ClearBridge cites Thermo Fisher Q3 guidance as growth driver

ClearBridge Investments identified Thermo Fisher Scientific Inc. (NYSE: TMO) as a notable contributor to its Large Cap Growth Strategy during the third quarter of 2026. The global equity manager highlighted the life sciences company in its recent investor commentary, noting that Thermo Fisher’s performance helped the strategy outperform its Russell 1000 Growth Index benchmark.

In its Q3 2026 letter, ClearBridge attributed the positive contribution to Thermo Fisher’s continued benefit from a second-quarter earnings beat. The firm noted that resilient biopharma consumables and pharmaceutical product development end markets, along with healthy third-quarter guidance, support the prospect of an accelerating business into 2027. The fund emphasized that the breadth of recovery across these end markets is particularly important following a more difficult period for life sciences spending.

The strategy’s outperformance came amid a shift in leadership among large growth stocks. ClearBridge reported that momentum moved away from high-momentum semiconductor names toward companies with clearer AI monetization paths. Despite volatility and a selloff in higher-beta AI stocks, the S&P 500 Index and NASDAQ Composite posted gains in the quarter. The Russell 1000 Growth Index, which served as the benchmark for the strategy, recorded a modest gain of 0.9%, while the Russell 1000 Value Index rose by 2.6%.

To navigate these market shifts, the Large Cap Growth Strategy expanded its holdings to include specific semiconductor and AI infrastructure names alongside other diversified growth options, while keeping a balanced approach to momentum. The fund aligned its portfolio with a rebalance of the Russell 1000 Growth Index that increased semiconductor weights and lowered software exposure. ClearBridge stated that its focus on quality and valuation proved advantageous during this period of market transition.

As of October 5, 2026, Thermo Fisher Scientific shares closed at $676.76 per share. The stock returned 10.48% over the past month and is up 23.56% over the past year. The company has a market capitalization of $250.23 billion, and its shares have traded within a 52-week range of $435.27 to $694.33.

Thermo Fisher Scientific ranks 34 on a list of 40 most popular stocks among hedge funds heading into 2026. Data indicates that 118 hedge fund portfolios held the stock at the end of the second quarter, an increase from 115 in the previous quarter. While acknowledging Thermo Fisher’s potential, ClearBridge noted that certain AI stocks offer greater upside potential and carry less downside risk.