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Danaher Q4 Earnings Beat Estimates, Life Sciences Sales Up Y/Y
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Key Takeaways
DHR beat Q4 estimates as adjusted EPS hit $2.23 and revenues rose 4.5% year over year.
DHR saw broad segment growth, led by Biotechnology revenues up 9% and Diagnostics profit up 14.3%.
DHR expects low single-digit core sales growth in Q1 2026 and adjusted EPS of $8.35-$8.50.
Danaher Corporation’s (DHR - Free Report) fourth-quarter 2025 adjusted earnings of $2.23 per share beat the Zacks Consensus Estimate of $2.22. The bottom line increased 4% year over year.
Danaher reported net sales of $6.84 billion, which beat the consensus estimate of $6.79 billion. The metric increased 4.5% year over year, driven by the impressive performance of all the segments.
DHR’s core sales increased 2.5% year over year in the quarter. Foreign-currency translations had a positive impact of 2.5%, while acquisitions/divestitures had an adverse impact of 0.5%.
In 2025, DHR reported net revenues of $24.6 billion, which increased 3% year over year. The company’s adjusted earnings were $7.80 per share, up 4.5% year over year.
DHR’s Segmental Discussion
Revenues from the Life Sciences segment totaled $2.09 billion, up 2.5% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.06 billion. Core sales increased 0.5% year over year. Foreign-currency translations had a positive impact of 2%. Operating profit was $336 million compared with $376 million reported in the year-ago quarter.
Revenues from the Diagnostics segment totaled $2.72 billion, up 3% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.71 billion. Core sales increased 2% year over year, while foreign currency had a positive impact of 2% on sales. However, acquisitions/divestitures impacted sales by 1%. Operating profit was $713 million, up 14.3% on a year-over-year basis.
Revenues from the Biotechnology segment totaled $2.03 billion, up 9% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.02 billion. Core sales increased 6% year over year, while foreign-currency translations had a positive impact of 3%. Operating profit was $540 million, up 6.3% year over year.
Danaher Corporation Price, Consensus and EPS Surprise
In the fourth quarter, Danaher’s cost of sales increased 8.5% year over year to $2.87 billion. Gross profit of $3.97 billion increased 2% year over year. The gross margin was 59.1% compared with 59.5% in the year-ago quarter.
Selling, general and administrative expenses of $2.03 billion increased 0.1% on a year-over-year basis. Research and development expenses were $438 million, down 0.9% year over year.
Danaher’s operating profit increased 5.4% year over year to $1.50 billion. Operating margin declined to 19.1% from 20.4% in the year-ago quarter.
DHR’s Balance Sheet and Cash Flow
Exiting the fourth quarter, DHR had cash and equivalents of $4.62 billion compared with $2.08 billion at 2024-end. Long-term debt was $18.4 billion at the end of the quarter compared with $15.5 billion at the end of December 2024.
Danaher generated net cash of $6.42 billion from operating activities in 2025 compared with $6.69 billion in the previous year’s comparable period. Capital expenditures totaled $1.16 billion in the same period, down 17% year over year. Adjusted free cash flow decreased 0.3% year over year to $5.3 billion in 2025.
In the same period, DHR paid out dividends of $878 million, up 14.3% on a year-over-year basis.
Danaher’s Outlook
For the first quarter of 2026, 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 3-6% on a year-over-year basis in 2026. The company expects adjusted earnings to be $8.35-$8.50 per share.
DHR’s Zacks Rank
The company currently carries a Zacks Rank #2 (Buy).
Graco Inc. (GGG - Free Report) posted quarterly earnings of 77 cents per share in the fourth quarter of 2025, in line with the Zacks Consensus Estimate. This compares with earnings of $0.64 per share a year ago.
Graco posted revenues of $593.2 million for the quarter, surpassing the Zacks Consensus Estimate by 1.39%. This compares with year-ago revenues of $548.67 million.
Baker Hughes Company (BKR - Free Report) reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.
Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million.
3M Company (MMM - Free Report) delivered adjusted earnings of $1.83 per share in the fourth quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.
MMM’s adjusted revenues of $6.00 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.
