Danaher Raises Full-Year Earnings Guidance After Core Sales Pick Up

The Tip Desk · October 26, 2026 · 3 min read

Non-GAAP core revenue excluding respiratory testing rose 5.5% in the third quarter, and the company lifted 2026 adjusted EPS guidance to $8.57 to $8.62 a share.

Danaher Corporation (DHR) reported third-quarter sales of $6.6 billion, up 8.5% from a year earlier, as year-over-year growth accelerated from 5.5% in the second quarter and 3.5% in the first.

Non-GAAP core revenue excluding respiratory testing increased 5.5%. Core revenue, including respiratory, rose 3.0%. The second-quarter release originally reported growth of 4.5% excluding respiratory testing and 3.0% including it; the third-quarter methodology excludes tariff refunds to customers from both measures.

President and Chief Executive Officer Julie Sawyer Montgomery said the company delivered better-than-expected revenue, earnings and cash flow and pointed to improving trends across end markets. She said the continued acceleration in core revenue growth excluding respiratory revenue, together with Danaher Business System execution, drove double-digit adjusted EPS growth.

Non-GAAP adjusted diluted earnings from continuing operations grew 11.5% to $2.11 a share, faster than 8.0% growth in the second quarter. GAAP diluted earnings from continuing operations were $1.71 a share, up 34.5%. Net earnings including discontinued operations were $1.2 billion, or $1.75 a share, versus $908 million, or $1.27 a share, a year earlier.

The 34.5% GAAP increase reflected a $263 million net discrete tax benefit, primarily from the release of reserves for uncertain tax positions after audit settlements. Income taxes were $75 million, versus a $168 million benefit a year earlier. Interest expense was $135 million.

GAAP sales growth by segment was 0.5% in Biotechnology, 4.0% in Life Sciences and 17.0% in Diagnostics. Core sales growth was 5.0%, 4.5% and 0.5%, respectively. Tariff refunds to customers added 1.0 percentage points to total company sales. Beginning with the third-quarter 10-Q, the company excluded those refunds from core sales growth and from core sales excluding respiratory testing.

Respiratory testing sales were about $350 million, up from about $250 million in the second quarter. The company still expects about $1.5 billion for full-year 2026.

Operating cash flow was $1.9 billion and non-GAAP free cash flow was $1.6 billion, up from $1.5 billion and $1.3 billion in the second quarter.

For the fourth quarter, Danaher anticipates non-GAAP core revenue excluding respiratory testing will increase 4.0% to 5.0% year-over-year, with respiratory an approximately 150-basis-point headwind and core revenue growth of approximately 3.0%. Adjusted operating profit margin is expected at about 29.5%. Currency is estimated to be flat on fourth-quarter sales.

The company is increasing full-year 2026 adjusted diluted EPS guidance to $8.57 to $8.62 a share from $8.45 to $8.60. Full-year core sales growth is now guided at approximately 2.5%, with Biotechnology in the mid-single digits, Life Sciences up 3.0% to 4.0% and Diagnostics roughly flat. Respiratory is expected to be a low-single-digit headwind, and core excluding respiratory is guided at mid-single-digit growth. Currency is estimated to increase full-year sales by 1.0%.