Danaher (DHR) Q4 2025 earnings summary

Executive summary

• Delivered a strong finish to 2025, exceeding margin, earnings, and cash flow expectations, with robust performance in bioprocessing and improving momentum in diagnostics and life sciences.

• Fourth quarter 2025 revenue increased 4.5% year-over-year to $6.84 billion, with full-year revenue up 3.0% to $24.6 billion.

• Adjusted diluted EPS rose 4.0% in Q4 to $2.23 and 4.5% for the full year to $7.80.

• Free cash flow for the year was $5.3 billion, with operating cash flow at $6.4 billion.

• Continued innovation and new product launches across the portfolio, driving strong new product revenue growth.

Financial highlights

• Full-year 2025 sales reached $24.6 billion, with core revenue up 2%.

• Adjusted operating profit margin was 28.2% for the year; Q4 margin was 28.3%, both down year-over-year.

• Q4 adjusted EBITDA margin: Biotechnology 39.8%, Life Sciences 26.3%, Diagnostics 31.5%, Total Company 31.1%.

• Q4 free cash flow was $1.8 billion; full-year $5.3 billion.

• Free cash flow to net income conversion ratio for 2025 was 1.47.

Outlook and guidance

• 2026 core revenue growth guidance is 3%-6%, with Biotechnology expected to grow high-single digits, Life Sciences flat to low-single digit decline, and Diagnostics low-single digit growth.

• Adjusted diluted EPS guidance for 2026 is $8.35-$8.50.

• Q1 2026 core revenue expected to be up low single digits; Q1 adjusted operating profit margin expected at approximately 28.5%.

• Currency expected to increase sales by 1.0% for full year 2026.

• Long-term expectation for high single-digit core growth remains intact.