Executive Summary

Q2 delivered a clean beat: revenue $5.94B (+3.5% YoY; core +1.5%) vs S&P Global consensus ~$5.84B, and adjusted EPS $1.80 vs ~$1.64; GAAP EPS was $0.77 due to a $432M LS trade name impairment . EPS/revenue beats marked with an asterisk in tables are from S&P Global estimates.*
Management raised FY25 adjusted EPS guidance to $7.70–$7.80 (from $7.60–$7.75), maintained FY core growth ~3%, and guided Q3 core growth low-single digits; Q3 adjusted OPM ~25.5% .
Bioprocessing remained the key engine (segment core +6%; consumables low double-digit; book-to-bill ≈1), while Life Sciences softened (-2.5% core) and Diagnostics posted +2% core with Cepheid’s non-respiratory assays growing double digits and installed base >60,000 .
Costs/tariffs managed effectively (structural cost-out $150M for FY, ~half realized YTD; tariff exposure now “a couple hundred million,” net neutral in China in Q2), supporting margin resiliency despite macro/tariffs/VBP in China .

What Went Well and What Went Wrong

What Went Well

Bioprocessing momentum: “positive trends in our order book,” consumables low double-digit growth, book-to-bill around 1, and 1H fall-through >50%; management reaffirmed high single-digit 2H growth and LT outlook .
Diagnostics ex-respiratory strength: Cepheid non-respiratory grew double digits with strong adoption (sexual health/urology/HAI) and >60,000 installed instruments; MVP vaginitis panel grew >75% in U.S. .
Cash generation: Q2 FCF $1.09B on $1.34B CFO; YTD FCF-to-net income conversion 143% underscoring quality of earnings and cash conversion .
- Quote: “Strong growth in our Bioprocessing business and disciplined cost management enabled us to exceed our expectations for the quarter.” — CEO Rainer Blair .

What Went Wrong

GAAP profitability diluted by impairments: $432M LS trade name impairment (EPS +$0.60 adjustment) and other items reduced GAAP EPS to $0.77; adjusted EPS $1.80 .
Life Sciences softness: segment core -2.5% on weaker genomics consumables (plasmids/mRNA from two large customers) and ongoing academic/government funding pressure; step-up required in 2H (roughly $150M bridge) .
China diagnostics headwinds: VBP/reimbursement changes drove declines; management still expects ~$150M adverse VBP impact in 2025 (no deterioration vs plan) .

Financial Results

Headline P&L and Estimate Comparison

Metric	Q4 2024	Q1 2025	Q2 2025
Revenue ($USD Billions)	$6.54	$5.74	$5.94
YoY Revenue Growth (%)	+2.0%	-1.0%	+3.5%
Core Revenue Growth YoY (non-GAAP)	+1.0%	0.0%	+1.5%
GAAP Diluted EPS	$1.49	$1.32	$0.77
Adjusted Diluted EPS (non-GAAP)	$2.14	$1.88	$1.80
S&P Rev Consensus ($B)	N/A	$5.59*	$5.84*
S&P EPS Consensus ($)	N/A	$1.64*	$1.64*
Beat/(Miss) vs Consensus	N/A	Rev +$0.15B, EPS +$0.24	Rev +$0.10B, EPS +$0.16

Estimates marked with * retrieved from S&P Global.

Margins and Cash Flow

Metric	Q2 2025
Gross Profit Margin (%)	59.3%
Adjusted Operating Margin (%)	27.3% (flat YoY)
Operating Cash Flow ($B)	$1.34
Free Cash Flow ($B, non-GAAP)	$1.09

Segment Performance (Core Sales Growth YoY)

Segment	Q4 2024	Q1 2025	Q2 2025
Biotechnology	+8.0%	+7.0%	+6.0%
Life Sciences	+1.0%	-4.0%	-2.5%
Diagnostics	-2.0%	-1.5%	+2.0%

KPIs and Operating Highlights

Bioprocessing: Consumables low double-digit growth; equipment down as customers digest capacity; book-to-bill ≈1; >75% of bioprocessing tied to mAbs; 2H bioprocess core growth high single-digit expected .
Cepheid: Installed base >60,000; non-respiratory assays low-to-mid-teens growth expected for FY; MVP panel +75%+ in U.S.; FY respiratory guide maintained at ~$1.7B .
Pricing: Biotech segment 1H price ~1.5–2%; similar or slightly better in 2H assumed .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Core Revenue Growth (non-GAAP)	FY 2025	~3%	~3%	Maintained
Adjusted Diluted EPS	FY 2025	$7.60–$7.75	$7.70–$7.80	Raised
Core Revenue Growth (non-GAAP)	Q3 2025	N/A	Low-single digit YoY	Initiated
Adjusted Operating Margin	Q3 2025	N/A	~25.5%	Initiated
Respiratory Revenue (Cepheid)	FY 2025	~$1.7B (implicit framework)	~$1.7B (maintained)	Maintained

