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, /PRNewswire/ -- Danaher Corporation (NYSE: DHR) today announced results for the third quarter 2026.  All results in this release reflect only continuing operations and period-to-period comparisons are year-over-year unless otherwise noted.

Key Third Quarter 2026 Results

Net earnings were $1.2 billion, or $1.71 per diluted common share, up 34.5% year-over-year.
Non-GAAP adjusted diluted net earnings per common share grew 11.5% to $2.11.
Revenues increased 8.5% year-over-year to $6.6 billion.
Non-GAAP core revenue excluding respiratory revenue increased 5.5% year-over-year and non-GAAP core revenue increased 3.0% year-over-year.
Operating cash flow was $1.9 billion and non-GAAP free cash flow was $1.6 billion.

Julie Sawyer Montgomery, President and Chief Executive Officer, stated, "We delivered better-than-expected third quarter revenue, earnings and cash flow, and are encouraged by the improving trends we saw across our end markets.  The continued acceleration in core revenue growth excluding respiratory revenue, together with DBS-driven execution drove double-digit adjusted EPS growth and underscored our ability to convert improving demand into strong financial performance."

Ms. Sawyer Montgomery continued, "Danaher has built a strong foundation, and the time I've spent with our teams and customers during my transition into the CEO role has only reinforced my conviction in the opportunities ahead.  Looking forward, the opportunity for Danaher is clear: to become the defining leader in Life Sciences and Diagnostics–a company that unambiguously gains share, delivers sustainable profitable growth, and helps our customers improve outcomes for patients around the world."

Fourth 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 U.S. generally accepted accounting principles (GAAP) because (except for estimated amortization of acquisition-related intangible assets of $0.5 billion for the fourth quarter and $1.9 billion for the year ending December 31, 2026 and the estimated impact of foreign currency on sales, which is estimated to be flat in the fourth quarter and increase sales by 1.0% in the full year, assuming the currency exchange rates in effect as of September 25, 2026) the additional elements that would be reflected in any such GAAP measures (such as the impact of currency exchange rates on profitability, future acquisitions, divested product lines, discrete tax adjustments, impairments, gains and losses on investments and the outcome of legal proceedings) are difficult to predict and estimate and are often dependent on future events that may be uncertain or outside of our control.  The impact of these additional elements could be material to our results computed in accordance with GAAP.

For the fourth quarter 2026, the Company anticipates that non-GAAP core revenue excluding respiratory revenue will increase in the 4.0% to 5.0% range year-over-year.  We expect respiratory revenue to be an approximately 150 basis point headwind, resulting in core revenue growth of approximately 3.0%.

For full year 2026, the Company is increasing its full year adjusted diluted net earnings per common share guidance to a range of $8.57 to $8.62 versus previous guidance of $8.45 to $8.60.

Conference Call and Webcast Information

Danaher will discuss its third quarter results and financial guidance for the fourth 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 U.S. or +1 203-518-9783 outside the U.S. a few minutes before 8:00 a.m. ET and notifying the operator that you are dialing in for Danaher's earnings conference call (Conference ID: DHRQ326).  A replay of the conference call will be available shortly after the conclusion of the call and until November 4, 2026.  You can access the replay dial-in information on the "Investors" section of Danaher's website under the subheading "Events & Presentations."

