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Danaher Gears Up to Post Q1 Earnings: What Lies Ahead for the Stock?

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Key Takeaways

  • Danaher is set to report Q1 2026 results on April 21, with revenues seen up 4.4% and EPS up 3.2%.
  • DHR's biotech unit gains from bioprocessing demand and mAbs, with sales seen rising 10.1%.
  • Higher input costs and foreign currency headwinds may pressure Danaher's profitability.

Danaher Corporation (DHR - Free Report) is scheduled to release first-quarter 2026 results on April 21, before market open.

The Zacks Consensus Estimate for revenues is pegged at $5.99 billion, which indicates an increase of 4.4% from the year-ago quarter’s figure. The consensus mark for earnings is pinned at $1.94 per share, which has remained steady in the past 30 days. The estimate indicates an increase of 3.2% from the figure reported in the year-ago quarter. The company’s bottom line surpassed the Zacks Consensus Estimate in each of the preceding four quarters, the average beat being 9.2%.

Let’s see how things have shaped up for Danaher this earnings season.

Key Factors and Estimates for Q1

Strength in the bioprocessing business, driven by an increase in demand for consumables from large pharmaceutical customers in Western Europe, is expected to have aided the Biotechnology segment. The segment’s performance is also likely to have benefited from solid demand from pharmaceutical customers for monoclonal antibodies (mAbs). For the first quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $1.78 billion, indicating a 10.1% rise from the year-ago reported number.

Solid momentum in the molecular diagnostics businesses, driven by an increase in demand for non-respiratory disease tests, is expected to drive the Diagnostics segment’s results. Solid growth in the Beckman Colter Diagnostics unit is also likely to have boded well. For the first quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $2.47 billion, indicating a 0.9% rise from the year-ago reported number.

Solid momentum in the flow cytometry and lab automation solutions business is likely to have boosted the performance of the Life Sciences segment in the quarter. For the first quarter, the Zacks Consensus Estimate for the segment’s total sales is pegged at $1.72 billion, indicating a 2.4% rise from the year-ago reported number.

Danaher acquired Abcam plc, a global supplier of protein consumables, in December 2023, which expanded the Life Sciences segment. Abcam's long track record of innovation, outstanding product quality and breadth of antibody portfolio are expected to have helped the company solve some pertinent healthcare challenges.

However, the escalating costs and operating expenses, due to increasing input costs and product mix changes, are likely to have weighed on DHR’s bottom line in the to-be-reported quarter.

The company has considerable exposure to overseas markets. Given its substantial international operations, foreign currency headwinds are likely to have marred its profitability.

Danaher Corporation Price and EPS Surprise

Danaher Corporation Price and EPS Surprise

Danaher Corporation price-eps-surprise | Danaher Corporation Quote

Earnings Whispers

Our proven model does not conclusively predict an earnings beat for DHR this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here, as elaborated below.

Earnings ESP: DHR has an Earnings ESP of -0.77% as the Most Accurate Estimate is pegged at $1.93 per share, which is lower than the Zacks Consensus Estimate of $1.94. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.

Zacks Rank: DHR currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

Here are some companies within the broader Medical sector, which according to our model, have the right combination of elements to beat on earnings in this reporting cycle.

Hims & Hers Health, Inc. (HIMS - Free Report) has an Earnings ESP of +150.94% and a Zacks Rank of 3 at present. The company is slated to release first-quarter 2025 results on May 11.

Hims & Hers Health’s earnings surpassed the Zacks Consensus Estimate in two of the trailing four quarters, while missing the mark in the other two, the average surprise being 69.5%.

Gilead Sciences, Inc. (GILD - Free Report) has an Earnings ESP of +3.47% and a Zacks Rank of 3 at present. The company is scheduled to release first-quarter 2026 results on May 7.

Gilead’s earnings surpassed the Zacks Consensus Estimate in three of the preceding four quarters, while missing the mark in one, the average surprise being 4.8%.

Centene Corporation (CNC - Free Report) has an Earnings ESP of +16.8% and a Zacks Rank of 3 at present. The company is slated to release first-quarter 2026 results on April 28.

Centene’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters, while missing the mark in one, the average surprise being 60.6%.

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