DANAHER CORP /DE/ Q4 FY2025 earnings call

• Delivered strong finish to 2025 with better-than-expected performance across portfolio. - Encouraged by strength in bioprocessing, improving momentum in diagnostics and life sciences. - Appreciated associates' efforts in navigating dynamic geopolitical and policy environment. - Innovations across segments like Cytiva launching new products, SCIEX introducing Xenotop 8,600, etc. - Fourth-quarter results: Sales $6.8B, 2.5% core revenue growth, adjusted operating profit margin 28.3%, adjusted diluted net earnings per share $2.23 up 4%, free cash flow $1.8B.

Biotechnology segment: Core revenue increased 6%. Discovery and Medical: Core revenue declined at a single-digit rate, driven by medical filtration and protein research instrumentation. Bioprocessing: Core revenue grew high single digits, with consumables up high single digits and equipment mid-single digits. Life sciences segment: Core revenue increased 0.5%. Instrument businesses flat, consumables declined due to lower demand from customers and funding pressure. Diagnostic segment: Core revenue increased 2%. Clinical Diagnostics grew mid-single digits, molecular diagnostics had respiratory revenue over $500M in Q4, Cepheid's non-respiratory test menu grew low double digits.

• Full-year 2026 core revenue expected 3%-6%. - First-quarter core revenue expected low single digits. - First-quarter adjusted operating profit margin approximately 28.5%. - Initiated full-year adjusted diluted EPS guidance $8.35 to $8.50.

Forward-looking statements subject to risks and uncertainties, including those in SEC filings; geopolitical and policy environment poses challenges.

Q: Michael Ryskin asks about core revenue guide and upside levers.

A: Rainer Blair talks about bioprocessing strength, life science end market improvements, and potential upside levers like life science end market improvement and bioprocessing growth.

Q: Tycho Peterson asks about SCIEX strength and end market turn.

A: Rainer Blair mentions innovation and pharma end market improvement contributing to SCIEX's performance.

Q: Scott Davis asks about bioproduction in China and orders.

A: Rainer Blair says China bioprocessing underlying activity level strengthening.

Q: Doug Schenkel asks about M&A environment.

A: Rainer Blair says M&A environment more constructive with improving valuations and balance sheet strength.

Q: Jack Meehan asks about margin puts and takes.

A: Matt McGrew explains EPS guide construction including core growth, cost actions, and FX impacts.

Q: Patrick Donnelly asks about LifeSci business improvement and upside.

A: Rainer Blair talks about pharma end market improvement and academic/government stabilization as upside levers.

Q: Dan Leonard asks about biotech funding impact and reshoring.

A: Rainer Blair discusses biotech funding sensitivity and reshoring trends.

Q: Dan Brennan asks about bioprocess and life sciences guidance.

A: Matt McGrew clarifies bioprocessing growth expectations and Rainer Blair talks about pharma end market recovery in life sciences