Danaher Reports First Quarter 2026 Results
Rhea-AI Summary
Danaher (NYSE: DHR) reported Q1 2026 results: net earnings $1.0B and GAAP EPS $1.45. Revenues rose 3.5% to $6.0B; non-GAAP adjusted diluted EPS grew 9.5% to $2.06. Operating cash flow was $1.3B; non-GAAP free cash flow $1.1B. The company announced its intention to acquire Masimo and raised full‑year adjusted EPS guidance to $8.35–$8.55. Management expects 2026 non‑GAAP core revenue growth of 3%–6% and reiterated a Q2 low‑single digit revenue outlook.
Positive
- Net earnings of $1.0 billion
- GAAP EPS of $1.45 per diluted share
- Non‑GAAP adjusted EPS growth of 9.5% to $2.06
- Operating cash flow of $1.3 billion; free cash flow $1.1 billion
- Announced intention to acquire Masimo, adding patient monitoring capabilities
Negative
- Estimated $1.7 billion acquisition‑related amortization for 2026
- Cepheid saw a lighter‑than‑typical Q1 respiratory season, pressuring sales
Key Figures
Market Reality Check
Peers on Argus
DHR gained 0.39% with elevated volume, while key peers were mixed: TMO +0.61%, IDXX +0.07%, but A -0.12%, LH -0.48%, MTD -0.75%. No momentum scanner signals or same-day peer news suggest this move was stock-specific to DHR’s earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 28 | Quarterly earnings | Positive | -4.8% | Q4 2025 revenue and EPS growth with initial 2026 guidance. |
| Oct 21 | Quarterly earnings | Positive | +5.9% | Q3 2025 revenue and core growth with maintained 2025 EPS guidance. |
| Jul 22 | Quarterly earnings | Positive | +1.0% | Q2 2025 revenue, core growth and raised full‑year EPS outlook. |
| Apr 22 | Quarterly earnings | Positive | +3.8% | Q1 2025 solid earnings, flat core revenue and initial EPS guidance. |
| Jan 29 | Quarterly earnings | Negative | -9.7% | Q4 and 2024 results with flat revenue and declining core growth. |
Recent earnings have generally been received positively, but Q4 prints in 2024 and 2025 saw notable downside reactions despite growth, indicating occasional sell-the-news dynamics on stronger quarters.
Over the last five earnings reports (Jan 2025–Jan 2026), Danaher has delivered steady low‑single‑digit revenue growth and consistent non‑GAAP adjusted EPS expansion. Core revenue has generally grown in the low‑single digits, with Q4 2024 and full‑year 2024 showing flat to slightly negative core trends, followed by improving growth in 2025. Market reactions have been mixed: strong positive moves after Q1 and Q3 2025, but meaningful declines after Q4 2024 and Q4 2025. Today’s Q1 2026 release continues the pattern of modest revenue and EPS growth with raised guidance.
Historical Comparison
In the past five earnings releases, DHR’s average next‑day move was -0.75%, with both sharp rallies and sell‑offs, providing a reference band for assessing the Q1 2026 reaction.
Earnings from 2024–2025 show revenue growing from flat to low‑single digits, improving core growth, and adjusted EPS rising from $7.48 in 2024 to $7.80 in 2025, with 2026 guidance now at $8.35–$8.55.
Market Pulse Summary
This announcement highlights Q1 2026 revenue growth to $6.0 billion, strong non‑GAAP adjusted EPS of $2.06 (up 9.5%), and free cash flow of $1.1 billion, alongside a higher full‑year EPS range of $8.35–$8.55. Historically, Danaher’s earnings days have produced mixed price reactions despite steady fundamentals. Investors may focus on core revenue growth of just 0.5%, progress on the Masimo acquisition, and how management deploys liquidity, including the new $5.0 billion credit facility.
Key Terms
non-gaap financial
core revenue financial
AI-generated analysis. Not financial advice.
Key First Quarter 2026 Results
- Net earnings were
$1.0 billion $1.45 - Non-GAAP adjusted diluted net earnings per common share grew
9.5% to$2.06 - Revenues increased
3.5% year-over-year to$6.0 billion 0.5% year-over-year. - Operating cash flow was
$1.3 billion $1.1 billion - Strong Q1 earnings performance enabling increased full year 2026 adjusted diluted net earnings per common share guidance.
