( 3,000 ) Dividends paid ( 311 ) ( 284 ) Other financing activities, net 3 145 Net cash used in financing activities ( 1,093 ) ( 1,936 ) Exchange rate effect on cash 348 7 Increase (decrease) in cash, cash equivalents and restricted cash 563 ( 1,000 ) Cash, cash equivalents and restricted cash at beginning of period 4,040 8,097 Cash, cash equivalents and restricted cash at end of period $ 4,603 $ 7,097 The accompanying notes are an integral part of these condensed consolidated financial statements. 6 THERMO FISHER SCIENTIFIC INC. CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST AND EQUITY (Unaudited) Redeemable Noncontrolling Interest Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock Accumulated Other Comprehensive Income/(Loss) Total Thermo Fisher Scientific Inc. Shareholders’ Equity Noncontrolling Interests Total Equity (In millions) Shares Amount Shares Amount Three months ended June 28, 2025 Balance at March 29, 2025 $ 128 444 $ 444 $ 18,111 $ 54,447 67 $ ( 21,269 ) $ ( 2,343 ) $ 49,390 $ ( 33 ) $ 49,357 Issuance of shares under stock plans — — — 41 — — ( 1 ) — 40 — 40 Stock-based compensation — — — 81 — — — — 81 — 81 Dividends declared ($ 0.43 per share) — — — — ( 163 ) — — — ( 163 ) — ( 163 ) Net income/(loss) 3 — — — 1,617 — — — 1,617 ( 2 ) 1,615 Other comprehensive income/(loss) 3 — — — — — — ( 453 ) ( 453 ) — ( 454 ) Contributions from (distributions to) noncontrolling interests ( 8 ) — — — — — — — — — — Balance at June 28, 2025 $ 126 444 $ 444 $ 18,232 $ 55,901 67 $ ( 21,269 ) $ ( 2,797 ) $ 50,512 $ ( 35 ) $ 50,476 Three months ended June 29, 2024 Balance at March 30, 2024 $ 119 443 $ 443 $ 17,482 $ 48,542 61 $ ( 18,186 ) $ ( 2,764 ) $ 45,516 $ ( 12 ) $ 45,504 Issuance of shares under stock plans — — — 83 — — ( 2 ) — 81 — 81 Stock-based compensation — — — 84 — — — — 84 — 84 Dividends declared ($ 0.39 per share) — — — — ( 149 ) — — — ( 149 ) — ( 149 ) Net income/(loss) 6 — — — 1,548 — — — 1,548 — 1,548 Other comprehensive income/(loss) ( 3 ) — — — — — — 351 351 — 351 Contributions from (distributions to) noncontrolling interests ( 7 ) — — — — — — — — — — Excise tax from stock repurchases — — — — — — 1 — 1 — 1 Balance at June 29, 2024 $ 115 443 $ 443 $ 17,649 $ 49,940 61 $ ( 18,187 ) $ ( 2,413 ) $ 47,432 $ ( 12 ) $ 47,419 The accompanying notes are an integral part of these condensed consolidated financial statements. 7 THERMO FISHER SCIENTIFIC INC. CONDENSED CONSOLIDATED STATEMENTS OF REDEEMABLE NONCONTROLLING INTEREST AND EQUITY (Continued) (Unaudited) Redeemable Noncontrolling Interest Common Stock Capital in Excess of Par Value Retained Earnings Treasury Stock Accumulated Other Comprehensive Income/(Loss) Total Thermo Fisher Scientific Inc. Shareholders’ Equity Noncontrolling Interests Total Equity (In millions) Shares Amount Shares Amount Six months ended June 28, 2025 Balance at December 31, 2024 $ 120 444 $ 444 $ 17,962 $ 53,102 63 $ ( 19,226 ) $ ( 2,697 ) $ 49,584 $ ( 33 ) $ 49,551 Issuance of shares under stock plans — 1 1 115 — — ( 26 ) — 90 — 90 Stock-based compensation — — — 156 — — — — 156 — 156 Purchases of company common stock — — — — — 4 ( 2,000 ) — ( 2,000 ) — ( 2,000 ) Dividends declared ($ 0.86 per share) — — — — ( 325 ) — — — ( 325 ) — ( 325 ) Net income/(loss) 8 — — — 3,124 — — — 3,124 ( 2 ) 3,122 Other comprehensive income/(loss) 6 — — — — — — ( 99 ) ( 99 ) — ( 99 ) Contributions from (distributions to) noncontrolling interest ( 8 ) — — — — — — — — ( 1 ) ( 1 ) Excise tax from stock repurchases — — — — — — ( 17 ) — ( 17 ) — ( 17 ) Balance at June 28, 2025 $ 126 444 $ 444 $ 18,232 $ 55,901 67 $ ( 21,269 ) $ ( 2,797 ) $ 50,512 $ ( 35 ) $ 50,476 Six months ended June 29, 2024 Balance at December 31, 2023 $ 118 442 $ 442 $ 17,286 $ 47,364 56 $ ( 15,133 ) $ ( 3,224 ) $ 46,735 $ ( 11 ) $ 46,724 Issuance of shares under stock plans — 1 1 209 — — ( 26 ) — 184 — 184 Stock-based compensation — — — 154 — — — — 154 — 154 Purchases of company common stock — — — — — 6 ( 3,000 ) — ( 3,000 ) — ( 3,000 ) Dividends declared ($ 0.78 per share) — — — — ( 298 ) — — — ( 298 ) — ( 298 ) Net income/(loss) 10 — — — 2,875 — — — 2,875 ( 1 ) 2,874 Other comprehensive income/(loss) ( 6 ) — — — — — — 811 811 — 811 Contributions from (distributions to) noncontrolling interest ( 7 ) — — — — — — — — ( 1 ) ( 1 ) Excise tax from stock repurchases — — — — — — ( 28 ) — ( 28 ) — ( 28 ) Balance at June 29, 2024 $ 115 443 $ 443 $ 17,649 $ 49,940 61 $ ( 18,187 ) $ ( 2,413 ) $ 47,432 $ ( 12 ) $ 47,419 The accompanying notes are an integral part of these condensed consolidated financial statements. 8 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 1. Nature of Operations and Summary of Significant Accounting Policies Nature of Operations Thermo Fisher Scientific Inc. (the company or Thermo Fisher) enables customers to make the world healthier, cleaner and safer by helping them accelerate life sciences research, solve complex analytical challenges, increase laboratory productivity, and improve patient health through diagnostics and the development and manufacture of life-changing therapies. Markets served include pharmaceutical and biotech, academic and government, industrial and applied, as well as healthcare and diagnostics. Interim Financial Statements The interim condensed consolidated financial statements presented herein have been prepared by the company, are unaudited and, in the opinion of management, reflect all adjustments of a normal recurring nature necessary for a fair statement of the financial position at June 28, 2025, the results of operations for the three- and six-month periods ended June 28, 2025 and June 29, 2024, and the cash flows for the six-month periods ended June 28, 2025 and June 29, 2024. Interim results are not necessarily indicative of results for a full year. The condensed consolidated balance sheet presented as of December 31, 2024, has been derived from the audited consolidated financial statements as of that date. The condensed consolidated financial statements and notes are presented as permitted by Form 10-Q and do not contain all information that is included in the annual financial statements and notes thereto of the company. The condensed consolidated financial statements and notes included in this report should be read in conjunction with the 2024 financial statements and notes included in the company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC). Certain reclassifications of prior year amounts have been made to conform to the current year presentation. Note 1 to the consolidated financial statements for 2024 describes the significant accounting estimates and policies used in preparation of the consolidated financial statements. There have been no material changes in the company’s significant accounting policies during the six months ended June 28, 2025. Amounts and percentages reported within these condensed consolidated financial statements are presented and calculated based on underlying unrounded amounts. As a result, the sum of components may not equal corresponding totals due to rounding. