Danaher raises 2026 adjusted EPS outlook as third-quarter revenue rises 8.5%

Danaher Corporation (NYSE: DHR) reported third-quarter 2026 revenue of $6.6 billion, up 8.5% from a year earlier, and raised its full-year 2026 adjusted earnings guidance. The company said Wednesday in a press release attached to a regulatory filing. The results cover the quarter ended Sept. 25, 2026.

Here's how the company did:

• Revenue: $6.55 billion vs. $6.05 billion a year earlier
• Diluted EPS from continuing operations: $1.71 vs. $1.27 a year earlier
• Adjusted diluted EPS: $2.11 vs. $1.89 a year earlier
• Operating cash flow: $1.89 billion vs. $1.66 billion a year earlier
• Free cash flow: $1.63 billion vs. $1.37 billion a year earlier

Net earnings including discontinued operations were $1.2 billion, up 34.5% year-over-year, the company said. Earnings from discontinued operations added $28 million.

Adjusted diluted earnings per share rose 11.5% to $2.11. The adjusted figure excludes acquisition-related intangible amortization, which was $513 million pretax in the quarter.

Revenue grew 8.5% in the quarter, but core revenue rose 3.0%. Core revenue strips out currency effects, acquisitions and divested product lines, and, starting with this quarter, tariff refunds returned to customers.

Acquisitions and divestitures contributed 6.5% to reported sales growth. Tariff refunds to customers reduced it by 1.0%, according to the reconciliation tables.

Excluding respiratory testing, core revenue rose 5.5%. Respiratory testing was a 2.5% headwind to core growth, and its sales were about $350 million, rounded to the nearest $50 million.

Here's how Danaher's segments did during the quarter:

• Biotechnology: core sales up 5.0%, total sales up 0.5%
• Life Sciences: core sales up 4.5%, total sales up 4.0%
• Diagnostics: core sales up 0.5%, total sales up 17.0%, and core sales excluding respiratory testing up 7.0%

In Diagnostics, acquisitions and divestitures accounted for 16.5% of total sales growth, which is why its reported growth ran well ahead of its core growth.

For the first nine months, sales were $18.77 billion, up 6.0% from $17.73 billion a year earlier. Diluted EPS from continuing operations was $4.38, against $3.37, and adjusted diluted EPS was $6.11, against $5.57.

Cash used in investing activities was $10.7 billion for the nine months, compared with $812 million a year earlier. Financing activities provided $7.06 billion over the same period.

The filing cites debt the company incurred to finance its acquisition of Masimo Corporation. Interest expense was $135 million in the quarter, up from $67 million a year earlier.

The company excluded from adjusted results a $52 million pretax impairment of a Biotechnology facility. It also excluded $14 million of compensation expense tied to special long-term growth equity awards granted in the third quarter to founders, certain executive officers and other leaders.

Net discrete tax benefits of $263 million in the quarter, mainly from releasing reserves for uncertain tax positions after audit settlements, also lifted GAAP results. The company excluded them from adjusted earnings.

For the fourth quarter, the company expects core revenue excluding respiratory revenue to rise 4.0% to 5.0% year-over-year. Respiratory revenue is expected to be a headwind of about 150 basis points, for core revenue growth of about 3.0%.

For full-year 2026, Danaher raised its adjusted diluted EPS guidance to $8.57 to $8.62, from $8.45 to $8.60. The company expects full-year core sales growth of about 2.5% and currency to add about 1.0% to sales.

For the fourth quarter, Biotechnology core sales are expected to grow in the mid-single digits, Life Sciences 4.0% to 5.0%, and Diagnostics up slightly. For the full year, Diagnostics core sales are expected to be about flat.

President and Chief Executive Officer Julie Sawyer Montgomery said the company was "encouraged by the improving trends we saw across our end markets." She described the company's aim as "to become the defining leader in Life Sciences and Diagnostics."

The company said it would discuss the results and guidance on an investor conference call starting at 8:00 a.m. ET Wednesday.