Rainer M. Blair, President and Chief Executive Officer, stated, "Our team executed well in the first quarter, which enabled us to accelerate innovation, drive productivity gains, and deliver nearly
Mr. Blair continued, "We were also pleased to announce our intention to acquire Masimo Corporation, a leading provider of mission-critical pulse oximetry and patient monitoring solutions in acute care settings. We believe there are clear opportunities to enhance Masimo's performance through DBS and our global scale. Looking ahead, the strength of our balance sheet and free cash flow generation provides additional capacity for value-creating capital deployment."
Second Quarter and Full Year 2026 Outlook
Danaher Corporation (the "Company") does not reconcile non-GAAP forecasted core sales growth, adjusted operating profit margin and adjusted diluted net earnings per common share to their respective, comparable measure prepared in accordance with
For the second quarter 2026, the Company anticipates that non-GAAP core revenue will increase in the low-single digit percent range year-over-year.
For full year 2026, the Company continues to expect that non-GAAP core revenue will increase in the
Conference Call and Webcast Information
Danaher will discuss its first quarter results and financial guidance for the second quarter and full year 2026, including as applicable key assumptions with respect thereto, during its investor conference call today starting at 8:00 a.m. ET. The call and an accompanying slide presentation will be webcast on the "Investors" section of Danaher's website, www.danaher.com, under the subheading "Events & Presentations." A replay of the webcast will be available in the same section of Danaher's website shortly after the conclusion of the presentation and will remain available until the next quarterly earnings call.
The conference call can be accessed by dialing 800-267-6316, within the
ABOUT DANAHER
Danaher is a leading global life sciences and diagnostics innovator, committed to accelerating the power of science and technology to improve human health. Through our connected ecosystem of industry-leading businesses, we work side by side with customers to solve many of their most complex scientific and clinical challenges—helping move innovations from discovery to delivery faster for patients who depend on them.
Powered by the Danaher Business System, our advanced science and technology and proven ability to innovate help enable faster, more accurate diagnoses and reduce the time, cost, and risk required to discover, develop, and deliver life-changing therapies. Through continuous improvement and operational excellence, our approximately 60,000 associates worldwide are focused on delivering lasting impact and improving quality of life around the world, while building a healthier, more sustainable tomorrow. Explore more at www.danaher.com.
NON-GAAP MEASURES AND SUPPLEMENTAL MATERIALS
In addition to the financial measures prepared in accordance with GAAP, this earnings release also contains non-GAAP financial measures. Calculations of these measures, explanations of what these measures represent and the reasons why we believe these measures provide useful information to investors, a reconciliation of these measures to the most directly comparable GAAP measures, where applicable, and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached.
In addition, this earnings release, the slide presentation accompanying the related earnings call, non-GAAP reconciliations and a note containing details of historical and anticipated, future financial performance have been posted to the "Investors" section of Danaher's website (www.danaher.com).
FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION
Statements in this release that are not strictly historical, including the statements regarding the Company's anticipated financial results for the second quarter and full year 2026, the Company's anticipated acquisition of Masimo Corporation (which remains subject to customary closing conditions, including regulatory approval) and anticipated opportunities with respect thereto, anticipated free cash flow generation, the Company's prospects for capital deployment and driving long-term shareholder value, and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other things: the impact of the tariffs and related actions implemented by the
This press release may include descriptions of certain products and/or devices that have applications submitted and pending for certain regulatory approvals, or are available only in certain markets.