ABOUT DANAHER

Danaher is a leading global life sciences, diagnostics and biotechnology innovator committed to advancing the power of science and technology to improve human health. Through a connected ecosystem of industry-leading businesses, the Company works closely with customers to solve many of their most complex scientific challenges by accelerating discovery, development and the delivery of life-changing therapies. Powered by the Danaher Business System and 60,000 associates worldwide, the Company strives for continuous improvement, operational excellence and Innovation at the Speed of Life. 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 fourth quarter and full year 2026, the Company's expectations regarding business trends, opportunities, market share gains, sustainable profitable growth and improved patient outcomes 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 U.S. and other countries, the impact of our debt obligations (including debt we incurred to finance the acquisition of Masimo Corporation)  on our operations and liquidity, deterioration of or instability in the global economy, the markets we serve and the financial markets, uncertainties with respect to the development, deployment, and use of artificial intelligence in our business and products, the impact of global health crises, uncertainties relating to national laws or policies, including laws or policies to protect or promote domestic interests and/or address foreign competition, our ability to successfully identify and consummate appropriate acquisitions and strategic investments, our ability to integrate the businesses we acquire and achieve the anticipated growth, synergies and other benefits of such acquisitions, contingent liabilities and other risks relating to acquisitions, investments, strategic relationships and divestitures (in each case, including with respect to our acquisition of Masimo Corporation), including tax-related and other contingent liabilities relating to past and future IPOs, split-offs or spin-offs, contractions or growth rates and cyclicality of markets we serve, competition, our ability to develop and successfully market new products and technologies and expand into new markets, the potential for improper conduct by our employees, agents or business partners, our compliance with applicable laws and regulations (including rules relating to off-label marketing and other regulations relating to medical devices and the health care industry), the results of our clinical trials and perceptions thereof, our ability to effectively address cost reductions and other changes in the health care industry, security breaches or other disruptions of our information technology systems or violations of data privacy laws, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, changes in tax laws applicable to multinational companies, litigation, regulatory proceedings and other contingent liabilities including intellectual property and environmental, health and safety matters, the rights of the United States government with respect to our production capacity in times of national emergency or with respect to intellectual property/production capacity developed using government funding, risks relating to product, service or software defects, product liability and recalls, risks relating to our manufacturing operations, the impact of climate change, legal or regulatory measures to address climate change and other sustainability topics and our ability to address regulatory requirements or stakeholder expectations relating to climate change and other sustainability topics, risks relating to fluctuations in the cost and availability of the supplies we use (including commodities) and labor we need for our operations, our relationships with and the performance of our channel partners, uncertainties relating to collaboration arrangements with third-parties, the impact of deregulation on demand for our products and services, labor matters and our ability to recruit, retain and motivate talented employees, U.S. and non-U.S. economic, political, geopolitical, legal, compliance, social and business factors (including the impact of elections, regulatory and policy changes or uncertainty, government shutdowns and  military conflicts such as the conflict in the Middle East), disruptions and other impacts relating to man-made and natural disasters, inflation and the impact of our By-law exclusive forum provisions.  Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2025 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the third quarter of 2026.  These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

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

Nine-Month Period Ended

September 25, 2026

September 26, 2025

September 25, 2026

September 26, 2025

Sales

$           6,554

$           6,053

$          18,770

$          17,730

Cost of sales

(2,717)

(2,530)

(7,731)

(7,173)

Gross profit

3,837

3,523

11,039

10,557

Operating costs:

Selling, general and administrative
expenses

(2,159)

(1,991)

(6,091)

(6,209)

Research and development
expenses

(433)

(378)

(1,232)

(1,160)

Operating profit

1,245

1,154

3,716

3,188

Nonoperating income (expense):

Other income (expense), net

(9)

(14)

(85)

(135)

Interest expense

(135)

(67)

(305)

(210)

Interest income

31

3

119

17

Earnings before income taxes

1,132

1,076

3,445

2,860

Income taxes

75

(168)

(339)

(443)

Net earnings from continuing operations

1,207

908

3,106

2,417

Earnings from discontinued operations,
net of income taxes

28

—

28

—

Net earnings

$           1,235

$              908

$           3,134

$           2,417

Net earnings per common share from
continuing operations:

Basic

$             1.71

$             1.28

$             4.40

(a)

$             3.38

Diluted

$             1.71

$             1.27

$             4.38

(a)

$             3.37

Net earnings per common share from
discontinued operations:

Basic

$             0.04

$                —

$             0.04

$                —

Diluted

$             0.04

$                —

$             0.04

$                —

Net earnings per common share:

Basic

$             1.75

$             1.28

$             4.44

(a)

$             3.38

(a)

Diluted

$             1.75

$             1.27

$             4.42

(a)

$             3.37

(a)

Average common stock and common
equivalent shares outstanding:

Basic

703.8

710.7

705.7

714.5

Diluted

706.8

713.7

708.5

717.9

(a)

Net earnings per common share amounts for the relevant three-month periods do not add to the nine-month period amount due to rounding.

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).

DANAHER CORPORATION

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES

Diluted Net Earnings Per Common Share from Continuing Operations and Adjusted Diluted Net Earnings Per
Common Share from Continuing Operations

Three-Month Period Ended

Nine-Month Period Ended

September 25,
2026

September 26,
2025

September 25,
2026

September 26,
2025

Diluted Net Earnings Per Common Share From
Continuing Operations (GAAP)

$           1.71

$           1.27

$           4.38

$           3.37

Amortization of acquisition-related intangible
assets A

0.73

0.61

1.99

1.77

Fair value net (gains) losses on investments B

0.02

0.02

0.14

0.21

Acquisition-related items C

0.12

—

0.29

—

Impairments D

0.07

0.14

0.07

0.76

Special equity awards compensation expense E

0.02

—

0.02

—

Settlement of acquisition-related contingency F

(0.01)

—

(0.01)

—

Gain on a product line disposition G

—

—

—

(0.01)

Tax effect of the above adjustments H

(0.17)

(0.15)

(0.43)

(0.54)

Discrete tax adjustments I

(0.37)

—

(0.34)

0.02

Rounding

(0.01)

—

—

(0.01)

Adjusted Diluted Net Earnings Per Common
Share From Continuing Operations (Non-GAAP)

