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Danaher Corporation’s (DHR - Free Report) Biotechnology segment continues to be a major contributor to its growth. In the first quarter of 2026, the segment’s core revenues increased 7% on a year-over-year basis, driven by strength in the bioprocessing business. On a geographical basis, higher sales in Western Europe and China fueled the increase in core sales.
The bioprocessing business is benefiting from higher demand for consumables from large pharmaceutical customers. Also, solid demand from pharmaceutical customers for monoclonal antibodies (mAbs) has been aiding the business. In the first quarter of 2026, orders for bioprocessing equipment increased more than 30%. For 2026, Danaher expects core revenues from the bioprocessing business to rise 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, the Biotechnology segment is facing headwinds due to weak demand for medical filtration products and research consumables in the discovery and medical business. Lower equipment demand is also weighing on the segment's performance.
Despite these headwinds, Danaher expects the Biotechnology segment’s core revenues to grow in the mid-single digits year over year in the second quarter of 2026. Rising demand for bioprocessing products is expected to support the segment’s performance in the coming quarters.
Segment Snapshot of DHR's Peers
Among its major peers, 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.
Its another peer: 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.
DHR's Price Performance, Valuation and Estimates
Shares of Danaher have gained 3% in the past month compared with the industry’s growth of 7.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, DHR is trading at a forward price-to-earnings ratio of 22.08X, above the industry’s average of 16.51X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DHR’s 2026 earnings has increased a penny over the past 30 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #2 (Buy).
View the Zacks #1 Rank List
Image: Bigstock
Will Strength in Biotechnology Unit Continue to Drive DHR's Growth?
Key Takeaways
Danaher Corporation’s (DHR - Free Report) Biotechnology segment continues to be a major contributor to its growth. In the first quarter of 2026, the segment’s core revenues increased 7% on a year-over-year basis, driven by strength in the bioprocessing business. On a geographical basis, higher sales in Western Europe and China fueled the increase in core sales.
The bioprocessing business is benefiting from higher demand for consumables from large pharmaceutical customers. Also, solid demand from pharmaceutical customers for monoclonal antibodies (mAbs) has been aiding the business. In the first quarter of 2026, orders for bioprocessing equipment increased more than 30%. For 2026, Danaher expects core revenues from the bioprocessing business to rise 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, the Biotechnology segment is facing headwinds due to weak demand for medical filtration products and research consumables in the discovery and medical business. Lower equipment demand is also weighing on the segment's performance.
Despite these headwinds, Danaher expects the Biotechnology segment’s core revenues to grow in the mid-single digits year over year in the second quarter of 2026. Rising demand for bioprocessing products is expected to support the segment’s performance in the coming quarters.
Segment Snapshot of DHR's Peers
Among its major peers, 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.
Its another peer: 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.
DHR's Price Performance, Valuation and Estimates
Shares of Danaher have gained 3% in the past month compared with the industry’s growth of 7.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, DHR is trading at a forward price-to-earnings ratio of 22.08X, above the industry’s average of 16.51X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DHR’s 2026 earnings has increased a penny over the past 30 days.
Image Source: Zacks Investment Research
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.