Danaher’s first quarter results for 2025 were met with a positive market reaction, as the company surpassed Wall Street’s expectations despite reporting flat year-over-year sales. Management attributed the outcome to stronger-than-anticipated performance in its bioprocessing segment and elevated respiratory test demand at Cepheid. CEO Rainer Blair explained that “consistent positive momentum in our order book continued into the first quarter,” particularly highlighting robust consumable growth. Strategic investments in innovation and productivity also played a role in supporting profitability and cash flow.
Is now the time to buy DHR? Find out in our full research report (it’s free).
Danaher (DHR) Q1 CY2025 Highlights:
- Revenue: $5.74 billion vs analyst estimates of $5.59 billion (flat year on year, 2.7% beat)
- Adjusted EPS: $1.88 vs analyst estimates of $1.64 (14.4% beat)
- Revenue Guidance for Q2 CY2025 is $5.92 billion at the midpoint, above analyst estimates of $5.81 billion
- Adjusted EPS guidance for the full year is $7.68 at the midpoint, roughly in line with what analysts were expecting
- Operating Margin: 22.2%, in line with the same quarter last year
- Organic Revenue was flat year on year (-4% in the same quarter last year)
- Market Capitalization: $143.9 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions Danaher’s Q1 Earnings Call
- Michael Ryskin (Bank of America) asked about the drivers of bioprocessing order strength and how much is due to consumables versus equipment. CEO Rainer Blair confirmed that consumables are leading, while equipment orders are improving but remain below historical levels.
- Tycho Peterson (Jefferies) inquired about the company’s ability to offset tariffs through pricing and supply chain levers. CFO Matt McGrew detailed multiple mitigation strategies, including regional manufacturing and surcharges, and stated they can become more aggressive if needed.
- Scott Davis (Melius Research) questioned the long-term attractiveness of the China diagnostics market in light of pricing challenges. Blair responded that while recent pricing adjustments align China with global markets, the country remains a critical growth area.
- Doug Schenkel (Wolfe Research) sought clarity on the continued weakness in genomics and expectations for a rebound. Management indicated that challenges are isolated to a few large customers and expect improvement as the year progresses.
- Rachel Vatnsdal (J.P. Morgan) asked about the impact of academic and government demand softness in Life Sciences. Management explained that this is a small portion of revenue but is being factored into a more cautious outlook for the segment.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will watch (1) whether bioprocessing order momentum continues and translates into sustained revenue growth, (2) the effectiveness of Danaher’s cost and tariff mitigation strategies as trade policy evolves, and (3) stability or improvement in Life Sciences and Diagnostics segments, particularly academic and China-facing businesses. Additionally, we will monitor the pace and impact of new product launches across the portfolio.
Danaher currently trades at $198.51, up from $184.81 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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