This Medical Device Stock Has Compounded at 13% Per Year for a Decade

By James Halley – Apr 7, 2026 at 4:00PM ESTKey PointsThermo Fisher's shares have fallen more than 15% so far this year.The medical instrument company has grown strategically through acquisitions.It has also increased its dividend by 213% over the past decade.

Thermo Fisher Scientific (TMO +2.85%) provides the tools, software, and services to allow medical professionals the ability to analyze patient health. The company's own financial health has been predictably strong. Even after a more than 15% pullback in its stock price this year, the company has still achieved a 13.8% compound annual total return over the past decade. At the beginning of this year, the total return was closer to 16%. That compares favorably to 10.8% for the iShares U.S. Medical Devices ETF over the 10-year period. The company has managed growth through aggressive, yet strategic acquisitions. It buys smaller companies, which then benefit from Thermo Fisher's larger sales team and distribution channels. Its medical products touch every part of healthcare, and it is even getting a boost from the wave of weight-loss therapies as it manufactures the injection pens for Wegovy, the weight-loss drug from Novo Nordisk. Image source: Getty Images. Putting its financials under a microscope The company operates in four segments: life sciences solutions, analytical instruments, specialty diagnostics, and laboratory products and biopharma solutions. In 2025, the company reported revenue of $44.6 billion, up 4% and earnings per share (EPS) of $17.74, an increase of 7%. The growth was led by the life sciences solutions segment, which reported revenue of $10.4 billion, up 8%, thanks to increased bioproduction business. Thermo Fisher just announced it was buying Clario Holdings, a provider of endpoint data solutions for clinical trials, for $8.8 billion. In 2025, the company closed two big acquisitions, buying the purification and filtration business from Solventum for $4 billion and a sterile fill-finish and packaging site in Ridgefield, New Jersey, from Sanofi for an undisclosed sum. ExpandNYSE: TMOThermo Fisher ScientificToday's Change(2.85%) $13.96Current Price$503.46Key Data PointsMarket Cap$187BDay's Range$499.73 - $507.2752wk Range$385.46 - $643.99Volume507Avg Vol2.3MGross Margin40.25%Dividend Yield0.35% Not counting the addition of Clario, the company said, in its fourth-quarter earnings call, that it expects 2026 revenue to be between $46.3 billion and $47.2 billion, representing 5% growth at the midpoint and adjusted EPS to be between $24.22 and $24.80, up 7% at the midpoint. Solid, dependable growth Though Thermo Fisher's dividend has a below-average yield at around 0.36%, it has faithfully increased it over the past nine years and over the past decade, it has grown 213%. This year, the company raised it by 9% to $0.47 per quarterly share. The stock remains a buy because its low-risk business is built on recurring revenue from its consumables -- the lab equipment, chemicals, diagnostic tests, and software -- that biotechs and pharmaceutical companies need to do their work.Read NextApr 6, 2026 •By Lyle DalyThe Largest Healthcare Companies by Market Cap in April 2026Apr 9, 2026 •By Adria CiminoMeet the 2 Formerly Down-and-Out Stocks That Are Outperforming the S&P 500 This Year.

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