Here's Why Investors Should Consider Retaining Danaher Stock Now

Danaher Corporation DHR has been benefiting from strength in its bioprocessing business, driven by an increase in demand for consumables from large pharmaceutical customers in North America, Europe and Southeast Asia. In the first quarter of 2025, orders in the bioprocessing business increased for the seventh consecutive quarter. For 2025, Danaher anticipates core revenues from the bioprocessing business to increase in high-single-digits on a year-over-year basis.

Also, solid momentum in the discovery and medical business, led by strength in the high-growth markets, has been supporting the Biotechnology segment. Core revenues from the segment increased 7% year over year in the first quarter. For 2025, Danaher anticipates core revenues from the segment to increase in high single digits on a year-over-year basis.

Danaher believes in adding complementary businesses to its portfolio via acquisitions. In December 2023, DHR acquired Abcam plc, a global supplier of protein consumables, for approximately $5.7 billion. This acquisition expanded the company’s Life Sciences segment. Abcam's long track record of innovation, outstanding product quality and breadth of antibody portfolio boosted Danaher’s healthcare product portfolio. Acquisitions boosted the company’s total revenues by 0.5% in the first quarter.

DHR remains committed to rewarding shareholders through dividend payouts and share buybacks. For instance, it paid out dividends worth $194 million and $768 million in first-quarter 2025 and 2024, respectively. Also, in February 2025, the company hiked its dividend by 18.5% to 32 cents per share.

Despite the positives, lower demand across academic and government end-markets has been weighing on Danaher’s protein consumables, flow cytometry and lab automation solutions businesses under the Life Sciences segment. The company has been witnessing a sales decline in the filtration business due to soft demand in the energy-related end market. Core revenues from the Life Sciences segment declined 4% on a year-over-year basis in the first quarter.

DHR’s Price Performance

In the past three months, this Zacks Rank #3 (Hold) company has lost 11.5% compared with the industry’s 8.1% decline.

Also, softness in the molecular diagnostics business due to sluggish demand for respiratory disease tests has been weighing on the performance of the Diagnostics segment. The segment’s core revenues declined 1.5% on a year-over-year basis in the first quarter.

High debt levels have also been a concern for Danaher. It exited first-quarter 2025 with a long-term debt of $16 billion, up 3% sequentially. Its current liabilities were $6.6 billion, higher than the cash equivalents of $2 billion. Also, interest expenses in the first quarter remained high at $72 million.

Key Picks

Some better-ranked stocks from the same space are discussed below:

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