Shares of Danaher (NYSE:DHR) slipped over 2% in premarket trading Tuesday, despite the company posting stronger-than-expected second-quarter earnings and revising its annual profit forecast upward.
The life sciences and diagnostics group reported adjusted earnings per share of $1.80, outperforming Wall Street’s average estimate of $1.64. Quarterly revenue came in at $5.94 billion, marking a 3.5% year-over-year increase and exceeding the projected $5.84 billion.
During the quarter, Danaher generated $1.3 billion in operating cash flow and posted $1.1 billion in non-GAAP free cash flow.
“Our team’s strong execution using the Danaher Business System, paired with another quarter of robust growth in our Bioprocessing business and disciplined cost management, enabled us to exceed our expectations for the quarter,” said President and CEO Rainer M. Blair.
“While the macro environment remains fluid, we believe the combination of our talented team, the differentiation of our portfolio, and our strong financial profile will enable us to continue generating sustainable, long-term value for shareholders for the remainder of 2025 and beyond,” Blair added.
Looking ahead to the third quarter, Danaher expects non-GAAP core revenue to rise at a low-single-digit pace compared to the same period last year.
For full-year 2025, the company reiterated its projection of around 3% core revenue growth but updated its adjusted earnings per share outlook. The new range of $7.70 to $7.80 represents an increase from the prior forecast of $7.60 to $7.75. The midpoint of the revised guidance is above analysts’ consensus of $7.70.
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