Danaher Corporation

My name is Chelsea and I will be your conference facilitator this morning. At this time, I would like to welcome everyone to Danaher Corporation's third quarter 2026 earnings results conference call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, please press star 2. I will now turn the call over to Ms. Rachel Vatnsdal, Vice President of Investor Relations. Ms. Vatnsdal, you may begin your conference.

Good morning, everyone, and thanks for joining us on the call. With us today are Julie Sawyer Montgomery, our President and Chief Executive Officer, and Matt Gugino, our Executive Vice President and Chief Financial Officer. I'd like to point out that our earnings release Quarterly Report on Form 10-Q, the slide presentation supplementing today's call, the reconciliations and other information required by SEC Regulation G relating to any non-GAAP financial measures provided during the call, and a note containing details of historical and anticipated future financial performance are all available on the Investors section of our website, www.danaher.com, under the heading Quarterly Earnings. The audio portion of this call will be archived on the Investors section of our website later today under the heading Events and Presentations and will remain archived until our next quarterly call. A dial-in replay of this call will also be available until November 4, 2026. During the presentation, we will describe certain of the more significant factors that impacted year-over-year performance. Our Form 10-Q and the supplemental materials I referenced describe additional factors that impacted year-over-year performance. Unless otherwise noted, all references in these remarks and supplemental materials to company-specific financial metrics relate to results from continuing operations in the third quarter of 2026, and all references to period-to-period increases or decreases in financial metrics are year-over-year. We may also describe certain products and devices which have applications submitted and pending for certain regulatory approvals, or are available only in certain markets. During the call, we will make forward-looking statements within the meaning of our federal security laws, including statements regarding events or developments that we believe or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks and uncertainties, including those set forth in our SEC filings and actual results may differ materially from any forward-looking statements that we make today. These forward-looking statements speak only as of the date that they are made, and we do not assume any obligation to update any forward-looking statements except as required by law. With that, I'd like to turn the call over to Julie.

Thank you, Rachel, and good morning, everyone. Before we get into the quarter, I'd like to share my perspective on Danaher today and the opportunity ahead as I begin this next chapter as CEO. The opportunity for Danaher is straightforward, to become the defining leader in life sciences and diagnostics. A company that unambiguously gains share, delivers sustainable profitable growth, and helps our customers improve outcomes for patients around the world. The foundation we built at Danaher is strong. We operate leading businesses, foster deep customer relationships, and empower talented people, all enabled by the Danaher business system. At the same time, growth over the past several years has not consistently reflected the full potential of our portfolio. We've navigated significant changes in our markets, but regardless of the environment, we hold ourselves to a higher standard. We see a meaningful opportunity to accelerate sustainable core revenue growth, gain share more consistently, and more fully translate the strength of our portfolio into differentiated performance. I'm confident in what we've built and I'm energized by what I've seen across Danaher these last few months. Our focus now is strengthening execution and delivering on that potential. Recently, I had a conversation with one of our executives preparing for a customer meeting related to Alzheimer's disease. What started as a discussion about how one of our businesses could help address a particular part of that customer's challenge quickly expanded to cover the roles seven different operating companies could play across discovery, AI-enabled target selection, laboratory automation, process development, scale-up, and diagnostic testing. And when the challenge is Alzheimer's disease, speed matters, both to the scientists working to understand it and the families waiting for answers. That conversation reinforced something important. Our customers don't think about their challenges through the lens of our organizational structure. They have a problem to solve and they want the best partnership and solutions we can bring them. I see this as critical to Danaher's next chapter as some of our greatest opportunities sit at the intersections of our businesses. We will preserve what makes our operating company structure advantage. The customer intimacy, the accountability, while making it easier to bring the full power of Danaher to our customers. Our foundation and the power of the Danaher business system have given us leadership positions across the life sciences and diagnostic markets and a unique role in helping accelerate the translation of scientific discovery into human impact. Our life science businesses enable discovery, our biotechnology businesses help turn those discoveries into scaled and accessible therapies, and our diagnostics businesses help guide treatment. Together, Danaher spans a broad path from experiment to patient with DBS adding speed and operating discipline at scale. We call that innovation at the speed of life, helping close the distance between human need and the science that answers it. And as we enter this next chapter, we'll accelerate that ambition by focusing on four strategic priorities, commercial excellence, innovation, talent, and effective capital allocation. Each is important, but our most immediate opportunity is commercial