Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue | $6.6 billion | Not stated |
| Core revenue growth (ex-respiratory) | 5.5% | 100 basis points acceleration from second quarter |
| Adjusted operating profit margin | 29% | up 110 basis points |
| Adjusted diluted net EPS | $2.11 | up approximately 11.5% |
| Free cash flow | $1.6 billion | Not stated |
Guidance and outlook
- Full year 2026 adjusted diluted net EPS guidance increased to $8.57 to $8.62.
- Fourth quarter core revenue growth, excluding respiratory revenue, is expected to be in the 4% to 5% range.
- Fourth quarter adjusted operating profit margin is expected to be approximately 29.5%.
- Respiratory revenue is expected to be an approximately 150 basis point headwind in the fourth quarter.
- For 2027, the company views 4% to 5% core revenue growth, excluding respiratory revenue, as a starting point.
How management sounded
Positive (+6 on our -10 to +10 scale). Management delivered better-than-expected results and raised full-year EPS guidance while outlining a clear, focused strategy for the next chapter. Management sounded more upbeat than on 8% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
CEO Strategy
Asked: How will you balance the legacy of Danaher's operational excellence with the need for change?
Answer: Montgomery plans to preserve the operating company structure while making the company more connected, focusing on commercial excellence, strategy-led innovation, and AI integration.
Bioprocessing Outlook
Asked: Should bioprocessing growth be in the high single digits or low double digits for 2027?
Answer: Management expects bioprocessing to be a high single-digit growth business long-term, supported by strong order trends and a robust pipeline of new programs.
AI Strategy
Asked: What is the strategy behind the NVIDIA collaboration and autonomous lab announcements?
Answer: The goal is to connect AI to the physical experiment, creating a design, make, and test closed loop that accelerates discovery and improves productivity.
M&A Strategy
Asked: How will you approach M&A to ensure higher consistency and returns?
Answer: M&A remains a priority for capital allocation, and the company will continue to look for strategically compounding opportunities while maintaining robust investment criteria.
What to watch before the next call
- The impact of the 2027 planning process on final guidance.
- The trajectory of the respiratory season and its impact on diagnostic revenue.
- Progress on the integration of recent acquisitions like Masimo and StatLab.
- The timeline for large greenfield reshoring projects, which are expected to impact the P&L starting in 2028.
