Danaher Corporation Third Quarter 2025 Earnings Release October 21, 2025 Forward Looking Statements Statements in this presentation that are not strictly historical, including any statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward- looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those ...

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Core Insights - Danaher Corporation reported third-quarter results that exceeded Wall Street's profit and revenue expectations, driven by strong demand for its diagnostic testing tools and services [1] Financial Performance - The company achieved better-than-expected earnings and revenue figures for the third quarter, indicating robust performance in its core business segments [1] Market Reaction - Following the positive earnings report, Danaher's shares increased by 1.3%, reflecting investor confidence in the company's growth prospects [1]

Corporate Finance and M&A Activity - Coinbase (COIN) is set to acquire the crypto-investing platform Echo for approximately $375 million, marking its eighth acquisition this year and reflecting its active expansion amid favorable U.S. cryptocurrency policies [2][9] - Hon Hai Precision Industry Co. Ltd., a key supplier for Apple (AAPL), has mandated banks for its inaugural Euro bond sale, which could provide new capital to support operations and expand capabilities within the global technology supply chain [3][9] Q3 2025 Earnings Season Highlights - Elevance Health (ELV) reported adjusted earnings per share (EPS) of $6.03, significantly exceeding the estimated $4.93, with revenue of $50.09 billion surpassing the $49.38 billion estimate, although medical membership was slightly below projections [4][9] - Danaher (DHR) posted adjusted EPS of $1.89 against an estimated $1.72, with revenue of $6.1 billion exceeding the $6.01 billion estimate, reaffirming its full-year adjusted EPS outlook in the range of $7.70 to $7.80 [5][9] Currency Markets and European Politics - The USD/JPY currency pair extended its gains by 0.8% to reach a one-week high of 151.95, reflecting ongoing dynamics in global foreign exchange markets [6][9] - French President Emmanuel Macron reiterated the possibility of a referendum on pension reform, emphasizing its importance despite recent indications from Prime Minister Sebastien Lecornu to suspend the reform until after the 2027 presidential elections [7][9]

Accessibility StatementSkip Navigation Rainer M. Blair, President and Chief Executive Officer, stated, "We are encouraged by our third quarter results. DBS-driven execution paired with continued momentum in our bioprocessing business and better-than-anticipated respiratory revenue at Cepheid enabled us to exceed our revenue, earnings and cash flow expectations." Mr. Blair continued, "We remain intensely focused on delivering value for our customers, associates, and shareholders. We're investing in breakthro ...

NEW YORK, Oct. 20, 2025 (GLOBE NEWSWIRE) -- Rosen Law Firm, a global investor rights law firm, continues to investigate potential breaches of fiduciary duties by the directors and officers of Danaher Corporation (NYSE: DHR). If you currently own shares of Danaher stock, please visit the firm’s website at https://rosenlegal.com/submit-form/?case_id=17717 for more information. You may also contact Phillip Kim of Rosen Law Firm toll free at 866-767-3653 or via email at case@rosenlegal.com. Why Rosen Law: We en ...

