How did Danaher perform in the fourth quarter of 2025?

Revenue rose 4.5% year over year to $6.8 billion, though core revenue growth was 2.5% after excluding a 2.5-point currency benefit and a 0.5-point acquisition contribution. Non-GAAP adjusted diluted EPS grew 4.0% to $2.23, and GAAP diluted EPS was $1.66, up from $1.49. Operating cash flow was $2.1 billion and free cash flow was $1.8 billion.

Why did GAAP EPS decline for the full year while adjusted EPS grew?

GAAP diluted EPS fell to $5.03 from $5.29 mainly because of impairment charges of roughly $0.78 per share in 2025, including a $432 million pretax trade-name impairment in Life Sciences. Amortization of acquisition-related intangibles ($2.37 per share) and investment losses ($0.35 per share) also weigh on GAAP results but are excluded from adjusted EPS, which rose 4.5% to $7.80.

What is Danaher's 2026 outlook?

Management expects full year 2026 core revenue growth of 3% to 6% and adjusted diluted EPS of $8.35 to $8.50. First quarter core growth is guided to low-single digits. The company assumes a roughly 1.0% currency tailwind to full year sales, an adjusted operating margin near 28.5% in Q1, a 17% effective tax rate, and about 717 million average diluted shares for the year.

How is the balance sheet and capital allocation changing?

Cash rose to $4.6 billion from $2.1 billion, and long-term debt increased to $18.4 billion from $15.5 billion after $1.6 billion of new borrowings. Share repurchases fell to $3.1 billion from $6.0 billion, while dividends rose to $878 million. Goodwill increased to $43.2 billion, and management cites the strength of the balance sheet as a foundation for long-term value creation.

Which segments are driving growth and which are lagging?

Biotechnology is the strongest segment, with full year 2025 core growth of 6.5% and 2026 guidance of about 6%. Diagnostics grew 1.5% core in 2025 and is guided to low-single-digit growth in 2026, with Q1 expected to decline slightly. Life Sciences was weakest, with core revenue down 1.5% in 2025, operating margin falling to 7.1%, and 2026 guidance of flat performance.

DHR 8-K: Earnings & Results

01—Abstract

Summary

Summary of the 8-K filed January 28, 2026. Cited figures are marked; the original filing is the authoritative source.

Danaher reported fourth quarter and full year 2025 results on January 28, 2026, with all figures reflecting continuing operations.

Fourth quarter revenue rose 4.5% year-over-year to $6.8 billion^a, but core (organic, ex-FX and acquisitions) revenue grew a more modest 2.5%, with currency contributing a 2.5-point tailwind to reported growth. GAAP diluted EPS was $1.66 versus $1.49 a year earlier, while non-GAAP adjusted diluted EPS grew 4.0% to $2.23. For full year 2025, revenue reached $24.6 billion (up 3.0%, core up 2.0%), GAAP diluted EPS was $5.03 (down from $5.29, largely due to $432 million of trade-name impairments in Life Sciences and other impairments totaling $562 million in cash-flow terms), and adjusted EPS rose 4.5% to $7.80.

Cash generation remained strong, with full year operating cash flow of $6.4 billion^b and free cash flow of $5.3 billion, roughly flat with 2024. Capital allocation shifted toward the balance sheet and dividends: cash and equivalents rose to $4.6 billion from $2.1 billion, long-term debt increased to $18.4 billion from $15.5 billion after $1.6 billion of new borrowings, and share repurchases fell to $3.1 billion from $6.0 billion. Dividends paid rose to $878 million.

Goodwill grew to $43.2 billion^c, reflecting acquisition activity during the period. For 2026, management guides to core revenue growth of 3% to 6% and adjusted diluted EPS of $8.35 to $8.50, implying roughly 7% to 9% adjusted EPS growth. First quarter core growth is guided to low-single digits.

Segment outlooks are mixed: Biotechnology is expected to grow about 6%^d for the year, Diagnostics low-single digits, and Life Sciences flat. CEO Rainer Blair expressed confidence in gradual end-market improvement, though guidance is subject to tariff, currency, and macro risks.

02—Key points

Key Highlights

Q4 2025 revenue of $6.8B grew 4.5% reported but only 2.5% on a core basis; currency added about 2.5 points, and acquisitions added 0.5 points.
Full year 2025 adjusted diluted EPS rose 4.5% to $7.80, while GAAP diluted EPS fell to $5.03 from $5.29 due to impairments, primarily a $432M trade-name impairment in Life Sciences.
Biotechnology was the standout segment, with full year core growth of 6.5% and Q4 core growth of 6.0%, while Life Sciences declined 1.5% core for the year.
Full year free cash flow of $5.3B was essentially flat year over year, and FCF conversion was 1.47x net earnings from continuing operations.
Capital deployment tilted away from buybacks: repurchases fell to $3.1B from $6.0B, while new borrowings of $1.6B and cash build to $4.6B were notable.
2026 guidance calls for 3% to 6% core revenue growth and adjusted EPS of $8.35 to $8.50, with Q1 core growth guided to low-single digits.
Life Sciences operating margin compressed sharply to 7.1% for FY2025 from 12.0%, driven by impairments and weaker core performance, a key watch item for 2026.

03—Questions

Frequently Asked Questions

How did Danaher perform in the fourth quarter of 2025?
Revenue rose 4.5% year over year to $6.8 billion, though core revenue growth was 2.5% after excluding a 2.5-point currency benefit and a 0.5-point acquisition contribution. Non-GAAP adjusted diluted EPS grew 4.0% to $2.23, and GAAP diluted EPS was $1.66, up from $1.49. Operating cash flow was $2.1 billion and free cash flow was $1.8 billion.
Why did GAAP EPS decline for the full year while adjusted EPS grew?
GAAP diluted EPS fell to $5.03 from $5.29 mainly because of impairment charges of roughly $0.78 per share in 2025, including a $432 million pretax trade-name impairment in Life Sciences. Amortization of acquisition-related intangibles ($2.37 per share) and investment losses ($0.35 per share) also weigh on GAAP results but are excluded from adjusted EPS, which rose 4.5% to $7.80.
What is Danaher's 2026 outlook?
Management expects full year 2026 core revenue growth of 3% to 6% and adjusted diluted EPS of $8.35 to $8.50. First quarter core growth is guided to low-single digits. The company assumes a roughly 1.0% currency tailwind to full year sales, an adjusted operating margin near 28.5% in Q1, a 17% effective tax rate, and about 717 million average diluted shares for the year.
How is the balance sheet and capital allocation changing?
Cash rose to $4.6 billion from $2.1 billion, and long-term debt increased to $18.4 billion from $15.5 billion after $1.6 billion of new borrowings. Share repurchases fell to $3.1 billion from $6.0 billion, while dividends rose to $878 million. Goodwill increased to $43.2 billion, and management cites the strength of the balance sheet as a foundation for long-term value creation.
Which segments are driving growth and which are lagging?
Biotechnology is the strongest segment, with full year 2025 core growth of 6.5% and 2026 guidance of about 6%. Diagnostics grew 1.5% core in 2025 and is guided to low-single-digit growth in 2026, with Q1 expected to decline slightly. Life Sciences was weakest, with core revenue down 1.5% in 2025, operating margin falling to 7.1%, and 2026 guidance of flat performance.

04—Continue

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