Danaher Stock Earnings Reports

Danaher reported a strong Q3 2025: revenue $6.1B, 3% core growth, adjusted EPS $1.89 (≈+10% YoY), gross margin 58.2% and adjusted operating margin 27.9% (+40 bps YoY). Free cash flow was $1.4B in Q3 and $3.5B YTD; the company repurchased ~$2B (10M shares) in Q3 and authorized up to 35M additional shares. By segment: Biotechnology core +6.5% (bioprocessing high-single-digit; consumables strong, equipment down vs. prior year and expected to be cautious near-term), Life Sciences down ~1% (instruments stable, consumables pressured by lower demand from a few large customers and soft academic funding), Diagnostics +3.5% (Cepheid respiratory sales exceeded expectations with installed base expansion; Beckman and Leica performed well). Management reiterated full-year 2025 EPS guidance of $7.70–$7.80 and gave initial 2026 assumptions: core revenue growth 3–6% (bioprocessing steady, Life Sciences modest improvement but below historical levels, Diagnostics stronger as China headwinds ease), respiratory at Cepheid ~ $1.7B for 2026, and >100 bps adjusted operating margin expansion in 2026 leading to high-single-digit adjusted EPS growth before capital allocation. They are executing productivity actions ($175M of actions in 2025 generating ~$75M net recurring savings; total ~$250M net benefit expected in 2026) while continuing innovation investments (notable product launches at Cytiva, IDT, Beckman) and maintaining a disciplined M&A bias while opportunistically repurchasing stock. Management sees early signs of reduced policy/tariff overhangs that could support equipment demand, but they have not yet baked significant equipment order recovery into guidance.