Danaher NYSE: DHR reported better-than-expected second-quarter 2026 results, with management citing accelerating core revenue growth, stronger life sciences demand and benefits from productivity initiatives, while also addressing investor concerns over delayed bioprocessing shipments.
President and Chief Executive Officer Rainer M. Blair said the company delivered “better-than-expected revenue, earnings, and cash flow” in the quarter. He said core growth improved from the first quarter, supported by commercial execution, recent product launches and recovering end markets.
Danaher reported second-quarter sales of $6.3 billion. Core revenue increased 3% year over year, while core growth excluding respiratory testing revenue rose 4.5%, representing a 150-basis-point acceleration from the first quarter. Adjusted diluted net earnings per common share were $1.94, up about 8% year over year. The company generated $1.3 billion in free cash flow during the quarter and $2.4 billion in the first half, with year-to-date free cash flow to net income conversion of 124%.
Blair said demand from large pharma and biopharma customers remained healthy, biotech funding improved, academic and government markets largely stabilized, and clinical and applied markets continued to be sources of strength. Core revenue in high-growth markets increased more than 10%, including mid-single-digit growth in China.
Life Sciences Posts Strongest Quarter in Several Years
Danaher’s Life Sciences segment was a standout in the quarter, with core revenue increasing 5.5%. Blair said the segment delivered its strongest quarter in several years, helped by improving customer demand and product innovation.
Pall’s applied filtration business grew approximately 10%, led by strength in microelectronics. Chief Financial Officer Matt Gugino said microelectronics grew faster than the overall Pall business, while energy and aerospace also contributed. Blair said Pall’s filtration solutions are mission-critical across the semiconductor manufacturing workflow and noted the company is starting up a new plant in Singapore.
Danaher’s life sciences instrument businesses grew mid-single digits, with solid growth at Beckman Life Sciences, Leica Microsystems and SCIEX. Blair highlighted Beckman Life Sciences’ growth in automation, saying the business is positioned to benefit as customers invest in autonomous labs and AI-enabled drug discovery.
Life sciences consumables collectively grew low single digits. Integrated DNA Technologies rose on demand for minimal residual disease testing solutions, while Abcam delivered its best quarter since Danaher acquired it. Blair said Abcam benefited from improved academic market stability, stronger commercial execution and progress expanding into biopharma and diagnostics end markets.
Bioprocessing Growth Slowed by Customer Timing
The Biotechnology segment reported core revenue growth of 2.5%. Within the segment, discovery and medical grew mid-single digits, while bioprocessing grew low single digits across both consumables and equipment.
Bioprocessing was a major focus of the question-and-answer portion of the call after Danaher lowered its outlook for the business. Blair said several large chromatography resin shipments planned primarily for the second and third quarters were delayed at customer request due to production schedule changes and site readiness issues. He said the affected shipments were tied primarily to commercial programs where Danaher is “specced into” production.
Gugino said the second-quarter impact was about 500 basis points to bioprocessing growth, or roughly $50 million to $60 million. For the full year, he said a little more than $100 million shifted out of 2026 and into next year, representing a couple hundred basis points of growth impact. Danaher is not assuming those shipments return in the fourth quarter, although Gugino said there is some chance they could.
Management emphasized that underlying demand remained strong. Blair said consumables and equipment orders both grew mid-teens in the quarter, and he characterized the delays as concentrated among a few large commercial customers rather than a broad-based change in demand. He also said inventory levels across the market are “quite a bit lower” than in prior years, reflecting shorter lead times and continued robust demand for biologic therapies.
Blair said Danaher continues to believe Cytiva’s bioprocessing franchise has a high-single-digit long-term growth outlook. He also said the company is in the early stages of a multiyear capital expenditure cycle tied to biologics demand and reshoring activity.
Diagnostics Growth Led by Non-Respiratory Revenue
The Diagnostics segment reported 2% core revenue growth. Excluding respiratory testing revenue, core growth was 5%.
Clinical diagnostics businesses grew mid-single digits, including high-single-digit growth outside China. Leica Biosystems and Radiometer collectively grew high single digits, supported by instruments and consumables. Beckman Coulter Diagnostics grew mid-single digits globally, with another quarter of immunoassay revenue and installed base growth.
Blair said declines in China at Beckman Coulter began to moderate as pricing stabilized and volumes improved. Gugino later said China policy headwinds are starting to lessen, contributing to expected improvement in the back half of the year.
In molecular diagnostics, Cepheid’s non-respiratory core revenue increased low double digits, led by hospital-acquired infection and sexual health assays. Blair said growth was supported by menu expansion, including the Multiplex GI panel, and account wins with large hospital networks. Respiratory revenue was in line with expectations but down year over year due to lower seasonal infection rates.
Masimo Closed Early, StatLab Deal Pending
Danaher closed its acquisition of Masimo in early June, earlier than initially expected. Blair said the business is expected to be immediately accretive strategically and to adjusted earnings per share. He said Masimo delivered high-single-digit revenue growth in the first half and had already received FDA 510(k) clearance for an AI-enabled opioid-induced respiratory depression detection solution.
Gugino said the earlier Masimo closing contributed about $0.07 to $0.08 to the updated earnings outlook. He said Masimo’s core growth was high single digits and “even a little bit better than we expected.”
Danaher also announced that Leica Biosystems plans to acquire StatLab, a manufacturer of consumables used in anatomical pathology workflows. Blair said StatLab generated about $250 million in 2025 revenue, with more than 85% recurring revenue. Danaher expects the business to grow high single digits over the long term and be accretive to adjusted EPS in the first full year of ownership. The transaction is expected to close by the end of 2026, subject to customary conditions and regulatory approvals.
During the quarter, Danaher also repurchased 5 million shares of common stock for about $900 million.
Guidance Raised for 2026
Danaher raised its full-year adjusted diluted EPS guidance to a range of $8.45 to $8.60, up from its previous outlook of $8.35 to $8.55. The company continues to expect full-year 2026 core revenue growth of 3% to 4%.
For the third quarter, Danaher expects revenue growth of approximately 2% to 3%, including a roughly 250-basis-point headwind from respiratory testing. Excluding respiratory, the company expects core growth of about 5% in the third quarter. Management said it expects to exit the fourth quarter at a mid-single-digit core revenue growth rate as respiratory headwinds fade.
Gugino said the updated full-year outlook reflects stronger anticipated life sciences growth, offset by a more conservative bioprocessing outlook due to the customer-driven timing shifts. He said the midpoint of the new EPS range implies nearly 10% EPS growth for the year.
About Danaher (NYSE:DHR)
Danaher Corporation NYSE: DHR is a global science and technology company that designs, manufactures and markets products and services for the life sciences, diagnostics, and environmental and applied markets. The company organizes its operations into business segments focused on Life Sciences, Diagnostics, and Environmental & Applied Solutions, supplying instruments, reagents, software and related services that support research, clinical testing, biopharmaceutical development, and industrial and environmental monitoring.
Products and services in Danaher's portfolio include analytical and diagnostic instruments, laboratory consumables and reagents, digital and software solutions for workflow and data management, field and industrial monitoring equipment, and service and maintenance programs.
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