Danaher Stock Earnings Reports

Danaher delivered a stronger-than-expected Q3 2025: revenue $6.1B, 3% core growth, adjusted EPS $1.89 (+~10% YoY), adjusted OP margin 27.9% (+40 bps), and $1.4B free cash flow (YTD FCF conversion 146%). Management highlighted continued strength in bioprocessing (high-single-digit growth in consumables driven by monoclonal antibody production), better-than-expected respiratory demand at Cepheid, durable momentum at Beckman and Leica ex-China, and product launches across Cytiva, IDT and Beckman. China remains a headwind—diagnostics saw policy-driven volume & reimbursement pressure and a mid-single-digit revenue decline in China—but management says they are largely localized and are taking a conservative planning view for China-related impacts. They repurchased ~10M shares (~$2B deployed YTD) and authorized up to 35M additional shares. Management is executing $175M of 2025 cost actions (producing net ~$75M savings in 2025 and an incremental ~$250M net savings expected in 2026) and is investing incremental $150M in Q4 to set up 2026. Guidance: full-year 2025 adjusted EPS maintained at $7.70–$7.80; Q4 2025 core revenue expected to grow low-single-digits and adj. OP margin ~27% (includes planned productivity investments). Initial 2026 view: core revenue growth of 3%–6% (assumes modest recovery across end markets), >100 bps of adjusted OP margin expansion (driven by operating leverage and 2025 productivity initiatives) and high-single-digit adjusted EPS growth (before any capital allocation benefit). Key investor considerations: strong cash generation and capital return via buybacks; durable bioprocessing secular tailwinds but near-term equipment spending is cautious; China policy/VBP remains a notable risk but management expects to lap some headwinds and is conservatively planning for modest China impacts in 2026; cost actions should meaningfully lift 2026 margins.