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. The company’s estimates include, among others, asset reserve requirements as well as the amounts of future cash flows associated with certain assets and businesses that are used in assessing the risk of impairment. Actual results could differ from those estimates. Recent Accounting Pronouncements The following table provides a description of recent accounting pronouncements adopted and those standards not yet adopted with potential for a material impact on the company's financial statements or disclosures. 9 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Standard Description Required adoption timing and approach Impact of adoption or other significant matters Standards recently adopted ASU No. 2022-04, Liabilities-Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations New guidance to disclose information about supplier finance programs. Among other things, the new guidance requires expanded disclosure about key program terms, payment terms, and amounts outstanding for obligations under supplier finance programs for each period presented. Some aspects adopted in 2023 using a retrospective method and other aspects adopted in 2024 using a prospective method Not material ASU No. 2023-07, Segment Reporting (Topic 280): Improving Reportable Segment Disclosures Among other things, new guidance to disclose significant segment expenses and other items by reportable segment as well as information about the chief operating decision maker. 2024 annual report and interim periods thereafter using a retrospective method Increased disclosures in Note 11 Standards not yet adopted ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures Among other things, new guidance to disclose additional information about the tax rate reconciliation and income taxes paid. 2025 annual report and interim periods thereafter using a prospective or retrospective method Will increase disclosures in Note 7 ASU No. 2024-03, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses New guidance to disclose specified information about certain costs and expenses. 2027 annual report and interim periods thereafter using a prospective or retrospective method Will increase disclosures in Note 6 Note 2 . Supplemental Balance Sheet Information Inventories The components of inventories are as follows: (In millions) June 28, 2025 December 31, 2024 Raw materials $ 1,947 $ 1,803 Work in process 947 755 Finished goods 2,665 2,420 Inventories $ 5,559 $ 4,978 Contract-related Balances Contract asset and liability balances are as follows: (In millions) June 28, 2025 December 31, 2024 Current contract assets, net $ 1,441 $ 1,435 Noncurrent contract assets, net 1 6 Current contract liabilities 2,805 2,852 Noncurrent contract liabilities 1,122 1,138 In the three- and six-month periods ended June 28, 2025, the company recognized revenues of $ 0.73 billion and $ 2.09 billion, respectively, that were included in the contract liabilities balance at December 31, 2024. In the three- and six-month periods ended June 29, 2024, the company recognized revenues of $ 0.67 billion and $ 2.00 billion, respectively, that were included in the contract liabilities balance at December 31, 2023. Remaining Performance Obligations The aggregate amount of the transaction price allocated to the remaining performance obligations for all open customer contracts as of June 28, 2025, was $ 25.04 billion. The company will recognize revenues for these performance obligations as they are satisfied, approximately 54 % of which is expected to occur within the next twelve months . Amounts expected to occur thereafter generally relate to contract manufacturing, clinical research and extended warranty service agreements, which typically have durations of three to five years . 10 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 3 . Debt and Other Financing Arrangements The company’s debt and other financing arrangements are as follows: Effective interest rate at June 28, June 28, December 31, (Dollars in millions) 2025 2025 2024 0.125 % 5.5 -Year Senior Notes, Due 3/1/2025 (euro-denominated) $ — $ 828 2.00 % 10 -Year Senior Notes, Due 4/15/2025 (euro-denominated) — 663 0.853 % 3 -Year Senior Notes, Due 10/20/2025 (Japanese yen-denominated) 1.05 % 154 142 0.00 % 4 -Year Senior Notes, Due 11/18/2025 (euro-denominated) 0.16 % 644 569 3.20 % 3 -Year Senior Notes, Due 1/21/2026 (euro-denominated) 3.38 % 586 518 1.40 % 8.5 -Year Senior Notes, Due 1/23/2026 (euro-denominated) 1.53 % 820 725 4.953 % 3 -Year Senior Notes, Due 8/10/2026 5.18 % 600 600 0.832 % 1.5 -Year Senior Notes, Due 9/7/2026 (Swiss franc-denominated) 1.14 % 513 — 5.00 % 3 -Year Senior Notes, Due 12/5/2026 5.26 % 1,000 1,000 1.45 % 10 -Year Senior Notes, Due 3/16/2027 (euro-denominated) 1.66 % 586 518 1.75 % 7 -Year Senior Notes, Due 4/15/2027 (euro-denominated) 1.97 % 703 621 1.054 % 5 -Year Senior Notes, Due 10/20/2027 (Japanese yen-denominated) 1.18 % 200 184 4.80 % 5 -Year Senior Notes, Due 11/21/2027 5.00 % 600 600 0.790 % 3 -Year Senior Notes, Due 1/6/2028 (Swiss franc-denominated) 1.35 % 110 — 0.50 % 8.5 -Year Senior Notes, Due 3/1/2028 (euro-denominated) 0.78 % 937 828 1.6525 % 4 -Year Senior Notes, Due 3/7/2028 (Swiss franc-denominated) 1.79 % 413 364 0.77 % 5 -Year Senior Notes, Due 9/6/2028 (Japanese yen-denominated) 0.90 % 200 184 1.375 % 12 -Year Senior Notes, Due 9/12/2028 (euro-denominated) 1.46 % 703 621 1.75 % 7 -Year Senior Notes, Due 10/15/2028 1.89 % 700 700 5.00 % 5 -Year Senior Notes, Due 1/31/2029 5.24 % 1,000 1,000 1.125 % 4 -Year Senior Notes, Due 3/7/2029 (Swiss franc-denominated) 1.26 % 394 — 1.95 % 12 -Year Senior