$           2.11

$           1.89

$           6.11

$           5.57

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

Nine-Month Period Ended

September 25,
2026

September 26,
2025

September 25,
2026

September 26,
2025

Pretax

$            513

$            433

$          1,410

$          1,269

After-tax

426

359

1,170

1,053

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

Nine-Month Period Ended

September 25,
2026

September 26,
2025

September 25,
2026

September 26,
2025

Pretax

$             13

$             15

$             97

$            149

After-tax

10

12

74

113

C

Fair value adjustments to inventory in the three and nine-month periods ended September 25, 2026 ($84 million and $130 million pretax as reported in this line item, $67 million and $103 million after-tax, respectively), transaction costs deemed significant and pre-acquisition share-based and change-in-control payments in each case related to the acquisition of Masimo Corporation in the nine-month period ended September 25, 2026 ($79 million pretax as reported in this line item, $74 million after-tax).  The Company deems acquisition-related transaction costs incurred in a given period to be significant (generally relating to the Company's larger acquisitions) if it determines that such costs exceed the range of acquisition-related transaction costs typical for Danaher in a given period.

D

Impairment charges related to a facility in the Biotechnology segment recorded in both the three and nine-month periods ended September 25, 2026 ($52 million pretax as reported in this line item, $39 million after-tax), technology and other intangible assets in the Biotechnology segment recorded in both the three and nine-month periods ended September 26, 2025 ($86 million pretax as reported in this line item, $58 million after-tax), a trade name in the Diagnostics segment recorded in both the three and nine-month periods ended September 26, 2025 ($15 million pretax as reported in this line item, $12 million after-tax), a trade name in the Life Sciences segment recorded in the nine-month period ended September 26, 2025 ($432 million pretax as reported in this line item, $328 million after-tax) and a facility in the Biotechnology segment recorded in the nine-month period ended September 26, 2025 ($15 million pretax as reported in this line item, $11 million after-tax).

E

Compensation expense in the three and nine-month periods ended September 25, 2026 related to special long-term growth equity awards granted to the Company's founders, certain executive officers and other key leaders in the third quarter of 2026 ("special equity awards") ($14 million pretax as reported in this line item, $14 million after-tax).  These awards have vesting terms and amounts that differ from the Company's typical annual equity grants.

F

Settlement of an acquisition-related contingency in the Life Sciences segment in the three and nine-month periods ended September 25, 2026 ($8 million pretax as reported in this line item, $6 million after-tax).

G

Gain on a product line disposition in the nine-month period ended September 26, 2025 ($9 million pretax as reported in this line item, $7 million after-tax).

H

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.

I

Discrete tax adjustments and other tax-related adjustments for the three-month period ended September 25, 2026, include the impact of net discrete tax benefits of $263 million related primarily to the release of reserves for uncertain tax positions resulting from audit settlements.  Discrete tax adjustments and other tax-related adjustments for the nine-month period ended September 25, 2026, include the impact of net discrete tax benefits of $242 million related primarily to the release of reserves for uncertain tax positions resulting from audit settlements and the expiration of statutes of limitations during the nine-month period, partially offset by changes in estimates associated with prior period uncertain tax positions.  There were no net discrete tax adjustments for the three-month period ended September 26, 2025, as a valuation allowance recorded on certain foreign operating losses was offset by benefits from the remeasurement of deferred taxes in a jurisdiction which enacted a tax rate change.  Discrete tax adjustments and other tax-related adjustments for the nine-month period ended September 26, 2025, include the impact of net discrete tax charges of $12 million related primarily to a valuation allowance recorded on certain foreign operating losses and changes in uncertain tax positions, partially offset by the remeasurement of deferred taxes in a jurisdiction which enacted a tax rate change and the release of reserves for uncertain tax positions due to the expiration of statutes of limitations.

Sales Growth by Segment, Core Sales Growth (Decline) by Segment and Core Sales Growth Excluding
Respiratory Testing

% Change Three-Month Period Ended September 25, 2026 vs. Comparable 2025
Period

Segments

Total Company

Biotechnology

Life Sciences

Diagnostics

Total sales growth (GAAP)

8.5 %

0.5 %

4.0 %

17.0 %

Impact of:

Acquisitions/divestitures

(6.5) %

— %

— %

(16.5) %

Currency exchange rates

— %

0.5 %

0.5 %

— %

Tariff refunds to customers

1.0 %

4.0 %

— %

— %

Core sales growth (non-GAAP)

3.0 %

5.0 %

4.5 %

0.5 %

Impact of respiratory testing

2.5 %

6.5 %

Core sales growth excluding respiratory
testing (non-GAAP)

5.5 %

7.0 %

% Change Nine-Month Period Ended September 25, 2026 vs. Comparable 2025 Period

Segments

Total Company

Biotechnology

Life Sciences

Diagnostics

Total sales growth (GAAP)

