DHR

Danaher stock has delivered a decline of 26.6% over the past 5 years, yet current checks suggest the shares now trade near an intrinsic value estimate while still screening expensive on traditional multiples. The result is a company with mixed long term performance and a low overall value score, but without a clear discount on most valuation yardsticks. Over 5 years, Danaher shares are down 26.6%, which may lead some investors to question whether the recent pricing now already reflects that weaker stretch. New product approvals at subsidiaries such as Masimo can support expectations for future cash flows. However, any setback in bringing these technologies into routine clinical use may limit how much investors are willing to pay for that potential. Across broader valuation checks, Danaher earns a low value score of 2 out of 6, which suggests the stock leans expensive rather than offering an obvious bargain. The issue now is whether Danaher’s current price, with the stock fairly valued on a Discounted Cash Flow (DCF) view but overvalued on market multiples, offers enough potential to justify the risk of owning it at this level. Compare Danaher’s mixed valuation picture with other high quality companies by scanning 54 high quality undervalued stocks that share solid fundamentals and appear to have more room in their pricing. The Discounted Cash Flow (DCF) model values Danaher by projecting future cash the business can return to shareholders and then discounting those amounts back to today. On this view, Danaher generated about $5.3b of free cash flow over the last twelve months, with the model using cash flow growth assumptions rather than assuming a shrinking business. That pattern supports an estimated intrinsic value of about $228 per share. Compared with the current share price, this DCF outcome suggests that Danaher stock appears roughly 7.9% undervalued on cash flow assumptions alone. The recent FDA 510(k) clearance for Masimo’s Root with LiDCO and the LiDCO sensor may help support those long term cash flow expectations, because it adds another cleared product platform within the group. On the DCF model, Danaher appears roughly fairly valued, with only a modest tilt toward being undervalued at recent prices. Danaher is fairly valued according to our Discounted Cash Flow (DCF), but this can change at a moment's notice. Track the value in your watchlist or portfolio and be alerted on when to act. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Danaher. P/E is usually the cleanest way to compare Danaher with other Life Sciences stocks because earnings are a core focus for many investors in this sector. Danaher currently trades on a P/E of 37.0x. That is slightly below the wider Life Sciences industry average of 37.5x, yet above the peer group average of 33.1x. The fair P/E ratio, based on factors such as Danaher’s sector, size and risk profile, is estimated at 31.8x. The gap between this and the current 37.0x suggests the stock screens overvalued on earnings, even though it is roughly in line with the broader industry. For investors, that means you are paying a premium to the peer group for each dollar of Danaher’s earnings today. On the P/E multiple, Danaher stock appears overvalued relative to what the model suggests would be a more reasonable earnings-based price. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where Danaher’s valuation puzzle leaves off. They spell out which assumptions on Danaher’s future growth, margins and earnings would need to hold for the stock to be worth significantly more or less than it is today. Each one ties a fair value estimate to a specific story about the company’s potential catalysts and risks so you can judge over time which version of events appears to be unfolding on the Community page. Add your voice to the Simply Wall St community with a number driven Narrative on Danaher that sets out your case and the key metrics you are watching. This is a chance to put a clear view on whether developments such as Masimo’s FDA 510(k) clearance for Root with LiDCO and the Masimo LiDCO sensor support Danaher’s current pricing, and to track how your thesis holds up as new information arrives. Do you think there's more to the story for Danaher? Head over to our Community to see what others are saying! For Danaher, the Discounted Cash Flow (DCF) work suggests the intrinsic value is close to the current share price with only a modest discount. Market multiples tell a different story and point to an overvalued stock relative to peers and to a fair P/E estimate. That split reflects a focus on cash flow durability on one side and on earnings expectations and sentiment on the other, while broader checks still lean weak. The key question from here is whether Danaher can deliver the cash flow and earnings path that keeps investors comfortable paying a premium multiple. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DHR. Have feedback on this article? 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It has been about a month since the last earnings report for Pediatrix Medical Group (MD). Shares have added about 3.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Pediatrix Medical Group due for a pullback? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent catalysts for Pediatrix Medical Group, Inc. before we dive into how investors and analysts have reacted as of late. Pediatrix Medical Tops Q2 Earnings on Better Cash Collections Pediatrix Medical reported second-quarter 2026 adjusted earnings per share (EPS) of 63 cents, which beat the Zacks Consensus Estimate by 10.5%. The bottom line increased 18.9% year over year. Net revenues increased 4.1% year over year to $487.8 million. The top line surpassed the Zacks Consensus Estimate by 2.2%. The strong performance was driven by improved cash collection activity and a favorable payor mix, along with contributions from recent acquisitions. However, these gains were partly offset by lower patient volumes and higher operating costs. Same-unit revenues increased 1.9% year over year, which beat our growth estimate of 0.4%. Same-unit revenues from patient service volumes declined 2.1% year over year. Same-unit revenues from net reimbursement-related factors grew 4% year over year. This growth was supported by higher cash collections, increased patient acuity and a slightly better payor mix. This metric exceeded our model estimate of 2.6%. Total operating expenses were $430.9 million, up 5.4% year over year. The figure was higher than our estimate of $415.8 million. The year-over-year increase was primarily due to higher practice salaries and benefits costs, and general and administrative expenses. Practice salaries and benefits totaled $336.1 million, up 3.9% year over year, mainly due to higher same-unit clinical salaries and malpractice expenses. Interest expense decreased 10.5% year over year to $8.2 million. The figure was below our estimate of $8.7 million due to lower interest rates and borrowings. Adjusted EBITDA rose 4.4% year over year to $76.4 million, driven by favorable contributions from recent acquisitions. Pediatrix Medical exited the second quarter of 2026 with cash and cash equivalents of $288.9 million, down from $375.2 million as of Dec. 31, 2025. There were no outstanding borrowings on its revolving credit facility at the end of the quarter. Total assets of $2.1 billion decreased from $2.2 billion at the end of 2025. Total debt, including finance leases, net was $584.2 million, which fell from $597.3 million at the end of 2025. Total shareholders’ equity of $881 million improved from $865.9 million at the end of 2025. MD generated net cash from operations of $126.3 million in the second quarter of 2026 compared with $138.1 million in the prior-year comparable period. During the first half of 2026, the company repurchased 2.8 million shares for $61.7 million. As of June 30, 2026, $104.5 million was available under the buyback program. Management has reaffirmed its guidance for adjusted EBITDA at $280-$300 million for 2026. Net income is now estimated to be between $147.6 million and $162.1 million for 2026. Interest expenses are currently forecasted to be $33.1 million. Income tax expenses are expected to be in the range of $54.5-$60 million. Depreciation and amortization expenses are now estimated to be $24.4 million. Transformational and restructuring-related expenses are anticipated to be $20.4 million. Since the earnings release, investors have witnessed a upward trend in estimates review. At this time, Pediatrix Medical Group has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock has a score of A on the value side, putting it in the top quintile for value investors. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Pediatrix Medical Group has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Pediatrix Medical Group belongs to the Zacks Medical Services industry. Another stock from the same industry, Danaher (DHR), has gained 5.1% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Danaher reported revenues of $6.27 billion in the last reported quarter, representing a year-over-year change of +5.5%. EPS of $1.94 for the same period compares with $1.80 a year ago. For the current quarter, Danaher is expected to post earnings of $1.96 per share, indicating a change of +3.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. Danaher has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Pediatrix Medical Group, Inc. (MD) : Free Stock Analysis Report Danaher Corporation (DHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Avantor, Inc. (AVTR). Shares have added about 5.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Avantor due for a pullback? Well, first let's take a quick look at the latest earnings report in order to get a better handle on the recent catalysts for Avantor, Inc. before we dive into how investors and analysts have reacted as of late. Avantor reported second-quarter 2026 adjusted earnings per share (EPS) of 21 cents, down 12.5% from the year-ago quarter. However, the bottom line surpassed the Zacks Consensus Estimate by 10.5%. GAAP EPS for the quarter was 6 cents, down from 9 cents per share in the prior-year quarter. Revenues for the second quarter increased 0.5% to $1.69 billion and surpassed the consensus mark by 4.2%. Results benefited from the earlier-than-expected return to organic growth in VWR Distribution & Services. Bioscience & Medtech Products, or BMP, also performed near the high end of management’s expectations, supported by double-digit order growth and a book-to-bill ratio of 1.1 times. Better-than-expected performance, especially by VWR, led management to raise sales and EPS guidance for the full year. Foreign currency translation had a favorable impact of 0.9% in the quarter. Excluding currency movements, total revenues declined 0.4% organically from the year-ago period. AVTR’s reported sales improvement reflected gains in its distribution business, partly offset by continued weakness in BMP. Management noted that commercial execution and customer-focused initiatives under the Avantor Revival program contributed to the better-than-anticipated quarterly performance. VWR Distribution & Services generated revenues of $1.24 billion, up 2.7% on a reported basis and 1.7% organically year over year. The segment returned to growth sooner than management had expected, driven primarily by higher volumes and stronger commercial execution. Performance improved across large global accounts as Avantor retained and expanded customer relationships, developed its new-business pipeline and accelerated contract onboarding. Small and midsized customers also contributed, aided by stronger e-commerce activity following upgrades to the company’s digital platform and the relaunch of vwr.com. Direct traffic, conversion rates and daily sales improved as the quarter progressed. Pharma and biotech customer activity provided an additional modest tailwind, although demand in education and certain European markets remained at subdued levels. BMP revenues totaled $451.8 million, reflecting a reported decline of 5.1% and an organic decrease of 5.6%. Despite the year-over-year contraction, the segment delivered sequential revenue growth and finished near the high end of the company’s expectations. Process Chemicals outperformed management’s forecast, supported by healthy end-market demand, improved operations and strong order activity. However, Fluid Handling and NuSil declined in the mid-teens, while Research & Specialty Chemicals recorded a mid-single-digit organic decrease. The normalization of prior-year customer ordering patterns in NuSil, Serum and Electronic Materials, along with a challenging comparison in Fluid Handling, created approximately 600-basis-point headwind to BMP’s organic growth. Management expects these pressures to ease going forward and continues to project a return to organic growth during the second half of 2026. In the quarter under review, Avantor’s gross profit declined 3.1% year over year to $537 million. The gross margin contracted approximately 120 basis points (bps) to 31.7%. Selling, general and administrative expenses decreased 2.4% year over year to $415.2 million. Adjusted operating profit totaled $225.1 million, down 10.7% from the prior-year quarter’s level. The adjusted operating margin in the quarter contracted 170 bps to 13.3%. Avantor exited the second quarter of 2026 with cash and cash equivalents of $306.8 million compared with $279.3 million at the first quarter of 2026-end. Total debt at the end of the second quarter of 2026 was $3.70 billion compared with $3.82 billion at the end of the first quarter of 2026. Cumulative cash provided by operating activities at the end of the second quarter of 2026 was $236.9 million compared with $263.7 million a year ago. Operating cash flow was $178.2 million in the quarter, while free cash flow totaled $142.8 million. Avantor repaid $112.1 million of debt and ended June with gross debt of $3.72 billion, cash of $306.8 million and adjusted net leverage of 3.3 times. Avantor raised its 2026 organic revenue growth outlook to a range of negative 0.5% to positive 0.5%. The previous forecast called for a decline of 2.5% to 0.5%. The increase reflects VWR’s stronger performance and improved expectations for the second half. Adjusted earnings guidance was raised to 80-83 cents per share from the prior range of 77-83 cents. The company maintained its adjusted EBITDA margin forecast of 14.8-15.3% and free cash flow outlook of $500-$550 million. Since the earnings release, investors have witnessed a upward trend in fresh estimates. At this time, Avantor has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Avantor has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Avantor belongs to the Zacks Medical Services industry. Another stock from the same industry, Danaher (DHR), has gained 10% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Danaher reported revenues of $6.27 billion in the last reported quarter, representing a year-over-year change of +5.5%. EPS of $1.94 for the same period compares with $1.80 a year ago. For the current quarter, Danaher is expected to post earnings of $1.96 per share, indicating a change of +3.7% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Danaher. Also, the stock has a VGM Score of F. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Avantor, Inc. (AVTR) : Free Stock Analysis Report Danaher Corporation (DHR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Al Gore (Trades, Portfolio), former U.S. Vice President and co-founder of Generation Investment Management, recently submitted the firm's 13F filing for the second quarter of 2026. Founded in 2004 alongside David Blood, the London-based firm is dedicated to "long-term investing, integrated sustainability research, and client alignment." With offices in New York, Washington D.C., and Sydney, Generation employs a diverse team representing over 20 countries. The firm's investment philosophy centers on sustainability, believing that companies strategically managing economic, social, and environmental performance will outperform over the long term. Generation focuses on key global drivers such as climate change, resource scarcity, and demographic shifts, applying a fundamental, bottom-up approach with heavy concentration in information technology, healthcare, and financial services. Warning! GuruFocus has detected 4 Warning Signs with DHR. Is DHR fairly valued? Test your thesis with our free DCF calculator. Al Gore (Trades, Portfolio) added a total of 1 stock during the second quarter of 2026: The most significant addition was Stryker Corp(NYSE:SYK), with 512,346 shares, accounting for 1.57% of the portfolio and a total value of $161.31 million. This new position reflects Generation's confidence in the medical technology sector, aligning with its focus on healthcare innovation and long-term demographic trends. Al Gore (Trades, Portfolio) also increased stakes in a total of 11 stocks, with the most notable changes being: The most notable increase was Moodys Corp(NYSE:MCO), with an additional 172,155 shares, bringing the total to 538,516 shares. This adjustment represents a significant 46.99% increase in share count, a 0.76% impact on the current portfolio, and a total value of $243.90 million. The move underscores Generation's belief in the growing demand for credit ratings and financial analytics. The second largest increase was Intuit Inc(NASDAQ:INTU), with an additional 271,526 shares, bringing the total to 1,095,488 shares. This adjustment represents a significant 32.95% increase in share count and a total value of $285.92 million, highlighting the firm's continued conviction in financial software and small business solutions. Al Gore (Trades, Portfolio) completely exited 2 holdings in the second quarter of 2026, as detailed below: Thermo Fisher Scientific Inc(NYSE:TMO): Al Gore (Trades, Portfolio) sold all 773,600 shares, resulting in a -3.41% impact on the portfolio. This exit suggests a strategic reallocation away from life sciences tools, possibly due to valuation concerns or a shift toward other healthcare opportunities. Accenture PLC(NYSE:ACN): Al Gore (Trades, Portfolio) liquidated all 518,390 shares, causing a -0.92% impact on the portfolio. The departure from this consulting giant may reflect a reduced outlook on IT services spending or a desire to concentrate capital in higher-conviction ideas. Al Gore (Trades, Portfolio) also reduced positions in 15 stocks. The most significant changes include: Reduced Microsoft Corp(NASDAQ:MSFT) by 1,355,466 shares, resulting in a -30.33% decrease in shares and a -4.5% impact on the portfolio. The stock traded at an average price of $404.05 during the quarter and has returned 22.65% over the past 3 months and 5.52% year-to-date. This substantial trim suggests profit-taking after a strong run, though Microsoft remains a top holding at 11.29% of the portfolio. Reduced Workday Inc(NASDAQ:WDAY) by 1,870,802 shares, resulting in a -44.74% reduction in shares and a -2.18% impact on the portfolio. The stock traded at an average price of $126.73 during the quarter and has returned 43.71% over the past 3 months but -14.47% year-to-date. This significant cut may indicate concerns about the company's growth trajectory or a rebalancing toward more favorable risk-reward profiles. At the end of the second quarter of 2026, Al Gore (Trades, Portfolio)'s portfolio included 28 stocks. The top holdings were Danaher Corp(NYSE:DHR) at 12.52%, Amazon.com Inc(NASDAQ:AMZN) at 12.03%, Microsoft Corp(NASDAQ:MSFT) at 11.29%, MercadoLibre Inc(NASDAQ:MELI) at 7.8%, and West Pharmaceutical Services Inc(NYSE:WST) at 7.08%. The holdings are mainly concentrated in 6 of the 11 industries: Healthcare, Technology, Consumer Cyclical, Financial Services, Communication Services, and Industrials. This diversification reflects Generation's systematic approach to identifying sustainable growth opportunities across sectors while maintaining a strong tilt toward technology and healthcare, which together represent over half of the portfolio's total value. For value investors, this filing offers a window into how a sustainability-focused, long-term investor navigates market volatility. The significant reduction in Microsoft, despite its strong recent performance, suggests a disciplined approach to valuation and risk management. Meanwhile, the new position in Stryker and increased stakes in Moodys and Intuit indicate a preference for companies with durable competitive advantages and exposure to structural growth trends. As always, investors should consider these moves within the broader context of their own portfolios and risk tolerance.

Abbott Laboratories (NYSE:ABT) delivered strong fiscal Q2 2026 results, beating quarterly estimates and raising its annual profit forecast as robust demand for its cancer diagnostics and medical devices businesses helped ease investor concerns surrounding procedure volumes. Sales for the quarter rose 13% on a reported basis and 4.8% on a comparable basis. Danaher Corporation’s (NYSE:DHR) second-quarter results, on the other hand, were marked by core growth improving compared to the previous quarter, along with disciplined execution that drove high-single-digit adjusted EPS growth. Let's take a closer look at which company appears better positioned for future growth following their latest quarterly results. Abbott Laboratories (NYSE:ABT) reported GAAP diluted EPS of $0.53 and adjusted diluted EPS of $1.31, which excludes specified items, and reaffirmed its full-year 2026 comparable sales growth guidance of 6.5% to 7.5%, suggesting confidence in its operations. The company also raised its full-year 2026 adjusted diluted EPS guidance range to $5.45 to $5.60, compared to the previous range of $5.38 to $5.58. Key fiscal Q2 2026 results for Danaher Corporation (NYSE:DHR) included a 5.5% year-over-year growth in revenue to $6.3 billion, as well as a 60% year-over-year rise in net earnings to $870 million, or $1.23 per diluted common share. The company also reported that non-GAAP core revenue increased 3.0% year-over-year and non-GAAP core revenue, excluding respiratory testing revenue, increased 4.5% year-over-year, suggesting improving trends in the company’s operations. According to LSEG data, Danaher Corporation’s (NYSE:DHR) adjusted EPS of $1.94 exceeded analyst estimates of $1.83. One of the biggest highlights of the quarter for Abbott Laboratories (NYSE:ABT) was its diagnostics segment. ‌The company’s cancer ⁠diagnostics business, which was recently integrated through the Exact Sciences buyout, is benefiting from an expanding base that comprises both new and repeat users of the colorectal cancer screening test, Cologuard. Sales in its diagnostics segment rose 42% to $3.09 billion in fiscal Q2, surpassing the estimate ​of $3.02 billion, emerging as one of the company's strongest performers during the quarter. Analysts agree with this sentiment. William Blair stated that the company’s cancer diagnostics results should improve sentiment around the Exact Sciences ​acquisition, with growth in medical devices helping offset concerns surrounding hospital procedure volumes. The firm reiterated an Outperform rating on the shares and noted that its shares rose over 10% on fiscal Q2 results, which helps alleviate concerns surrounding the recent Exact Sciences acquisition and medtech end markets, and signals an improving nutrition business. It told investors in a research note that all of these updates were positive, and should compound with pipeline products for even better results in H2 2026 and into FY27. In contrast, Danaher Corporation’s (NYSE:DHR) biggest positive was its Life Sciences business, which delivered its strongest performance in several years. Although bioprocessing revenue was affected by customer project timings, the underlying order trends remained strong, with bioprocessing orders growing mid-teens in the quarter. This shows that the underlying demand for bioprocessing remained strong, which includes consumables and equipment necessary to make biologic drugs. Danaher Corporation (NYSE:DHR) stated that a little over $100 million of revenue has shifted into next year, primarily from the second and third quarters. This suggests that customer demand has been delayed rather than cancelled, potentially supporting future revenue growth. While the academic and government markets have largely stabilized, more