Danaher (NYSE:DHR) Q4 2025 Earnings call January 28, 2026 08:00 AM ET Company ParticipantsDoug Schenkel - Managing Director of Life Science Tools and DiagnosticsJohn Bedford - VP of Investor RelationsMatt McGrew - EVP and CFOMichael Ryskin - Managing DirectorPatrick Donnelly - Managing DirectorRainer Blair - President and CEOScott Davis - Chairman and CEOTycho Peterson - Managing Director of Global EquitiesConference Call ParticipantsDan Brennan - Senior Equity Research Analyst and Managing DirectorDan Leon ...

Financial Data and Key Metrics Changes - For the full year 2025, sales were $24.6 billion, with core revenue increasing by 2% and adjusted diluted net earnings per common share rising by 4.5% to $7.80 [7][8] - The adjusted operating profit margin was 28.2%, and free cash flow generated was $5.3 billion, resulting in a free cash flow to net income conversion ratio of approximately 145% [7][8] - In Q4 2025, sales reached $6.8 billion, with core revenue growth of 2.5% [11] Business Line Data and Key Metrics Changes - Core revenue in the biotechnology segment increased by 6%, while discovery and medical declined at a high single-digit rate due to prior year comparisons and funding constraints [13][14] - Bioprocessing core revenue grew high single digits, driven by strong demand for monoclonal antibodies [14][15] - In diagnostics, core revenue increased by 2%, with clinical diagnostics growing mid-single digits [18] Market Data and Key Metrics Changes - Core revenues in developed markets increased low single digits, with North America flat and Western Europe up mid-single digits [12] - High growth markets saw mid-single digit increases, with solid growth outside of China, which experienced a low single-digit decline [12] Company Strategy and Development Direction - The company expects gradual end market improvements to continue, supported by a differentiated portfolio and the Danaher Business System [7][23] - Focus on innovation and new product introductions, with approximately 25% year-over-year growth in new product revenue [11][8] - Anticipation of core revenue growth in the range of 3%-6% for 2026, with adjusted diluted EPS guidance set at $8.35-$8.50 [21][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth potential of the bioprocessing market, driven by robust FDA approvals and increasing demand for biologics [16][23] - The company remains cautious about the academic and government demand, which has been muted but stable [6][17] - Management highlighted the importance of a recovering biotech funding environment for the life sciences business [91][92] Other Important Information - The company has maintained a strong free cash flow generation for 34 consecutive years, exceeding a 100% conversion ratio [8] - The company is well-positioned for M&A opportunities, with a constructive environment and strong cash flow generation [64][66] Q&A Session Summary Question: Guidance for core revenue growth - Management confirmed a core revenue growth guidance of 3%-6% for 2026, with bioprocessing expected to remain strong at high single digits [27][28] Question: Bioprocessing order book and growth - The order book supports high single-digit growth for bioprocessing, with equipment orders showing sequential growth [33][34] Question: Strength in SCIEX and end market recovery - SCIEX experienced mid-single-digit growth, driven by innovation and improvement in the pharma end market [40][41] Question: Margin expectations for 2026 - Management expects margins to follow core growth, with benefits from cost actions expected to materialize in the second half of the year [42][43] Question: Biotech funding impact on life sciences - The biotech segment is sensitive to funding improvements, which could enhance order volumes [91][92] Question: Reshoring trends in bioprocessing - Management noted ongoing discussions about reshoring, indicating a potential long-term investment cycle in bioprocessing [94][95]

Core Insights - Agilent Technologies reported a strong quarterly performance with organic revenue growth of 7.2%, surpassing Wall Street's expectation of 5.3% [1] - The company provided robust revenue guidance for 2026, although earnings guidance was slightly below expectations [1] - Following the earnings report, Agilent's stock price increased by $3.60, or over 2%, but remains down more than $20 from its peak during the COVID year [1] Company Overview - Agilent Technologies specializes in providing instruments, software, and services for life sciences, diagnostics, and chemical analysis, including chromatography, spectroscopy, genomics, and laboratory automation solutions [2]

Group 1 - Revvity, Inc. (NYSE: RVTY) operates in the life sciences and diagnostics markets, providing instruments, reagents, and assays [1] - Approximately 80% of Revvity's total revenues come from recurring business, indicating a stable revenue model [1] - The company is strategically focused on key growth markets, particularly in cell and gene therapy [1]