6.0 %

5.0 %

4.5 %

7.5 %

Impact of:

Acquisitions/divestitures

(3.0) %

— %

— %

(7.0) %

Currency exchange rates

(1.5) %

(1.5) %

(1.0) %

(1.0) %

Tariff refunds to customers

0.5 %

1.0 %

— %

— %

Core sales growth (decline) (non-GAAP)

2.0 %

4.5 %

3.5 %

(0.5) %

Impact of respiratory testing

2.5 %

5.5 %

Core sales growth excluding respiratory
testing (non-GAAP)

4.5 %

5.0 %

Note: Beginning with the Company's Quarterly Report on Form 10-Q for the third quarter of 2026, the Company is excluding from core sales growth and core sales excluding respiratory testing the impact, if any, of tariff refunds received by the Company (related to tariff payments made in prior periods) that are returned or to be returned to customers ("tariff refunds to customers").

Non-GAAP Forward-Looking Information

% Change Three-
Month Period Ending
December 31, 2026
vs. Comparable 2025
Period

% Change Year
Ending December 31,
2026 vs. Comparable
2025 Period

Core sales growth (non-GAAP)

Biotechnology

+Mid-single digit

+Mid-single digit

Life Sciences

+4.0% - +5.0%

+3.0% - +4.0%

Diagnostics

+Up slightly

~Flat

Total Company

~+3.0%

~+2.5%

Impact of respiratory testing

~+150 basis points

+Low-single digit

Core sales growth excluding respiratory testing (non-GAAP)

+4.0% - +5.0%

+Mid-single digit

Note: For the impact of respiratory testing, a positive amount represents a year-over-year headwind to core sales growth, and a negative amount represents a year-over-year tailwind to core sales growth.

Three-Month Period
Ending

December 31, 2026

Year Ending

December 31, 2026

Adjusted operating profit margin (non-GAAP)

 ~29.5  %

Adjusted diluted net earnings per common share from continuing operations
(non-GAAP)

$8.57 - $8.62

Other Forward-Looking Information

Three-Month Period
Ending

December 31, 2026

Year Ending

December 31, 2026

Impact of currency exchange rates on sales J

~Flat

~+1.0%

Amortization of acquisition-related intangible assets ($ in millions)

~$(500)

~$(1,900)

Corporate expense K ($ in millions)

~$(90)

~$(355)

Interest expense, net L ($ in millions)

~$(120)

~$(305)

Effective tax rate

 ~17.0  %

 ~17.0  %

Average adjusted diluted shares (in millions)

~707

~708

J

Impact of currency exchange rates on sales for the fourth quarter and full year 2026 assumes the currency exchange rates in effect as of September 25, 2026.

K

Corporate expense represents the operating profit (GAAP) for the Company's Other segment, which consists of unallocated corporate costs and other costs not considered part of management's evaluation of reportable segment operating performance, less approximately $200 million in both periods of stock-based compensation expense associated with the special equity awards, which is inclusive in both periods of a $185 million charge related to certain of the special equity awards that have been canceled.

L

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 September 25, 2026 are to prevail throughout the remainder of the period indicated and no change in the amount of commercial paper outstanding.

Historical Sales (Decline) Growth, Core Sales Growth and Core Sales Growth Excluding Respiratory Testing

% Change Three-Month Period Ended vs. Comparable 2024
Period

% Change
Year Ended
December 31,
2025 vs.
Comparable
2024 Period

% Change Three-Month Period
Ended vs. Comparable 2025
Period

March 28, 2025

June 27, 2025

September 26,
2025

December 31,
2025

March 27, 2026

June 26, 2026

Total sales (decline)
growth (GAAP)

(1.0) %

3.5 %

4.5 %

4.5 %

3.0 %

3.5 %

5.5 %

Impact of:

Acquisitions
/divestitures

(0.5) %

— %

— %

0.5 %

— %

— %

(1.5) %

Currency
exchange rates

1.5 %

(2.0) %

(1.5) %

(2.5) %

(1.0) %

(3.0) %

(1.0) %

Core sales growth
(non-GAAP)

— %

1.5 %

3.0 %

2.5 %

2.0 %

0.5 %

3.0 %

Impact of
respiratory testing

1.0 %

0.5 %

(0.5) %

1.5 %

0.5 %

2.5 %

1.5 %

Core sales growth
excluding
respiratory testing
(non-GAAP)

1.0 %

2.0 %

2.5 %

4.0 %

2.5 %

3.0 %

4.5 %

Note: For the impact of respiratory testing, a positive amount represents a year-over-year headwind to core sales growth, and a negative amount represents a year-over-year tailwind to core sales growth.

