Danaher cuts FY26 revenue outlook despite Q2 beat
Danaher reported Q2 adjusted EPS of $1.94 on revenue of $6.27 billion, beating analyst estimates, but lowered its FY26 core revenue growth outlook to 3.0%-4.0% and reduced its Bioprocessing growth forecast to mid-single digits. The company raised its FY26 adjusted EPS guidance to $8.45-$8.60 per share.
*this image is generated using AI for illustrative purposes only.
Danaher Corp. (NYSE:DHR) shares fell 14.57% to $171.80 after the life sciences company lowered its fiscal 2026 core revenue growth forecast and trimmed its outlook for its Bioprocessing business, despite reporting second-quarter results that topped Wall Street expectations. The company reduced its full-year core revenue growth forecast to a range of 3.0% to 4.0%, down from the previous outlook of 3.0% to 6.0%. It now expects the Bioprocessing business to grow at a mid-single-digit rate, compared with the prior expectation for high-single-digit growth.
President and Chief Executive Officer Rainer Blair attributed the better-than-expected results to disciplined execution driving high-single-digits adjusted EPS growth and the Life Sciences businesses delivering their strongest quarter in several years. While customer project timing impacted bioprocessing revenue, underlying order trends remained strong, with bioprocessing orders growing mid-teens in the quarter. The company anticipates exiting 2026 with mid-single-digit core revenue growth.
Financial Performance
Danaher reported adjusted earnings of $1.94 per share, beating the analyst consensus estimate of $1.83. Revenue rose 5.5% year over year to $6.27 billion, ahead of analysts’ expectations of $6.10 billion. Core revenue increased 3.0% from a year earlier, while core revenue excluding respiratory testing increased 4.5%. Operating cash flow for the quarter was $1.5 billion, and non-GAAP free cash flow was $1.3 billion.
| Metric | Q2 2026 | Q2 2025 | Change |
|---|---|---|---|
| Net Earnings | $870 million | $555 million | 60% ↑ |
| Diluted EPS | $1.23 | $0.77 | 60% ↑ |
| Revenues | $6.27 billion | $5.9 billion | 5.5% ↑ |
| Operating Cash Flow | $1.5 billion | $1.3 billion | — |
| Non-GAAP Free Cash Flow | $1.3 billion | $1.1 billion | — |
Segment Performance
The Life Sciences segment led performance with 5.5% core sales growth, reaching $1.88 billion. Biotechnology revenue increased 4.0% year over year, or 2.5% on a core basis, to $1.92 billion. Diagnostics revenue climbed 7.0%, or 2.0% on a core basis, to $2.47 billion.
Outlook
For the third quarter of 2026, Danaher expects non-GAAP core revenue growth of 2.0% to 3.0% year over year. The outlook includes a low-single-digit headwind from respiratory testing revenue and stronger-than-previously-expected growth in the Life Sciences segment. The company raised its fiscal 2026 adjusted earnings forecast to a range of $8.45 to $8.60 per share, up from its prior outlook of $8.35 to $8.55 per share.
What specific factors are causing the delay in customer project timing within the Bioprocessing business?
How will the company leverage the strong mid-teens order growth to accelerate revenue beyond 2026?
Are the current demand trends in the Life Sciences segment sustainable enough to offset long-term Bioprocessing headwinds?
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