Jan 28 (Reuters) – Life sciences firm Danaher Corp forecast annual profit largely in line with Wall Street estimates on Wednesday and beat fourth-quarter profit and revenue expectations, as improving conditions in the pharmaceutical market and reduced policy uncertainties offset weakness in academic research funding.
Danaher is benefiting as uncertainties around drug pricing regulations, such as tariffs and most-favored-nation concerns, are being resolved, along with a recovery in venture capital funding in the biotech industry and stabilization in China’s diagnostics market.
CEO Rainer Blair said the company “delivered a strong finish to the year with better-than-expected performance across our portfolio”, citing continued strength in bioprocessing and improved momentum in diagnostics and life sciences.
China diagnostics business declined only in the low single digits in the fourth quarter, a significant improvement from declines of as much as 20% in previous quarters, due to volume-based procurement headwinds, Blair said in a JPMorgan conference earlier this month.
The Washington, D.C.-based company expects fiscal 2026 adjusted earnings of $8.35 to $8.50 per share, compared with analysts’ estimate of $8.42 according to LSEG data.
The results underscore improving conditions for life sciences tools providers as drugmakers increase spending.
On an adjusted basis, Danaher reported fourth-quarter profit of $2.23 per share, beating analysts’ estimate of $2.15. Quarterly sales of $6.84 billion exceeded estimates of $6.81 billion.
For the full year, Danaher anticipates core revenue growth of 3% to 6%.
(Reporting by Kamal Choudhury in Bengaluru; Editing by Krishna Chandra Eluri)
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