Historical and Forward-Looking Respiratory Testing Sales

($ in millions)

 Three-Month Period Ended

Year
Ended
December
31, 2025 M

Three-Month Period Ended

Three-
Month
Period
Ending
December
31, 2026

Year
Ending
December
31, 2026

March 28,
2025

June 27,
2025

September 26,
2025

December 31,
2025

March 27,
2026

June 26,
2026

September 25,
2026

Respiratory
testing
sales N

~$650

~$300

~$500

~$500

~$1,900

~$500

~$250

~$350

~$400

~$1,500

M

Respiratory testing sales amounts for the relevant three-month periods may not add to the year-to-date period amount due to rounding.

N

Actual respiratory testing sales are rounded to the nearest $50 million.

Cash Flow from Continuing Operations, Free Cash Flow from Continuing Operations and Related Measures

($ in millions)

Three-Month Period Ended

Year-over-
Year Change

Nine-Month Period Ended

Year-over-
Year Change

September 25,
2026

September 26,
2025

September 25,
2026

September 26,
2025

Total Cash Flow from Continuing
Operations:

Net cash provided by operating
activities from continuing operations
(GAAP)

$       1,886

$       1,662

$        4,742

$       4,299

Total cash used in investing
activities for continuing operations
(GAAP)

$        (300)

$         (312)

$     (10,696)

$        (812)

Total cash (used in) provided by
financing activities for continuing
operations (GAAP)

$        (262)

$      (2,781)

$        7,057

$      (4,283)

Free Cash Flow from Continuing
Operations:

Net cash provided by operating
activities from continuing operations
(GAAP)

$       1,886

$       1,662

 ~ 13.5  %

$       4,742

$       4,299

 ~ 10.5  %

Less: payments for additions to
property, plant & equipment (capital
expenditures) (GAAP)

(255)

(292)

(761)

(785)

Plus: proceeds from sales of
property, plant & equipment (capital
disposals) (GAAP)

1

—

1

10

Free cash flow from continuing
operations (non-GAAP)

$       1,632

$       1,370

 ~ 19.0  %

$       3,982

$       3,524

 ~ 13.0  %

Operating Cash Flow from
Continuing Operations to Net
Earnings from Continuing
Operations Conversion Ratio:

Net cash provided by operating
activities from continuing operations
(GAAP)

$       1,886

$       1,662

$       4,742

$       4,299

Net earnings from continuing
operations (GAAP)

1,207

908

3,106

2,417

Operating cash flow from continuing
operations to net earnings from
continuing operations conversion
ratio (GAAP)

1.56

1.83

1.53

1.78

Free Cash Flow from Continuing
Operations to Net Earnings from
Continuing Operations
Conversion Ratio:

Free cash flow from continuing
operations from above (non-GAAP)

$       1,632

$       1,370

$       3,982

$       3,524

Net earnings from continuing
operations (GAAP)

1,207

908

3,106

2,417

Free cash flow from continuing
operations to net earnings from
continuing operations conversion
ratio (non-GAAP)

1.35

1.51

1.28

1.46

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 the non-GAAP measures related 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 From Continuing Operations, 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 and core sales excluding respiratory testing, (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, (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 and (3) beginning with the Company's Quarterly Report on Form 10-Q in the third quarter of 2026, we exclude tariff refunds to customers to help customers better understand underlying growth trends in the Company's business that otherwise may be obscured by such item.
With respect to core sales excluding respiratory testing, we exclude the impact of revenues related to the sale of respiratory testing products in the Company's molecular diagnostics business in the Diagnostics segment.  Demand for respiratory testing depends significantly on the severity levels of influenza and influenza-like illness in a given period, and these severity levels are not under management's control.  As a result, presenting core sales on a basis that combines respiratory testing revenue with other Diagnostics business revenues can obscure underlying growth trends within the Diagnostics businesses.  The Company believes that this measure complements core sales, enhances investors' understanding of the historical and anticipated performance of the Diagnostics businesses as a whole, including with respect to underlying growth trends and facilitates comparisons of period-to-period performance. 
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.

SOURCE Danaher Corporation

Danaher Corporation (NYSE:DHR) will release earnings for its third quarter before the opening bell on Wednesday, Oct. 21.

Analysts expect the company to report quarterly earnings of $1.92 per share, up from $1.89 per share in the year-ago period. The consensus estimate for DHR’s quarterly revenue is $6.56 billion. It reported $6.05 billion last year, according to Benzinga Pro.

On Oct. 14, Danaher announced an AI collaboration with NVIDIA Corp (NASDAQ:NVDA) focused on autonomous science.

Danaher shares fell 1.1% to close at $229.04 on Friday.

Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker, company name, analyst firm, rating change or other variables.

Let’s have a look at how Benzinga’s most-accurate analysts have rated the company in the recent period.

