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 Corporation’s (DHR - Free Report) Biotechnology segment remains a major growth driver. In the second quarter of 2026, the segment’s reported sales increased 4% year over year to $1.92 billion. Its core revenues grew 2.5% from the prior-year period. The solid performance was primarily driven by stronger demand for products in China.
The segment’s bioprocessing business gained from increased consumables demand and higher equipment sales. During the second quarter, these factors drove low-single-digit core sales growth in the bioprocessing business. The discovery and medical business also posted improvement, aided by stronger consumables sales and an improved academic and research funding environment.
However, difficult prior-year comparisons weighed on the performance of this segment’s results in Western Europe and North America regions. Also, changes in shipment timing among large customers remain near-term challenges for the segment. These factors could continue to cause some variability in the segment’s growth trajectory.
Despite these challenges, Danaher expects the Biotechnology segment’s core revenues to grow in the mid-single digits year over year in 2026. Solid demand trends in the bioprocessing business, combined with improving conditions across discovery and medical markets, are expected to bolster the Biotechnology segment’s performance in the quarters ahead.
Segment Snapshot of DHR's Peers
Among its major peers, CVS Health Corporation’s (CVS - Free Report) Health Services segment reported net sales of $51.8 billion in the second quarter of 2026, up 11.5% year over year. CVS Health generated 48.8% 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.
Another peer of DHR, Labcorp Holdings Inc.’s (LH - Free Report) Biopharma Laboratory Services segment generated net sales of $836.2 million in the second quarter of 2026, up 6.8% year over year. This was driven by Labcorp’s position across clinical development and ongoing demand within Central Laboratories. Labcorp derived 22.5% of its total revenues from this segment during the quarter.
DHR's Price Performance, Valuation and Estimates
Shares of Danaher have gained 5.9% in the past month compared with the industry’s growth of 2.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, DHR is trading at a forward price-to-earnings ratio of 24.92X, above the industry’s average of 16.59X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DHR’s 2026 earnings has remained steady 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
DHR's Growth Backed by Strong Biotechnology Unit: Can It Maintain the Pace?
Key Takeaways
Danaher Corporation’s (DHR - Free Report) Biotechnology segment remains a major growth driver. In the second quarter of 2026, the segment’s reported sales increased 4% year over year to $1.92 billion. Its core revenues grew 2.5% from the prior-year period. The solid performance was primarily driven by stronger demand for products in China.
The segment’s bioprocessing business gained from increased consumables demand and higher equipment sales. During the second quarter, these factors drove low-single-digit core sales growth in the bioprocessing business. The discovery and medical business also posted improvement, aided by stronger consumables sales and an improved academic and research funding environment.
However, difficult prior-year comparisons weighed on the performance of this segment’s results in Western Europe and North America regions. Also, changes in shipment timing among large customers remain near-term challenges for the segment. These factors could continue to cause some variability in the segment’s growth trajectory.
Despite these challenges, Danaher expects the Biotechnology segment’s core revenues to grow in the mid-single digits year over year in 2026. Solid demand trends in the bioprocessing business, combined with improving conditions across discovery and medical markets, are expected to bolster the Biotechnology segment’s performance in the quarters ahead.
Segment Snapshot of DHR's Peers
Among its major peers, CVS Health Corporation’s (CVS - Free Report) Health Services segment reported net sales of $51.8 billion in the second quarter of 2026, up 11.5% year over year. CVS Health generated 48.8% 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.
Another peer of DHR, Labcorp Holdings Inc.’s (LH - Free Report) Biopharma Laboratory Services segment generated net sales of $836.2 million in the second quarter of 2026, up 6.8% year over year. This was driven by Labcorp’s position across clinical development and ongoing demand within Central Laboratories. Labcorp derived 22.5% of its total revenues from this segment during the quarter.
DHR's Price Performance, Valuation and Estimates
Shares of Danaher have gained 5.9% in the past month compared with the industry’s growth of 2.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, DHR is trading at a forward price-to-earnings ratio of 24.92X, above the industry’s average of 16.59X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DHR’s 2026 earnings has remained steady 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.