execution. Danaher has successfully repositioned its portfolio with three platforms across the life sciences and diagnostics markets. With that portfolio transformation largely complete, our focus is shifting from reshaping the portfolio to delivering more growth from the businesses we own. We will focus our leadership attention on exceptional commercial execution, enhancing our pursuit of unambiguous share gain across Danaher. We will drive consistency and rigor in commercial execution across our businesses. This means simplifying and strengthening our commercial processes and empowering our leaders to make more entrepreneurial decisions. We also have an opportunity to make it easier for our customers to take advantage of the full power of Danaher. Our operating companies have important brands and deep customer relationships. These will remain fundamental to how we compete, but Danaher has tremendous scale and breadth and we can do more to use that advantage. That means making the broader strength of our portfolio and capabilities more accessible to customers. We've already taken practical steps to show up as a more connected Danaher. In diagnostics, for example, we are successfully deepening customer relationships by bringing leaders from across our businesses together with key customers to look across the portfolio better understand their priorities and identify where a more coordinated approach can create additional value. We do this by having our key diagnostics leaders in the same room at the same time with our key customers to understand their biggest pain points and where we can drive incremental value. This approach has generated meaningful incremental revenue opportunities and is helping drive share gains across our diagnostics businesses. And as we bring more of Danaher to our customers, we can also become more systematic about connecting capabilities across our businesses to solve more customer needs. Algevron and Cytiva's recent collaboration to deliver an end-to-end mRNA solution is a great example. helping streamline our customers development processes while meaningfully accelerating timelines. Ultimately, our commercial strategy is straightforward. Execute better and more entrepreneurially, show up together as Danaher for our customers and connect our capabilities where we can create greater value. We will make it easier for customers to access the full strength of Danaher and look to us when trying to solve their most important challenges. Our second priority is delivering more innovation. Danaher is already at the forefront of innovation, but I believe strengthening our innovation capabilities represents one of our largest opportunities to accelerate long-term growth. Delivering on our brand promise innovation at the speed of life means we will be deliberate and strategic about where we invest in R&D and ensure we appropriately allocate resources behind our best ideas. That means more closely linking strategy in R&D investments, concentrating resources behind the highest potential initiatives, and working more closely across our businesses and external partners to move promising innovations faster. We will also fund transformational opportunities at the enterprise level when we believe Danaher has a clear right to win and larger investment can create meaningful competitive advantage. These decisions will require clear choices and greater enterprise level conviction about where we can create the most value. Innovation cycles take time, but over the long term, we believe this more focused approach can support higher and more durable core revenue growth while turning more scientific discoveries into meaningful human impact. And to me, this is the heart of innovation at the speed of life, helping promising science move faster towards the patients who need it. Our third priority is being the home and destination for exceptional talent. We believe our ability to attract and develop exceptional talent in scientific, AI, commercial, and operating disciplines will increasingly set us apart from competitors. We also need to develop and deploy our people more intentionally against Danaher's highest priority growth and innovation opportunities. Danaher has given me that kind of exposure in my own career. Learning DBS and then applying it across commercial, R&D, and business leadership. I want us to continue to create exceptional opportunity for the next generation of leaders. As we evolve DBS for the AI era, I believe we can create an even more compelling place for the best talent in our industry. And our fourth priority is being more disciplined with our capital and resources. M&A and capital deployment have been essential drivers of Danaher's growth and will remain so. We will maintain the robust investment criteria that has served us well for many decades while bringing strategic clarity and discipline to how we allocate capital and resources. We are focused on deepening our positions in attractive markets and identifying strategically compounding areas that build from the strengths we already have in our businesses. Our objective is to deliver high returns on our investments with greater consistency while positioning Danaher for sustainably differentiated and profitable growth. Across each of these priorities, there is a common idea. We create more value by building a stronger, more connected company. That doesn't mean changing what makes our operating companies successful. It means preserving their customer intimacy and accountability while making it easier to share ideas, capabilities, talent, and resources across Danaher and using our scale where it gives us an advantage. AI is one capability we believe can help us do just that. We believe the combination of AI and DBS will be an important competitive advantage. DBS gives us a common way to solve problems, improve processes, and scale what works across Danaher. We believe that approach can help us bring AI solutions to life faster and more effectively than many. Over time, we believe AI can make DBS simpler and more powerful, while DBS can help us implement AI with the rigor