[Third Quarter 2025 Results Overview](index=1&type=section&id=Q3%202025%20Results%20Overview) Danaher reported strong third-quarter 2025 financial results, exceeding expectations, with the CEO highlighting strategic execution and future focus [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Danaher reported strong Q3 2025 results, exceeding revenue, earnings, and cash flow expectations, with **$908 million** net earnings and **$6.1 billion** in revenue Third Quarter 2025 Key Financial Results | Metric | Value ($) | YoY Change (GAAP) (%) | YoY Change (Non-GAAP Core) (%) | | :--------------------------------- | :---------- | :---------------- | :-------------------------- | | Net earnings | $908 million | N/A | N/A | | Diluted net earnings per common share | $1.27 | N/A | N/A | | Adjusted diluted net earnings per common share | $1.89 | N/A | N/A | | Revenues | $6.1 billion | +4.5% | +3.0% | | Operating cash flow | $1.7 billion | N/A | N/A | | Free cash flow | $1.4 billion | N/A | N/A | [CEO Commentary and Strategic Focus](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Focus) CEO Rainer M. Blair expressed encouragement with the third-quarter results, attributing success to DBS-driven execution, bioprocessing momentum, and strong respiratory revenue at Cepheid - Third quarter results **exceeded revenue, earnings, and cash flow expectations**, driven by DBS-driven execution, bioprocessing momentum, and strong respiratory revenue at Cepheid[2](index=2&type=chunk) - **Strategic focus areas** include investing in **breakthrough innovation**, enhancing **commercial execution**, and driving **meaningful productivity gains** across businesses[2](index=2&type=chunk) [Full Year 2025 Financial Outlook](index=1&type=section&id=FY%202025%20Financial%20Outlook) This section outlines Danaher's full-year 2025 financial outlook, including adjusted diluted net earnings per common share guidance, core revenue growth forecasts, and supplemental forward-looking assumptions [Adjusted Diluted Net Earnings Per Common Share Guidance](index=1&type=section&id=Adjusted%20Diluted%20Net%20Earnings%20Per%20Common%20Share%20Guidance) Danaher is maintaining its full-year 2025 adjusted diluted net earnings per common share guidance range of **$7.70 to $7.80** Full Year 2025 Adjusted Diluted Net Earnings Per Common Share Guidance | Metric | Guidance Range ($) | | :------------------------------------------ | :--------------- | | Adjusted diluted net earnings per common share (non-GAAP) | $7.70 - $7.80 | [Core Revenue Growth Forecast](index=1&type=section&id=Core%20Revenue%20Growth%20Forecast) For the full year 2025, the company expects non-GAAP core revenue to grow low-single digits year-over-year, with Q4 core sales growth also projected at low-single digits Full Year and Q4 2025 Core Sales Growth Forecast (Non-GAAP) | Segment | Q4 2025 Forecasted Core Sales Growth (%) | Full Year 2025 Forecasted Core Sales Growth (%) | | :---------------- | :----------------------------------- | :---------------------------------------- | | Biotechnology | ~+5% | N/A | | Life Sciences | -Low-single digit | N/A | | Diagnostics | Flat | N/A | | Total Company | +Low-single digit | +Low-single digit | [Supplemental Forward-Looking Assumptions](index=6&type=section&id=Supplemental%20Forward-Looking%20Assumptions) Key assumptions for the fourth quarter 2025 include an estimated **2.5%** increase in sales due to currency exchange rates, corporate expense of approximately **$(85) million**, net interest expense of approximately **$(50) million**, and an effective tax rate of approximately **17.0%** Q4 2025 Supplemental Forward-Looking Assumptions | Metric | Estimate (Q4 2025) | | :-------------------------------- | :----------------- | | Impact of currency exchange rates on sales | ~+2.5% | | Corporate expense | ~$(85) million | | Interest expense, net | ~$(50) million | | Effective tax rate | ~17.0% | [Company Profile](index=1&type=section&id=Company%20Profile) This section provides an overview of Danaher Corporation, a leading global life sciences and diagnostics innovator [About Danaher](index=1&type=section&id=About%20Danaher) Danaher Corporation is a leading global life sciences and diagnostics innovator, dedicated to advancing science and technology to improve human health - Danaher is a **leading global life sciences and diagnostics innovator**, focused on accelerating science and technology to improve human health[7](index=7&type=chunk) - The company's