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Danaher Corp. DHR stock fell sharply Tuesday after the life sciences company lowered its 2026 core revenue growth forecast and trimmed its outlook for its Bioprocessing business, despite reporting second-quarter results that topped Wall Street expectations.
Earnings And Revenue Beat Estimates
Danaher reported adjusted earnings of $1.94 per share, beating the analyst consensus estimate of $1.83.
Revenue rose 5.5% year over year to $6.27 billion, ahead of analysts’ expectations of $6.10 billion.
Core revenue increased 3% from a year earlier, in line with management’s guidance for low-single-digit growth. Excluding respiratory testing revenue, core revenue increased 4.5%.
Life Sciences Business Shows Strength
President and Chief Executive Officer Rainer Blair said the company’s Life Sciences businesses delivered their strongest quarter in several years.
“While customer project timing impacted bioprocessing revenue, underlying order trends remained strong, and bioprocessing orders grew mid-teens in the quarter,” Blair said.
Biotechnology revenue increased 4% year over year, or 2.5% on a core basis, to $1.92 billion. Life Sciences revenue rose 5.5% to $1.88 billion, while Diagnostics revenue climbed 7%, or 2% on a core basis, to $2.47 billion.
Blair said continued end-market recovery and momentum from recent growth initiatives support the company’s expectation to exit 2026 with mid-single-digit core revenue growth.
Danaher Lowers Revenue Growth Outlook
Danaher lowered its fiscal 2026 core revenue growth forecast to 3% to 4%, down from its previous outlook of 3% to 6%.
For the third quarter, the company expects non-GAAP core revenue growth of 2% to 3% year over year. The outlook includes a low-single-digit headwind from respiratory testing revenue and stronger-than-previously-expected growth in the Life Sciences segment.
However, the company adopted a more cautious outlook for Bioprocessing. It now expects the business to grow at a mid-single-digit rate this year, compared with its previous expectation for high-single-digit growth.
Danaher raised its fiscal 2026 adjusted earnings forecast to a range of $8.45 to $8.60 per share, up from its prior outlook of $8.35 to $8.55 per share. The updated range brackets the analyst consensus estimate of $8.45 per share.
DHR Price Action: Danaher shares were down 14.57% at $171.80 at the time of publication on Tuesday, according to Benzinga Pro data.
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