Danaher slips despite Q2 beat as Life Sciences unit underperforms

Danaher Corporation (NYSE:DHR) traded ~4% lower in the premarket on Tuesday after the company’s Q2 2025 financials, which beat Street forecasts for both revenue and earnings, indicated that its Life Sciences unit underperformed.

The company reported $5.9B in revenue for the quarter, exceeding analysts’ estimates by $60M, as its Biotechnology and Diagnostics units added ~$1.9B and $2.3B to the topline, respectively, implying 8% and 2% YoY growth, and Life Sciences added ~$1.8B with ~1% YoY growth.

Meanwhile, analysts had projected DHR to record $1.84B and $2.28B in revenue from the Biotechnology and Diagnostics divisions, respectively, while Life Sciences was expected to add $1.72B, according to Bloomberg data.

However, the Life Sciences unit recorded an operating loss of $239M for the quarter, compared to $233M in earnings in the year-ago quarter and $199M of earnings projected by analysts. Meanwhile, operating profit reached $531M at the Biotechnology division, implying 15% YoY growth, and $554M at the Diagnostics division, mostly unchanged from last year, compared to $500M and $463.5M in the consensus, respectively.

DHR’s adjusted earnings reached $1.80 per share, exceeding the analyst forecasts by $0.16 as its adjusted operating profit margin held steady from the prior-year period at 27.3% compared to 25.4% in the consensus.

The Washington, DC-based healthcare giant also increased its full-year adj. EPS outlook to $7.70 – $7.80 from $7.60 – $7.75 per share projected in April, in line with the consensus, and announced the retirement of current CFO Matthew McGrew after a tenure of over two decades at the company.

Matthew Gugino, finance chief of the company’s Life Sciences Innovations Group, is expected to succeed McGrew effective Feb. 28, 2026.