Danaher (DHR) is Gaining from Improvement in Its Bioprocessing Business

Madison Investments, an investment advisor, released its fourth-quarter 2025 investor letter for the “Madison Large Cap Fund”. A copy of the letter can be downloaded here. In the fourth quarter, the S&P 500 returned 2.65%, resulting in a full-year return of 17.9% for 2025. Over the last three years, the Index has achieved annual growth of over 21%. Following the recent trends, market leadership was defined by High Beta and Momentum factors, with narrow participation. However, in the fourth quarter, the market saw slight improvements in previously lagging sectors like Healthcare, Financials, and Consumer Discretionary. Still, mega-cap technology companies remained the primary drivers of the S&P 500's overall return, indicating high stock concentration. Against this backdrop, the Madison Large Cap Fund (Class I) appreciated 3.43% compared to the S&P 500 Index’s 2.65% return. In addition, please check the Fund’s top five holdings to know its best picks in 2025.

In its fourth-quarter 2025 investor letter, Madison Large Cap Fund highlighted Danaher Corporation (NYSE:DHR) as a key contributor to portfolio performance. Danaher Corporation (NYSE:DHR) is a healthcare and life science tools company that operates through Biotechnology, Life Sciences, and Diagnostics segments. On February 23, 2026, Danaher Corporation (NYSE:DHR) stock closed at $210.92 per share. One-month return of Danaher Corporation (NYSE:DHR) was -10.53%, and its shares gained 0.24% over the past twelve months. Danaher Corporation (NYSE:DHR) has a market capitalization of $149.099 billion.

Madison Large Cap Fund stated the following regarding Danaher Corporation (NYSE:DHR) in its fourth quarter 2025 investor letter:

"The top five contributors for the quarter were Alphabet, Parker-Hannifin, Keysight Technologies, Danaher Corporation (NYSE:DHR), and PACCAR. Organic growth at Danaher, a diversified life science tools and diagnostics company, continues to show improvement with its Bioprocessing business returning to high-single digit growth."

Danaher Corporation (NYSE:DHR) is on 27th position on our list of 30 Most Popular Stocks Among Hedge Funds. According to our database, 124 hedge fund portfolios held Danaher Corporation (NYSE:DHR) at the end of the fourth quarter, up from 117 in the previous quarter. In 2025, Danaher Corporation (NYSE:DHR) reported sales of $24.6 billion, and core revenue growth of 2%. While we acknowledge the potential of Danaher Corporation (NYSE:DHR) as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

In another article, we covered Danaher Corporation (NYSE:DHR) and shared Meridian Hedged Equity Fund's views on the company. In addition, please check out our hedge fund investor letters Q4 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.