TD Cowen analyst Dan Brennan maintained a Buy rating and raised the price target from $236 to $255 on Oct. 13, 2026. This analyst has an accuracy rate of 73%. Barclays analyst Luke Sergott maintained an Overweight rating and boosted the price target from $230 to $255 on Oct. 7, 2026. This analyst has an accuracy rate of 69%. RBC Capital analyst Dan Leonard maintained an Outperform rating and raised the price target from $215 to $250 on Oct. 5, 2026. This analyst has an accuracy rate of 70%. Guggenheim analyst Subbu Nambi maintained the stock with a Buy rating and increased the price target from $200 to $250 on Oct. 1, 2026. This analyst has an accuracy rate of 78%. Wells Fargo analyst Brandon Couillard maintained an Equal-Weight rating and cut the price target from $212 to $195 on July 22, 2026. This analyst has an accuracy rate of 74%. Considering buying DHR stock? Here’s what analysts think:

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Barlow Wealth Partners LLC purchased a new stake in shares of Danaher Corporation (NYSE:DHR – Free Report) during the third quarter, according to its most recent disclosure with the Securities & Exchange Commission. The institutional investor purchased 2,620 shares of the conglomerate’s stock, valued at approximately $580,000.

Other institutional investors also recently modified their holdings of the company. BlackRock Inc. purchased a new stake in shares of Danaher during the 2nd quarter valued at about $10,492,520,000. Wellington Management Group LLP raised its holdings in shares of Danaher by 10.4% during the second quarter. Wellington Management Group LLP now owns 16,316,834 shares of the conglomerate’s stock valued at $3,108,031,000 after purchasing an additional 1,542,310 shares during the last quarter. Jupiter Topco LLC purchased a new position in shares of Danaher during the second quarter valued at approximately $1,456,317,000. Generation Investment Management LLP bought a new position in Danaher during the second quarter valued at approximately $1,287,949,000. Finally, Bank of America Corp DE bought a new position in Danaher during the second quarter valued at approximately $993,846,000. 79.05% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting Danaher Here are the key news stories impacting Danaher this week:

Positive Sentiment: Danaher and NVIDIA announced an AI collaboration to combine Danaher’s scientific instruments, laboratory workflows, automation technology and software with NVIDIA’s accelerated computing and AI capabilities. The partnership is intended to advance autonomous science and speed drug discovery and other laboratory research. Danaher Collaborates with NVIDIA to Advance Autonomous Science Positive Sentiment: Danaher is also preparing to launch its first AI-powered autonomous laboratory, targeted to operate at commercial scale in early 2027. The initiative could support longer-term growth in laboratory automation and strengthen the company’s position in AI-enabled life-science research. How to Invest in AI Drug Discovery Positive Sentiment: Multiple Zacks reports say Danaher has a favorable combination of earnings-estimate trends and Earnings ESP, suggesting potential for the company to exceed consensus estimates in its next quarterly report. Danaher has also recently demonstrated earnings momentum, with its latest reported quarter exceeding both EPS and revenue expectations. Will Danaher Beat Estimates Again in Its Next Earnings Report? Neutral Sentiment: Danaher is projected to announce earnings on Wednesday. Investors will be watching revenue growth, management’s outlook and whether diagnostics and life-sciences demand support the anticipated improvement in earnings. Danaher Projected to Announce Earnings Danaher Trading Up 3.0% Shares of Danaher stock opened at $231.52 on Friday. Danaher Corporation has a 1-year low of $160.93 and a 1-year high of $242.80. The company’s fifty day simple moving average is $213.55 and its 200-day simple moving average is $195.74. The company has a debt-to-equity ratio of 0.48, a current ratio of 1.65 and a quick ratio of 1.25. The stock has a market capitalization of $162.76 billion, a PE ratio of 41.12, a P/E/G ratio of 2.82 and a beta of 0.76. Danaher (NYSE:DHR – Get Free Report) last posted its quarterly earnings data on Monday, July 20th. The conglomerate reported $1.94 EPS for the quarter, topping the consensus estimate of $1.85 by $0.09. Danaher had a return on equity of 11.04% and a net margin of 15.95%. The firm had revenue of $6.26 billion during the quarter, compared to analyst estimates of $6.12 billion. During the same period in the prior year, the business posted $0.77 EPS. Danaher’s revenue was up 5.5% on a year-over-year basis. As a group, equities analysts anticipate that Danaher Corporation will post 8.53 earnings per share for the current year.

Danaher Dividend Announcement The business also recently declared a quarterly dividend, which will be paid on Friday, October 30th. Shareholders of record on Wednesday, September 30th will be issued a dividend of $0.40 per share. This represents a $1.60 annualized dividend and a yield of 0.7%. The ex-dividend date of this dividend is Wednesday, September 30th. Danaher’s payout ratio is currently 28.42%.

