Danaher Q4 Earnings Beat Estimates, Life Sciences Sales Up Y/Y

Danaher Corporation’s DHR fourth-quarter 2025 adjusted earnings of $2.23 per share beat the Zacks Consensus Estimate of $2.22. The bottom line increased 4% year over year.

Danaher reported net sales of $6.84 billion, which beat the consensus estimate of $6.79 billion. The metric increased 4.5% year over year, driven by the impressive performance of all the segments.

DHR’s core sales increased 2.5% year over year in the quarter. Foreign-currency translations had a positive impact of 2.5%, while acquisitions/divestitures had an adverse impact of 0.5%.

In 2025, DHR reported net revenues of $24.6 billion, which increased 3% year over year. The company’s adjusted earnings were $7.80 per share, up 4.5% year over year.

DHR’s Segmental Discussion

Revenues from the Life Sciences segment totaled $2.09 billion, up 2.5% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.06 billion. Core sales increased 0.5% year over year. Foreign-currency translations had a positive impact of 2%. Operating profit was $336 million compared with $376 million reported in the year-ago quarter. 

Revenues from the Diagnostics segment totaled $2.72 billion, up 3% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.71 billion. Core sales increased 2% year over year, while foreign currency had a positive impact of 2% on sales. However, acquisitions/divestitures impacted sales by 1%. Operating profit was $713 million, up 14.3% on a year-over-year basis.

Revenues from the Biotechnology segment totaled $2.03 billion, up 9% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.02 billion. Core sales increased 6% year over year, while foreign-currency translations had a positive impact of 3%. Operating profit was $540 million, up 6.3% year over year.

Danaher’s Margin Profile

In the fourth quarter, Danaher’s cost of sales increased 8.5% year over year to $2.87 billion. Gross profit of $3.97 billion increased 2% year over year. The gross margin was 59.1% compared with 59.5% in the year-ago quarter.

Selling, general and administrative expenses of $2.03 billion increased 0.1% on a year-over-year basis. Research and development expenses were $438 million, down 0.9% year over year.

Danaher’s operating profit increased 5.4% year over year to $1.50 billion. Operating margin declined to 19.1% from 20.4% in the year-ago quarter.

DHR’s Balance Sheet and Cash Flow

Exiting the fourth quarter, DHR had cash and equivalents of $4.62 billion compared with $2.08 billion at 2024-end. Long-term debt was $18.4 billion at the end of the quarter compared with $15.5 billion at the end of December 2024.

Danaher generated net cash of $6.42 billion from operating activities in 2025 compared with $6.69 billion in the previous year’s comparable period. Capital expenditures totaled $1.16 billion in the same period, down 17% year over year. Adjusted free cash flow decreased 0.3% year over year to $5.3 billion in 2025.

In the same period, DHR paid out dividends of $878 million, up 14.3% on a year-over-year basis.

Danaher’s Outlook

For the first quarter of 2026, Danaher expects adjusted core sales from continuing operations to increase in the low single digits on a year-over-year basis.

The metric is anticipated to increase 3-6% on a year-over-year basis in 2026. The company expects adjusted earnings to be $8.35-$8.50 per share.

DHR’s Zacks Rank

The company currently carries a Zacks Rank #2 (Buy). 

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Performance of Other Companies

Graco Inc. GGG posted quarterly earnings of 77 cents per share in the fourth quarter of 2025, in line with the Zacks Consensus Estimate. This compares with earnings of $0.64 per share a year ago.

Graco posted revenues of $593.2 million for the quarter, surpassing the Zacks Consensus Estimate by 1.39%. This compares with year-ago revenues of $548.67 million.

Baker Hughes Company BKR reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.

Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million.

3M Company MMM delivered adjusted earnings of $1.83 per share in the fourth quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.

MMM’s adjusted revenues of $6.00 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.

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