supportive government policies would be essential to safely call it an inflection point. However, Danaher Corporation (NYSE:DHR) reported weaker-than-expected revenue in its biotechnology business and cut its full-year core revenue growth outlook. The company cut the upper end of its core revenue growth outlook range to 4% from 6% for the year, and maintained the lower end at 3%, primarily to take into account the effects of the weaker respiratory testing revenue. These trends overshadowed the improving trends in the life sciences tools market at a time when pharmaceutical and biotech companies are increasing research and manufacturing spending following the post-pandemic slowdown. Following the earnings, BofA told investors that while the overall total company numbers were “fine” and ahead of expectations, the result “was certainly messier than expected”, driven primarily by a miss in bioprocessing that caused the stock to tumble 11%. While the firm maintained a Buy rating on Danaher Corporation (NYSE:DHR), it cut the price target on the stock to $230 from $270, stating that the company now has to rebuild confidence in the execution and business. This holds especially true as “this is not the first setback/headwind to pop up in recent years” for the company. On the other hand, while Abbott Laboratories' (NYSE:ABT) outlook remains encouraging, a meaningful portion of its expected growth acceleration in the second half of 2026 depends on the successful commercialization of several pipeline products. Management has expressed confidence that sales and earnings growth will accelerate in the second half of 2026. While this outlook is supported by improving momentum across multiple business segments, investors will need to see that acceleration materialize over the coming quarters. Notably, Abbott Laboratories (NYSE:ABT) reaffirmed rather than raised its full-year comparable sales growth guidance of 6.5% to 7.5%, suggesting that management remains prudent despite its strong second-quarter performance. Hedge fund ownership for the two stocks provides additional insight into the investment thesis. According to Insider Monkey’s database of 1,022 hedge funds, hedge fund sentiment for the stock has improved moderately from the previous quarter, rising from 71 in fiscal Q4 2025 to 73 in fiscal Q1 2026. While the increase is modest, it suggests that institutional investors continue to maintain confidence in Abbott Laboratories’ (NYSE:ABT) long-term growth prospects following its strong quarterly performance. However, according to Insider Monkey’s extensive database tracking 1,022 hedge funds, Danaher Corporation’s (NYSE:DHR) hedge fund ownership dropped from 125 in fiscal Q4 2025 to 110 in fiscal Q1 2026. The total dollar value also dropped from $11.42 billion to $10.11 billion, suggesting that some institutional investors have become more cautious amid the company's recent execution challenges. William Blair highlighted the key pipeline products to watch for Abbott Laboratories (NYSE:ABT), which include the launch of Amulet 360 late in the year or early in 2027, the ramping-up launch of Volt in the U.S. and TactiFlex Duo OUS, and the potential for Libre reimbursement expansion. For Danaher Corporation (NYSE:DHR), investors should watch bioprocessing order growth over the coming quarters. If delayed revenues begin flowing into next year as management expects, investor confidence could improve significantly. Management also expects 3%-4% core revenue growth for fiscal 2026, making execution in its Life Sciences segment an important factor to monitor. Sustained momentum and execution in the life sciences segment could also offset weakness elsewhere in the portfolio for the company. While we acknowledge the potential of DHR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DHR and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow. Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Danaher Corporation (NYSE:DHR) delivered second-quarter results on July 21, marked by core growth improving compared to the previous quarter, along with disciplined execution that drove high-single-digit adjusted EPS growth. Despite beating earnings estimates, raising its adjusted EPS guidance, and reporting improving trends in its Life Sciences business, investors remain unconvinced following weaker-than-expected bioprocessing revenue and a reduction in its full-year core revenue growth outlook. The mixed results raise an important question for investors: Is Danaher Corporation’s (NYSE:DHR) recent weakness creating a buying opportunity, or are growth concerns beginning to outweigh its long-term strengths? One of the biggest positives from the quarter was Danaher Corporation’s (NYSE:DHR) Life Sciences business, which delivered its strongest performance in several years. Although bioprocessing revenue was affected by customer project timings, the underlying order trends remained strong, with bioprocessing orders growing mid-teens in the quarter. This shows that the underlying demand for bioprocessing remained strong, which includes consumables and equipment necessary to make biologic drugs. Danaher Corporation (NYSE:DHR) stated that a little over $100 million of revenue has shifted into next year, primarily from the second and third quarters. This distinction matters because it suggests that customer demand has been delayed rather than cancelled, potentially supporting future revenue growth. While the academic and government markets have largely stabilized, more supportive government policies would be essential to safely call it an inflection point. Key fiscal Q2 2026 results included a 5.5% year-over-year growth in revenue to $6.3 billion, as well as a 60% year-over-year rise in net earnings to $870 million, or $1.23 per diluted common share. The company also reported that non-GAAP core revenue increased 3.0% year-over-year and non-GAAP core revenue, excluding respiratory testing revenue, increased 4.5% year-over-year, suggesting improving trends in the company’s operations. According to data compiled by LSEG, Danaher Corporation (NYSE:DHR) profits for the quarter reached $1.94 per share, above estimates of $1.83 per share. On the other hand, Danaher Corporation (NYSE:DHR) reported weaker-than-expected revenue in its biotechnology business and cut its full-year core revenue growth outlook. The company cut the upper end of its core revenue growth outlook range to 4% from 6% for the year, and maintained the lower end at 3%, primarily to take into account the effects of the weaker respiratory testing revenue. These trends overshadowed the improving trends in the life sciences tools market in a backdrop where pharmaceutical and biotech companies are in a race to increase research and manufacturing spending after the slowdown following the pandemic. Following the earnings, BofA told investors that while the overall total company numbers were “fine” and ahead of expectations, the result “was certainly messier than expected”, driven primarily by a miss in bioprocessing that caused the stock to tumble 11%. While the firm maintained a Buy rating on Danaher Corporation (NYSE:DHR), it cut the price target on the stock to $230 from $270, stating that the company now has to rebuild confidence in the execution and business. This holds especially true as “this is not the first setback/headwind to pop up in recent years” for the company. The stock is currently trading at a forward P/E of 22.51 at a 16.09% difference to the sector, which suggests that investors are paying a premium valuation. However, according to Insider Monkey’s extensive database tracking 1,022 hedge funds, Danaher Corporation’s (NYSE:DHR) hedge fund ownership dropped from 125 in fiscal Q4 2025 to 110 in fiscal Q1 2026. The total dollar value also dropped from $11.42 billion to $10.11 billion, suggesting that some institutional investors have become more cautious amid the company's recent execution challenges. Some prominent points of focus for investors could be bioprocessing order growth, and if revenues begin flowing into next year as management expects, investor confidence could improve significantly. Furthermore, management now