Analysts Set New Price Targets Several brokerages recently issued reports on DHR. Barclays raised their target price on shares of Danaher from $230.00 to $255.00 and gave the stock an “overweight” rating in a report on Wednesday, October 7th. Wall Street Zen upgraded shares of Danaher from a “hold” rating to a “buy” rating in a research note on Saturday, October 10th. Wells Fargo & Company lowered their price target on Danaher from $212.00 to $195.00 and set an “equal weight” rating on the stock in a report on Wednesday, July 22nd. Morgan Stanley raised their price target on Danaher from $220.00 to $240.00 and gave the stock an “overweight” rating in a research note on Monday. Finally, Evercore reiterated an “outperform” rating and set a $230.00 price objective on shares of Danaher in a research report on Monday, July 6th. Two investment analysts have rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $235.41.

Get Our Latest Report on DHR

Danaher Company Profile (Free Report)

Danaher Corporation (NYSE: DHR) is a global science and technology company that develops and manufactures products, services and solutions for the life sciences, diagnostics and biotechnology industries. Its offerings help researchers, healthcare professionals and biopharmaceutical manufacturers discover, develop, produce and analyze medicines and other biological products.

The company operates through businesses that provide laboratory instruments, consumables, software and services, including technologies for cell analysis, genomics, protein research, bioprocessing and clinical diagnostics.

Recommended Stories Five stocks we like better than Danaher ASML Can’t Keep Up With AI Demand—Why That’s a Good Thing Enovix’s 100,000-Battery Drone Order Sets Up a Test of Its Production Plans AMD’s Support Could Help Fermi Stock Overcome Its Biggest Hurdle Beyond the GPU: Credo Paves the Next AI Data Superhighway Want to see what other hedge funds are holding DHR? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Danaher Corporation (NYSE:DHR – Free Report).

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Analysts on Wall Street project that Danaher (DHR - Free Report) will announce quarterly earnings of $1.92 per share in its forthcoming report, representing an increase of 1.6% year over year. Revenues are projected to reach $6.55 billion, increasing 8.2% from the same quarter last year.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.

Given this perspective, it's time to examine the average forecasts of specific Danaher metrics that are routinely monitored and predicted by Wall Street analysts.

The consensus among analysts is that 'Total Sales- Diagnostics' will reach $2.83 billion. The estimate points to a change of +14.9% from the year-ago quarter.

Analysts' assessment points toward 'Total Sales- Life Sciences' reaching $1.84 billion. The estimate indicates a change of +2.9% from the prior-year quarter.

Analysts forecast 'Total Sales- Biotechnology' to reach $1.87 billion. The estimate indicates a year-over-year change of +4%.

According to the collective judgment of analysts, 'Total Growth - Organic sales (Core)' should come in at 2.5%. Compared to the present estimate, the company reported 3.0% in the same quarter last year.

Analysts predict that the 'Operating profit- Life Sciences' will reach $255.41 million. The estimate compares to the year-ago value of $222.00 million.

Analysts expect 'Operating profit- Biotechnology' to come in at $483.60 million. The estimate is in contrast to the year-ago figure of $352.00 million.

The average prediction of analysts places 'Operating profit- Diagnostics' at $704.10 million. The estimate is in contrast to the year-ago figure of $665.00 million.

View all Key Company Metrics for Danaher here>>>

Over the past month, Danaher shares have recorded returns of +8.9% versus the Zacks S&P 500 composite's +2.4% change. Based on its Zacks Rank #2 (Buy), DHR will likely outperform the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Helping researchers to move from discovery to breakthrough up to 8x faster by combining AI, automation and innovation from across Danaher's ecosystem of industry-leading technologies

, /PRNewswire/ -- Danaher Corporation (NYSE: DHR) today announced plans to launch its first AI-powered autonomous lab, designed to help researchers develop custom antibodies and other molecular tools faster and more efficiently. Expected to operate at scale in early 2027, the lab will combine artificial intelligence, robotics and technologies from several Danaher operating companies in one connected workflow. It is the first step in a broader Danaher initiative to create smart instruments, integrated workflows and autonomous labs that accelerate scientific research.

Danaher's first AI-powered autonomous lab is designed to deliver:

Speed: Up to 8x faster discovery of affinity reagents, helping researchers get from idea to breakthrough sooner Scale: Unlocking up to a tenfold increase in annual reagent generation, from tens to hundreds of reagents per year as the lab scales Quality: Each design built in the lab would also be verified, tested and fed back to improve the next, without trading speed for scientific rigor Sustainability: Over time, this approach is expected to complement traditional immunization-based methods used in the discovery of antibodies and other research tools "The autonomous lab reflects the kind of progress Danaher is uniquely positioned to deliver," said Julie Sawyer Montgomery, President and Chief Executive Officer of Danaher. "By applying our science, technology and culture of continuous improvement, we can help turn promising ideas into validated systems faster. It is an important step toward a future where AI, automation and intelligent systems dramatically accelerate the journey from discovery to impact."

