Danaher (DHR) Stock Forecast & Price Target

Danaher’s strong momentum in the life sciences and diagnostics sectors is evidenced by an increase in performance obligations to $4.9 billion in 2Q25, up from $4.5 billion in 1Q25, signaling robust demand for its products. The company is also projected to achieve a ramp in life sciences growth of approximately 4.5% in 4Q, supported by favorable comparisons, particularly in Genomics, as well as contributions from new product launches and improved performance in China. Additionally, the anticipated strong performance of Cepheid Respiratory, with estimates ranging from $300 million to $500 million in the upcoming quarters, further reinforces Danaher’s positive outlook for sustained growth.

Danaher's financial outlook appears concerning due to a decline in the percentage of obligations expected to be recognized as revenue within the next 12 months, decreasing from 48% to 46% in 2Q25. Additionally, significant risks such as geopolitical disruptions, foreign exchange fluctuations, and the uncertain recovery of high-growth end-markets, particularly in China, may adversely affect future performance. Furthermore, despite some positive indicators in the Biotechnology and Life Sciences revenue, the overall revenue guidance has fallen short of expectations for 3Q25, suggesting potential challenges in sustaining growth momentum.