expects 3%-4% core revenue growth for FY2026, and investors should monitor whether Danaher Corporation (NYSE:DHR) can meet or exceed those expectations. Sustained momentum and execution in the life sciences segment could also offset weakness elsewhere in the portfolio for the company. Investors should also continue to watch end-market recovery and traction from Danaher Corporation’s (NYSE:DHR) recent growth initiatives, and they can support its expectation to end 2026 at a mid-single-digit core revenue growth rate. These factors can position Danaher Corporation (NYSE:DHR) to create sustainable and long-term shareholder value and accelerate the move of customers from discovery to delivery. For the upcoming quarter, Danaher Corporation (NYSE:DHR) expects non-GAAP core revenue to increase in the 2.0% to 3.0% range year-over-year. It has similar growth expectations for the full year 2026, and anticipates non-GAAP core revenue to increase in the 3.0% to 4.0% range year-over-year. Furthermore, Danaher Corporation (NYSE:DHR) raised its full-year adjusted diluted net earnings per common share guidance to a range of $8.45 to $8.60 compared to previous guidance of $8.35 to $8.55, reflecting continued optimism in its growth trajectory. Factors such as strong fiscal Q2 earnings performance and an earlier-than-expected completion of the Masimo acquisition further supported this guidance increase for the company. If the strong earnings performance persists, Danaher Corporation (NYSE:DHR) could be well-positioned to maintain its growth trajectory. While we acknowledge the potential of DHR to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than DHR and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow. Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Thermo Fisher Scientific Inc. TMO raised its 2026 outlook after second-quarter earnings and revenues exceeded expectations. The update reflects stronger customer activity, better acquisition performance and improved operating leverage. The key question is whether the higher forecast marks a durable recovery across end markets or a near-term improvement that could still be disrupted by currency swings, uneven regional demand and cost pressure. Over the past 12 months, TMO stock has gained 23.1%, outperforming the industry’s 8% decline. Image Source: Zacks Investment Research Adjusted earnings increased 13% year over year to $6.03 per share, topping the Zacks Consensus Estimate by 5.6%. Revenues rose 10% to $11.99 billion and beat the consensus mark by 2.7%, while organic revenue growth reached 5%. Growth was broad across end markets. Pharma and biotech, industrial and applied, and diagnostics and healthcare each advanced at a mid-single-digit rate, while academic and government demand increased in the low single digits. Management lifted its 2026 revenue forecast to $47.4 billion-$48.1 billion and adjusted earnings guidance to $24.93-$25.33 per share. The earnings range implies growth of 9%-11% from 2025. Thermo Fisher now expects organic revenue growth near the upper end of its 3%-4% range. The outlook includes all of the second-quarter outperformance and a modest improvement in the second half, supporting the view that customer activity is strengthening rather than merely shifting between quarters. Here's what the consensus estimates suggest for the company's earnings and revenues. Image Source: Zacks Investment Research Image Source: Zacks Investment Research Adjusted operating income increased 15% to $2.74 billion, and adjusted operating margin expanded 90 basis points to 22.8%. Productivity and volume leverage offset unfavorable mix while preserving investment in growth initiatives. Profitability improved across all four reporting segments. Analytical Instruments delivered the largest margin gain, with adjusted operating margin rising 420 basis points to 23%, helped by productivity, volume leverage, foreign exchange and favorable mix. Acquisitions are expected to contribute $1.6 billion to 2026 revenues and 32 cents to adjusted earnings per share. Clario added digital endpoint data capabilities, while the filtration and separation business expanded Thermo Fisher’s bioproduction offering across upstream and downstream workflows. Agilent Technologies Inc. A also operates across life sciences, diagnostics and applied markets, making it a relevant comparison for laboratory demand and instrument spending. Danaher Corporation DHR, with businesses spanning life sciences and diagnostics, provides another read on bioprocessing and healthcare-related customer activity. Foreign exchange remains a restraint. Management reduced the expected 2026 revenue benefit from currency movements by $100 million to $200 million, and recent rate changes created a 5-cent adjusted earnings headwind for the second half. Demand also remains uneven. North America and China each grew only in the low single digits during the quarter, while tariffs, inflation and geopolitical disruption could pressure costs, delay purchasing decisions and limit the volume leverage needed to achieve the planned margin expansion. The raised outlook improves the operating picture, but the investment case remains balanced. Better demand, acquisition contributions and margin expansion support earnings growth, while currency volatility, macroeconomic uncertainty, leverage and competition remain meaningful offsets. TMO currently carries a Zacks Rank #3 (Hold). Its Momentum Score of A points to favorable recent price and earnings-estimate trends, but the Value Score of C, Growth Score of C and VGM Score of C suggest a more measured setup across valuation and growth factors. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Danaher Corporation (DHR) : Free Stock Analysis Report Agilent Technologies, Inc. (A) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Johnson & Johnson (NYSE:JNJ) delivered strong fiscal Q2 2026 results, with sales for the quarter growing nearly 7% to $25.31 ⁠billion, above analysts' average estimate of about $25.05 billion. Adjusted earnings per share reached $2.90, surpassing the expectation of $2.85. The company also raised its guidance and stated that it is on track to meet its 2026 goal of over $100 billion in annual revenue for the first time in its 140-year history. Danaher Corporation’s (NYSE:DHR) second-quarter results, on the other hand, were marked by core growth improving compared to the previous quarter, along with disciplined execution that drove high-single-digits adjusted EPS growth. Both companies delivered encouraging quarterly results, but they are benefiting from very different growth drivers. Johnson & Johnson (NYSE:JNJ) is proving that it can successfully navigate patent-related headwinds through its newer medicines, while Danaher (NYSE:DHR) is betting on a recovery in life sciences and bioprocessing demand. The key question for investors is which growth story appears more durable heading into 2026. Johnson & Johnson’s (NYSE:JNJ) pharmaceutical business was arguably the biggest contributor to its strong quarter, as it helped increase total sales, generating $16.38 billion in quarterly sales and exceeding analysts' estimate of $16.1 billion. The healthcare giant now expects its annual sales to be around $101.1 billion at the midpoint, ​compared with $100.8 billion ⁠previously. In another optimistic feat, it raised its adjusted earnings per share forecast to $11.68 at the midpoint, from a previous $11.55 per share. The most encouraging sign for investors may be Johnson & Johnson’s (NYSE:JNJ) ability to absorb a significant patent-related decline in Stelara sales while still raising its full-year outlook. Revenue from Johnson & Johnson’s (NYSE:JNJ) Stelara, which treats psoriasis, Crohn's disease, and ​other autoimmune conditions, dropped over 55% in the quarter to $740 million due to patent loss. However, the company’s cancer and newer immunology drugs can be seen countering this loss, as sales of Tremfya, its psoriasis and inflammatory bowel disease drug, rose 72.5% to $2 billion, considerably exceeding the estimate of $1.74 billion. Strong performance from newer drugs such as Tremfya suggests the company's pipeline