Danaher reported third-quarter 2026 revenues of $6.6 billion on 21 October, up 8.5 percent from a year earlier, and net earnings of $1.2 billion, or $1.71 per diluted share, up 34.5 percent. Adjusted diluted earnings per share rose 11.5 percent to $2.11. Core revenue rose 3.0 percent, and core revenue excluding respiratory revenue rose 5.5 percent. Operating cash flow was $1.9 billion and free cash flow was $1.6 billion. The company raised its full-year 2026 adjusted earnings per share guidance to a range of $8.57 to $8.62, from $8.45 to $8.60. Julie Sawyer Montgomery is the company.s new chief executive, according to her own description of her transition into the role.
The case that the quarter was a good one rests on the pickup in underlying demand. Chief Executive Julie Sawyer Montgomery said that revenue, earnings and cash flow were better than expected and that trends improved across end markets. Core revenue growth excluding respiratory products, at 5.5 percent, shows that the businesses outside respiratory care were growing at nearly double the headline rate. The company expects that measure to be 4.0 percent to 5.0 percent in the fourth quarter. The gain in adjusted earnings per share, at 11.5 percent, was faster than revenue growth of 3.0 percent core, and the company attributed that to its Danaher Business System, and to converting demand into profit.
The counter-argument is that respiratory revenue is a drag and that core growth is modest. Core revenue growth of 3.0 percent is much lower than reported growth of 8.5 percent, because part of the difference comes from acquisitions and currency, and the company expects respiratory revenue to be a headwind of about 150 basis points in the fourth quarter, leaving core growth for that quarter at about 3.0 percent. The upgrade to guidance is small: the new range of $8.57 to $8.62 has a midpoint of $8.595, compared with $8.525 before, a rise of about 0.8 percent. Foreign currency is expected to be flat in the fourth quarter and to add 1.0 percent to full-year sales.
The report matters because Danaher is a large supplier of equipment and consumables to laboratories, drug makers and hospitals, so its results show how much life sciences customers are spending. Ms Sawyer Montgomery said she wants Danaher to become the defining leader in life sciences and diagnostics, a goal that depends on taking market share. The company expects amortization of acquisition-related intangible assets of $0.5 billion in the fourth quarter and $1.9 billion for the full year, which affects its reported earnings but not its adjusted figure.
Net earnings rose 34.5 percent but adjusted earnings per share rose 11.5 percent, a gap that shows how much of the GAAP gain came from items the company excludes. Net earnings of $1.2 billion on revenue of $6.6 billion imply a net margin of about 18 percent, a calculation from the rounded figures. Danaher beat its own expectations and nudged its outlook higher in a quarter that introduced a new chief executive. Core growth of 3.0 percent shows that the recovery in its end markets is still gradual.