Danaher Corp (NYSE:DHR) stock rose 3.79% (As on July 23, 11:22:34 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY25. Revenues from the Life Sciences segment totaled $1.78 billion, up 0.5% year over year. Revenues from the Diagnostics segment totaled $2.31 billion, up 2% year over year. Revenues from the Biotechnology segment totaled $1.85 billion, up 8% year over year. In the second quarter, Danaher’s cost of sales increased 4.2% year over year to $2.41 billion. Gross profit of $3.52 billion increased 2.8% year over year. The gross margin was 59.3% compared with 59.7% in the year-ago quarter. Danaher’s operating profit decreased 34.9% year over year to $760 million. Operating margin contracted to 12.8% from 20.3% in the year-ago quarter.

Further, the company exiting the second quarter, had cash and equivalents of $2.96 billion compared with $2.1 billion at 2024-end. Long-term debt was $16.9 billion at the end of the quarter compared with $15.5 billion at the end of December 2024. Danaher generated net cash of $2.64 billion from operating activities in the first six months of 2025 compared with $3.16 billion in the previous year’s comparable period. Capital expenditures totaled $493 million in the same period, down 14.7% year over year. Adjusted free cash flow decreased 16.5% year over year to $2.15 billion in the first six months of 2025.

DHR in the second quarter of FY25 has reported the adjusted earnings per share of $1.80, beating the analysts’ estimates for the adjusted earnings per share of $1.64, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 3.5 percent to $5.94 billion in the second quarter of FY25, beating the analysts’ estimates for revenue of $5.84 billion. DHR’s core sales increased 1.5% year over year in the quarter. Selling, general and administrative expenses of $2.36 billion recorded an increase of 26.3% on a year-over-year basis. Research and development expenses were $403 million, up 3.1% year over year.

For the third quarter, Danaher expects adjusted core sales from continuing operations to increase in the low single digits on a year-over-year basis. The metric is anticipated to increase approximately 3% on a year-over-year basis in 2025. The company expects adjusted earnings to be $7.70-$7.80 per share compared with $7.60-$7.75 expected earlier.