and consistency that have long defined Danaher. We see opportunities for AI to strengthen commercial execution and innovation. For example, helping our teams identify opportunities earlier, improve sales funnel management, and dramatically reduce R&D timelines. AI can help simplify work and drive greater productivity. But AI isn't only about making Danaher better. It is also changing the needs of our customers and creating new opportunities across our portfolio. For example, we see growing demand for solutions that cut across our life sciences businesses that enable more automated and autonomous labs and workflows. We also see longer-term opportunities across our biotechnology and diagnostics platforms to make therapies more efficiently and make treatment decisions more precisely. This is why we are accelerating AI deployment across the enterprise and establishing AI partnerships. Stepping back, we believe a more connected Danaher with a stronger focus on commercial excellence, innovation, and talent can be a stronger Danaher. We intend to bring the best of Danaher to our customers to better leverage our talent, platforms, and brand and simplify how we operate so our teams can focus on the opportunities that matter most. Together, these actions can help us move faster and more fully realize the potential of our portfolio. So, I am incredibly excited about what lies ahead. We are starting from a position of strength with meaningful room to deliver more. That will take time, and we know credibility will be earned through results. Our focus now is making clear choices about where we invest and executing with greater speed and consistency. We believe that can accelerate profitable growth, drive share gains, and most importantly, help our customers improve outcomes for patients around the world. With that, let me turn to our third quarter results. Our third quarter came in ahead of our expectations on both the top and bottom line, with biotechnology, life sciences, and diagnostics core revenue, excluding respiratory revenue, all growing mid-single digits or better. Core revenue growth, excluding respiratory revenue, improved to 5.5%, and we delivered a nearly 30% adjusted operating profit margin. These results reflect both improved in market conditions and the benefit of strong commercial and operational execution across the portfolio. We're particularly encouraged by the improved momentum we saw across our businesses. Underlying demand across large pharma and biopharma remained robust. Biotech activity continued to strengthen. And while academic demand remained below historic levels, demand improved sequentially. Meanwhile, clinical and applied in markets remained healthy and continued to perform well. Having spent considerable time with our teams over the past several weeks, I've seen firsthand the talent, innovation, and customer focus that make Danaher unique. Let me walk you through a few notable examples from across Danaher this quarter. During a recent visit to Cytiva's site in Uppsala, Sweden, I had the opportunity to spend time with the teams developing and manufacturing some of our industry-leading products. Being firsthand the depth of science and engineering behind these technologies reinforced my confidence in our competitive position. I was particularly impressed by the process development team and how closely that team works side by side with customers to solve their most difficult challenges. That partnership has long been important in traditional monoclonal antibodies, and it becomes even more valuable as our customers move towards more complex molecules and modalities. We're bringing innovation and process expertise to help customers solve those challenges. And importantly, we're seeing that differentiated approach help us win more specifications with customers. Next, we recently announced our first AI powered autonomous lab. Based at ADCAM, this lab brings together AI, robotics, and technologies from across our portfolio, including Cytiva, Beckman-Coulter life sciences, gene data, IDT, and molecular devices to offer a connected design, make, and test workflow. By continuously learning from each experiment, The platform is designed to help researchers move from idea to validated reagent up to eight times faster while generating up to 10 times higher volume compared to existing models, helping accelerate scientific discovery while providing the rigorous quality and reproducibility required to advance AI-driven drug discovery. Our partnership with NVIDIA announced last week will further advance this vision by connecting our instruments and workflows with NVIDIA's capabilities to help shape autonomous science for our customers. On the capital allocation front, Leica Biosystems closed the acquisition of StatLab in early Q4. StatLab strengthens Leica's value proposition by enabling a more complete pathology workflow while advancing our integrated delivery network strategy and helping clinicians diagnose cancer faster and more precisely. We're very pleased to welcome the StatLab team to Danaher. Finally, Massimo, our other recent acquisition, continued to track ahead of our initial expectations and delivered another quarter of high single-digit revenue growth. Having spent time with the team just last week, the integration is progressing well across the business with a healthy funnel of cost savings and commercial synergy opportunities. The team has also continued to innovate at an impressive pace, recently receiving FDA clearance for a SmartSep platform that can help detect atrial fibrillation, a common heart rhythm disorder that often goes undetected and significantly increases the risk of stroke. This technology can help patients earlier who may benefit from further medical evaluation and care. I want to congratulate the Massimo team for their sixth FDA clearance this year and for extending the value of their technology beyond monitoring to help detect important clinical conditions like atrial fibrillation. And with that, I'll turn the call over to Matt, who will walk you through our Q3 results and guidance in more detail.