Notes, Due 7/24/2029 (euro-denominated) 2.08 % 820 725 2.60 % 10 -Year Senior Notes, Due 10/1/2029 2.74 % 900 900 1.279 % 7 -Year Senior Notes, Due 10/19/2029 (Japanese yen-denominated) 1.44 % 32 30 1.120 % 5 -Year Senior Notes, Due 1/6/2030 (Swiss franc-denominated) 1.25 % 293 — 4.977 % 7 -Year Senior Notes, Due 8/10/2030 5.12 % 750 750 0.80 % 9 -Year Senior Notes, Due 10/18/2030 (euro-denominated) 0.89 % 2,051 1,812 0.875 % 12 -Year Senior Notes, Due 10/1/2031 (euro-denominated) 1.14 % 1,055 932 2.00 % 10 -Year Senior Notes, Due 10/15/2031 2.23 % 1,200 1,200 1.8401 % 8 -Year Senior Notes, Due 3/8/2032 (Swiss franc-denominated) 1.92 % 519 457 2.375 % 12 -Year Senior Notes, Due 4/15/2032 (euro-denominated) 2.55 % 703 621 1.49 % 10 -Year Senior Notes, Due 10/20/2032 (Japanese yen-denominated) 1.60 % 44 40 4.95 % 10 -Year Senior Notes, Due 11/21/2032 5.09 % 600 600 1.4175 % 8 -Year Senior Notes, Due 3/7/2033 (Swiss franc-denominated) 1.49 % 438 — 5.086 % 10 -Year Senior Notes, Due 8/10/2033 5.20 % 1,000 1,000 1.125 % 12 -Year Senior Notes, Due 10/18/2033 (euro-denominated) 1.21 % 1,758 1,553 5.20 % 10 -Year Senior Notes, Due 1/31/2034 5.34 % 500 500 3.65 % 12 -Year Senior Notes, Due 11/21/2034 (euro-denominated) 3.76 % 879 777 1.50 % 12 -Year Senior Notes, Due 9/6/2035 (Japanese yen-denominated) 1.58 % 149 137 2.0375 % 12 -Year Senior Notes, Due 3/7/2036 (Swiss franc-denominated) 2.10 % 407 358 1.520 % 12 -Year Senior Notes, Due 1/6/2037 (Swiss franc-denominated) 1.56 % 389 — 1.6524 % 12 -Year Senior Notes, Due 3/6/2037 (Swiss franc-denominated) 1.71 % 269 — 11 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Effective interest rate at June 28, June 28, December 31, (Dollars in millions) 2025 2025 2024 2.875 % 20 -Year Senior Notes, Due 7/24/2037 (euro-denominated) 2.94 % 820 725 1.50 % 20 -Year Senior Notes, Due 10/1/2039 (euro-denominated) 1.73 % 1,055 932 2.80 % 20 -Year Senior Notes, Due 10/15/2041 2.90 % 1,200 1,200 1.625 % 20 -Year Senior Notes, Due 10/18/2041 (euro-denominated) 1.78 % 1,465 1,294 2.069 % 20 -Year Senior Notes, Due 10/20/2042 (Japanese yen-denominated) 2.13 % 101 93 5.404 % 20 -Year Senior Notes, Due 8/10/2043 5.50 % 600 600 2.02 % 20 -Year Senior Notes, Due 9/6/2043 (Japanese yen-denominated) 2.06 % 200 184 5.30 % 30 -Year Senior Notes, Due 2/1/2044 5.37 % 400 400 1.49 % 20 -Year Senior Notes, Due 1/6/2045 (Swiss franc-denominated) 1.54 % 232 — 1.8975 % 20 -Year Senior Notes, Due 3/7/2045 (Swiss franc-denominated) 1.95 % 169 — 4.10 % 30 -Year Senior Notes, Due 8/15/2047 4.23 % 750 750 1.875 % 30 -Year Senior Notes, Due 10/1/2049 (euro-denominated) 1.99 % 1,172 1,035 1.47 % 25 -Year Senior Notes, Due 1/6/2050 (Swiss franc-denominated) 1.49 % 409 — 2.00 % 30 -Year Senior Notes, Due 10/18/2051 (euro-denominated) 2.07 % 879 777 2.382 % 30 -Year Senior Notes, Due 10/18/2052 (Japanese yen-denominated) 2.43 % 230 212 Other 1 73 Total borrowings at par value 35,303 31,332 Unamortized discount ( 98 ) ( 95 ) Unamortized debt issuance costs ( 172 ) ( 164 ) Total borrowings at carrying value 35,033 31,072 Finance lease liabilities 196 202 Less: Short-term obligations and current maturities 2,214 2,214 Long-term obligations $ 33,015 $ 29,061 The effective interest rates for the fixed-rate debt include the stated interest on the notes, the accretion of any discounts/premiums and the amortization of any debt issuance costs. See Note 4 for fair value information pertaining to the company’s long-term borrowings. Credit Facilities The company has a revolving credit facility (the Facility) with a bank group that provides for up to $ 5.00 billion of unsecured multi-currency revolving credit. The Facility expires on January 7, 2027. The revolving credit agreement calls for interest at either a Term Secured Overnight Financing Rate (SOFR), a Euro Interbank Offered Rate (EURIBOR)-based rate (for funds drawn in euro), or a rate based on the prime lending rate of the agent bank, at the company’s option. The agreement contains affirmative, negative and financial covenants, and events of default customary for facilities of this type. The covenants in the Facility include a Consolidated Net Interest Coverage Ratio (Consolidated EBITDA to Consolidated Net Interest Expense), as such terms are defined in the Facility. Specifically, the company has agreed that, so long as any lender has any commitment under the Facility, any letter of credit is outstanding under the Facility, or any loan or other obligation is outstanding under the Facility, it will maintain a minimum Consolidated Net Interest Coverage Ratio of 3.5 :1.0 as of the last day of any fiscal quarter. As of June 28, 2025, no borrowings were outstanding under the Facility, although available capacity was reduced by immaterial outstanding letters of credit. Commercial Paper Programs The company has commercial paper programs pursuant to which it may issue and sell unsecured, short-term promissory notes (CP Notes). Under the U.S. program, a) maturities may not exceed 397 days from the date of issue and b) the CP Notes are issued on a private placement basis under customary terms in the commercial paper market and are not redeemable prior to maturity nor subject to voluntary prepayment. Under the euro program, maturities may not exceed 183 days and may be denominated in euro, U.S. dollars, Japanese yen, British pounds sterling, Swiss franc, Canadian dollars or other currencies. Under both programs, the CP Notes are issued at a discount from par (or premium to par, in the case of negative interest rates), or, alternatively, are sold at par and bear varying interest rates on a fixed or floating basis. 