Danaher Corp (NYSE:DHR) on Tuesday reported first-quarter 2026 sales of $5.95 billion, up 3.5% year-over-year, but under the consensus of $5.99 billion. Core revenue increased 0.5% year-over-year.
The life science giant reported adjusted earnings of $2.06 per share, beating the consensus of $1.94. Operating cash flow was $1.3 billion, and adjusted free cash flow was $1.1 billion.
Danaher’s first-quarter adjusted operating profit margin of 30.2% exceeded expectations of approximately 28.5%.
• Danaher shares are experiencing downward pressure. Why are DHR shares declining?
Bioprocessing Lead Segment Danaher Growth
Biotechnology sales increased to $1.797 billion compared to $1.61 billion a year ago, with core growth of 7%.
Bioprocessing sales jumped in high single digits, led by consumables. Equipment order growth was over 30% in the first quarter.
Sales in the Life Sciences segment reached $1.74 billion, a slight jump from $1.68 billion a year ago. Core growth was 0.5%.
Diagnostics sales fell slightly from $2.45 billion to $2.42 billion, with a core decline of 4%.
Rainer Blair, president and CEO, commented, “On the top line, we continued on a steady recovery path with strength in Bioprocessing and better-than-expected performance in Life Sciences largely offsetting the impact of a lighter-than-typical Q1 respiratory season at Cepheid.”
Danaher Fiscal 2026 Outlook
Danaher raised its fiscal 2026 adjusted earnings per share guidance from $8.35-$8.50 to $8.35-$8.55 compared to the consensus of $8.40.
The company reaffirms core revenue growth between 3% and 6%, including:
- Bioprocessing is expected to grow at around 6%.
- Life Sciences Outlook assumes only a modest improvement, encouraged by better-than-expected first-quarter performance and planning for that to continue through the year.
- Respiratory revenue is expected to be around $1.6 billion-$1.7 billion versus prior guidance of approximately $1.8 billion.
- The company expects no change to the $75 million to $100 million expected headwind from policy changes in China.
Second-Quarter Outlook Signals Mixed Segment Trends
Core growth tracked in the low single digits, with mixed performance across segments.
- Biotechnology: Mid-single-digit growth overall. Bioprocessing remains a key driver with high-single-digit gains, while Discovery and Medical declined in the low single digits.
- Life Sciences: Slight growth, broadly in line with first quarter trends.
- Diagnostics: Flat performance. Respiratory revenue is expected to be approximately $250 million.
The company expects an adjusted operating margin of around 26.5%.
DHR Price Action: Danaher shares were down 1.29% at $193.03 at the time of publication on Tuesday, according to Benzinga Pro data.
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