We continued to see a modest recovery in pharma R&D spending, though it remains below historical levels in academic and government demand was stable sequentially but remained soft amid ongoing uncertainty around research funding. Sales were $6.1 billion in the third quarter and we delivered 3% core revenue growth. Core revenues in high growth markets were up low single digits as solid performance outside of China was offset by a mid single digit decline in China. Growth in our biotechnology and life sciences businesses in China was more than offset by declines in diagnostics due to volume based procurement and reimbursement policy changes implemented in the last 12 months.
Adjusted diluted net earnings per common share of $1.89 were up approximately 10% year-over-year. During the quarter, we deployed approximately $2 billion of capital towards the repurchase of 10 million shares of Danaher common stock. In biotechnology, Cytiva launched the ÄKTA readyflux TFF system 500, a fully automated benchtop tangential flow filtration system developed to meet growing demand for efficient low volume processing. Core revenue in discovery and medical grew low single digits in the quarter.
Growth in medical and lab filtration was partially offset by declines in protein research instrumentation, where academic research customers continue to face funding constraints. Core revenue in bioprocessing grew high single digits with double digit growth in consumables partially offset by declines in equipment. Consumables growth was driven by robust demand for commercialized therapies at our large pharma and CDMO customers. Equipment revenue grew sequentially but declined in the high teens versus prior year as expected.
| Metric | Period | Current guidance |
|---|---|---|
| Core revenue growth | FY2026 | 3%-6% (anchor at low end of range to start) (Initial directional framework) |
| Adjusted EPS growth | FY2026 | High single digit (Initial directional framework) |
| Operating margin expansion | FY2026 | North of 100 basis points (Initial directional framework) |
| Biotechnology core growth | FY2026 | High single digit (New planning assumption) |
| Bioprocessing equipment | FY2026 | Assumed flat (New planning assumption) |
| Respiratory revenue (Cepheid) | FY2026 | ~$1.7 billion (flat, endemic rate) (New planning assumption) |
| China diagnostics headwind | FY2026 | ~$75M-$100M headwind (New planning assumption) |
| Cost actions | FY2025 | $175M total ($150M in Q4); net $75M savings, not repeating in 2026 (New) |
| Bioprocessing core growth | Q4 2025 | High single digits (New) |
| Discovery & medical core growth | Q4 2025 | Down mid single digits (New) |
| Metric | YoY | Note |
|---|---|---|
| Total sales / core revenue | 3% core growth ($6.1B sales) | DBS execution, bioprocessing momentum and better than expected Cepheid respiratory revenue. |
| Biotechnology core revenue | +6.5% | High single digit bioprocessing growth with double digit consumables, partly offset by high-teens equipment decline and low single digit discovery and medical growth. |
| Bioprocessing consumables | Double digit growth | Robust demand for commercialized therapies at large pharma and CDMO customers. |
| Bioprocessing equipment | Down high teens | Customers awaiting policy clarity before finalizing investment decisions despite healthy project pipelines. |
| Adjusted operating profit margin | 27.9%, up 40 bps | Higher volume leverage and disciplined cost management more than offset productivity investments. |
| Adjusted diluted EPS | $1.89, up ~10% | Revenue beat and margin expansion. |
| China high growth markets | Mid single digit decline | Biotechnology and life sciences growth offset by diagnostics declines from volume based procurement and reimbursement policy changes. |
| Developed markets core revenue | Up mid single digits | North America up mid single digits; Western Europe approximately flat. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Bioprocessing equipment recovery / reshoring | — | Activity, quotations and confidence rising on brownfield investments as tariffs become planable and MFN deals turn workable, but not yet converting to orders; potential extended capital cycle over coming years | Rising |
| Monoclonal antibody demand | — | Remains robust; ~75% of bioprocessing tied to mAbs, driven by growing commercial volumes, new indications and upcoming biosimilars | Steady |
| China diagnostics VBP and reimbursement | — | Anniversarying the wave that began in Q4; ~$75M-$100M residual 2026 headwind viewed as modest and manageable | Declining |
| China localization policy | — | 20% pricing benefit for local manufacturers; most diagnostics equipment and reagents to be localized by year end, viewed as advantageous | Steady |
| Life sciences / academic and government funding | — | Modest pharma R&D recovery below historical levels; academic and government soft amid funding uncertainty; planning for flat 2026 | Steady |
| Cost actions and productivity investments | — | $175M of 2025 cost actions yielding $250M net 2026 savings and ~$0.30 EPS tailwind, supporting margin expansion | Rising |
| Capital deployment (M&A vs buybacks) | — | Strong bias to M&A under valuation framework; not opposed to buybacks at current levels; new 35 million share authorization | Steady |