is successfully offsetting losses from older products. Unlike Johnson & Johnson's (NYSE:JNJ) pharmaceutical-driven growth story, Danaher's (NYSE:DHR) biggest positive came from its Life Sciences business, which delivered its strongest performance in several years. Danaher's (NYSE:DHR) biggest positive was its Life Sciences business, which delivered its strongest performance in several years. Although bioprocessing revenue was affected by customer project timings, the underlying order trends remained strong, with bioprocessing orders growing mid-teens in the quarter. This shows that the underlying demand for bioprocessing remained strong, which includes consumables and equipment necessary to make biologic drugs. Danaher Corporation (NYSE:DHR) stated that a little over $100 million of revenue has shifted into next year, primarily from the second and third quarters, suggesting that customer demand has been delayed rather than cancelled and could support future revenue growth. While the academic and government markets have largely stabilized, more supportive government policies would be essential to safely call it an inflection point. Although both companies delivered solid quarterly results, their near-term risks differ meaningfully. Johnson & Johnson (NYSE:JNJ) is primarily dealing with product-specific and segment-level headwinds, whereas Danaher (NYSE:DHR) continues to face broader questions surrounding execution and the timing of a life sciences recovery. Johnson & Johnson's (NYSE:JNJ) MedTech segment was comparatively less impressive during the quarter, with sales slightly missing expectations. Management attributed some of the weakness to temporary headwinds, including inventory-related pressures in China that weighed on Electrophysiology sales and softer U.S. procedure trends affecting Abiomed. While Johnson & Johnson (NYSE:JNJ) expects these challenges to improve over time, investors may want to watch whether its MedTech business returns to its historical growth trajectory in the coming quarters. Sustained weakness in these businesses could make the company increasingly reliant on its pharmaceutical segment to drive growth. In contrast, Danaher Corporation (NYSE:DHR) reported weaker-than-expected revenue in its biotechnology business and cut its full-year core revenue growth outlook. The company cut the upper end of its core revenue growth outlook range to 4% from 6% for the year, and maintained the lower end at 3%, primarily to take into account the effects of the weaker respiratory testing revenue. These headwinds partially overshadowed the company's otherwise improving trends in the life sciences tools market at a time when pharmaceutical and biotech companies are increasing research and manufacturing spending following the post-pandemic slowdown. Following the earnings, BofA told investors that while the overall total company numbers were “fine” and ahead of expectations, the result “was certainly messier than expected”, driven primarily by a miss in bioprocessing that caused the stock to tumble 11%. While the firm maintained a Buy rating on Danaher Corporation (NYSE:DHR), it cut the price target on the stock to $230 from $270, stating that the company now has to rebuild confidence in the execution and business. This holds especially true as “this is not the first setback/headwind to pop up in recent years” for the company. Hedge fund positioning also reflects differing levels of institutional confidence in the two companies' near-term outlooks. According to Insider Monkey data, Johnson & Johnson (NYSE:JNJ) seems to be growing in popularity among hedge funds, with its ownership going from 104 in fiscal Q4 2025 to 113 in fiscal Q1 2026. Some notable stakes for Johnson & Johnson (NYSE:JNJ) come from Fisher Asset Management, GQG Partners, and AQR Capital Management, with Balyasny Asset Management's position jumping by 1,411% to $146 million. However, according to Insider Monkey’s extensive database tracking 1,022 hedge funds, Danaher Corporation’s (NYSE:DHR) hedge fund ownership dropped from 125 in fiscal Q4 2025 to 110 in fiscal Q1 2026. The total dollar value also dropped from $11.42 million to $10.11 million, suggesting that some institutional investors have become more cautious amid the company's recent execution challenges. The divergence in hedge fund sentiment mirrors the broader investment thesis for both stocks. Johnson & Johnson (NYSE:JNJ) appears to be benefiting from growing confidence in its pharmaceutical pipeline and raised guidance, while Danaher (NYSE:DHR) remains a longer-term recovery story that may require additional execution before institutional sentiment improves. While we acknowledge the potential of JNJ to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than JNJ and that has 100x upside potential, check out our report about the cheapest AI stock. READ NEXT: 15 Stocks That Will Make You Rich in 10 Years AND 12 Best Stocks That Will Always Grow. Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Find your next quality investment with Simply Wall St's easy and powerful screener, trusted by over 7 million individual investors worldwide. Danaher (DHR) has attracted investor attention after issuing third quarter 2026 revenue guidance of 2% to 3% growth, alongside detailing recent share repurchases and releasing its latest quarterly earnings figures. See our latest analysis for Danaher. Despite Danaher's latest guidance, earnings update, and completion of multi year buyback programs, the stock has been under pressure in 2026, with the share price down 16.9% year to date and the 5 year total shareholder return also negative. If this kind of earnings and guidance news has you rethinking where growth could come from next, it may be worth scanning 39 healthcare AI stocks as a starting point for fresh ideas. Danaher shares are down sharply this year even as earnings, guidance, and buybacks reshape the story. Is most of the repricing already behind the stock, or does the valuation still leave meaningful upside on the table? Danaher’s most followed narrative puts fair value at about $228.61 versus a last close of $191.50, framing the recent share price slide against a higher long run earnings and cash flow story built around life sciences and diagnostics. Read the complete narrative. Want to see what is sitting behind that premium mentality for Danaher? The core narrative leans heavily on mid single digit revenue expansion, faster earnings growth, and a richer margin mix that has to hold together for the fair value math to work. Analysts feeding into this narrative are using an 8.31% discount rate and are effectively assuming that Danaher can compound revenue and profits at a pace that supports a future P/E multiple below the current Life Sciences average, yet still above many broader market stocks. Those inputs translate into a fair value that sits well above today’s share price, but they also bake in expectations around bioprocess recovery, diagnostics uptake, and ongoing buybacks that investors may want to test against their own conviction. Result: Fair Value of $228.61 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this Danaher narrative still leans on bioprocessing and China, where policy shifts, funding pressures, and lumpier consumables demand could easily unsettle those fair value assumptions. Find out about the key risks to this Danaher narrative. If the split sentiment around Danaher has you on the fence, take a closer look at the data now and weigh both sides for yourself using the 3 key rewards and 1 important warning sign. If Danaher has you rethinking your next move, do not sit on the sidelines while other opportunities line up across quality, income, and resilience. Target reliable cash generators with steadier profiles by scanning the 81 resilient stocks with low risk scores for companies that may better match your comfort with volatility. Prioritise financial strength by running through the solid balance sheet and fundamentals stocks screener (49 results) and focus on stocks that pair manageable debt with consistent fundamentals. Hunt for potential future standouts before the crowd catches on by checking the screener containing 20 high quality undiscovered gems and seeing which stories deserve a spot on your watchlist. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DHR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Make better investment decisions with Simply Wall St's easy, visual tools that give you a competitive edge. Danaher (NYSE:DHR) shares saw a sharp post earnings selloff, with heavy trading activity highlighting strong investor reaction. Following the drop, the stock closed near its daily highs, pointing to easing selling pressure and interest from buyers. The combination of intense volatility and late session stabilization has put Danaher back in focus for many shareholders. Danaher is a large science and technology company with businesses across diagnostics, life sciences, and environmental solutions, so its earnings updates often draw close attention from investors. The recent post earnings volatility comes at a time when many healthcare and life science suppliers are under scrutiny for how end market demand and funding trends are affecting orders. For readers, the latest trading action around NYSE:DHR adds a fresh datapoint to ongoing conversations about the company and its position in these markets. With the stock swinging sharply intraday and then finishing closer to session highs, many investors are watching to see whether this reflects a change in short term sentiment. Upcoming company updates, sector news, and broader market conditions could all influence how Danaher trades from here, making this a relevant moment to reassess how the stock behaves around news and volatility. Stay updated on the most important news stories for Danaher by adding it to your watchlist or portfolio. Alternatively, explore our Community to discover new perspectives on Danaher. See which insiders are buying and buying and selling Danaher following this latest news. The sharp post earnings selloff in Danaher followed by a late session recovery looks like investors reacting to a tension between solid reported results and more cautious forward signals. Danaher reported second quarter sales of US$6,265m and net income of US$870m, with earnings per share from continuing operations at US$1.23. At the same time, third quarter 2026 revenue guidance of 2% to 3% growth, including a 250 basis point headwind from respiratory testing, sets a relatively modest near term outlook. The combination can trigger fast selling as shorter term holders reposition around slower growth guidance, while the intraday reversal suggests some buyers are prepared to step in on that weakness. The earnings report, which shows higher sales and net income year on year, lines up with the narrative that recurring consumables and services support revenue and margin stability across Danaher’s diagnostics and life science tools businesses. The softer 2% to 3% revenue growth guidance, even allowing for the respiratory testing headwind, may challenge expectations of a smooth recovery in areas such as bioprocessing that the narrative highlights as key drivers. The completed share repurchases of 23,000,000 shares across two buyback authorizations affect share count and capital allocation, and this element is not fully reflected in the narrative’s focus on end markets and operational execution. Knowing what a company is worth starts with understanding its story. Check out one of the top narratives in the Simply Wall St Community for Danaher to help decide what it's worth to you. ⚠️ Analysts have flagged that Danaher carries a high level of debt, which can limit flexibility if earnings or cash generation slow after periods of weaker revenue growth. ⚠️ The guidance headwind from respiratory testing and prior bioprocessing setbacks show how dependent parts of the business can be on specific testing volumes and biopharma spending, which may stay uneven. 🎁 Earnings grew by 16.8% over the past year, which supports the view that Danaher’s mix of diagnostics and life sciences tools can support profit expansion even when some end markets are adjusting. 🎁 Danaher is assessed as trading at 16.1% below one estimate of fair value and is expected by analysts to grow earnings by 16.22% per year, which some investors may treat as a potential upside case if execution stays on track. Following this post earnings volatility, investors in Danaher may want to track how revenue trends evolve against the 2% to 3% third quarter guidance, particularly once the respiratory testing headwind rolls off. Order patterns in bioprocessing and life science tools, where peers like Thermo Fisher Scientific and Agilent Technologies also operate, will be important for assessing how sustainable recent earnings progress is. The completed share repurchase programs have already reduced the share count, so any future capital returns or new buyback authorizations will also shape how per share metrics move. Trading around the next set of updates may offer further insight into whether the recent reversal signals more stable sentiment or if volatility around guidance remains a feature for the stock. To ensure you're always in the loop on how the latest news impacts the investment narrative for Danaher, head to the community page for Danaher to never miss an update on the top community narratives. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include DHR. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Edwards Lifesciences Corporation EW reported second-quarter 2026 adjusted earnings of 78 cents per share, up 16.4% year over year. The figure surpassed the Zacks Consensus Estimate by 6.8%. Revenues rose 13.6% to $1.74 billion and topped the consensus mark by 2.4%. Growth was driven by strong Transcatheter Aortic Valve Replacement (“TAVR”) demand and rapid adoption of the company’s mitral and tricuspid therapies. Following the announcement yesterday, EW shares jumped nearly 3% in after-hours trading. TAVR sales totaled $1.26 billion, up 11.3% year over year on a reported basis and 10.5% at constant currency. Growth was similar in the United States and international markets, supported by procedural momentum, clinical evidence favoring proactive treatment of severe aortic stenosis and continued adoption of the SAPIEN 3 Ultra RESILIA platform. Transcatheter Mitral and Tricuspid Therapies (“TMTT”) sales reached $195.9 million, rising 47.3% year over year and 44.8% at constant currency. Double-digit growth in mitral and tricuspid procedures, increased adoption of PASCAL, the continued scaling of EVOQUE and the measured rollout of SAPIEN M3 drove the segment’s performance. Edwards Lifesciences Corporation price-consensus-eps-surprise-chart | Edwards Lifesciences Corporation Quote Surgical sales were $284 million, increasing 6.5% year over year and 5% at constant currency. Growth reflected continued adoption of RESILIA-based therapies, including INSPIRIS, MITRIS and KONECT. Edwards also received U.S. approval for ECLIPTIS and plans a measured rollout later in 2026. Adjusted gross margin was 77.6%, unchanged from the year-ago quarter. Foreign exchange created a 70 basis points (bps) headwind, which was offset by lower manufacturing expenses. Selling, general and administrative (SG&A) expenses increased to $561 million from $502 million, while research and development (R&D) expenses rose to $279 million from $276 million. Adjusted operating income jumped 20.8% year over year to $522.7 million. The adjusted operating margin expanded 180 bps to 30%, supported by strong revenue growth and the planned timing of strategic investments in R&D and SG&A. As of June 30, 2026, the company had approximately $2.90 billion in cash and cash equivalents. Total debt was about $600 million, leaving Edwards with substantial liquidity to support organic investment, manufacturing expansion and external opportunities in structural heart therapies. The company also had roughly $1.50 billion remaining under its share-repurchase authorization. Management continues to prioritize growth investments before opportunistic capital returns. Edwards increased its 2026 constant-currency sales growth guidance to 10-11% from the earlier 9-11%. Breaking it down, TAVR growth guidance