Danaher Corporation
DHR · NYSE
Dec 2026
Next quarter
Expected to report Jan 27, 2027 — estimated from last year’s reporting date.
Consensus is $2.49 EPS for Dec 2026 across 7 estimates, ranging $2.47 to $2.59.
DHR Sep 2026
- 9.90%
- $1.92
- $2.11
- —
- $6.55B
Reported results
- $6.55B
- 58.54%
- $1.25B
- 19.00%
- $1.24B
- $1.75
Highlights
- Adjusted EPS beat: Non-GAAP adjusted diluted EPS was $2.11, up 11.5% year over year and 9.9% above the $1.92 consensus.
- Underlying growth improved: Revenue rose 8.5% to $6.55 billion, including 3.0% core growth; core growth excluding respiratory testing accelerated to 5.5%.
- GAAP earnings included a tax benefit: Net earnings were $1.24 billion and diluted EPS was $1.75, versus $908 million and $1.27 a year earlier; a $263 million discrete tax benefit helped lift continuing-operations earnings.
- Cash generation strengthened: Operating cash flow was $1.89 billion and free cash flow was $1.63 billion, up from $1.66 billion and $1.37 billion, respectively, a year ago.
- Segment trends were mixed: Core sales grew 5.0% in Biotechnology and 4.5% in Life Sciences; Diagnostics core sales grew 0.5%, or 7.0% excluding respiratory testing.
- Masimo lifted reported Diagnostics sales but diluted margins: Diagnostics revenue grew 17.0%, with acquisitions contributing 16.5 percentage points; the segment’s operating margin fell to 21.3% from 27.0%, partly due to acquisition-related costs.
- Full-year EPS guidance rose: Danaher raised its 2026 adjusted EPS outlook to $8.57–$8.62 from $8.45–$8.60; Q4 core growth excluding respiratory testing is forecast at 4.0%–5.0%.
Analysis
Danaher delivered a better-than-expected third quarter, with adjusted diluted EPS of $2.11 beating the $1.92 consensus by 9.9%. Revenue was $6.55 billion, up 8.5% year over year and about 4.7% sequentially from $6.26 billion in Q2. The reported revenue increase included acquisition contributions; underlying core growth was 3.0%, while core growth excluding respiratory testing reached 5.5%, improving from 3.0% in Q2. Adjusted EPS rose 11.5% from $1.89 a year ago. GAAP diluted EPS was $1.75, compared with $1.27 a year ago and $1.23 in Q2, but the comparison benefited from a $263 million discrete tax benefit and $28 million of discontinued-operations income.
The print was defined by improving underlying demand, substantial cash generation and the first full quarter with Masimo in Diagnostics. Core sales increased across all three segments, though respiratory testing remained a drag on Diagnostics’ underlying growth. Operating cash flow of $1.89 billion and free cash flow of $1.63 billion exceeded year-ago levels. Masimo added to reported sales but brought acquisition-related inventory charges, dilution and higher financing costs. Danaher raised full-year adjusted EPS guidance to $8.57–$8.62 and expects Q4 core growth excluding respiratory testing of 4.0%–5.0%, with respiratory testing a roughly 150-basis-point headwind to total core growth.
Core growth and segments
- Company growth: Revenue increased 8.5% to $6.55 billion. Core sales grew 3.0%, after excluding 6.5 percentage points from acquisitions and reflecting a 1.0-point drag from tariff refunds returned to customers; core growth excluding respiratory testing was 5.5%.
- Biotechnology: Revenue was $1.81 billion, up 0.5% reported and 5.0% on a core basis. Bioprocessing core sales grew toward the upper end of mid-single digits, led by consumables and with equipment demand improving; China and Western Europe led regional growth.
- Life Sciences: Revenue rose 4.0% to $1.87 billion, with core sales up 4.5%. Filtration and instruments led growth, including demand for microelectronics and aerospace filtration products and stronger pharmaceutical and biopharmaceutical demand for mass spectrometry.
