DANAHER CORP /DE/ (DHR) Earnings History

DANAHER CORP /DE/ - Q4 FY2025 EarningsBeat

Filed at: Jan 27, 2026, 5:37 PM EST|Read from source

EXECUTIVE SUMMARY

Danaher reported a strong finish to 2025, with better-than-expected performance driven by continued strength in bioprocessing and improved momentum in Diagnostics and Life Sciences. The company anticipates gradual improvement in end markets to continue into 2026, supported by its differentiated portfolio and the Danaher Business System.

POSITIVE HIGHLIGHTS

  • •

    Non-GAAP adjusted diluted net earnings per common share grew 4.0% to $2.23 in Q4.

    positive
  • •

    Full year 2025 non-GAAP adjusted diluted net earnings per common share grew 4.5% to $7.80.

    positive
  • •

    Operating cash flow was $2.1 billion in Q4, and non-GAAP free cash flow was $1.8 billion.

    positive
  • •

    Full year 2025 operating cash flow was $6.4 billion and non-GAAP free cash flow was $5.3 billion.

    positive
  • •

    Launched innovative new products and solutions across its businesses, strengthening its position in life sciences and diagnostics.

    positive

CONCERNS & RISKS

  • •

    Core sales growth in Life Sciences was only 0.5% in Q4, a significant deceleration from Biotechnology's 6.0% growth.

    attention
  • •

    Life Sciences operating profit margin compressed to 16.1% in Q4 2025 from 18.5% in Q4 2024.

    attention
  • •

    Full year 2025 core sales growth in Life Sciences declined by 1.5%.

    negative
  • •

    Full year 2025 Life Sciences operating profit margin significantly decreased to 7.1% from 12.0% in the prior year.

    negative
  • •

    Currency exchange rates negatively impacted Q4 sales by 2.5% and full year sales by 1.0%.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$6.84B
+4.6%
Prior year: $6.54B
Annual (YTD)
$24.57B
N/A
Prior year: $23.88B
Net Income
Quarterly
$1.18B
+8.9%
Prior year: $1.09B
Annual (YTD)
$3.60B
N/A
Prior year: $3.90B
EPS (Diluted)
Quarterly
$1.66
+11.4%
Prior year: $1.49
Operating Income
Quarterly
$1.50B
+5.4%
Prior year: $1.43B
Annual (YTD)
$4.69B
N/A
Prior year: $4.86B
EPS (Basic)
Quarterly
$1.67
+11.3%
Prior year: $1.50

MARGIN ANALYSIS

Gross Margin
Current Quarter
58.0%
Prior Year
59.5%
YoY Change
-149 bps
Operating Margin
Current Quarter
22.0%
Prior Year
21.8%
YoY Change
+20 bps
Net Margin
Current Quarter
17.3%
Prior Year
16.6%
YoY Change
+68 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

REVENUE BY SEGMENT — Q4 FY2025 2025

VISUAL OVERVIEW

|
Biotechnology
0.0%
N/A
Life Sciences
0.0%
N/A
Diagnostics
0.0%
N/A

DETAILED BREAKDOWN

|
SegmentCurrentPrior YrYoY% Total
Biotechnology
N/A———
Life Sciences
N/A———
Diagnostics
N/A———
Total Revenue$0.00M——100.0%

Segment performance shows business unit health and growth drivers.

MANAGEMENT GUIDANCE

FY 2026

revenue
"3% to 6% range year-over-year (non-GAAP core revenue)"
EPS
$8.35—$8.50
Mid-point: $8.43
"Adjusted diluted net earnings per common share (non-GAAP)"

Q1 2026

revenue
"low-single digit percent range year-over-year (non-GAAP core revenue)"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q4 2025
Resolution of an acquisition contingency
($10 million pretax)
FY 2025
Gain on a product line disposition
($9 million pretax)
FY 2025
Impairment charges related to trade names in the Life Sciences and Diagnostics segments and technology, other intangible assets and a facility in the Biotechnology segment and a facility in the Life Sciences segment
($562 million pretax)
Q4 2024
Loss on the termination of a commercial agreement
($56 million pretax)
FY 2024
Impairment charges related to a trade name in the Life Sciences and Diagnostics segments
($222 million pretax in Life Sciences, $43 million pretax in Diagnostics)
FY 2024
Acquisition-related fair value adjustment to inventory related to the acquisition of Abcam plc
($25 million pretax)
Total Impact

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

Delivered a strong finish to the year with better-than-expected performance across our portfolio.

— DANAHER CORP /DE/, Q4 FY2025 2025 Earnings Call

Particularly encouraged by continued strength in our bioprocessing business, along with improved momentum in Diagnostics and Life Sciences.

— DANAHER CORP /DE/, Q4 FY2025 2025 Earnings Call

Teams’ disciplined execution also enabled us to exceed our fourth quarter margin, earnings, and cash flow expectations.

— DANAHER CORP /DE/, Q4 FY2025 2025 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Cepheid respiratory revenue
500.0M
dollars

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.