Company Reports

On Aug. 3, Danaher announced a CEO transition from Rainer Blair to diagnostics leader Julie Sawyer Montgomery. Blair had been in the role since September 2020. Shares rose about 2% in after-hours trading on this news.

Danaher turned in second-quarter results including 3% core revenue growth to $6.3 billion (above FactSet consensus of $6.1 billion) and 8% adjusted EPS growth to $1.94 (above consensus of $1.84.) Management also increased its EPS outlook a bit but trimmed its core revenue growth assumption.

Through its Danaher Business System, Danaher aims for continuous improvement of its scientific technology portfolio by seeking out attractive markets and then making acquisitions to enter or expand within those fields and also divesting assets that are no longer seen as core, such as the 2023 divestiture of Veralto, its environmental and applied solutions segment. After acquisitions, Danaher aims to accelerate core growth at acquired companies by making research and development and marketing-related investments. It also implements lean manufacturing principles and administrative cost controls to boost operating margins. Overall, we appreciate Danaher's strategic moves, which have pushed it into attractive end markets with strong growth prospects and sticky, recurring revenue streams.

On April 21, Danaher reported first-quarter results, including adjusted EPS growth of nearly 10%, exceeding prior expectations despite core revenue growth of only 0.5%. With that profit strength, management raised the top end of its 2026 adjusted EPS outlook range by a nickel to $8.35-$8.55.

Life science stocks like Danaher's have been under pressure since late 2022, but with profits expected to rebound in the high single digits in 2026 and potentially accelerate even further in 2027-30, we see growing momentum in the industry and firm's profit growth trajectory.

Life science stocks have been under pressure since late 2022, but with profits expected to rebound in the high single digits in 2026 on average and potentially accelerate even further in 2027-30 due to upcoming catalysts, we see growing momentum in the industry’s profit growth trajectory.

Through its Danaher Business System, Danaher aims for continuous improvement of its scientific technology portfolio by seeking out attractive markets and then making acquisitions to enter or expand within those fields and also divesting assets that are no longer seen as core, such as the 2023 divestiture of Veralto, its environmental and applied solutions segment. After acquisitions, Danaher aims to accelerate core growth at acquired companies by making research and development and marketing-related investments. It also implements lean manufacturing principles and administrative cost controls to boost operating margins. Overall, we appreciate Danaher's strategic moves, which have pushed it into attractive end markets with strong growth prospects and sticky, recurring revenue streams.

On Feb. 17, Danaher announced plans to acquire Masimo and its pulse oximetry diagnostic tools for $9.9 billion in enterprise value. This deal represents a roughly 38% premium to where Masimo's stock closed on Feb. 13. Danaher aims to close this deal in the second half of 2026.

Similar to the preliminary view Danaher released at an investor conference in January, Danaher's 2025 results included adjusted EPS of $7.80, at the high end of its previous outlook range. Also, management's 2026 guidance still looks merely in line with market expectations.

For an investor presentation on Jan. 13, Danaher released strong 2025 preliminary results, including adjusted EPS at the high end of its $7.70 to $7.80 outlook range. However, management also gave initial 2026 guidance that looked merely in line with consensus.

Danaher turned in third-quarter results, including 3% core revenue growth and 11% adjusted EPS growth. Also, management maintained its guidance for 2025 at adjusted EPS of $7.70 to $7.80, or low- to mid-single-digit growth, and gave an initial view for 2026, including profit growth acceleration.

Through its Danaher Business System, Danaher aims for continuous improvement of its scientific technology portfolio by seeking out attractive markets and then making acquisitions to enter or expand within those fields and also divesting assets that are no longer seen as core, such as the recently divested Veralto operations. After acquisitions, Danaher aims to accelerate core growth at acquired companies by making research and development and marketing-related investments. It also implements lean manufacturing principles and administrative cost controls to boost operating margins. Overall, we appreciate Danaher's strategic moves, which have pushed it into attractive end markets with strong growth prospects and sticky, recurring revenue streams.

In the second quarter, Danaher reported core revenue growth in line with prior guidance and higher margins than management had expected. With those results, the firm mildly increased its 2025 EPS expectations to $7.70-$7.80, up from $7.60-$7.75 previously.

Danaher's first-quarter results exceeded its prior guidance on both the demand and margin fronts. The firm expects a net neutral tariff impact on 2025 profits when also considering potential changes to its manufacturing footprint, supply chain, surcharges, and other cost controls.

Over the past week, life science shares have experienced significant volatility related to a deepening trade war with China and as broader US tariffs were implemented and then paused for 90 days to allow time for negotiations. A pharmaceutical-specific tariff is also being considered.

Through its Danaher Business System, Danaher aims for continuous improvement of its scientific technology portfolio by seeking out attractive markets and then making acquisitions to enter or expand within those fields and also divesting assets that are no longer seen as core, such as the recently divested Veralto operations. After acquisitions, Danaher aims to accelerate core growth at acquired companies by making research and development and marketing-related investments. It also implements lean manufacturing principles and administrative cost controls to boost operating margins. Overall, we appreciate Danaher's strategic moves, which have pushed it into attractive end markets with strong growth prospects and sticky, recurring revenue streams.

In its latest earnings release, Danaher turned in core revenue growth of 1% and adjusted earnings per share growth of 2% in the fourth quarter, and it gave an initial outlook for 2025 that includes 3% core revenue growth and some margin headwinds.

After reviewing the moat ratings of several medical technology firms, we are raising our moat rating on Danaher to wide from narrow previously. This change primarily reflects the long durability of its customer switching costs, which are comparable with many of our wide-moat medical technology firms, including key life science and diagnostic peer Thermo Fisher. Also, while we recognize the risks associated with its acquisition strategy, Danaher's Exemplary Capital Allocation Rating remains based on its exceptional investment strategy and execution, which we think is repeatable and supports our new wide moat rating. With this change, we have increased how long we expect Danaher to remain economically profitable in our valuation model, and that is the primary reason we're increasing our fair value estimate to $285 per share from $268. Shares appear moderately undervalued.

Through its Danaher Business System, Danaher aims for continuous improvement of its scientific technology portfolio by seeking out attractive markets and then making acquisitions to enter or expand within those fields and also divesting assets that are no longer seen as core, such as the recently divested Veralto operations. After acquisitions, Danaher aims to accelerate core growth at acquired companies by making research and development and marketing-related investments. It also implements lean manufacturing principles and administrative cost controls to boost operating margins. Overall, we appreciate Danaher's strategic moves, which have pushed it into attractive end markets with strong growth prospects and sticky, recurring revenue streams.

Through its Danaher Business System, Danaher aims for continuous improvement of its scientific technology portfolio by seeking out attractive markets and then making acquisitions to enter or expand within those fields and also divesting assets that are no longer seen as core, such as the recently divested Veralto operations. After acquisitions, Danaher aims to accelerate core growth at acquired companies by making research and development and marketing-related investments. It also implements lean manufacturing principles and administrative cost controls to boost operating margins. Overall, we appreciate Danaher's strategic moves, which have pushed it into attractive end markets with strong growth prospects and sticky, recurring revenue streams.