Danaher Beats Q3, Warns of China Headwind

Danaher beat third-quarter 2025 expectations with adjusted EPS of $1.89 (vs. roughly $1.71–$1.72 estimates) and revenue of about $6.05 billion, sending the stock up roughly 7–7.8%. The company reiterated full‑year adjusted EPS guidance around $7.70–$7.80 (midpoint roughly $7.75) and set Q4 revenue guidance of about $6.70 billion, below analysts’ estimates. Management said margins improved (operating margin ~19.1%, free‑cash‑flow margin ~22.6%) and highlighted cost actions while laying out a 2026 growth target in the low single digits. Results were driven by resilient diagnostics and strong bioprocessing—particularly monoclonal‑antibody‑related tools—and a modest rebound in pharmaceutical R&D as tariff uncertainty eased. Risks include continued weakness in China, with management planning for a $75M–$100M diagnostics headwind next year and ongoing uncertainty in academic and government demand.