Danaher CorporationDHR continues to benefit from strength in its Biotechnology segment. In the first quarter of 2026, the segment’s core revenues increased 7% on a year-over-year basis, supported by sustained momentum in the bioprocessing business. Geographically, the increase in core sales was driven by higher sales in Western Europe and China.
An increase in demand for consumables from large pharmaceutical customers has been aiding the performance of the Biotechnology segment. Also, solid demand from pharmaceutical customers for monoclonal antibodies (mAbs) has been buoying the bioprocessing business. In the first quarter of 2026, orders for bioprocessing equipment increased more than 30%. For 2026, Danaher anticipates core revenues from the bioprocessing business to increase in high single-digits on a year-over-year basis. Also, strength in the medical filtration and research consumables business bodes well for the Biotechnology segment.
However, lower demand for medical filtration and research consumables in the discovery and medical business is concerning for the Biotechnology segment. Declining demand for equipment is also acting as a headwind for it.
Despite these challenges, for the second quarter of 2026, Danaher anticipates core revenues from the Biotechnology segment to increase in mid-single digits on a year-over-year basis. Consistent demand for products within the bioprocessing business is expected to support stable segment performance in the coming quarters.
Segment Snapshot of DHR’s Peers
Among its major peers, CVS Health Corporation’s CVS Health Services segment reported net sales of $48.24 billion in the first quarter of 2026, up 11% year over year. CVS Health generated 48% of its total sales from this segment in the quarter. Favorable pharmacy drug mix and brand inflation aided the segment’s results in the second quarter.
Labcorp Holdings Inc.’s LH Biopharma Laboratory Services segment generated net sales of $780.6 million in the first quarter of 2026, up 8.2% year over year. This was driven by Labcorp’s strong drug development capabilities and scientific expertise. Labcorp derived 22.1% of its total revenues from this segment during the quarter.
DHR’s Price Performance, Valuation and Estimates
Shares of Danaher have declined 26.5% in the past six months compared with the industry’s decrease of 10.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, DHR is trading at a forward price-to-earnings ratio of 19.22X, above the industry’s average of 14.51X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for DHR’s 2026 earnings has increased over the past 30 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA’s enormous potential back in 2016. Now, he has keyed in on what could be “the next big thing” in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
This article originally published on Zacks Investment Research (zacks.com).