12 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Senior Notes Interest is payable annually on the euro and public Swiss franc-denominated fixed rate senior notes and semi-annually on all other senior notes. Each of the U.S. dollar and euro-denominated fixed rate senior notes, and Japanese yen-denominated and Swiss franc-denominated private placement notes may be redeemed at a redemption price of 100 % of the principal amount plus a specified make-whole premium and accrued interest, together with swap breakage costs payable to holders of the Japanese yen-denominated and Swiss franc-denominated private placement notes who have entered into cross-currency swap agreements. The company is subject to certain affirmative and negative covenants under the indentures and note purchase agreement governing the senior notes, the most restrictive of which limits the ability of the company to pledge certain property and assets as security under borrowing arrangements. The company was in compliance with all covenants related to its senior notes at June 28, 2025. Thermo Fisher Scientific (Finance I) B.V. (Thermo Fisher International), a wholly-owned finance subsidiary of the company, issued each of the following notes outstanding as of June 28, 2025, included in the table above (collectively, the “Euronotes”) in registered public offerings: the 0.00 % Senior Notes due 2025, the 0.80 % Senior Notes due 2030, the 1.125 % Senior Notes due 2033, the 1.625 % Senior Notes due 2041, and the 2.00 % Senior Notes due 2051. The company has fully and unconditionally guaranteed all of Thermo Fisher International’s obligations under the Euronotes and all of Thermo Fisher International’s other debt securities, and no other subsidiary of the company will guarantee these obligations. Thermo Fisher International is a “finance subsidiary” as defined in Rule 13-01(a)(4)(vi) of the Exchange Act, with no assets or operations other than those related to the issuance, administration and repayment of the Euronotes and other debt securities issued by Thermo Fisher International from time to time. The financial condition, results of operations and cash flows of Thermo Fisher International are consolidated in the financial statements of the company. Note 4 . Fair Value Measurements Fair Value Measurements The following tables present information about the company’s financial assets and liabilities measured at fair value on a recurring basis: June 28, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs (In millions) 2025 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 1,431 $ 1,431 $ — $ — Bank time deposits 1,810 1,810 — — Investments 76 17 — 59 Insurance contracts 262 — 262 — Derivative contracts 175 — 175 — Total assets $ 3,755 $ 3,258 $ 437 $ 59 Liabilities Derivative contracts $ 409 $ — $ 409 $ — Contingent consideration 5 — — 5 Total liabilities $ 415 $ — $ 409 $ 5 13 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) December 31, Quoted prices in active markets Significant other observable inputs Significant unobservable inputs (In millions) 2024 (Level 1) (Level 2) (Level 3) Assets Cash equivalents $ 1,103 $ 1,103 $ — $ — Bank time deposits 1,560 1,560 — — Investments 39 18 — 21 Insurance contracts 240 — 240 — Derivative contracts 460 — 460 — Total assets $ 3,401 $ 2,680 $ 700 $ 21 Liabilities Derivative contracts $ 59 $ — $ 59 $ — Contingent consideration 13 — — 13 Total liabilities $ 72 $ — $ 59 $ 13 In the three- and six-month periods ended June 28, 2025, the company recorded $( 3 ) million and $( 2 ) million, respectively, of net gains/(losses) on investments, which are included in other income/(expense) in the accompanying statements of income. In the six-month period ended June 29, 2024, the company recorded $ 10 million, of net gains/(losses) on investments, which are included in other income/(expense) in the accompanying statements of income. The following table provides a rollforward of the fair value, as determined by level 3 inputs (such as likelihood of achieving production or revenue milestones, as well as changes in the fair values of the investments underlying a recapitalization investment portfolio), of the contingent consideration. Three months ended Six months ended June 28, June 29, June 28, June 29, (In millions) 2025 2024 2025 2024 Contingent consideration Beginning balance $ 13 $ 83 $ 13 $ 87 Payments ( 6 ) — ( 6 ) ( 2 ) Changes in fair value included in earnings ( 2 ) ( 72 ) ( 1 ) ( 74 ) Ending balance $ 5 $ 12 $ 5 $ 12 The following table provides a rollforward of investments classified as level 3: Three months ended Six months ended June 28, June 28, (In millions) 2025 2025 Investments Beginning balance $ 31 $ 21 Purchases 28 38 Ending balance $ 59 $ 59 14 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Fair Value of Other Financial Instruments The carrying value and fair value of the company’s debt instruments are as follows: June 28, 2025 December 31, 2024 Carrying Fair Carrying Fair (In millions) value value value value Senior notes $ 35,031 $ 32,400 $ 30,999 $ 28,454 Other 1 1 73 73 $ 35,033 $ 32,402 $ 31,072 $ 28,527 The fair value of debt instruments, excluding private placement notes, was determined based on quoted market prices and on borrowing rates available to the company at the respective period ends, which represent level 2 measurements. The fair value of private placement notes was determined based on internally developed pricing models and unobservable inputs, which represent level 3 measurements. Note 5 . Commitments and Contingencies Environmental Matters The company is currently involved in various stages of investigation and remediation related to environmental matters. The company cannot predict all potential costs related to environmental remediation matters and the possible impact on future operations given the uncertainties regarding the extent of the required cleanup, the complexity and interpretation of applicable laws and regulations, the varying costs of alternative cleanup methods and the extent of the company’s responsibility. Expenses for environmental remediation matters related to the costs of installing, operating and maintaining groundwater-treatment systems and other remedial activities related to historical environmental contamination at the company’s domestic and international facilities were not material in any period presented. At June 28, 2025, there have been no material changes to the accruals for pending environmental-related matters disclosed in the company’s 2024 financial statements and notes included in the company’s Annual Report on Form 10-K. While management believes the accruals for environmental remediation are adequate based on current estimates of remediation costs, the company may be subject to additional remedial or compliance costs due to future events such as changes in existing laws and regulations, changes in agency direction or enforcement policies, developments in remediation technologies or changes in the conduct of the company’s operations, which could have a material adverse effect on the company’s