Danaher’s second quarter results came in ahead of Wall Street’s revenue and profit expectations, with steady growth in its bioprocessing business and disciplined cost management highlighted by management as key contributors. CEO Rainer Blair pointed to “strong growth in our bioprocessing business, paired with disciplined cost management,” as drivers behind the quarter’s performance. Despite ongoing global trade tensions and a soft environment for academic and government research, the company saw stable conditions in clinical diagnostics and applied markets. Management did not indicate any major shifts in customer demand, though noted continued softness in China’s diagnostics segment due to recent procurement and reimbursement changes.
Is now the time to buy DHR? Find out in our full research report (it’s free).
Danaher (DHR) Q2 CY2025 Highlights:
- Revenue: $5.94 billion vs analyst estimates of $5.84 billion (3.4% year-on-year growth, 1.7% beat)
- Adjusted EPS: $1.80 vs analyst estimates of $1.64 (9.5% beat)
- Adjusted EBITDA: $1.80 billion vs analyst estimates of $1.67 billion (30.4% margin, 7.8% beat)
- Revenue Guidance for Q3 CY2025 is $5.94 billion at the midpoint, below analyst estimates of $6.01 billion
- Management slightly raised its full-year Adjusted EPS guidance to $7.75 at the midpoint
- Operating Margin: 12.8%, down from 20.3% in the same quarter last year
- Organic Revenue rose 1.5% year on year (-3.5% in the same quarter last year)
- Market Capitalization: $145.3 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Danaher’s Q2 Earnings Call
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Michael Ryskin (Bank of America) asked about bioprocessing order trends and whether order activity accelerated in Q2. CEO Rainer Blair responded that order trends were consistent with the prior quarter, with consumables driving growth and equipment orders remaining lumpy due to trade policy uncertainty.
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Doug Schenkel (Wolfe Research) requested clarification on bioprocessing revenue growth assumptions and pricing contributions. CFO Matt McGrew confirmed the high single-digit growth outlook for bioprocessing and noted steady price realization but highlighted expected seasonality in volumes.
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Scott Davis (Melius Research) inquired about the status of cost reduction initiatives and the outlook for early-stage biotech demand. Blair indicated about half of the $150 million in structural savings has been achieved and described early-stage biotech activity as stable but at lower levels than in prior years.
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Tycho Peterson (Jefferies) questioned the drivers behind second-half life sciences growth and reasons for holding back on flowing through some upside in guidance. McGrew cited new product launches, improved comps in genomics and China, and a cautious approach to guidance amid FX and respiratory test variability.
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Rachel Vatsendale (JPMorgan) asked about the bioprocessing equipment recovery and the impact of large capital project delays. Blair explained that equipment demand remains subdued due to trade uncertainty, with no significant step-up expected in 2025 guidance.
Catalysts in Upcoming Quarters
Looking ahead, our analyst team will be focused on (1) the trajectory of bioprocessing order activity, especially in consumables versus equipment; (2) the impact of new product launches—particularly in diagnostics and mass spectrometry—on segment growth and customer adoption; and (3) developments in global trade policy and tariffs affecting capital investment decisions. Progress in China’s diagnostics and life sciences markets will also be closely monitored as a potential swing factor for results.
Danaher currently trades at $203, up from $188.06 just before the earnings. In the wake of this quarter, is it a buy or sell? The answer lies in our full research report (it’s free).
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