advanced science and technology facilitate **faster, more accurate diagnoses** and reduce the time and cost for developing and delivering therapies[7](index=7&type=chunk) - Danaher employs approximately **63,000 associates worldwide**, committed to scientific excellence, innovation, and continuous improvement[7](index=7&type=chunk) [Consolidated Financial Statements](index=3&type=section&id=Consolidated%20Financial%20Statements) This section presents Danaher's consolidated condensed statements of earnings for the three and nine-month periods ended September 26, 2025 [Consolidated Condensed Statements of Earnings](index=3&type=section&id=Consolidated%20Condensed%20Statements%20of%20Earnings) For the three-month period ended September 26, 2025, Danaher reported sales of **$6,053 million**, a gross profit of **$3,523 million**, and an operating profit of **$1,154 million** Consolidated Condensed Statements of Earnings (Three-Month Period Ended) | Metric | September 26, 2025 ($ millions) | September 27, 2024 ($ millions) | | :---------------------------------- | :------------------------------ | :------------------------------ | | Sales | 6,053 | 5,798 | | Cost of sales | (2,530) | (2,397) | | Gross profit | 3,523 | 3,401 | | Selling, general and administrative expenses | (1,991) | (2,060) | | Research and development expenses | (378) | (383) | | Operating profit | 1,154 | 958 | | Other income (expense), net | (14) | 102 | | Interest expense | (67) | (87) | | Interest income | 3 | 4 | | Earnings before income taxes | 1,076 | 977 | | Income taxes | (168) | (159) | | Net earnings | 908 | 818 | | Diluted Net Earnings Per Common Share | $1.27 | $1.12 | | Diluted Shares Outstanding | 713.7 | 729.4 | Consolidated Condensed Statements of Earnings (Nine-Month Period Ended) | Metric | September 26, 2025 ($ millions) | September 27, 2024 ($ millions) | | :---------------------------------- | :------------------------------ | :------------------------------ | | Sales | 17,730 | 17,337 | | Cost of sales | (7,173) | (7,021) | | Gross profit | 10,557 | 10,316 | | Selling, general and administrative expenses | (6,209) | (5,736) | | Research and development expenses | (1,160) | (1,142) | | Operating profit | 3,188 | 3,438 | | Other income (expense), net | (135) | 7 | | Interest expense | (210) | (217) | | Interest income | 17 | 103 | | Earnings before income taxes | 2,860 | 3,331 | | Income taxes | (443) | (518) | | Net earnings | 2,417 | 2,813 | | Diluted Net Earnings Per Common Share | $3.37 | $3.80 | | Diluted Shares Outstanding | 717.9 | 740.1 | [Reconciliation of GAAP to Non-GAAP Financial Measures](index=4&type=section&id=GAAP%20to%20Non-GAAP%20Reconciliation) This section reconciles GAAP to non-GAAP financial measures, including adjusted diluted net earnings per common share, sales growth, cash flow, and related notes [Adjusted Diluted Net Earnings Per Common Share](index=4&type=section&id=Adjusted%20Diluted%20Net%20Earnings%20Per%20Common%20Share) For the three-month period ended September 26, 2025, GAAP diluted net earnings per common share was **$1.27**, which adjusted to **$1.89** on a non-GAAP basis, primarily due to amortization of acquisition-related intangible assets Diluted Net Earnings Per Common Share Reconciliation (Three-Month Period Ended) | Metric | September 26, 2025 ($) | September 27, 2024 ($) | | :------------------------------------------ | :------------------- | :------------------- | | Diluted Net Earnings Per Common Share (GAAP) | $1.27 | $1.12 | | Amortization of acquisition-related intangible assets | 0.61 | 0.57 | | Fair value net (gains) losses on investments | 0.02 | (0.14) | | Impairments | 0.14 | 0.30 | | Gain on a product line disposition | — | — | | Acquisition-related items | — | — | | Tax effect of the above adjustments | (0.15) | (0.14) | | Discrete tax adjustments | — | — | | Rounding | — | — | | Adjusted Diluted Net Earnings Per Common Share (Non-GAAP) | $1.89 | $1.71 | Diluted Net Earnings Per Common Share Reconciliation (Nine-Month Period Ended) | Metric | September 26, 2025 ($) | September 27, 2024 ($) | | :------------------------------------------ | :------------------- | :------------------- | | Diluted Net Earnings Per Common Share (GAAP) | $3.37 | $3.80 | | Amortization of acquisition-related intangible assets | 1.77 | 1.65 | | Fair value net (gains) losses on investments | 0.21 | (0.01) | | Impairments | 0.76 | 0.30 | | Gain on a product line disposition | (0.01) | — | | Acquisition-related