financial position, results of operations and cash flows. Litigation and Related Contingencies The company is involved in various disputes, governmental and/or regulatory inspections, inquiries, investigations and proceedings, and litigation matters that arise from time to time in the ordinary course of business. The disputes and litigation matters include product liability, intellectual property, employment and commercial issues. Due to the inherent uncertainties associated with pending litigation or claims, the company cannot predict the outcome, nor, with respect to certain pending litigation or claims where no liability has been accrued, make a meaningful estimate of the reasonably possible loss or range of loss that could result from an unfavorable outcome. The company has no material accruals for pending litigation or claims for which accrual amounts are not disclosed in the company’s 2024 financial statements and notes included in the company’s Annual Report on Form 10-K, nor are material losses deemed probable for such matters. It is reasonably possible, however, that an unfavorable outcome that exceeds the company’s current accrual estimate, if any, for one or more such matters could have a material adverse effect on the company’s results of operations, financial position and cash flows. Product Liability, Workers Compensation and Other Personal Injury Matters The company is involved in various proceedings and litigation that arise from time to time in connection with product liability, workers compensation and other personal injury matters. At June 28, 2025, there have been no material changes to the accruals for pending product liability, workers compensation, and other personal injury matters disclosed in the company’s 2024 financial statements and notes included in the company’s Annual Report on Form 10-K. Although the company believes that the amounts accrued and estimated insurance recoveries are probable and appropriate based on available information, including actuarial studies of loss estimates, the process of estimating losses and insurance recoveries involves a considerable degree of judgment by management and the ultimate amounts could vary, which could have a material adverse effect on the company’s results of operations, financial position, and cash flows. Insurance contracts do not relieve the company of its primary obligation with respect to any losses incurred. The collectability of amounts due from its insurers is subject to the solvency and willingness of the insurer to pay, as well as the legal sufficiency of the insurance claims. Management monitors the payment history as well as the financial condition and ratings of its insurers on an ongoing basis. 15 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 6. Supplemental Income Statement Information Disaggregated Revenues Revenues by type are as follows: Three months ended Six months ended (In millions) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Revenues Consumables $ 4,606 $ 4,363 $ 8,960 $ 8,690 Instruments 1,644 1,800 3,270 3,428 Services 4,605 4,378 8,990 8,768 Consolidated revenues $ 10,855 $ 10,541 $ 21,219 $ 20,886 Revenues by geographic region based on customer location are as follows: Three months ended Six months ended (In millions) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Revenues North America $ 5,722 $ 5,529 $ 11,235 $ 11,048 Europe 2,830 2,663 5,454 5,282 Asia-Pacific 1,920 1,971 3,811 3,831 Other regions 383 379 720 725 Consolidated revenues $ 10,855 $ 10,541 $ 21,219 $ 20,886 Each reportable segment earns revenues from consumables, instruments and services in North America, Europe, Asia-Pacific and other regions. Revenues by business are as follows: Three months ended Six months ended (In millions) June 28, 2025 June 29, 2024 June 28, 2025 June 29, 2024 Revenues Biosciences $ 1,075 $ 1,059 $ 2,068 $ 2,118 Genetic sciences 679 663 1,356 1,300 BioProduction 745 633 1,416 1,223 Life Sciences Solutions 2,499 2,355 4,840 4,640 Chromatography and mass spectrometry 784 773 1,557 1,562 Chemical analysis 292 324 578 644 Electron microscopy 652 684 1,311 1,263 Analytical Instruments 1,728 1,782 3,446 3,469 Clinical diagnostics 276 273 539 536 ImmunoDiagnostics 234 226 451 437 Microbiology 159 158 311 312 Transplant diagnostics 124 111 237 217 Healthcare market channel 407 411 880 849 Elimination of intrasegment revenues ( 65 ) ( 62 ) ( 137 ) ( 125 ) Specialty Diagnostics 1,134 1,117 2,282 2,227 Laboratory products 601 639 1,183 1,264 Research and safety market channel 1,883 1,775 3,610 3,486 Pharma services 1,794 1,627 3,401 3,205 Clinical research 1,955 1,949 3,894 3,982 Elimination of intrasegment revenues and other ( 238 ) ( 233 ) ( 453 ) ( 457 ) Laboratory Products and Biopharma Services 5,995 5,758 11,635 11,480 Elimination of intersegment revenues ( 501 ) ( 470 ) ( 983 ) ( 930 ) Consolidated revenues $ 10,855 $ 10,541 $ 21,219 $ 20,886 16 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Restructuring and Other Costs In the first six months of 2025, restructuring and other costs primarily included continuing charges for headcount reductions and facility consolidations in an effort to streamline operations, impairment of long-lived assets, and, to a lesser extent, net charges for pre-acquisition litigation and other matters. In 2025, severance actions associated with facility consolidations and cost reduction measures affected approximately 2 % of the company’s workforce. As of August 1, 2025, the company has identified restructuring actions, primarily in the Laboratory Products and Biopharma Services segment, that it expects will result in additional charges of approximately $ 140 million, primarily in 2025, and expects to identify additional actions in future periods. Restructuring and other costs by segment are as follows: Three months ended Six months ended (In millions) June 28, 2025 June 28, 2025 Life Sciences Solutions $ 11 $ 54 Analytical Instruments 10 14 Specialty Diagnostics 3 5 Laboratory Products and Biopharma Services 56 100 Corporate 2 7 $ 82 $ 180 The following table summarizes the changes in the company’s accrued restructuring balance, which is included in other accrued expenses in the accompanying balance sheets. Other amounts reported as restructuring and other costs in the accompanying statements of income have been summarized in the