Our team's disciplined execution also enabled us to exceed our fourth quarter margin, earnings, and cash flow expectations. In pharma, global monoclonal antibody production remained robust, and we were encouraged to see a modestly more favorable capital spending environment. We also continued to see a recovery in pharma R&D spending, while biotech demand remained stable. Academic and government demand remained muted but was stable sequentially, while clinical and applied end markets continued to perform well.
So with that, let's take a closer look at our full-year 2025 financial results. Our adjusted operating profit margin was 28.2%, and adjusted diluted net earnings per common share of $7.80 were up 4.5%. We also generated $5.3 billion of free cash flow, resulting in a free cash flow to net income conversion ratio of approximately 145%. Strong free cash flow generation is one of the most important metrics at Danaher, and 2025 marks the 34th consecutive year our free cash flow to net income conversion ratio exceeded 100%.
Our earnings growth and strong free cash flow generation in the face of tariff-related cost pressures and significant productivity investments underscore the differentiated quality of our earnings and business models. These are just a few of the innovations from across Danaher that are delivering meaningful customer impact while also driving clear financial results, including approximately 25% year-over-year growth in new product revenue. Sales were $6.8 billion in the fourth quarter, and we delivered 2.5% core revenue growth. High growth markets were up mid-single digits, with solid growth outside of China, more than offsetting a low single-digit decline in China.
| Metric | Period | Current guidance |
|---|---|---|
| Core revenue growth | FY2026 | 3%-6%, guiding to low end (3%-4%) (Converted prior framework into formal guide) |
| Adjusted EPS | FY2026 | $8.35-$8.50 (Initiated) |
| Bioprocessing growth | FY2026 | High single digits (upper end on consumables) (Initiated) |
| Bioprocessing equipment | FY2026 | Flat (Initiated) |
| Diagnostics growth | FY2026 | Low single digits (Initiated) |
| Life sciences growth | FY2026 | Flat (Initiated) |
| Respiratory revenue | Q1 2026 | Around $500 million (Initiated) |
| 2025 cost-action benefit | FY2026 | About $0.30 EPS / $250 million (Initiated) |
| Metric | YoY | Note |
|---|---|---|
| Q4 core revenue | +2.5% | Developed markets up low single digits and high growth markets up mid-single digits, partly offset by a low single-digit decline in China. |
| Q4 adjusted operating margin | -130 bps to 28.3% | Cost savings initiatives more than offset the positive impact of volume leverage. |
| Q4 adjusted EPS | +4% to $2.23 | Earnings growth despite tariff-related cost pressures and significant productivity investments. |
| SCIEX | Mid-single-digit growth | ZenoTOF 8600 traction plus a third consecutive quarter of pharma end-market improvement and robust clinical and applied markets. |
| New product revenue | +25% | Accelerated cadence of new product introductions across the portfolio. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Bioprocessing recovery | Equipment in mid-teens decline; consumables recovering | Consumables strong with book-to-bill near one; equipment grew in Q4 with three quarters of sequential order gains | Improving |
| End-market improvement | Gradual improvement through 2025 | Expected to continue gradually into 2026, led by pharma | Improving |
| Academic and government demand | Muted but stable | Still muted with policy/budget uncertainty, a potential upside if it stabilizes | Stable |
| M&A environment | — | More constructive, with valuations and interest rates moving favorably and balance sheet primed | Improving |
| Reshoring / equipment investment cycle | Long-term theme | Believed to be early innings of a long-term investment cycle, though timing is hard to pinpoint | Improving |
| China bioprocessing | — | Underlying activity strengthening, biotech finding new momentum, expected to grow in 2026 | Improving |