items | — | 0.03 | | Tax effect of the above adjustments | (0.54) | (0.37) | | Discrete tax adjustments | 0.02 | (0.06) | | Rounding | (0.01) | — | | Adjusted Diluted Net Earnings Per Common Share (Non-GAAP) | $5.57 | $5.34 | [Sales Growth and Core Sales Growth by Segment](index=5&type=section&id=Sales%20Growth%20and%20Core%20Sales%20Growth%20by%20Segment) Total company GAAP sales growth for the three-month period was **4.5%**, with core sales growth (non-GAAP) at **3.0%**, led by Biotechnology Sales Growth (Decline) by Segment (Three-Month Period Ended September 26, 2025 vs. Comparable 2024 Period) | Segment | Total sales growth (GAAP) (%) | Impact of Divestitures (%) | Impact of Currency exchange rates (%) | Core sales growth (decline) (non-GAAP) (%) | | :---------------- | :------------------------ | :--------------------- | :-------------------------------- | :------------------------------------- | | Total Company | 4.5 % | — % | (1.5)% | 3.0 % | | Biotechnology | 9.0 % | — % | (2.5)% | 6.5 % | | Life Sciences | 0.5 % | — % | (1.5)% | (1.0)% | | Diagnostics | 4.0 % | 0.5 % | (1.0)% | 3.5 % | Sales Growth (Decline) by Segment (Nine-Month Period Ended September 26, 2025 vs. Comparable 2024 Period) | Segment | Total sales growth (decline) (GAAP) (%) | Impact of Acquisitions/Divestitures (%) | Impact of Currency exchange rates (%) | Core sales growth (decline) (non-GAAP) (%) | | :---------------- | :---------------------------------- | :---------------------------------- | :-------------------------------- | :------------------------------------- | | Total Company | 2.5 % | — % | (1.0)% | 1.5 % | | Biotechnology | 7.5 % | — % | (1.0)% | 6.5 % | | Life Sciences | (1.0)% | (1.0)% | (0.5)% | (2.5)% | | Diagnostics | 1.0 % | 0.5 % | — % | 1.5 % | [Cash Flow and Free Cash Flow](index=6&type=section&id=Cash%20Flow%20and%20Free%20Cash%20Flow) For the three-month period ended September 26, 2025, net cash provided by operating activities was **$1,662 million**, an increase from **$1,513 million** in the prior year, with free cash flow at **$1,370 million** Cash Flow and Free Cash Flow (Three-Month Period Ended) | Metric | September 26, 2025 ($ millions) | September 27, 2024 ($ millions) | | :------------------------------------------ | :------------------------------ | :------------------------------ | | Net cash provided by operating activities (GAAP) | 1,662 | 1,513 | | Total cash used in investing activities (GAAP) | (312) | (606) | | Total cash used in financing activities (GAAP) | (2,781) | (845) | | Payments for additions to property, plant & equipment (capital expenditures) (GAAP) | (292) | (298) | | Proceeds from sales of property, plant & equipment (capital disposals) (GAAP) | — | 11 | | Free cash flow (non-GAAP) | 1,370 | 1,226 | [Notes to Non-GAAP Reconciliations](index=4&type=section&id=Notes%20to%20Non-GAAP%20Reconciliations) The reconciliation notes detail specific adjustments made to GAAP figures to arrive at non-GAAP measures, including amortization, fair value adjustments, and impairment charges - **Amortization of acquisition-related intangible assets** (pretax) was **$433 million** for Q3 2025 and **$1,269 million** for the nine-month period[18](index=18&type=chunk) - **Net (gains) losses on equity and limited partnership investments** (pretax) were **$15 million** for Q3 2025 and **$149 million** for the nine-month period[18](index=18&type=chunk) - **Impairment charges** for Q3 2025 included **$86 million** (pretax) for technology/intangible assets in Biotechnology and **$15 million** (pretax) for a trade name in Diagnostics[18](index=18&type=chunk) - **Discrete tax adjustments** for Q3 2025 had no net impact, while the nine-month period included net discrete tax charges of **$12 million**[21](index=21&type=chunk) [Statement Regarding Non-GAAP Measures](index=7&type=section&id=Statement%20Regarding%20Non-GAAP%20Measures) Danaher uses non-GAAP measures to provide investors with additional insights into long-term profitability trends, underlying business growth, and cash generation capabilities - **Non-GAAP measures** are used to understand **long-term profitability trends**, identify **underlying growth trends**, and assess the ability to **generate cash without external financings**[26](index=26&type=chunk)[27](index=27&type=chunk) - Exclusions for Adjusted Diluted Net Earnings Per Common Share include **amortization of acquisition-related intangible assets** (due to inconsistent