Danaher guides for 3% to 6% 2026 growth as biotech funding shows signs of stabilizing
Danaher guided for 3% to 6% revenue growth and adjusted EPS of $8.35 to $8.50 in 2026 as biopharma spending shows signs of recovery. Recent results included $6.8 billion in quarterly sales, 2.5% core revenue growth and $1.8 billion in free cash flow.
Danaher is guiding for 3% to 6% revenue growth in 2026 and adjusted EPS of $8.35 to $8.50 as early 2026 data show biopharma spending is stabilizing and beginning to recover. The stock fell about 10% in the last 30 days, recently trading near $213 per share, as investors focused on conservative 2026 growth guidance and ongoing softness in academic and biotech funding despite solid earnings results.
Danaher sells tools, instruments, and services used by biotech and pharma companies to develop and manufacture drugs. Early 2026 data show funding conditions are loosening and deal activity is picking back up, while contract research firms and suppliers have reported improving demand.
In the fourth quarter, sales reached $6.8 billion with 2.5% core revenue growth, adjusted EPS rose 4% to $2.23, and free cash flow totaled $1.8 billion. Segment performance showed gradual improvement: biotechnology core revenue increased 6%, Diagnostics rose 2%, and bioprocessing consumables remained strong with equipment orders improving sequentially. Management also reported respiratory revenue of approximately $500 million in the fourth quarter and expects about $1.8 billion for full-year 2026 under a normal season assumption.
In 2025, Danaher generated $24.6 billion in total revenue, growing about 3% year over year despite a weak biotech funding environment. During the year, Danaher delivered $3.6 billion in net income and generated approximately $5.3 billion in free cash flow.
The company said growth is supported primarily by consumables tied to commercial biologics production rather than early-stage biotech demand. Approximately three-quarters of bioprocessing revenue is linked to commercial manufacturing volumes, which continue to benefit from monoclonal antibody production and expanding biologics approvals. Cost actions implemented in 2025 are expected to contribute approximately $0.30 to 2026 EPS.
Danaher’s board approved a regular quarterly cash dividend of $0.40 per share. Shares have traded in a 52-week range of $171 to $243.
Valuation estimates in the source articles varied. One article said the stock was trading recently at roughly $195 to $200 per share, or about 23 to 24 times earnings estimates based on 2026 EPS guidance. Another said the last close was $195.50, compared with a most-followed fair value estimate of $264.91 per share, while a separate valuation model estimated a target price of $272 by 2026.