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Danaher Lifts Full-Year Profit Outlook Following Second-Quarter Beat, Tempers Sales Guidance

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Danaher Lifts Full-Year Profit Outlook Following Second-Quarter Beat, Tempers Sales Guidance

Danaher raised its full-year profit guidance on Tuesday as its fiscal second-quarter results came in stronger than expected, but the company lowered the top end of its 2026 revenue growth outlook.

The medical equipment maker now expects adjusted per-share earnings of $8.45 to $8.60 for full-year 2026, up from its previous guidance of $8.35 to $8.55. The company said the updated outlook takes into account its strong second-quarter profit performance and the earlier-than-anticipated completion of its acquisition of health technology company Masimo. Analysts in a FactSet poll are looking for $8.45, up from last year's EPS of $7.80.

Danaher is now guiding full-year core revenue to increase 3% to 4%, lowering the top end of the range from 6%. For the ongoing quarter, the company projects core sales growth of 2% to 3% year over year, indicating a possible sequential slowdown.

The third-quarter outlook "includes an approximately 250 basis point year-over-year headwind from respiratory testing," Chief Executive Rainer Blair said at an earnings conference call, according to a FactSet transcript.

Shares of Danaher were down more than 12% in Tuesday morning trade. The stock has slid 22% so far this year.

"Our updated outlook reflects higher anticipated core revenue growth in our life sciences segment as we expect these markets to recover faster than our initial expectations, offset by a slightly more conservative outlook for bioprocessing given some of the customer-driven timing dynamics we saw in the second quarter," Blair said.

For the quarter ended June 26, adjusted EPS rose to $1.94 from $1.80 a year earlier, exceeding the consensus of $1.84. Overall sales grew 5.5% to $6.27 billion, while analysts projected $6.11 billion.

Core sales in the second quarter increased 3% amid growth across all three segments led by life sciences.

"Our life sciences businesses delivered their strongest quarter in several years," Blair told analysts. "Diagnostics continued to perform well, and while customer project timing impacted bioprocessing revenue, underlying order trends remained robust."

Price: $177.27, Change: $-23.85, Percent Change: -11.86%

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