DANAHER CORPORATION AND SUBSIDIARIES CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS ($ and shares in millions, except per share amounts) (unaudited) | |||
Three-Month Period Ended | |||
March 27, 2026 | March 28, 2025 | ||
Sales | $ 5,951 | $ 5,741 | |
Cost of sales | (2,360) | (2,230) | |
Gross profit | 3,591 | 3,511 | |
Operating costs: | |||
Selling, general and administrative expenses | (1,860) | (1,858) | |
Research and development expenses | (387) | (379) | |
Operating profit | 1,344 | 1,274 | |
Nonoperating income (expense): | |||
Other income (expense), net | (73) | (79) | |
Interest expense | (63) | (72) | |
Interest income | 27 | 6 | |
Earnings before income taxes | 1,235 | 1,129 | |
Income taxes | (206) | (175) | |
Net earnings | $ 1,029 | $ 954 | |
Net earnings per common share: | |||
Basic | $ 1.45 | $ 1.33 | |
Diluted | $ 1.45 | $ 1.32 | |
Average common stock and common equivalent shares outstanding: | |||
Basic | 707.9 | 716.3 | |
Diluted | 711.2 | 720.8 | |
This information is presented for reference only. A complete copy of Danaher's Form 10-Q financial statements is available on the Company's website (www.danaher.com). |
Diluted Net Earnings Per Common Share and Adjusted Diluted Net Earnings Per Common Share | |||
Three-Month Period Ended | |||
March 27, 2026 | March 28, 2025 | ||
Diluted Net Earnings Per Common Share (GAAP) | $ 1.45 | $ 1.32 | |
Amortization of acquisition-related intangible assets A | 0.61 | 0.57 | |
Fair value net (gains) losses on investments B | 0.11 | 0.12 | |
Acquisition-related items C | 0.02 | — | |
Impairments D | — | 0.02 | |
Gain on a product line disposition E | — | (0.01) | |
Tax effect of the above adjustments F | (0.13) | (0.13) | |
Discrete tax adjustments G | — | (0.01) | |
Adjusted Diluted Net Earnings Per Common Share (Non-GAAP) | $ 2.06 | $ 1.88 | |
Notes to Reconciliation of GAAP to Non-GAAP Financial Measures | ||
A | Amortization of acquisition-related intangible assets in the following historical periods ($ in millions) (only the pretax amounts set forth below are reflected in the amortization line item above): | |
Three-Month Period Ended | |||
March 27, 2026 | March 28, 2025 | ||
Pretax | $ 434 | $ 410 | |
After-tax | 360 | 340 | |
B | Net (gains) losses on the Company's equity and limited partnership investments recorded in the following historical periods ($ in millions) (only the pretax amounts set forth below are reflected in the fair value net (gains) losses on investments line above): | |
Three-Month Period Ended | |||
March 27, 2026 | March 28, 2025 | ||
Pretax | $ 77 | $ 90 | |
After-tax | 59 | 68 | |
C | Transaction costs related to the anticipated acquisition of Masimo Corporation ("Masimo") in the three-month period ended March 27, 2026 ( |
D | Impairment charges related to a facility in the Biotechnology segment recorded in the three-month period ended March 28, 2025 ( |
E | Gain on a product line disposition in the three-month period ended March 28, 2025 ( |
F | This line item reflects the aggregate tax effect of all nontax adjustments reflected in the preceding line items of the table. In addition, the footnotes above indicate the after-tax amount of each individual adjustment item. Danaher estimates the tax effect of each adjustment item by applying Danaher's overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. |
G | There were no net discrete tax adjustments and other tax-related adjustments for the three-month period ended March 27, 2026, as the release of reserves for uncertain tax positions due to the expiration of statutes of limitations was offset by charges related to changes in estimates associated with prior period uncertain tax positions. Discrete tax adjustments and other tax-related adjustments for the three-month period ended March 28, 2025, include the impact of net discrete tax benefits of |
Sales Growth (Decline) by Segment and Core Sales Growth (Decline) by Segment | |||||||
% Change Three-Month Period Ended March 27, 2026 vs. Comparable 2025 Period | |||||||
Segments | |||||||
Total Company | Biotechnology | Life Sciences | Diagnostics | ||||
Total sales growth (decline) (GAAP) | 3.5 % | 11.5 % | 3.5 % | (1.5) % | |||
Impact of: | |||||||
Currency exchange rates | (3.0) % | (4.5) % | (3.0) % | (2.5) % | |||
Core sales growth (decline) (non-GAAP) | 0.5 % | 7.0 % | 0.5 % | (4.0) % | |||
Forward-Looking Information | |||
% Change Three- | % Change Year | ||
Core sales growth (non-GAAP) | |||
Biotechnology | +Mid-single digit | ~+ | |
Life Sciences | +Up slightly | +Up slightly | |
Diagnostics | Flat | +Low-single digit | |
Total Company | +Low-single digit | + | |
Three-Month June 26, 2026 | Year Ending December 31, 2026 | ||
Adjusted operating profit margin (non-GAAP) | ~26.5 % | ||
Adjusted diluted net earnings per common share (non-GAAP) | |||
Cepheid respiratory revenue ($ in billions) | |||
Impact of currency exchange rates on sales H | ~+0.5 % | ~+0.5 % | |
Corporate expense I ($ in millions) | |||
Interest expense, net J ($ in millions) | |||
Effective tax rate | ~17.0 % | ~17.0 % | |
Average adjusted diluted shares (in millions) | ~712.0 | ~714.0 | |
H | Impact of currency exchange rates on sales for the second quarter and full year 2026 assumes the currency exchange rates in effect as of March 27, 2026. |
