New York, Jan 29, 2026, 13:58 EST — Regular session
- Danaher’s shares slipped about 2% in afternoon trading following the release of its quarterly results and 2026 outlook.
- The company beat quarterly profit forecasts, but its adjusted profit outlook for 2026 came in mostly in line with expectations.
- Traders are focused on bioprocessing and China diagnostics trends as they await Friday’s U.S. inflation report for fresh clues.
Danaher shares fell 2.2% to $219.49 on Thursday afternoon, pressured all session following a weak open. The stock swung between $218.79 and $225.43, with about 3.45 million shares traded.
Shares dipped as investors absorbed Danaher’s latest update, which showed a rise in pharma spending and biotech investments despite continued cuts in academic research budgets. The company forecast adjusted earnings for 2026 between $8.35 and $8.50 per share, closely in line with the $8.42 average estimate from analysts. Danaher also pointed to eased policy uncertainty around drug pricing, including tariffs and “most-favored-nation” provisions. CEO Rainer Blair highlighted that China diagnostics revenue dropped only in the low single digits during Q4, a clear improvement from prior quarters where declines hit as much as 20%. 1
Danaher posted a 4.5% increase in fourth-quarter revenue, reaching $6.8 billion, with adjusted earnings of $2.23 per share. Operating cash flow stood at $2.1 billion, while free cash flow was $1.8 billion for the quarter. Full-year 2025 revenue hit $24.6 billion, with adjusted profit at $7.80 per share. Blair pointed to a “strong finish to the year with better-than-expected performance across our portfolio,” citing solid gains in bioprocessing and renewed momentum in diagnostics and life sciences. 2
Danaher’s “core revenue,” a gauge of organic growth, strips out currency swings as well as effects from acquisitions and divestitures. Its “adjusted” earnings, meanwhile, exclude what the company classifies as non-core items.
Some investors aren’t questioning whether the rebound will come, but are focused on its steepness. Danaher’s forecast largely matches consensus estimates, offering little room for upside surprises. This is especially true as tools stocks have already factored in a recovery.
Shares in the life-sciences tools sector dropped further after Thermo Fisher released a 2026 profit forecast below Wall Street’s expectations. The company highlighted potential challenges from a decline in U.S. academic research funding, a trend expected to continue through the year. CEO Mark Casper told analysts they are preparing for “similar conditions to last year” regarding academic and government demand. 3
This deals a serious blow to Danaher, as a big chunk of demand for life sciences tools stems from government-funded labs and universities, despite differing end buyers across segments. When budgets tighten, purchases often shift from “must-have” to “hold off.”
On Danaher’s earnings call, Blair said end-market trends mostly matched what they saw earlier in 2025, pointing to a rebound in pharma R&D spending alongside steady biotech demand. He also mentioned that “academic and government demand remained muted but was stable sequentially.” Still, he warned that a further drop in those sectors could put the company’s growth targets at risk. 4
Other risks loom as well. China’s volume-based procurement might squeeze diagnostics pricing. Bioprocessing demand could swing dramatically if customers run down inventories or pause capacity expansion. Any biotech funding slowdown would probably show up only after a lag.
Attention shifts to Friday’s U.S. Producer Price Index for December 2025, set for release at 8:30 a.m. ET. This data might shake up rate expectations and, as a result, influence valuations—particularly among high-multiple healthcare and tools stocks. 5