notes to the table. (In millions) Total (a) Balance at December 31, 2024 $ 50 Net restructuring charges incurred in 2025 (b) 99 Payments ( 78 ) Currency translation 4 Balance at June 28, 2025 $ 74 (a) The movements in the restructuring liability principally consist of severance and other costs associated with facility consolidations. (b) Excludes $ 82 million of net charges, principally $ 67 million of charges for impairment of long-lived assets in the Life Sciences Solutions and Laboratory Products and Biopharma Services segments. The company expects to pay accrued restructuring costs primarily through 2025. Earnings per Share The company’s earnings per share are as follows: Three months ended Six months ended June 28, June 29, June 28, June 29, (In millions except per share amounts) 2025 2024 2025 2024 Net income attributable to Thermo Fisher Scientific Inc. $ 1,617 $ 1,548 $ 3,124 $ 2,875 Basic weighted average shares 378 382 378 382 Plus effect of: stock options and restricted stock units — 1 1 1 Diluted weighted average shares 378 383 378 383 Basic earnings per share $ 4.28 $ 4.05 $ 8.27 $ 7.53 Diluted earnings per share $ 4.28 $ 4.04 $ 8.26 $ 7.50 Antidilutive stock options excluded from diluted weighted average shares 4 2 3 2 17 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 7 . Income Taxes The provision for income taxes in the accompanying statements of income differs from the provision calculated by applying the statutory federal income tax rate to income before provision for income taxes due to the following: Six months ended (In millions) June 28, 2025 June 29, 2024 Statutory federal income tax rate 21 % 21 % Provision for income taxes at statutory rate $ 699 $ 704 Increases (decreases) resulting from: Foreign rate differential ( 72 ) ( 76 ) Income tax credits ( 99 ) ( 141 ) Global intangible low-taxed income 23 25 Foreign-derived intangible income ( 53 ) ( 47 ) Excess tax benefits from stock options and restricted stock units ( 9 ) ( 45 ) Provision for (reversal of) tax reserves, net ( 28 ) 195 Intra-entity transfers ( 153 ) ( 102 ) Domestication transaction ( 125 ) — Provision for (reversal of) valuation allowances, net ( 85 ) ( 67 ) Withholding taxes 7 9 Tax return reassessments and settlements 30 ( 35 ) State income taxes, net of federal tax 43 39 Equity method investments ( 2 ) ( 45 ) Other, net 12 ( 4 ) Provision for/(benefit from) income taxes $ 187 $ 408 During the first quarter of 2025, the company recorded a deferred tax benefit of $ 125 million resulting from the recognition of a tax attribute related to a domestication transaction. During the second quarter of 2025, the company recorded a deferred tax benefit of $ 153 million related to capital losses generated as part of intra-entity transactions and a $ 93 million benefit in jurisdictions where the deferred tax assets are now expected to be realized due to forecasted income. During the first quarter of 2024, the company recorded a tax reserve and associated interest of $ 240 million related to the potential settlement of international tax audits for tax years 2009 through 2016, which were settled during 2024. During the second quarter of 2024, the company recorded a benefit of $ 183 million, primarily in jurisdictions where the deferred tax assets are now expected to be realized due to forecasted income. The company has operations and a taxable presence in approximately 70 countries outside the U.S. The company's effective income tax rate differs from the U.S. federal statutory rate each year due to certain operations that are subject to tax incentives, state and local taxes, and foreign taxes that are different than the U.S. federal statutory rate. On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was enacted. The OBBBA includes a broad range of provisions, such as the permanent extension of certain otherwise expiring provisions, modifications to the international tax framework and the reinstatement of favorable tax treatment for certain business provisions. While most of the changes made by the OBBBA are effective in future tax years, some of its provisions are effective in 2025. We are currently evaluating its impact on our consolidated financial statements. Unrecognized Tax Benefits As of June 28, 2025, the company had $ 0.52 billion of unrecognized tax benefits substantially all of which, if recognized, would reduce the effective tax rate. A reconciliation of the beginning and ending amounts of unrecognized tax benefits is as follows: (In millions) 2025 Balance at beginning of year $ 525 Additions for tax positions of current year 22 Reductions for tax positions of prior years ( 8 ) Closure of tax years ( 19 ) Settlements ( 1 ) Balance at end of period $ 520 18 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 8 . Comprehensive Income/(Loss) and Shareholders' Equity Comprehensive Income/(Loss) Changes in each component of accumulated other comprehensive income/(loss), net of tax, are as follows: (In millions) Currency translation adjustment Unrealized gains/(losses) on hedging instruments Pension and other postretirement benefit liability adjustment Total Three months ended June 28, 2025 Balance at March 29, 2025 $ ( 2,053 ) $ ( 24 ) $ ( 265 ) $ ( 2,343 ) Other comprehensive income/(loss) before reclassifications ( 447 ) — ( 8 ) ( 455 ) Amounts reclassified from accumulated other comprehensive income/(loss) ( 2 ) 1 3 1 Net other comprehensive income/(loss) ( 449 ) 1 ( 5 ) ( 453 ) Balance at June 28, 2025 $ ( 2,502 ) $ ( 24 ) $ ( 270 ) $ ( 2,797 ) Six months ended June 28, 2025 Balance at December 31, 2024 $ ( 2,409 ) $ ( 25 ) $ ( 263 ) $ ( 2,697 ) Other comprehensive income/(loss) before reclassifications ( 87 ) — ( 11 ) ( 98 ) Amounts reclassified from accumulated other comprehensive income/(loss) ( 6 ) 1 4 ( 2 ) Net other comprehensive income/(loss) ( 93 ) 1 ( 8 ) ( 99 ) Balance at June 28, 2025 $ ( 2,502 ) $ ( 24 ) $ ( 270 ) $ ( 2,797 ) Note 9 . Supplemental Cash Flow Information Supplemental cash flow information is as follows: Six months ended (In millions) June 28, 2025 June 29, 2024 Non-cash investing and financing activities Acquired but unpaid property, plant and equipment $ 206 $ 166 Declared but unpaid dividends 165 151 Issuance of stock upon vesting of restricted stock units 69 71 Excise tax from stock repurchases 17 28 Cash, cash equivalents and restricted cash is included in the accompanying balance sheet as follows: (In millions) June 28, 2025 December 31, 2024 Cash and cash equivalents $ 4,576 $ 4,009 Restricted cash included in other current assets 3 10 Restricted cash included in other assets 24 21 Cash, cash equivalents and restricted cash $ 4,603 $ 4,040 Amounts included in restricted cash primarily represent funds held as collateral for bank guarantees, pension related deposits, and incoming cash in China awaiting government administrative clearance. 