We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Danaher Q2 Earnings Beat Estimates, Life Sciences Sales Up Y/Y
Read MoreHide Full Article
Key Takeaways
DHR posted Q2 adjusted EPS of $1.80 and sales of $5.94B, topping consensus and rising year over year.
Life Sciences lagged in core sales and swung to a loss, while Biotechnology led with 6% core sales growth.
DHR raised its 2025 adjusted EPS forecast to $7.70-$7.80, up from the prior $7.60-$7.75 range.
Danaher Corporation’s (DHR - Free Report) second-quarter 2025 adjusted earnings of $1.80 per share beat the Zacks Consensus Estimate of $1.64. The bottom line increased 4.7% year over year.
Danaher reported net sales of $5.94 billion, which beat the consensus estimate of $5.84 billion. The metric increased 3.5% year over year, driven by impressive performance of all the segments.
DHR’s core sales increased 1.5% year over year in the quarter. Foreign-currency translations had a positive impact of 2%.
DHR’s Segmental Discussion
Revenues from the Life Sciences segment totaled $1.78 billion, up 0.5% year over year. We expected the segment’s revenues to be $1.71 billion. However, core sales decreased 2.5% year over year. Acquisitions/divestitures had a positive impact of 1.5% on segmental sales while foreign-currency translations also had a positive impact of 1.5%. Operating loss was $239 million against operating profit of $233 million in the year-ago quarter.
Revenues from the Diagnostics segment totaled $2.31 billion, up 2% year over year. Our estimate for revenues was $2.29 billion. Core sales increased 2% year over year, while foreign currency had a positive impact of 0.5% on sales. However, acquisitions/divestitures impacted sales by 0.5%. Operating profit was $554 million, down 0.4% on a year-over-year basis.
Revenues from the Biotechnology segment totaled $1.85 billion, up 8% year over year. Our estimate was $1.83 billion. Core sales increased 6% year over year while foreign-currency translations had a positive impact of 2%. Operating profit was $531 million, up 14.9% year over year.
Danaher Corporation Price, Consensus and EPS Surprise
In the second quarter, Danaher’s cost of sales increased 4.2% year over year to $2.41 billion. Gross profit of $3.52 billion increased 2.8% year over year. The gross margin was 59.3% compared with 59.7% in the year-ago quarter.
Selling, general and administrative expenses of $2.36 billion recorded an increase of 26.3% on a year-over-year basis. Research and development expenses were $403 million, up 3.1% year over year.
Danaher’s operating profit decreased 34.9% year over year to $760 million. Operating margin contracted to 12.8% from 20.3% in the year-ago quarter.
DHR’s Balance Sheet and Cash Flow
Exiting the second quarter, DHR had cash and equivalents of $2.96 billion compared with $2.1 billion at 2024-end. Long-term debt was $16.9 billion at the end of the quarter compared with $15.5 billion at the end of December 2024.
Danaher generated net cash of $2.64 billion from operating activities in the first six months of 2025 compared with $3.16 billion in the previous year’s comparable period. Capital expenditures totaled $493 million in the same period, down 14.7% year over year. Adjusted free cash flow decreased 16.5% year over year to $2.15 billion in the first six months of 2025.
In the same period, DHR paid out dividends of $423 million, up 12.2% on a year-over-year basis.
Danaher’s Outlook
For the third quarter, 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 approximately 3% on a year-over-year basis in 2025. The company expects adjusted earnings to be $7.70-$7.80 per share compared with $7.60-$7.75 expected earlier.
DHR’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
Quest Diagnostics Inc.’s (DGX - Free Report) second-quarter 2025 adjusted earnings per share (EPS) of $2.62 beat the Zacks Consensus Estimate by 1.9%. The metric also exceeded the year-ago adjusted figure by 11.5%.
Revenues reported in the second quarter rose 15.2% year over year to $2.76 billion. The metric surpassed the Zacks Consensus Estimate by 1.5%.
Tenet Healthcare Corporation (THC - Free Report) reported earnings of $4.02 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $2.84. This compares with earnings of $2.31 per share a year ago.
The company posted revenues of $5.27 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.43%. This compares with year-ago revenues of $5.1 billion.
Medpace Holdings, Inc. (MEDP - Free Report) came out with quarterly earnings of $3.1 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $3 per share. This compares with earnings of $2.75 per share a year ago.
