Danaher (DHR) investor relations material

Executive summary

• Q3 sales rose 8.5% YoY to $6.554B; core sales grew 3.0%, or 5.5% excluding respiratory testing, and adjusted diluted EPS increased 11.5% to $2.11.

• Results exceeded expectations on revenue, earnings and cash flow; management emphasized commercial excellence, innovation, talent and disciplined capital allocation, with profitable growth and share gain as priorities.

Financial highlights

• Q3 revenue was $6.554B vs. $6.053B; gross profit was $3.837B vs. $3.523B, and operating profit was $1.245B vs. $1.154B.

• Adjusted diluted EPS was $2.11 vs. $1.89; adjusted net earnings were $1.494B vs. $1.349B.

• Continuing-operations net earnings were $1.207B vs. $908M, and diluted EPS was $1.71 vs. $1.27; Q3 included a $263M discrete tax benefit.

• Nine-month sales were $18.770B vs. $17.730B; continuing-operations net earnings were $3.106B vs. $2.417B, and adjusted diluted EPS was $6.11 vs. $5.57.

• Adjusted operating margin expanded 110 bps to 29.0%; adjusted EBITDA was $2.108B vs. $1.877B.

Outlook and guidance

• Q4 core sales growth is expected at ~3% overall and 4.0%–5.0% excluding respiratory testing, which is expected to be a ~150-bp headwind; adjusted operating margin outlook is 29.5%.

• FY 2026 adjusted diluted EPS guidance increased to $8.57–$8.62 from $8.45–$8.60; FY core sales growth outlook is ~2.5% overall and mid-single digit excluding respiratory testing.

• Q4 segment core growth outlook: Biotechnology mid-single digit, Life Sciences 4.0%–5.0%, and Diagnostics up slightly; FY outlook: Biotechnology mid-single digit, Life Sciences 3.0%–4.0%, and Diagnostics ~flat.

• Respiratory testing sales are projected at ~$400M in Q4 and ~$1.5B for FY 2026, down ~20% YoY; 2027 planning also starts at ~$1.5B, with flu-season variability creating a couple hundred million dollars of range.

• 2027 starting framework is 4%–5% core revenue growth excluding respiratory testing; more detailed guidance is planned for January.