Hedge fund billionaire Daniel Loeb reduced its exposure to life Sciences Tools & Services sector by cutting stake in Danaher Corporation (NYSE:DHR) and fully exiting position in Thermo Fisher Scientific Inc (NYSE:TMO) in the first quarter of 2026.
The investor reduced his stake in Danaher to 525,000 in the first quarter of 2026 from 600,000 in the fourth quarter of 2025. Meanwhile, he entirely sold a 50,000 stake in Thermo Fisher as of March 31, 2026.
DHR: Recent Key Events
- Danaher reported adjusted earnings of $1.94 per share on Tuesday, beating the analyst consensus estimate of $1.83.
- Revenue rose 5.5% year over year to $6.27 billion, ahead of analysts’ expectations of $6.10 billion.
- Danaher lowered its fiscal 2026 core revenue growth forecast to 3% to 4%, down from its previous outlook of 3% to 6%.
- For the third quarter, the company expects non-GAAP core revenue growth of 2% to 3% year over year. The outlook includes a low-single-digit headwind from respiratory testing revenue and stronger-than-previously-expected growth in the Life Sciences segment.
- Danaher raised its fiscal 2026 adjusted earnings forecast to a range of $8.45 to $8.60 per share, up from its prior outlook of $8.35 to $8.55 per share. The updated range brackets the analyst consensus estimate of $8.45 per share.
- However, the company adopted a more cautious outlook for Bioprocessing. It now expects the business to grow at a mid-single-digit rate this year, compared with its previous expectation for high-single-digit growth.
- Several analyst lowered the price forecast on the company after the earnings release.
DHR: Top ETF Exposure
- Eagle Capital Select Equity ETF (NYSE:EAGL): 3.79% Weight
- Nomura Focused Large Growth ETF (NYSE:LRGG): 3.78% Weight
- Parnassus Core Select ETF (NYSE:PRCS): 5.06% Weight
Significance: Because DHR carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
Peer Comparison
Danaher is being measured against a curated peer set of Thermo Fisher Scientific, Inc. (TMO), Agilent Technologies Inc. (A), Waters Corp (WAT), IQVIA Holdings Inc. (IQV), and Illumina Inc (ILMN). Over the past year, Danaher lagged the peer-group average, sitting behind it by 34.74 percentage points. It also trailed all five individual peers over the same period.
Within the group, Illumina Inc was the strongest performer at +80.71%, while IQVIA Holdings Inc. was the weakest at +4.29%. The remaining peers were mixed, with Agilent Technologies Inc. up 15.23%, Thermo Fisher Scientific, Inc. up 17.72%, and Waters Corp up 26.36%.
After a year in which Danaher trailed the peer-group average on 1-year returns, led by Illumina Inc (+80.71%), Waters Corp (+26.36%), Thermo Fisher Scientific, Inc. (+17.72%), Agilent Technologies Inc. (+15.23%), and IQVIA Holdings Inc. (+4.29%). On valuation, Danaher’s P/E is 34.3—meaning investors are paying about $34 for each $1 of earnings—higher than Thermo Fisher Scientific, Inc. at 30.8 and Agilent Technologies Inc. at 28.1, but below Waters Corp at 48.7. Danaher’s price-to-sales ratio is 5.5, or roughly $5.50 in stock value for every $1 of revenue, matching Agilent Technologies Inc. (5.5) and above Thermo Fisher Scientific, Inc. (4.6), while still below Illumina Inc (6.9). Put together, the stock doesn’t look like a clear “discount” versus peers, which can be a tougher sell when recent performance has lagged the group.
| Company | P/E | P/S |
|---|---|---|
| Danaher Corporation | 34.3 | 5.5 |
| Thermo Fisher Scientific, Inc. | 30.8 | 4.6 |
| Agilent Technologies Inc. | 28.1 | 5.5 |
| Waters Corp | 48.7 | 6.6 |
| IQVIA Holdings Inc. | 25.8 | 2.1 |
| Illumina Inc | 35.8 | 6.9 |
Stock Price Activity: Thermo Fisher Scientific shares were down 2.54% at $557.79, and Danaher shares were down 0.64% at $191.26 at the time of publication on Friday.
Photo via Shutterstock
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