Core Insights - Danaher reported Q2 2025 sales of $5.9 billion, with core revenue growth of 1.5% year over year and adjusted diluted EPS growth of 5% to $1.80 [1] - The company raised its full-year adjusted diluted net EPS guidance to $7.70–$7.80, reflecting confidence in ongoing performance [1][9] - The bioprocessing segment, a key growth driver, achieved 6% core revenue growth, primarily due to strong demand for consumables from large pharma contract manufacturers [2][3] Financial Performance - Free cash flow reached $1.1 billion, indicating strong cash generation capabilities [1] - The adjusted operating profit margin is expected to be approximately 25.5% for the full year [9] - The company maintains a core revenue growth guidance of approximately 3% for 2025, with low single-digit growth anticipated for Q3 [9] Business Model and Revenue Streams - Over 80% of Danaher's sales come from consumables and service revenue, which are tied to regulated manufacturing processes [6][7] - The high recurring revenue model enhances cash-flow strength and provides resilience against market volatility [6][8] - The company’s strong balance sheet and cash flow generation position it well for future portfolio enhancements [7][8] Tariff and Supply Chain Management - Danaher has successfully reduced its direct tariff exposure to a few hundred million dollars, down from $350 million, through strategic supply chain adjustments [4] - The company has implemented measures to offset tariff impacts, ensuring stable margins and protecting free cash flow [5] - Management emphasized the ability to manage costs without passing tariff expenses onto customers, maintaining a neutral financial impact [5]