Medpace posted revenues of $603.31 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 11.48%. This compares with year-ago revenues of $528.1 million.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Danaher Q2 Earnings Beat Estimates, Life Sciences Sales Up Y/Y
Key Takeaways
Danaher Corporation’s (DHR - Free Report) second-quarter 2025 adjusted earnings of $1.80 per share beat the Zacks Consensus Estimate of $1.64. The bottom line increased 4.7% year over year.
Danaher reported net sales of $5.94 billion, which beat the consensus estimate of $5.84 billion. The metric increased 3.5% year over year, driven by impressive performance of all the segments.
DHR’s core sales increased 1.5% year over year in the quarter. Foreign-currency translations had a positive impact of 2%.
DHR’s Segmental Discussion
Revenues from the Life Sciences segment totaled $1.78 billion, up 0.5% year over year. We expected the segment’s revenues to be $1.71 billion. However, core sales decreased 2.5% year over year. Acquisitions/divestitures had a positive impact of 1.5% on segmental sales while foreign-currency translations also had a positive impact of 1.5%. Operating loss was $239 million against operating profit of $233 million in the year-ago quarter.
Revenues from the Diagnostics segment totaled $2.31 billion, up 2% year over year. Our estimate for revenues was $2.29 billion. Core sales increased 2% year over year, while foreign currency had a positive impact of 0.5% on sales. However, acquisitions/divestitures impacted sales by 0.5%. Operating profit was $554 million, down 0.4% on a year-over-year basis.
Revenues from the Biotechnology segment totaled $1.85 billion, up 8% year over year. Our estimate was $1.83 billion. Core sales increased 6% year over year while foreign-currency translations had a positive impact of 2%. Operating profit was $531 million, up 14.9% year over year.
Danaher Corporation Price, Consensus and EPS Surprise
Danaher Corporation price-consensus-eps-surprise-chart | Danaher Corporation Quote
Danaher’s Margin Profile
In the second quarter, Danaher’s cost of sales increased 4.2% year over year to $2.41 billion. Gross profit of $3.52 billion increased 2.8% year over year. The gross margin was 59.3% compared with 59.7% in the year-ago quarter.
Selling, general and administrative expenses of $2.36 billion recorded an increase of 26.3% on a year-over-year basis. Research and development expenses were $403 million, up 3.1% year over year.
Danaher’s operating profit decreased 34.9% year over year to $760 million. Operating margin contracted to 12.8% from 20.3% in the year-ago quarter.
DHR’s Balance Sheet and Cash Flow
Exiting the second quarter, DHR had cash and equivalents of $2.96 billion compared with $2.1 billion at 2024-end. Long-term debt was $16.9 billion at the end of the quarter compared with $15.5 billion at the end of December 2024.
Danaher generated net cash of $2.64 billion from operating activities in the first six months of 2025 compared with $3.16 billion in the previous year’s comparable period. Capital expenditures totaled $493 million in the same period, down 14.7% year over year. Adjusted free cash flow decreased 16.5% year over year to $2.15 billion in the first six months of 2025.
In the same period, DHR paid out dividends of $423 million, up 12.2% on a year-over-year basis.
Danaher’s Outlook
For the third quarter, 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 approximately 3% on a year-over-year basis in 2025. The company expects adjusted earnings to be $7.70-$7.80 per share compared with $7.60-$7.75 expected earlier.
DHR’s Zacks Rank
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Quest Diagnostics Inc.’s (DGX - Free Report) second-quarter 2025 adjusted earnings per share (EPS) of $2.62 beat the Zacks Consensus Estimate by 1.9%. The metric also exceeded the year-ago adjusted figure by 11.5%.
Revenues reported in the second quarter rose 15.2% year over year to $2.76 billion. The metric surpassed the Zacks Consensus Estimate by 1.5%.
Tenet Healthcare Corporation (THC - Free Report) reported earnings of $4.02 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $2.84. This compares with earnings of $2.31 per share a year ago.
The company posted revenues of $5.27 billion in the quarter, surpassing the Zacks Consensus Estimate by 2.43%. This compares with year-ago revenues of $5.1 billion.
Medpace Holdings, Inc. (MEDP - Free Report) came out with quarterly earnings of $3.1 per share in the second quarter of 2025, beating the Zacks Consensus Estimate of $3 per share. This compares with earnings of $2.75 per share a year ago.
Medpace posted revenues of $603.31 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 11.48%. This compares with year-ago revenues of $528.1 million.