- Diagnostics: Revenue grew 17.0% to $2.88 billion, largely reflecting Masimo; acquisitions contributed 16.5 percentage points. Core sales grew 0.5%, while excluding respiratory testing they advanced 7.0%, as clinical diagnostics and non-respiratory tests offset weaker respiratory-test demand.
- Markets and pricing: High-growth markets’ core sales rose 10%, led by high-single-digit growth in China, and represented about 31% of sales. Developed-market core sales were flat; pricing reduced company sales growth by 0.5%.
Earnings, margins and tax
- Adjusted earnings: Non-GAAP adjusted diluted EPS was $2.11, up 11.5% year over year from $1.89 and 9.9% above the $1.92 consensus.
- GAAP results: Net earnings were $1.24 billion and diluted EPS was $1.75, versus $908 million and $1.27 in Q3 2025. Continuing-operations net earnings were $1.21 billion and diluted EPS was $1.71; the total included $28 million, or $0.04 per share, from discontinued operations.
- Tax benefit: A $263 million discrete benefit, primarily from releases of uncertain-tax-position reserves following audit settlements, reduced the quarterly effective tax rate to negative 6.6%. Adjusted EPS excludes a $0.37-per-share benefit from discrete tax adjustments.
- Operating margin: GAAP operating margin was 19.0%, down 10 basis points year over year but above the roughly 18.1% implied by Q2 operating income and revenue. Higher core sales and tariff-refund impacts supported the comparison, while Masimo-related inventory charges, acquisition dilution and special-award compensation weighed on it.
- Segment margins: Biotechnology’s operating margin rose to 26.4% from 19.6%, and Life Sciences’ rose to 13.9% from 12.4%. Diagnostics margin declined to 21.3% from 27.0%, including a 295-basis-point impact from the Masimo inventory fair-value adjustment and 365 basis points of acquired-business dilution.
Masimo and financing
- Acquisition: Danaher acquired Masimo on June 10 for approximately $9.8 billion net of cash acquired. Masimo generated about $1.5 billion of 2025 revenue and joined Diagnostics, expanding the company’s monitoring and acute-care offerings.
- Quarterly impact: Masimo contributed to Diagnostics’ reported growth, while the quarter included an $84 million pretax acquisition-date inventory fair-value charge. Danaher recorded about $4.9 billion of goodwill and $5.0 billion of intangible assets for Masimo.
- Debt and interest: Total debt was $26.5 billion at quarter-end, compared with $18.4 billion at December 2025; cash and equivalents were $5.7 billion. Quarterly interest expense increased to $135 million from $67 million, primarily due to higher average borrowings.
- Subsequent acquisition: On September 28, Danaher acquired StatLab for approximately $1.4 billion, including assumed indebtedness and net of acquired cash. StatLab generated about $250 million of 2025 revenue and will be included in Diagnostics.
Cash generation
- Quarterly cash flow: Operating cash flow was $1.89 billion, up about 13.5% from $1.66 billion a year earlier. Free cash flow was $1.63 billion, up about 19% from $1.37 billion after $255 million of capital expenditures.
- Nine-month performance: Operating cash flow reached $4.74 billion, up about 10% year over year; free cash flow was $3.98 billion, up about 13%.
- Acquisition spending: Investing activities used $10.70 billion in the first nine months, mainly reflecting $9.88 billion paid for acquisitions, including Masimo. The company ended September with $5.68 billion in cash.
Outlook and guidance
- Fourth-quarter growth: Danaher expects core sales growth excluding respiratory testing of 4.0%–5.0%. A roughly 150-basis-point respiratory-testing headwind implies total core growth of about 3.0%.
- Full-year EPS: Adjusted diluted EPS guidance increased to $8.57–$8.62 from $8.45–$8.60. The company expects a Q4 adjusted operating margin of approximately 29.5%.
- Segment outlook: Q4 core sales are forecast at mid-single-digit growth in Biotechnology, 4.0%–5.0% in Life Sciences and slightly higher in Diagnostics. For full-year 2026, the company expects about 2.5% total core sales growth and mid-single-digit core growth excluding respiratory testing.
