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.
Strength in Danaher's Biotechnology Unit Seems Firm: More Upside Ahead?
Read MoreHide Full Article
Key Takeaways
DHR's Biotechnology segment posted 7% core revenue growth in Q1 2026, led by bioprocessing.
Danaher saw bioprocessing equipment orders rise more than 30% amid strong pharma demand for mAbs.
DHR expects Biotechnology core revenues to rise mid-single digits in Q2 2026 despite headwinds.
Danaher Corporation (DHR - Free Report) continues to benefit from strength in its Biotechnology segment. In the first quarter of 2026, the segment’s core revenues increased 7% on a year-over-year basis, supported by sustained momentum in the bioprocessing business. Geographically, the increase in core sales was driven by higher sales in Western Europe and China.
An increase in demand for consumables from large pharmaceutical customers has been aiding the performance of the Biotechnology segment. Also, solid demand from pharmaceutical customers for monoclonal antibodies (mAbs) has been buoying the bioprocessing business. In the first quarter of 2026, orders for bioprocessing equipment increased more than 30%. For 2026, Danaher anticipates core revenues from the bioprocessing business to increase in high single-digits on a year-over-year basis. Also, strength in the medical filtration and research consumables business bodes well for the Biotechnology segment.
However, lower demand for medical filtration and research consumables in the discovery and medical business is concerning for the Biotechnology segment. Declining demand for equipment is also acting as a headwind for it.
Despite these challenges, for the second quarter of 2026, Danaher anticipates core revenues from the Biotechnology segment to increase in mid-single digits on a year-over-year basis. Consistent demand for products within the bioprocessing business is expected to support stable segment performance in the coming quarters.
Segment Snapshot of DHR's Peers
Among its major peers, CVS Health Corporation’s (CVS - Free Report) Health Services segment reported net sales of $48.24 billion in the first quarter of 2026, up 11% year over year. CVS Health generated 48% of its total sales from this segment in the quarter. Favorable pharmacy drug mix and brand inflation aided the segment’s results in the second quarter.
Labcorp Holdings Inc.’s (LH - Free Report) Biopharma Laboratory Services segment generated net sales of $780.6 million in the first quarter of 2026, up 8.2% year over year. This was driven by Labcorp’s strong drug development capabilities and scientific expertise. Labcorp derived 22.1% of its total revenues from this segment during the quarter.
DHR's Price Performance, Valuation and Estimates
Shares of Danaher have declined 26.5% in the past six months compared with the industry’s decrease of 10.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, DHR is trading at a forward price-to-earnings ratio of 19.22X, above the industry’s average of 14.51X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DHR’s 2026 earnings has increased over the past 30 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
View the Zacks #1 Rank List
Image: Bigstock
Strength in Danaher's Biotechnology Unit Seems Firm: More Upside Ahead?
Key Takeaways
Danaher Corporation (DHR - Free Report) continues to benefit from strength in its Biotechnology segment. In the first quarter of 2026, the segment’s core revenues increased 7% on a year-over-year basis, supported by sustained momentum in the bioprocessing business. Geographically, the increase in core sales was driven by higher sales in Western Europe and China.
An increase in demand for consumables from large pharmaceutical customers has been aiding the performance of the Biotechnology segment. Also, solid demand from pharmaceutical customers for monoclonal antibodies (mAbs) has been buoying the bioprocessing business. In the first quarter of 2026, orders for bioprocessing equipment increased more than 30%. For 2026, Danaher anticipates core revenues from the bioprocessing business to increase in high single-digits on a year-over-year basis. Also, strength in the medical filtration and research consumables business bodes well for the Biotechnology segment.
However, lower demand for medical filtration and research consumables in the discovery and medical business is concerning for the Biotechnology segment. Declining demand for equipment is also acting as a headwind for it.
Despite these challenges, for the second quarter of 2026, Danaher anticipates core revenues from the Biotechnology segment to increase in mid-single digits on a year-over-year basis. Consistent demand for products within the bioprocessing business is expected to support stable segment performance in the coming quarters.
Segment Snapshot of DHR's Peers
Among its major peers, CVS Health Corporation’s (CVS - Free Report) Health Services segment reported net sales of $48.24 billion in the first quarter of 2026, up 11% year over year. CVS Health generated 48% of its total sales from this segment in the quarter. Favorable pharmacy drug mix and brand inflation aided the segment’s results in the second quarter.
Labcorp Holdings Inc.’s (LH - Free Report) Biopharma Laboratory Services segment generated net sales of $780.6 million in the first quarter of 2026, up 8.2% year over year. This was driven by Labcorp’s strong drug development capabilities and scientific expertise. Labcorp derived 22.1% of its total revenues from this segment during the quarter.
DHR's Price Performance, Valuation and Estimates
Shares of Danaher have declined 26.5% in the past six months compared with the industry’s decrease of 10.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, DHR is trading at a forward price-to-earnings ratio of 19.22X, above the industry’s average of 14.51X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DHR’s 2026 earnings has increased over the past 30 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.