Thermo Fisher (TMO) Q2 2026: Organic Growth 5%, Cash Falls 59%
Thermo Fisher grew revenue 10% in the second quarter, but only half of that was earned rather than bought. The company's own reconciliation splits the gain into 5 points organic, 4 points acquisitions and 1 point currency. The organic number is the one that matters, and it marks a genuine turn. The company discloses 5% organic growth for the quarter and 3% for the six months; backing out the first quarter implies organic growth there of roughly 1%, though both inputs are rounded to whole points so the derived figure carries a wide band. Directionally, the second quarter marks a clear acceleration in the underlying business. The bill arrived on the balance sheet, where cash fell from $9,852 million to $4,064 million and net debt rose 31% in six months to fund the $9,098 million Clario acquisition.
A timing note governs every comparison below. Clario closed March 24, 2026, four days before the first quarter ended. Its cash outflow and goodwill were booked in Q1; Q2 is the first full quarter carrying both its revenue and its amortization. Income statement comparisons are three-month unless stated. Balance sheet and cash flow movements are six-month changes from December 31, 2025.
1. Balance Sheet
1-1. Asset composition
| Item | Dec 31, 2025 ($M) | Jun 27, 2026 ($M) | Change % |
|---|---|---|---|
| Cash and cash equivalents | 9,852 | 4,064 | -58.8% |
| Short-term investments | 253 | — | -100.0% |
| Accounts receivable, net | 8,900 | 9,451 | +6.2% |
| Inventories | 5,425 | 5,627 | +3.7% |
| Property, plant and equipment, net | 10,565 | 10,755 | +1.8% |
| Acquisition-related intangible assets, net | 15,838 | 18,606 | +17.5% |
| Goodwill | 49,362 | 54,832 | +11.1% |
| Total assets | 110,343 | 113,174 | +2.6% |
The $5,788 million cash drawdown has two causes. Acquisitions took $8,872 million net of cash acquired, and share repurchases took $4,000 million. Clario's $9,098 million price consisted of $5,806 million cash, $3,180 million of target debt settled at closing, a $121 million payable and $108 million of contingent consideration, less $117 million of cash acquired.