Note: Company also disclosed currency translation contributions to revenue growth assumptions of ~1.5% (Q3) and ~1.0% (FY) in non-GAAP outlook context .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4’24 and Q1’25)	Current Period (Q2’25)	Trend
Bioprocessing demand	Q4: Biotech core +8% despite sector normalization . Q1: Continued momentum in bioprocessing beat internal plan .	Core +6%; consumables low double-digit; book-to-bill ≈1; reaffirmed high single-digit 2H and LT outlook .	Stable positive; consumables-led; equipment digestion continues.
Life Sciences	Q4: +1% core; portfolio positioned for LT growth . Q1: -4% core; genomics weakness and academic/government softness .	-2.5% core; genomics down (plasmid/mRNA from two large customers); planning ~$150M 2H step-up via easier comps, China stimulus, new products .	Gradual improvement expected 2H from easier comps/new launches.
Diagnostics	Q4: -2% core; VBP pressures . Q1: -1.5% core; better-than-expected respiratory .	+2% core; non-respiratory double digits; respiratory “modestly better than expected”; installed base >60k .	Improving ex-respiratory; respiratory at ~$1.7B run-rate.
China	Q4: Mixed; portfolio resilient . Q1: Macro dynamic and funding uncertainty noted .	Developed mkts up LSD; high-growth flat; China MSD decline overall driven by Diagnostics VBP; tools showing stimulus-driven firmness .	Diagnostics headwind persists; tools/bioprocessing firming.
Tariffs/macro	Q4: Macro watch; transformation strengthens resilience . Q1: Macro “more dynamic” since start of year .	General trade/tariff uncertainty delays large equipment decisions; exposure “couple hundred million” and net neutral in China for Q2 .	Managed via DBS; timing overhang on large capex.
Cost actions	Q4: Margin expansion cited . Q1: Productivity improvements .	$150M structural cost-out on track; ~half realized by midyear .	Execution tracking; 2H benefit.
Product/tech	Q4: Portfolio positioned for innovation-led growth . Q1: Execution to “accelerate innovation” .	New SCIEX Xenotop 8600; Siteva protein A resins; AstraZeneca Dx collaboration leveraging AI/digital pathology .	New launches underpin 2H LS improvement.

Management Commentary

Strategy and execution: “Strong execution using the Danaher Business System … robust growth in our Bioprocessing business and disciplined cost management” .
Portfolio resilience: “Majority of our revenues [are] consumables … specified into regulated manufacturing processes” supporting recurring mix and cash flow .
Bioprocessing outlook: “Orders … fully supportive of a high single-digit core growth in the second half … reaffirming [high single-digit] long-term growth” .
Diagnostics mix: “Non-respiratory revenue grew double digits … MVP panel grew over 75% in the U.S.” and installed base now “more than 60,000 instruments” .
Guidance philosophy: Holding back ~$0.15–$0.20 potential EPS from better respiratory/FX until visibility improves; flowed through ~$0.20 from cost actions and 1H FX .

Q&A Highlights

Bioprocess orders/book-to-bill: Book-to-bill ≈1; consumables up low double-digits; equipment orders lumpy; 2H core growth high single-digit expected .
Pricing and cadence: Biotech 1H price ~1.5–2%; typical seasonal step-down in Q3 volumes/margins, step-up in Q4 .
Life Sciences 2H bridge: ~$150M step-up split ~1/3 genomics comps, ~1/3 China tools stimulus, ~1/3 new products .
Respiratory and FX: Maintaining ~$1.7B respiratory guide; at current FX and respiratory, implied un-flowed EPS tailwind ~$0.15–$0.20 for 2H if sustained .
Tariffs: Exposure now “a couple hundred million”; Q2 net neutral in China; plan to offset if paid .

Estimates Context

Q2 2025 vs S&P Global consensus: Revenue $5.94B vs ~$5.84B*; adjusted EPS $1.80 vs ~$1.64* — both beats. Q1 2025 also beat on revenue and EPS vs consensus. Consensus for Q3 at the time of report: revenue ~$6.00B*, EPS ~$1.72* (context for near-term expectations).
- Estimates marked with * retrieved from S&P Global.

Metric	Q1 2025 Actual	Q1 2025 Cons.*	Q2 2025 Actual	Q2 2025 Cons.*
Revenue ($B)	$5.74	$5.59*	$5.94	$5.84*
Adjusted EPS ($)	$1.88	$1.64*	$1.80	$1.64*

Implications: Street likely lifts FY25 EPS toward the high end on bioprocessing strength, cost-out execution, and non-respiratory Dx momentum; watch for potential upward bias if FX/respiratory remain favorable, which management has not yet flowed through .

Key Takeaways for Investors

Bioprocessing remains the alpha: consumables growth, supportive orders, and reaffirmed high single-digit 2H/LT outlook position DHR to outgrow tools peers through the cycle .
Diagnostics pivot to durable ex-respiratory growth is taking hold; installed base scale and menu expansion (e.g., MVP) support sustained double-digit non-respiratory growth .
Life Sciences troughing dynamics should ease in 2H via easier comps, China stimulus, and new launches (SCIEX/Beckman CLS), but execution on the ~$150M bridge is key .
FY guide quality improved: EPS raised to $7.70–$7.80; potential incremental $0.15–$0.20 not yet reflected if FX/respiratory stay favorable, offering upside optionality .
Tariff/VBP overhangs are contained/managed; structural cost-out ($150M) tracks to plan, supporting margin durability amidst macro volatility .
Near-term focus: Q3 core LSD growth and ~25.5% adj OPM; watch Life Sciences step-up evidence and any updates to respiratory sizing heading into seasonally strong Q4/Q1 .
Leadership continuity: CFO transition announced for Feb-2026 with seasoned internal successor; governance changes unlikely to disrupt financial strategy .

Additional detail on non-GAAP adjustments and reconciliations, segment core growth, cash flow, and guidance is available in the Q2 press release/8‑K exhibits .

DANAHER CORP /DE/ (DHR)·Q2 2025 Earnings Summary