Danaher Corp (NYSE:DHR) on Wednesday reported fourth-quarter 2025 sales of $6.84 billion, up 4.5% year-over-year, beating the consensus of $6.81 billion.
Core revenue increased 2.5% year-over-year, in line with the expected low single digits.
The life science giant reported adjusted earnings of $2.23 per share, beating the consensus of $2.15.
Rainer Blair, President and CEO, on Wednesday stated, “We delivered a strong finish to the year with better-than-expected performance across our portfolio. We were particularly encouraged by continued strength in our bioprocessing business, along with improved momentum in Diagnostics and Life Sciences. Our teams’ disciplined execution also enabled us to exceed our fourth quarter margin, earnings, and cash flow expectations.”
Operating cash flow was $2.1 billion, and adjusted free cash flow was $1.8 billion.
Danaher’s fourth-quarter adjusted operating profit margin of 28.3% exceeded expectations of around 27%.
Biotechnology sales increased to $2.033 billion compared to $1.87 billion a year ago, with core growth of 6%.
Sales in the Life Sciences segment reached $2.09 billion, a slight jump from $2.03 billion a year ago. Core growth was 0.5%.
Diagnostics showed good momentum across as sales increased from $2.64 billion to $2.72 billion, with core growth of 2%.
Cepheid respiratory revenue was around $500 million.
Fiscal 2026 Outlook
“Looking ahead, we expect the gradual improvement in our end markets we saw through 2025 to continue, and we believe the combination of our differentiated portfolio, the power of the Danaher Business System, and the strength of our balance sheet positions Danaher for long-term value creation as we move into 2026 and beyond,” Blair said.
Danaher expects fiscal 2026 adjusted earnings of $8.35-$8.50 per share compared to the consensus of $8.42.
The company expects core revenue growth between 3% and 6%, including:
- Bioprocessing is expected to grow at a high single-digit rate, driven by continued strength in consumables; equipment demand remains flat.
- Discovery and Medical revenue projected to be flat, in line with broader Life Sciences trends.
- Life Sciences Outlook assumes only a modest improvement in end-market conditions.
- Respiratory revenue expected to be approximately $1.8 billion, broadly consistent with 2025 levels.
First Quarter 2026 Guidance
The company expects Q1 core revenue growth in low single digits and sees end-market conditions in the quarter largely consistent with the fourth quarter of 2025.
Respiratory revenue at Cepheid is expected to be consistent with the fourth quarter of 2025 of around $500 million (compared to approximately $625 million a year ago).
Danaher forecasts an adjusted operating margin of approximately 28.5%.
DHR Price Action: Danaher shares were down 2.23% at $230.50 at the time of publication on Wednesday, according to Benzinga Pro data.
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