Key Takeaways
- Elevance Health (ELV) reported a Q4 2025 adjusted EPS of $3.33, exceeding estimates of $3.10, but missed on operating revenue and provided a 2026 adjusted EPS outlook of at least $25.50, below analyst expectations of $26.99.
- Danaher (DHR) delivered a strong Q4 2025 performance, with sales reaching $6.84 billion (above estimates of $6.79 billion) and adjusted EPS of $2.23 (beating estimates of $2.16), while its 2026 adjusted EPS guidance of $8.35 to $8.50 aligned with estimates.
- RTX (RTX) received a significant boost as Morgan Stanley (MS) reinstated it as a top pick, raising its price target to $235 from $215.
- ASML (ASML) noted a normalization in its sales to China, following surprisingly strong demand in 2025, with expectations for China's sales share to decrease in 2026 due to export controls.
Elevance Health Reports Mixed Q4 Results
Elevance Health (ELV) announced its fourth-quarter 2025 earnings, presenting a mixed financial picture. The healthcare giant reported an adjusted EPS of $3.33, surpassing the estimated $3.10. However, operating revenue came in at $49.31 billion, slightly below the estimated $49.81 billion, and medical membership also fell short at 45.23 million against an estimated 45.36 million. Looking ahead, the company's guidance for 2026 adjusted EPS is projected to be at least $25.50, which is below the analyst consensus of $26.99.
Danaher Exceeds Expectations in Q4
In contrast, Danaher Corporation (DHR) posted a robust fourth quarter for 2025, with strong performance across its segments. The company's total sales reached $6.84 billion, exceeding the estimated $6.79 billion. Adjusted EPS for the quarter was $2.23, outperforming the $2.16 estimate. Segment-wise, Diagnostics Revenue met expectations at $2.72 billion, while Biotechnology Revenue also hit estimates at $2.03 billion. Life Sciences Revenue, however, surpassed estimates, reaching $2.09 billion against an estimated $2.07 billion. Danaher's 2026 adjusted EPS guidance of $8.35 to $8.50 encompasses the analyst estimate of $8.46.
Morgan Stanley Upgrades RTX to Top Pick
Aerospace and defense firm RTX (RTX) received a significant vote of confidence from Morgan Stanley (MS), which reinstated the company as a top pick. The investment bank also raised its price target for RTX to $235 from $215. This upgrade signals increased analyst optimism regarding RTX's future performance and potential for earnings revisions.
ASML's China Sales Normalize Amidst Global Demand Shifts
ASML (ASML), a key supplier to the semiconductor industry, reported that its sales to China are starting to normalize. This follows a period of surprisingly strong demand from China in 2025. While ASML's CFO, Roger Dassen, was surprised by the robust Chinese demand in 2025, the company anticipates China's share of total sales to decrease in 2026, dropping to approximately 20% from 33% in 2025, primarily due to export restrictions. Despite this, ASML recorded record orders in Q4 2025 and raised its 2026 revenue guidance, driven by strong global demand for AI-related chips. Dassen clarified that the expected decline in China sales is not due to previous stockpiling by Chinese customers, as the systems shipped are actively utilized in chip factories.
China and EU Emphasize Partnership
On the geopolitical front, China's Foreign Minister Wang Yi reiterated that China and the European Union are partners, not rivals, according to Xinhua. This statement underscores a continued effort to foster cooperative relations between the two major economic blocs.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.