19 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 10 . Derivatives Derivative Contracts The following table provides the aggregate notional value of outstanding derivative contracts. (In millions) June 28, 2025 December 31, 2024 Notional amount Cross-currency interest rate swaps designated as net investment hedge - euro $ 1,000 $ 1,000 Cross-currency interest rate swaps designated as net investment hedge - Japanese yen 4,650 4,650 Cross-currency interest rate swaps designated as net investment hedge - Swiss franc 2,500 2,500 Currency exchange contracts 1,392 1,588 While certain derivatives are subject to netting arrangements with counterparties, the company does not offset derivative assets and liabilities within the balance sheet. The following tables present the fair value of derivative instruments in the accompanying balance sheets and statements of income. Fair value – assets Fair value – liabilities June 28, December 31, June 28, December 31, (In millions) 2025 2024 2025 2024 Derivatives designated as hedging instruments Cross-currency interest rate swaps $ 174 $ 458 $ 407 $ 57 Derivatives not designated as hedging instruments Currency exchange contracts 1 2 2 2 Total derivatives $ 175 $ 460 $ 409 $ 59 The fair value of the cross-currency interest rate swaps is included in the accompanying balance sheets under the caption other assets, other current liabilities, or other long-term liabilities. The fair value of currency exchange contracts is included in the accompanying balance sheets under the captions other current assets or other accrued expenses. Gain/(loss) recognized Three months ended Six months ended June 28, June 29, June 28, June 29, (In millions) 2025 2024 2025 2024 Derivatives designated as cash flow hedges Interest rate swaps Amount reclassified from accumulated other comprehensive income/(loss) to interest expense $ ( 1 ) $ ( 1 ) $ ( 2 ) $ ( 2 ) Financial instruments designated as net investment hedges Foreign currency-denominated debt and other payables Included in currency translation adjustment within other comprehensive income/(loss) ( 788 ) 85 ( 1,238 ) 361 Cross-currency interest rate swaps Included in currency translation adjustment within other comprehensive income/(loss) ( 515 ) 293 ( 634 ) 736 Included in interest expense 67 68 134 134 Derivatives not designated as hedging instruments Currency exchange contracts Included in cost of product revenues ( 3 ) 4 ( 2 ) 7 Included in other income/(expense) 3 ( 4 ) 13 ( 10 ) Gains and losses recognized on currency exchange contracts are included in the accompanying statements of income together with the corresponding, offsetting losses and gains on the underlying hedged transactions. See Note 1 to the consolidated financial statements for 2024 included in the company’s Annual Report on Form 10-K for additional information on the company’s risk management objectives and strategies. 20 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 11. Business Segment Information Business Segment Information The company’s financial performance is reported in four segments. During 2025, there have been no changes to the company’s basis of segmentation or in the basis of measurement of segment income. Other segment items included in the below tables consist of stock-based compensation and other incentive compensation expenses, allocations of corporate expenses and certain overhead expenses as well as elimination of intersegment and intrasegment profits. Prior period segment expense amounts have been recast to reflect the method for allocating expenses to segments in the current period. 2025 Three months ended June 28, 2025 (In millions) Life Sciences Solutions Analytical Instruments Specialty Diagnostics Laboratory Products and Biopharma Services Total Revenues Revenues from external customers $ 2,115 $ 1,669 $ 1,118 $ 5,953 $ 10,855 Intersegment revenues 385 58 16 42 501 2,499 1,728 1,134 5,995 11,356 Elimination of intersegment revenues ( 501 ) Consolidated revenues $ 10,855 Segment Income Cost of revenues 925 902 640 4,683 Selling, general, and administrative expenses 467 318 183 599 Research and development expenses 136 145 47 14 Other segment items 53 37 ( 42 ) ( 126 ) Segment income 919 325 306 825 2,375 Unallocated amounts Cost of revenues adjustments ( 10 ) Selling, general and administrative expenses adjustments ( 20 ) Restructuring and other costs ( 82 ) Amortization of acquisition-related intangible assets ( 429 ) Interest income 297 Interest expense ( 404 ) Other income/(expense) ( 19 ) Consolidated income before income taxes $ 1,709 (In millions) Unallocated amounts Life Sciences Solutions Analytical Instruments Specialty Diagnostics Laboratory Products and Biopharma Services Consolidated Segment assets $ 87,013 $ 3,142 $ 3,070 $ 1,295 $ 6,711 $ 101,230 Purchases of property, plant and equipment 25 25 13 25 206 294 Depreciation of property, plant and equipment — 56 26 23 152 256 21 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 2024 Three months ended June 29, 2024 (In millions) Life Sciences Solutions Analytical Instruments Specialty Diagnostics Laboratory Products and Biopharma Services Total Revenues Revenues from external customers $ 1,996 $ 1,727 $ 1,100 $ 5,719 $ 10,541 Intersegment revenues 359 55 17 39 470 2,355 1,782 1,117 5,758 11,011 Elimination of intersegment revenues ( 470 ) Consolidated revenues $ 10,541 Segment Income Cost of revenues 860 852 623 4,504 Selling, general, and administrative expenses 428 305 188 596 Research and development expenses 130 139 44 17 Other segment items 73 47 ( 37 ) ( 104 ) Segment income 865 439 299 745 2,347 Unallocated amounts Cost of revenues adjustments ( 1 ) Selling, general and administrative expenses adjustments 64 Restructuring and other costs ( 77 ) Amortization of acquisition-related intangible assets ( 513 ) Interest