I | Corporate expense represents the operating profit (GAAP) for the Other segment, which consists of unallocated corporate costs and other costs not considered part of management's evaluation of reportable segment operating performance. |
J | Interest expense, net is defined as interest expense net of interest income. This line item is an assumption rather than a forecast. The estimated interest expense, net is calculated assuming the currency exchange rates in effect as of March 27, 2026 are to prevail throughout the remainder of the period indicated and no change in the amount of commercial paper outstanding, nor does it include an estimate for incremental net interest expense related to the financing for the anticipated acquisition of Masimo Corporation ("Masimo"). |
Cash Flow and Free Cash Flow ($ in millions) | |||
Three-Month Period Ended | |||
March 27, 2026 | March 28, 2025 | ||
Total Cash Flow: | |||
Net cash provided by operating activities (GAAP) | $ 1,322 | $ 1,299 | |
Total cash used in investing activities (GAAP) | $ (249) | $ (242) | |
Total cash provided by (used in) financing activities (GAAP) | $ 46 | $ (1,255) | |
Free Cash Flow: | |||
Net cash provided by operating activities (GAAP) | $ 1,322 | $ 1,299 | |
Less: payments for additions to property, plant & equipment (capital expenditures) (GAAP) | (237) | (245) | |
Plus: proceeds from sales of property, plant & equipment (capital disposals) (GAAP) | — | 6 | |
Free cash flow (non-GAAP) | $ 1,085 | $ 1,060 | |
We define free cash flow as operating cash flows, less payments for additions to property, plant and equipment ("capital expenditures") plus the proceeds from sales of plant, property and equipment ("capital disposals"). |
Statement Regarding Non-GAAP Measures
Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management believes that these measures provide useful information to investors by offering additional ways of viewing Danaher Corporation's ("Danaher" or the "Company") results that, when reconciled to the corresponding GAAP measure, help our investors:
- with respect to the profitability-related non-GAAP measures, understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers;
- with respect to core sales, identify underlying growth trends in our business and compare our sales performance with prior and future periods and to our peers; and
- with respect to free cash flow (the "FCF Measure"), understand Danaher's ability to generate cash without external financings, strengthen its balance sheet, invest in its business and grow its business through acquisitions and other strategic opportunities (although a limitation of free cash flow is that it does not take into account the Company's debt service requirements and other non-discretionary expenditures, and as a result the entire free cash flow amount is not necessarily available for discretionary expenditures).
Management uses the non-GAAP measures referenced above to measure the Company's operating and financial performance, and uses core sales and non-GAAP measures similar to Adjusted Diluted Net Earnings Per Common Share, Adjusted Operating Profit and the FCF Measure in the Company's executive compensation program.
The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons:
- With respect to the profitability-related non-GAAP measures:
- Amortization of Intangible Assets: We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and the related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies. We believe however that it is important for investors to understand that such intangible assets contribute to sales generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized.
- Restructuring Charges: We exclude costs incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature and planning requirements, as well as the inconsistent frequency, of such plans) from the ongoing productivity improvements that result from application of the Danaher Business System. Because these restructuring plans are incremental to the core activities that arise in the ordinary course of our business and we believe are not indicative of Danaher's ongoing operating costs in a given period, we exclude these costs to facilitate a more consistent comparison of operating results over time.
- Other Adjustments: With respect to the other items excluded from the profitability-related non-GAAP measures, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that may be unrelated to Danaher's commercial performance during the period and/or we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult.
- With respect to core sales, (1) we exclude the impact of currency translation because it is not under management's control, is subject to volatility and can obscure underlying business trends, and (2) we exclude the effect of acquisitions and divested product lines because the timing, size, number and nature of such transactions can vary significantly from period-to-period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult.
- With respect to the FCF Measure, we deduct payments for additions to property, plant and equipment (net of the proceeds from capital disposals) to demonstrate the amount of operating cash flow for the period that remains after accounting for the Company's capital expenditure requirements.
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SOURCE Danaher Corporation