timing/size of acquisitions) and **restructuring charges** (incremental to ordinary business activities)[27](index=27&type=chunk) - **Core sales** exclude the impact of **currency translation** (not under management's control) and the effect of **acquisitions and divested product lines** (due to varying timing/size of transactions)[27](index=27&type=chunk) [Important Disclosures](index=2&type=section&id=Important%20Disclosures) This section provides important disclosures regarding forward-looking statements and the use of non-GAAP financial measures [Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) The release contains forward-looking statements regarding anticipated financial results, competitive positioning, and future events, which are subject to various important factors and risks - Statements regarding **anticipated financial results** for Q4 and full year 2025, **long-term competitive positioning**, and **future events** are considered forward-looking[11](index=11&type=chunk) - Important factors that could cause actual results to differ materially include **tariffs, global economic instability, uncertainties in AI development, global health crises, competition**, and risks related to **acquisitions and cybersecurity**[11](index=11&type=chunk) - The company does not assume any obligation to update or revise any forward-looking statement, except as required by applicable law[11](index=11&type=chunk) [Non-GAAP Measures and Supplemental Materials](index=2&type=section&id=Non-GAAP%20Measures%20%26%20Supplemental%20Info) This earnings release includes non-GAAP financial measures, which are provided in addition to GAAP measures, with detailed reconciliations and information available online - The earnings release contains **non-GAAP financial measures**, which are explained and reconciled to GAAP measures in the supplemental reconciliation schedule[9](index=9&type=chunk) - Additional information, including the Quarterly Report on Form 10-Q, earnings release, slide presentation, and non-GAAP reconciliations, is available on **Danaher's investor website**[10](index=10&type=chunk) [Corporate Information](index=1&type=section&id=Corporate%20Information) This section provides corporate information, including details on the investor conference call and contact information [Conference Call and Webcast Information](index=1&type=section&id=Conference%20Call%20and%20Webcast%20Information) Danaher hosted an investor conference call and webcast on October 21, 2025, at 8:00 a.m. ET to discuss third-quarter results and financial guidance - An investor conference call and webcast were held on **October 21, 2025, at 8:00 a.m. ET** to discuss Q3 results and financial guidance[5](index=5&type=chunk) - The call and accompanying slide presentation were webcast on the **'Investors' section of Danaher's website**, with replays available[5](index=5&type=chunk)[6](index=6&type=chunk) [Contact Information](index=2&type=section&id=Contact%20Information) For investor relations inquiries, contact John T. Bedford, Vice President, Investor Relations, via email or phone - Investor Relations Contact: **John T. Bedford, Vice President, Investor Relations**[12](index=12&type=chunk) - Email: **investor.relations@danaher.com**, Phone: **(202) 828-0850**[12](index=12&type=chunk)

Core Viewpoint - Labcorp Holdings (LH) is currently viewed as a better value opportunity compared to Danaher (DHR) based on various financial metrics and rankings [1]. Group 1: Zacks Rank and Earnings Estimates - Labcorp Holdings has a Zacks Rank of 2 (Buy), indicating a positive earnings outlook, while Danaher has a Zacks Rank of 4 (Sell) [3]. - The Zacks Rank emphasizes companies with positive earnings estimate revisions, suggesting that LH is likely experiencing an improvement in its earnings outlook [3]. Group 2: Valuation Metrics - LH has a forward P/E ratio of 17.54, significantly lower than DHR's forward P/E of 26.90, indicating that LH may be undervalued [5]. - The PEG ratio for LH is 1.83, while DHR's PEG ratio is 2.98, further suggesting that LH has a more favorable valuation relative to its expected earnings growth [5]. - LH's P/B ratio is 2.82, compared to DHR's P/B of 2.86, showing that LH's market value is more attractive relative to its book value [6]. Group 3: Overall Value Assessment - Based on the stronger estimate revision activity and more attractive valuation metrics, LH is concluded to be the superior option for value investors at this time [7].

