Danaher Q3 Results

Danaher reported third-quarter 2026 sales of $6.6 billion with core revenue growth of 3% excluding respiratory testing.

Core Growth Accelerates

Core revenue growth accelerated to 5.5% excluding respiratory testing, a 100-basis-point increase from Q2.

Financial Highlights

Adjusted operating margin expanded 110 basis points to 29%, and adjusted diluted EPS rose 11.5% to $2.11.

Respiratory Testing Headwind

Respiratory revenue of about $350 million created a 250-basis-point headwind for core growth.

New CEO's Priority

New CEO Julie Sawyer Montgomery declared unambiguous share gain as the company's 'true report card' in her first earnings call.

“unambiguous share gain is our true report card”

Q4 Guidance

Danaher guided Q4 core growth excluding respiratory of 4%-5% and set an initial 2027 framework of 4%-5%.

Full-Year EPS Guidance

Full-year 2026 adjusted EPS guidance was raised to $8.57-$8.62 from $8.45-$8.60.

Segment Performance

All three segments grew mid-single digits or better excluding respiratory testing with bioprocessing at the upper end.

Bioprocessing Growth

Bioprocessing grew toward the upper end of mid-single digits with mid-teens order growth and consumables up mid-single digits.

Diagnostics Performance

Beckman Coulter Diagnostics delivered its best quarter in over two years with new products and easing China healthcare policy.

Respiratory Revenue Plan

Danaher plans $1.5 billion in respiratory revenue for 2026 with a $200 million 'bookend' for flu season variability.

AI Strategy

Danaher announced an AI-powered autonomous lab and partnerships with NVIDIA and Anthropic for accelerated AI adoption.

Capital Allocation

Masimo is described as a continuous diagnostic strategically compounding with diagnostics, not a med tech play.

What to Watch

Investors will focus on bioprocessing order conversion, respiratory testing demand, and share gain progress in early 2027.