Here’s Why Thermo Fisher Scientific (TMO) Traded Down in Q2

Baron Funds, an investment management company, released its “Baron Health Care Fund” second-quarter 2025 investor letter. A copy of the letter can be downloaded here. The fund declined 5.06% (Institutional Shares) in the quarter, against a challenging backdrop for the broader Health Care sector, compared to a 6.19% decline for the Russell 3000 Health Care Index (benchmark) and a 10.99% gain for the Russell 3000 Index (the Index). In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its second-quarter 2025 investor letter, Baron Health Care Fund highlighted stocks such as Thermo Fisher Scientific Inc. (NYSE:TMO). Thermo Fisher Scientific Inc. (NYSE:TMO) offers life sciences solutions, analytical instruments, specialty diagnostics, laboratory products, and biopharma services. The one-month return of Thermo Fisher Scientific Inc. (NYSE:TMO) was 11.17%, and its shares lost 23.24% of their value over the last 52 weeks.  On July 30, 2025, Thermo Fisher Scientific Inc. (NYSE:TMO) stock closed at $477.28 per share, with a market capitalization of $180.17 billion.

Baron Health Care Fund stated the following regarding Thermo Fisher Scientific Inc. (NYSE:TMO) in its second quarter 2025 investor letter:

“Thermo Fisher Scientific Inc. (NYSE:TMO) is a life sciences company that offers instruments and consumables for research, tools for bioproduction, specialty diagnostics, and contract research and manufacturing services. Shares detracted from performance during the quarter. The life sciences segment remains under pressure due to continued grant cancellations by the National Institutes of Health (NIH) and persistent funding constraints at universities. We retain conviction as Thermo Fisher is dominant across multiple end markets and its scale gives it resilience. Once the macroeconomic environment stabilizes, we expect the company to resume organic growth in the high single digit range and deliver double-digit earnings-per-share growth.

We reduced Thermo Fisher Scientific Inc. because several headwinds are impacting the business, including NIH funding cuts, potential tariffs on the company and its biopharmaceutical customers, a biotechnology funding slowdown, and slower growth in China.”

Thermo Fisher Scientific’s (TMO) Dividend: Steady Payouts in a Growing Market

A workstation in a research lab stocked with laboratory products and services.

Thermo Fisher Scientific Inc. (NYSE:TMO) is in 26th position on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 101 hedge fund portfolios held Thermo Fisher Scientific Inc. (NYSE:TMO) at the end of the first quarter, which was 100 in the previous quarter. Thermo Fisher Scientific Inc.’s (NYSE:TMO) revenue in the second quarter grew 3% to $10.85 billion. While we acknowledge the risk and potential of Thermo Fisher Scientific Inc. (NYSE:TMO) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than THERMO FISHER SCIENTIFIC INC. (NYSE:TMO) and that has 10,000% upside potential, check out our report about this cheapest AI stock.

In another article, we covered Thermo Fisher Scientific Inc. (NYSE:TMO) and shared the list of top low volatility healthcare stocks to buy. In addition, please check out our hedge fund investor letters Q2 2025 page for more investor letters from hedge funds and other leading investors.

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Disclosure: None. This article is originally published at Insider Monkey.