2Q26 Recap: Despite Disappointing Bioprocessing Push-Out, Solid Underlying Demand and Strength in LS Leave Expectations for 2026 and Beyond Largely Unchanged; Remain OW

Research evidence excerpt

2Q26 Recap: Despite Disappointing Bioprocessing Push-Out, Solid Underlying Demand and Strength in LS Leave Expectations for 2026 and Beyond Largely Unchanged; Remain OW

Casey Woodring AC North America Equity Research

(1-212) 622-9074 21 July 2026 J P M O R G A N

casey.woodring@jpmchase.com

Price Performance Summary Investment Thesis and Valuation

Investment Thesis

We view DHR as one of the highest quality names in our

coverage universe, built around the Danaher Business System

(DBS), which provides a playbook and set of tools for

continuous operational improvement across the portfolio (both

acquired and existing businesses). Management’s investing

competency is another important aspect of the story as the M&A

track record is among the best in the sector, a key to driving

above-average earnings growth, in our view. With a

conservative guidance framework, favorable end-market

YTD 1m 3m 12m conditions in an improving environment (despite near-term U.S.

Abs -12.2% 13.5% 2.9% 5.8% A&G headwinds), a long runway for continued margin

Rel -20.9% 14.3% -1.8% -12.2%

expansion, and increasing M&A optionality, we continue to like

Company Data the setup. Moreover, the relative stability offered by DHR (and

Shares O/S (mn) 729 broader tools) once again looks set to become increasingly

52-week range ($) 242.80-160.93 valuable against the backdrop of a volatile healthcare tape. As

Market cap ($ mn) 146,689.60

Exchange rate 1.00 such, we remain OW.

Free float (%) 91.0%

Valuation3M ADV (mn) 4.69

3M ADV ($ mn) 856.6 Our Dec 2027 price target is $220. Our price target is derived

Volatility (90 Day) 31 from a discounted cash flow analysis with a CAPM-derived

Index S&P 500

BBG ANR (Buy | Hold | Sell) 23|4|0 WACC discount rate of 9.5% and terminal growth rate of 3.5%.

Key Metrics (FYE Dec)