was raised to 8-9% from 7-9%, while the TMTT sales outlook increased to $760-$780 million from $740-$780 million. Surgical sales are still expected to grow at a mid-single-digit rate. Overall, EW now expects total sales of $6.60-$6.90 billion at current exchange rates. The Zacks Consensus Estimate for the same currently stands at $6.74 billion. The company reaffirmed adjusted earnings guidance of $2.95-$3.05 per share despite expecting its tax rate to be at the high end of the prior 16-19% range. The Zacks Consensus Estimate for the metric is pegged at $3.00 at present. For the third quarter of 2026, Edwards expects revenues of $1.63-$1.71 billion and adjusted earnings of 71-77 cents per share. The consensus mark for third-quarter revenues and earnings per share (EPS) is projected at $1.69 billion and 74 cents, respectively. Edwards exited the second quarter of 2026 with both earnings and revenues beating estimates. Performance reflected the strength of its comprehensive portfolio and agile execution, with growth supported by therapies across TAVR, mitral, tricuspid and surgical, as well as favorable contributions from each of the regions. Within TAVR, Edwards’ competitive position in the United States is supported by continued adoption of its SAPIEN 3 Ultra RESILIA platform. TMTT benefited from the ongoing strong uptake of the PASCAL system. The expansion of adjusted operating margin in the quarter is also encouraging. Edwards currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Danaher DHR and Elevance Health ELV. Intuitive Surgical, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $2.80, which surpassed the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion beat the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. ISRG has an earnings yield of 3.1% compared to the industry’s negative 3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 16.53%. Danaher, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $1.94, exceeding the Zacks Consensus Estimate by 5.44%. Revenues of $6.27 billion topped the Zacks Consensus Estimate by 2.88%. DHR has an earnings yield of 4.7% compared with the industry’s 4.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.65%. Elevance Health, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $7.45, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $49.8 billion outperformed the consensus mark by 0.8%. ELV has an earnings yield of 6.9% compared to the industry’s 4.1% yield. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.65%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Edwards Lifesciences Corporation (EW) : Free Stock Analysis Report Danaher Corporation (DHR) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Thermo Fisher Scientific TMO delivered second-quarter 2026 adjusted earnings of $6.03 per share, up 13% year over year. The figure beat the Zacks Consensus Estimate by 5.6%. Revenues rose 10% to $11.99 billion and surpassed the consensus mark by 2.67%. Results were supported by 5% organic revenue growth, while customer activity strengthened across the company’s end markets. Following the earnings announcement, TMO stock rose 4.4% in pre-market trading today. Life Sciences Solutions revenues increased 12.6% year over year to $2.82 billion. Segment income rose to $1.04 billion from $919 million, while the segment income margin expanded 20 basis points to 37%. Laboratory Products and Biopharma Services remained the largest business, with revenues climbing 11.6% to $6.69 billion. Segment income increased to $936 million from $825 million, and margin improved to 14% from 13.8%. The segment accounted for 55.8% of consolidated revenues before eliminations. Thermo Fisher Scientific Inc. price-consensus-eps-surprise-chart | Thermo Fisher Scientific Inc. Quote Analytical Instruments revenues advanced 6.9% to $1.85 billion. Segment income jumped to $424 million from $325 million, driving margin expansion to 23% from 18.8%. The improvement made this segment the strongest margin gainer in the quarter. Specialty Diagnostics revenues grew 6.3% to $1.21 billion. Segment income reached $334 million compared with $306 million a year earlier, while margin increased to 27.7% from 27%. Together, the two smaller segments added growth without diluting overall operating profitability. Adjusted operating income increased 15% year over year to $2.74 billion. The adjusted operating margin widened 90 basis points (bps) to 22.8%, reflecting stronger profitability across all four business segments. On a GAAP basis, operating income rose 14% to $2.09 billion, while the operating margin improved 50 bps year over year. The cost of revenues was $7.05 billion, selling, general and administrative expenses were $1.91 billion, and research and development spending totaled $364 million. Thermo Fisher ended the second quarter with cash and cash equivalents of $4.06 billion compared with $3.25 billion at the end of the first quarter. Cumulative net cash provided by operating activities came to $3.32 billion, compared with $2.12 billion in the year-ago period. The company repurchased $1 billion of stock during the quarter and announced the divestiture of its microbiology business. For the first six months of 2026, acquisitions net of cash acquired totaled $8.87 billion, share repurchases reached $4 billion, and dividends paid amounted to $337 million. Thermo Fisher opened its flagship U.S. Bioprocess Design Center in Plainville, MA. The site expands its network of collaborative innovation hubs intended to help pharma and biotech customers accelerate drug development and optimize manufacturing. The company also announced a collaboration with Precision Health Research, Singapore, to support the PRECISE-SG100K population health study. The project will use Thermo Fisher's integrated proteomics capabilities, including Olink technology and the Orbitrap Astral mass spectrometry system. Thermo Fisher ended the second quarter with both earnings and revenues beating respective estimates. Performance reflected the strength of the company’s proven growth strategy, strong execution and the power of the PPI Business System. Expansion of the adjusted operating margin in the quarter is also very promising. During the quarter, Thermo Fisher launched a range of high-impact, innovative new products, including the next-generation Orbitrap mass spectrometry platforms with AI-driven analytics. It also introduced the Applied Biosystems PowerFlex Thermal Cycler to improve workflow flexibility, speed and reproducibility in molecular biology laboratories. Thermo Fisher currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the broader medical space are Intuitive Surgical ISRG, Danaher DHR and Elevance Health ELV. Intuitive Surgical, carrying a Zacks Rank #2 (Buy), reported second-quarter 2026 adjusted EPS of $2.80, which surpassed the Zacks Consensus Estimate by 12.9%. Revenues of $2.89 billion beat the Zacks Consensus Estimate by 3.1%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. ISRG has an earnings yield of 3.1% compared to the industry’s negative 3% yield. The company beat earnings estimates in each of the trailing four quarters, the average surprise being 16.53%. Danaher, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $1.94, exceeding the Zacks Consensus Estimate by 5.44%. Revenues of $6.27 billion topped the Zacks Consensus Estimate by 2.88%. DHR has an earnings yield of 4.7% compared to the industry’s 4.1% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 5.65%. Elevance Health, carrying a Zacks Rank #2 at present, posted second-quarter 2026 adjusted EPS of $7.45, exceeding the Zacks Consensus Estimate by 20.6%. Revenues of $49.8 billion outperformed the consensus mark by 0.8%. ELV has an earnings yield of 6.9% compared to the industry’s 4.1% yield. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 5.65%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Thermo Fisher Scientific Inc. (TMO) : Free Stock Analysis Report Danaher Corporation (DHR) : Free Stock Analysis Report Intuitive Surgical, Inc. (ISRG) : Free Stock Analysis Report Elevance Health, Inc. (ELV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research