Danaher Corporation

Q3 2026 results beat expectations (good + surprising): - Sales: $6.6B. - Core revenue growth (ex respiratory): +5.5% YoY, described as improving through the year (+100 bps acceleration vs Q2). - Respiratory: slightly better than expected, but still a ~250 bps headwind to core growth; overall core revenue growth was ~3%. - Profitability: ~29.0% adjusted operating margin (up 110 bps YoY), nearly 30%, with a modest tariff refund benefit plus strong execution. - EPS: Adjusted diluted EPS $2.11, up ~11.5% YoY. - Cash flow: Free cash flow $1.6B in Q3; $4.0B YTD; FCF-to-net income conversion 128% (signals high-quality earnings).

Segment momentum improved (good): - Biotechnology: core revenue +5%; discovery & medical down low single digits, but offset by protein instrumentation; bioprocessing toward upper end of mid-single digits (consumables up mid-single digits; equipment low single digits). - Orders +mid-teens, led by upstream consumables and reagents. - Company reiterated confidence in sustainable high single-digit long-term bioprocessing growth. - Life Sciences: core revenue +4.5%. Pall’s applied filtration driven by aerospace + microelectronics (mid-single digits). SCIEX strong; Beckman Coulter Life Sciences benefited from automation and AI-enabled solutions/services. - Diagnostics: core growth +7% excluding respiratory; respiratory revenue was a ~650 bps headwind, but down due to lower infection rates (yet modestly ahead of expectations due to inventory/purchasing ahead of season). - Leica Biosystems momentum: digital pathology + advanced staining; Beckman Coulter Diagnostics highest core growth quarter in 2+ years; Cepheid non-respiratory low double-digits driven by specific assay categories.

2026 outlook updated upward + Q4 framing (forecast/investor focus): - Q4 2026 guidance: - Core revenue growth (ex respiratory): ~4%–5% - Respiratory: ~150 bps headwind - Adjusted operating margin: ~29.5% - Full-year 2026 adjusted diluted EPS raised to $8.57–$8.62 (from $8.45–$8.60 prior range), reflecting Q3 outperformance and implying double-digit YoY EPS growth. - 2027 starting point (early perspective): company expects 4%–5% core revenue growth (ex respiratory) as the “right starting point,” with full details to come in January.