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Danaher Q4 Earnings Beat Estimates, Life Sciences Sales Up Y/Y
Key Takeaways
Danaher Corporation’s (DHR - Free Report) fourth-quarter 2025 adjusted earnings of $2.23 per share beat the Zacks Consensus Estimate of $2.22. The bottom line increased 4% year over year.
Danaher reported net sales of $6.84 billion, which beat the consensus estimate of $6.79 billion. The metric increased 4.5% year over year, driven by the impressive performance of all the segments.
DHR’s core sales increased 2.5% year over year in the quarter. Foreign-currency translations had a positive impact of 2.5%, while acquisitions/divestitures had an adverse impact of 0.5%.
In 2025, DHR reported net revenues of $24.6 billion, which increased 3% year over year. The company’s adjusted earnings were $7.80 per share, up 4.5% year over year.
DHR’s Segmental Discussion
Revenues from the Life Sciences segment totaled $2.09 billion, up 2.5% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.06 billion. Core sales increased 0.5% year over year. Foreign-currency translations had a positive impact of 2%. Operating profit was $336 million compared with $376 million reported in the year-ago quarter.
Revenues from the Diagnostics segment totaled $2.72 billion, up 3% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.71 billion. Core sales increased 2% year over year, while foreign currency had a positive impact of 2% on sales. However, acquisitions/divestitures impacted sales by 1%. Operating profit was $713 million, up 14.3% on a year-over-year basis.
Revenues from the Biotechnology segment totaled $2.03 billion, up 9% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.02 billion. Core sales increased 6% year over year, while foreign-currency translations had a positive impact of 3%. Operating profit was $540 million, up 6.3% 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 fourth quarter, Danaher’s cost of sales increased 8.5% year over year to $2.87 billion. Gross profit of $3.97 billion increased 2% year over year. The gross margin was 59.1% compared with 59.5% in the year-ago quarter.
Selling, general and administrative expenses of $2.03 billion increased 0.1% on a year-over-year basis. Research and development expenses were $438 million, down 0.9% year over year.
Danaher’s operating profit increased 5.4% year over year to $1.50 billion. Operating margin declined to 19.1% from 20.4% in the year-ago quarter.
DHR’s Balance Sheet and Cash Flow
Exiting the fourth quarter, DHR had cash and equivalents of $4.62 billion compared with $2.08 billion at 2024-end. Long-term debt was $18.4 billion at the end of the quarter compared with $15.5 billion at the end of December 2024.
Danaher generated net cash of $6.42 billion from operating activities in 2025 compared with $6.69 billion in the previous year’s comparable period. Capital expenditures totaled $1.16 billion in the same period, down 17% year over year. Adjusted free cash flow decreased 0.3% year over year to $5.3 billion in 2025.
In the same period, DHR paid out dividends of $878 million, up 14.3% on a year-over-year basis.
Danaher’s Outlook
For the first quarter of 2026, 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 3-6% on a year-over-year basis in 2026. The company expects adjusted earnings to be $8.35-$8.50 per share.
DHR’s Zacks Rank
The company currently carries a Zacks Rank #2 (Buy).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performance of Other Companies
Graco Inc. (GGG - Free Report) posted quarterly earnings of 77 cents per share in the fourth quarter of 2025, in line with the Zacks Consensus Estimate. This compares with earnings of $0.64 per share a year ago.
Graco posted revenues of $593.2 million for the quarter, surpassing the Zacks Consensus Estimate by 1.39%. This compares with year-ago revenues of $548.67 million.
Baker Hughes Company (BKR - Free Report) reported fourth-quarter 2025 adjusted earnings of 78 cents per share, which beat the Zacks Consensus Estimate of 67 cents. The bottom line also increased from the year-ago level of 70 cents.
Total quarterly revenues of $7,386 million beat the Zacks Consensus Estimate of $7,056 million. The top line also increased from the year-ago quarter’s $7,364 million.
3M Company (MMM - Free Report) delivered adjusted earnings of $1.83 per share in the fourth quarter of 2025, which surpassed the Zacks Consensus Estimate of $1.82. The company reported earnings of $1.68 per share in the year-ago quarter.
MMM’s adjusted revenues of $6.00 billion missed the consensus estimate of $6.08 billion. On an adjusted basis, organic revenues increased 2.2% year over year.