Danaher Lifts 2025 Earnings Outlook Amid Biotech Growth, Cost Discipline

Danaher Corp (NYSE:DHR) on Tuesday reported second-quarter 2025 sales of $5.94 billion, up 3.5% year-over-year, beating the consensus of $5.84 billion. 

The life science giant reported adjusted earnings of $1.80 per share, beating the consensus of $1.64.

Non-GAAP core revenue increased 1.5% year over year, compared to the expectations of a growth in low single digits year over year.

Operating cash flow was $1.3 billion, and non-GAAP free cash flow was $1.1 billion.

Danaher's second-quarter adjusted operating profit margin of 27.3% exceeded expectations of around 25.5%.

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Biotechnology sales increased to $1.85 billion compared to $1.71 billion a year ago, with core growth of 6%.

Sales in the Life Sciences segment remained flat at $1.78 billion, and diagnostic sales increased from $2.26 billion to $2.31 billion.

The company said, "DBS-driven execution, paired with another quarter of +HSD growth in Bioprocessing and disciplined cost management, enabled us to exceed our Q2 adjusted EPS and cash flow expectations."

Guidance

Danaher raised fiscal 2025 adjusted earnings guidance from $7.60-$7.75 per share to $7.70-$7.80, compared to the consensus of $7.70. The company cites good traction on cost initiatives.

Danaher reaffirms that in fiscal year 2025, non-GAAP core revenue will grow by approximately 3% year over year.

Cepheid 2025 respiratory revenues will be around $1.7 billion.

The company expects an adjusted operating profit margin of around 25.5%.

Biotechnology core revenue growth is expected to be approximately 6% for the third quarter of 2025 and around 7% for the fiscal year 2025.

Life sciences core revenue will remain flat for the third quarter and fiscal year 2025.

Diagnostics sales are expected to increase in the low single digits in the third quarter and flat to low single digits in fiscal year 2025.

Management update

Danaher announced Matthew Gugino, currently group CFO of Life Sciences Innovations Group and VP of Financial Planning & Analysis, will succeed Matthew McGrew as Danaher's CFO, effective February 28, 2026.

Analyst Opinion

William Blair writes that the macro backdrop for life science tools and bioprocessing companies was anything but sanguine in the second quarter, with escalating concerns surrounding the funding environment, tariffs, MFN, and whether these uncertainties resulted in a slowdown in the overall demand environment."

Danaher's results suggest that was not the case, at least in the second quarter, particularly within bioprocessing. Analyst Matt Larew maintains the Outperform rating.

Price Action: DHR stock is trading 0.68% higher at $189.34 at the last check on Tuesday.

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