By Sahil Pandey and Mariam Sunny
July 21 (Reuters) – Danaher raised its annual profit forecast on Tuesday, but shares fell about 14% after the life sciences company cut its full-year core revenue growth outlook and reported weaker-than-expected revenue in its biotechnology business.
The results overshadowed improving trends in the life sciences tools market, as biotech and pharmaceutical companies increase spending on research and manufacturing following a prolonged post-pandemic slowdown.
Danaher lowered the upper end of its core revenue growth outlook range for the year to 4% from 6% to reflect the impact of weaker respiratory testing revenue, while maintaining the lower end at 3%.
Guggenheim analyst Subbu Nambi said investor focus was likely to remain on bioprocessing growth and the business’ outlook for the second half of 2026 despite the company’s profit beat and forecast raise.
Danaher said underlying demand for bioprocessing, including equipment and consumables used to make biologic drugs, remained strong, with orders rising by a mid-teens percentage in the quarter, although change in timing of a few large shipments weighed on revenue.
A little over $100 million of revenue, mainly from the second and third quarters, has shifted into next year, CFO Matt Gugino said.
Danaher CEO Rainer Blair said that academic and government markets had largely stabilized, though more supportive government policies would be needed before it could be called an inflection point.
The life sciences company expects full-year adjusted per-share profit of $8.45 to $8.60, up from $8.35 to $8.55 previously.
It posted second-quarter profit of $1.94 per share, above estimates of $1.83 per share, according to data compiled by LSEG.
(Reporting by Sahil Pandey and Mariam Sunny in Bengaluru; Editing by Sahal Muhammed)
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