Market Overview - The week began with strong earnings from major banks but ended with regional lenders writing off bad loans, leading to investor concerns about market stability [1] - Rising U.S.-China tensions and credit quality issues are impacting market sentiment, alongside the ongoing federal government shutdown which could dampen consumer and business confidence [1] Earnings Season Insights - The fall earnings season is gaining momentum, with five Club names and approximately 80 S&P 500 companies set to report results this week [1] - Danaher is projected to earn $1.72 per share on revenues of $6.01 billion, with a focus on its China business and bioprocessing orders [1] - Capital One is expected to report EPS of $4.37 on $15.08 billion in revenue, with management likely to address consumer spending and credit-loss provisions [1] - GE Vernova anticipates earnings of $1.62 per share on sales of $9.16 billion, with attention on margins and AI data center deals [1] - Honeywell is expected to report revenues of $10.15 billion and EPS of $2.57, with a focus on its Aerospace segment and upcoming spin-off of its Solstice business [1] - Dover is projected to report EPS of $2.51 on revenues of $2.11 billion, with bookings being a key metric for future growth [1][2] Economic Data and Government Shutdown - The government shutdown has resulted in a lack of official economic data, with the September jobs report still pending [2] - The Bureau of Labor Statistics is expected to release the September existing home sales report, which will provide insights into the housing market amid inflationary pressures [2] - Home Depot is relying on increased housing activity to drive sales, highlighting the importance of housing market trends [2]

Core Insights - Danaher Corporation (DHR) is set to release its third-quarter 2025 results on October 21, before market open [1][11] Revenue and Earnings Estimates - The Zacks Consensus Estimate for revenues is $6.00 billion, reflecting a 3.4% increase from the same quarter last year [2] - The consensus estimate for earnings is $1.72 per share, indicating a 0.6% increase from the year-ago quarter [2] - Danaher has surpassed the Zacks Consensus Estimate in three of the last four quarters, with an average beat of 8.5% [2] Segment Performance - The Life Sciences segment is expected to face challenges due to lower demand in protein consumables, flow cytometry, and lab automation solutions, with revenues projected to increase by 2.5% to $1.83 billion [4] - The Biotechnology segment is anticipated to benefit from strong demand for bioprocessing, with revenues expected to rise 8.9% to $1.80 billion [7] - The Diagnostics segment is likely to see modest growth, with revenues projected to increase by 0.4% to $2.37 billion, driven by the Beckman Coulter Diagnostics unit [8] Cost and Expenses - Danaher is experiencing rising costs, with cost of sales expected to increase by 5.8% year over year to $2.54 billion and SG&A expenses anticipated to rise by 7.7% to $1.53 billion [5] International Exposure - The company has significant exposure to international markets, which may negatively impact profitability due to foreign currency headwinds [6] Recent Acquisitions - Danaher acquired Abcam plc in December 2023, enhancing its Life Sciences segment with a strong product portfolio and innovation capabilities [9] Earnings Prediction - The current Earnings ESP for Danaher is -0.39%, indicating a lower likelihood of an earnings beat this quarter [10]