income 295 Interest expense ( 354 ) Other income/(expense) 5 Consolidated income before income taxes $ 1,765 (In millions) Unallocated amounts Life Sciences Solutions Analytical Instruments Specialty Diagnostics Laboratory Products and Biopharma Services Consolidated Segment assets $ 85,247 $ 3,025 $ 2,723 $ 1,188 $ 6,314 $ 98,496 Purchases of property, plant and equipment 15 26 18 21 220 301 Depreciation of property, plant and equipment — 57 25 22 173 276 22 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 2025 Six months ended June 28, 2025 (In millions) Life Sciences Solutions Analytical Instruments Specialty Diagnostics Laboratory Products and Biopharma Services Total Revenues Revenues from external customers $ 4,069 $ 3,346 $ 2,248 $ 11,556 $ 21,219 Intersegment revenues 771 99 34 79 983 4,840 3,446 2,282 11,635 22,202 Elimination of intersegment revenues ( 983 ) Consolidated revenues $ 21,219 Segment Income Cost of revenues 1,781 1,738 1,319 9,107 Selling, general, and administrative expenses 936 633 354 1,191 Research and development expenses 273 282 92 27 Other segment items 97 69 ( 93 ) ( 246 ) Segment income 1,753 724 610 1,557 4,644 Unallocated amounts Cost of revenues adjustments ( 21 ) Selling, general and administrative expenses adjustments ( 34 ) Restructuring and other costs ( 180 ) Amortization of acquisition-related intangible assets ( 859 ) Interest income 501 Interest expense ( 707 ) Other income/(expense) ( 16 ) Consolidated income before income taxes $ 3,329 (In millions) Unallocated amounts Life Sciences Solutions Analytical Instruments Specialty Diagnostics Laboratory Products and Biopharma Services Consolidated Segment assets $ 87,013 $ 3,142 $ 3,070 $ 1,295 $ 6,711 $ 101,230 Purchases of property, plant and equipment 61 69 57 58 412 656 Depreciation of property, plant and equipment — 114 50 44 324 532 23 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 2024 Six months ended June 29, 2024 (In millions) Life Sciences Solutions Analytical Instruments Specialty Diagnostics Laboratory Products and Biopharma Services Total Revenues Revenues from external customers $ 3,926 $ 3,356 $ 2,200 $ 11,404 $ 20,886 Intersegment revenues 714 113 27 76 930 4,640 3,469 2,227 11,480 21,817 Elimination of intersegment revenues ( 930 ) Consolidated revenues $ 20,886 Segment Income Cost of revenues 1,680 1,651 1,251 9,004 Selling, general, and administrative expenses 859 623 375 1,181 Research and development expenses 262 270 84 34 Other segment items 133 86 ( 76 ) ( 228 ) Segment income 1,705 838 593 1,489 4,625 Unallocated amounts Cost of revenues adjustments ( 17 ) Selling, general and administrative expenses adjustments 45 Restructuring and other costs ( 106 ) Amortization of acquisition-related intangible assets ( 1,065 ) Interest income 574 Interest expense ( 717 ) Other income/(expense) 14 Consolidated income before income taxes $ 3,354 (In millions) Unallocated amounts Life Sciences Solutions Analytical Instruments Specialty Diagnostics Laboratory Products and Biopharma Services Consolidated Segment assets $ 85,247 $ 3,025 $ 2,723 $ 1,188 $ 6,314 $ 98,496 Purchases of property, plant and equipment 38 51 46 53 460 648 Depreciation of property, plant and equipment — 112 50 44 356 562 24 THERMO FISHER SCIENTIFIC INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 12 . Acquisitions The company’s acquisitions have historically been made at prices above the determined fair value of the acquired identifiable net assets, resulting in goodwill, primarily due to expectations of the synergies that will be realized by combining the businesses and the benefits that will be gained from the assembled workforces. These synergies include the elimination of redundant facilities, functions and staffing; use of the company’s existing commercial infrastructure to expand sales of the acquired businesses’ products and services; and use of the commercial infrastructure of the acquired businesses to cost-effectively expand sales of company products and services. Acquisitions have been accounted for using the acquisition method of accounting, and the acquired companies’ results have been included in the accompanying financial statements from their respective dates of acquisition. Pending Acquisition The company has entered into an agreement with Solventum Corporation to acquire its Purification and Filtration business. It subsequently amended the agreement to exclude Solventum’s drinking water filtration business from the scope of the business to be acquired and revised the cash consideration payable at closing to approximately $ 4.0 billion. Solventum’s Purification and Filtration business is a leading provider of purification and filtration technologies used in the production of biologics as well as in medical technologies and industrial applications. The transaction, which is expected to be completed by the end of 2025, is subject to customary closing conditions. Upon completion, Solventum’s Purification and Filtration business will become part of the Life Sciences Solutions segment. 2024 On July 10, 2024, the company acquired, within the Life Sciences Solutions segment, Olink Holding AB (publ), a Swedish-based provider of next-generation proteomics solutions. The acquisition enhances the segment’s capabilities in the high-growth proteomics market with the addition of highly differentiated solutions. It also complements the existing life sciences and mass spectrometry offerings, accelerating protein biomarker discovery and providing strong synergy opportunities. The goodwill recorded as a result of this business combination is not tax deductible. The components of the purchase price and net assets acquired are as follows: (In millions) Olink Purchase price Cash paid $ 3,215 Purchase price payable 28 Cash acquired ( 97 ) $ 3,146 Net assets acquired Definite-lived intangible assets Customer relationships $ 708 Product technology 207 Tradenames 97 Goodwill 2,301 Net tangible assets 9 Deferred tax assets (liabilities) ( 176 ) $ 3,146 The weighted-average amortization periods for definite-lived intangible assets acquired in 2024 are 19 years for customer relationships, 15 years for product technology, and 15 years for tradenames. The weighted-average amortization period for definite-lived intangible assets acquired in 2024 is 18 years. 25 THERMO FISHER SCIENTIFIC INC.