Thermo Fisher Scientific Inc

Thermo Fisher has demonstrated strong performance, with a notable increase of 14.6% in the last month. This growth reflects the company's robust fundamentals and its ability to navigate market challenges effectively. The manager highlights Thermo Fisher as a key holding, indicating confidence in its ongoing success and resilience in the healthcare sector. The positive stock selection effect from Thermo Fisher has contributed significantly to the fund's overall performance, showcasing its value as a strategic investment.

We invest in high-quality businesses with significant moats and pricing power – built to compound value for the long term. Thermo Fisher Scientific, which we first invested in 2015, is a key holding in our Capital portfolio, valued at £41.7m. Despite a modest return of -0.8% in the past year, we remain confident in its long-term prospects and the strength of its business model. The company exemplifies our focus on durable competitive advantages and the ability to generate predictable cash flows, which are essential for sustained value creation.

Thermo Fisher Scientific’s earnings were largely as expected, but the company offered a muted outlook for the coming year. It has been a difficult stretch for the life sciences industry, and we believe Thermo Fisher is taking a more conservative approach to its guidance, preferring to leave room for potential positive surprises while hopefully avoiding further disappointments.

Thermo Fisher Scientific gave back their fourth quarter gains despite healthy business trends. While we expected the stocks to be more defensive in a choppy market, our core life science and bioprocessing thesis remained intact. This indicates that while the company has solid fundamentals, the recent performance has not met expectations, leading us to reassess our position.

We remain positive on Thermo Fisher’s long-term growth outlook, however. The company is dominant across multiple end markets, and its scale provides meaningful resilience. Once the macroeconomic environment normalizes, we expect Thermo Fisher to achieve a high-single-digit organic growth profile along with double-digit earnings-per-share growth.

We have also taken refuge in 'life sciences' companies like Danaher and Thermo Fisher that are at the forefront of enabling medical and biotechnology research and development. We believe that people will continue to value cures for diseases and other varieties of scientific research, and that these companies will profit handsomely over the next 5-10 years.

Thermo Fisher Scientific saw their stock price move 9% higher after releasing positive earnings on July 23. The company reported Q2 2025 revenue of $10.85B versus the consensus analyst estimate of $10.68B. Earnings per share also came in higher than estimates at $5.36/share versus $5.22/share. Organic growth of 2% during the quarter and maintaining its long term guidance was enough to overcome very poor sentiment and get the stock moving. This performance indicates strong underlying fundamentals and supports our positive outlook on the company.

Our largest holding in the healthcare sector is Thermo Fisher Scientific, a leader in spectrometers and analytical instruments used across many industries. Despite the political landscape of cuts to research and policies of the Health and Human Services clouding the future of healthcare stocks, we believe Thermo Fisher's strong market position provides a compelling investment opportunity. The company is well-positioned to benefit from ongoing demand for its products, which are critical in various applications.

Thermo Fisher Scientific, Inc. posted strong returns, contributing positively to the Fund's performance. The health care sector, including Thermo Fisher, was a bright spot in the quarter, indicating robust demand and operational strength. The company is well-positioned within its industry, benefiting from its competitive advantages and growth potential. We believe that Thermo Fisher's capabilities in life sciences tools and services will continue to drive value for the portfolio.

Thermo Fisher Scientific is experiencing strong momentum from its pharma and biotech customers, which is a positive indicator for its growth potential. Despite the broader regulatory pressures facing health care stocks, Thermo Fisher's performance stands out, suggesting resilience and an ability to capitalize on market opportunities. The company is well-positioned to benefit from the ongoing demand in the life sciences sector, which is critical for its future growth.