Based at Abcam, a Danaher company, the lab uses AI to help create new affinity reagents, including antibodies, then builds and tests each one, feeding every result back into the model to improve the next design. The lab brings together industry-leading technologies and expertise from several Danaher operating companies, including Beckman Coulter Life Sciences, Cytiva, Genedata, Integrated DNA Technologies, and Molecular Devices, in one connected workflow. The device orchestration and robotic automation is the result of collaborative work with Automata*. This continuous design-make-test-learn loop can run in a fraction of the time it takes today, without trading speed for scientific rigor. This approach applies the same test-and-verify discipline of continuous improvement long used across Danaher operations to an AI-enabled laboratory environment. The lab is set to be an early proof point for how Danaher's smart instruments, AI-ready data, and expert agentic systems can accelerate scientific discovery and medical progress.

"This lab represents a new model for scientific discovery, where AI, automation and human expertise work together in a continuous learning cycle," said JC Gutierrez-Ramos, Senior Vice President and Chief Science Officer of Danaher. "Speed is what supercharges that cycle. Every result sharpens the next design, so the faster each loop runs, the faster discovery compounds. The lab is designed to deliver up to eight times faster progress from idea to validated reagent and up to a tenfold increase in reagent generation, while scientists continue to make the key decisions. That frees them to focus on the complex scientific challenges where human insight matters most."

The lab is an example of a broader program across Danaher intended to create a fleet of smart instruments that are easier to integrate and control programmatically, produce AI-ready data, and include expert-level agentic systems designed to simplify operation, improve data quality and generate deeper insights. These intelligent devices can then be connected to create integrated workflows and autonomous labs that execute design-make-test-learn cycles. The approach also supports a shift toward more predictive and standardized research workflows, with models helping prioritize the most promising designs before they are made and robotics supporting more consistent experimentation.

The platform reflects an important milestone in the Company's continued investment in connected science at a global scale: technologies designed to help researchers move from scientific question to validated answer with greater speed, consistency and confidence.

FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION
Statements in this release that are not strictly historical, including statements regarding the Company's AI-powered autonomous lab, the anticipated timing, performance, capabilities and benefits of the platform, the development and deployment of smart instruments, integrated workflows and autonomous labs, and the expected impact of these technologies on biomedical research and scientific discovery, 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 U.S. and other countries, the impact of our debt obligations (including debt we have incurred to finance the acquisition of Masimo Corporation) on our operations and liquidity, deterioration of or instability in the global economy, the markets we serve and the financial markets, uncertainties with respect to the development, deployment, and use of artificial intelligence in our business and products, the impact of global health crises, uncertainties relating to national laws or policies, including laws or policies to protect or promote domestic interests and/or address foreign competition, our ability to successfully identify and consummate appropriate acquisitions and strategic investments, our ability to integrate the businesses we acquire and achieve the anticipated growth, synergies and other benefits of such acquisitions, contingent liabilities and other risks relating to acquisitions, investments, strategic relationships and divestitures (in each case, including with respect to our acquisition of Masimo), including tax-related and other contingent liabilities relating to past and future IPOs, split-offs or spin-offs, contractions or growth rates and cyclicality of markets we serve, competition, our ability to develop and successfully market new products and technologies and expand into new markets, the potential for improper conduct by our employees, agents or business partners, our compliance with applicable laws and regulations (including rules relating to off-label marketing and other regulations relating to medical devices and the health care industry), the results of our clinical trials and perceptions thereof, our ability to effectively address cost reductions and other changes in the health care industry, security breaches or other disruptions of our information technology systems or violations of data privacy laws, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, changes in tax laws applicable to multinational companies, litigation, regulatory proceedings and other contingent liabilities including intellectual property and environmental, health and safety matters, the rights of the United States government with respect to our production capacity in times of national emergency or with respect to intellectual property/production capacity developed using government funding, risks relating to product, service or software defects, product liability and recalls, risks relating to our manufacturing operations, the impact of climate change, legal or regulatory measures to address climate change and other sustainability topics and our ability to address regulatory requirements or stakeholder expectations relating to climate change and other sustainability topics, risks relating to fluctuations in the cost and availability of the supplies we use (including commodities) and labor we need for our operations, our relationships with and the performance of our channel partners, uncertainties relating to collaboration arrangements with third-parties, the impact of deregulation on demand for our products and services, labor matters and our ability to recruit, retain and motivate talented employees, U.S. and non-U.S. economic, political, geopolitical, legal, compliance, social and business factors (including the impact of elections, regulatory and policy changes or uncertainty, government shutdowns and military conflicts such as the conflict in the Middle East), disruptions and other impacts relating to man-made and natural disasters, inflation and the impact of our By-law exclusive forum provisions. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2025 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the second quarter of 2026. These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

ABOUT DANAHER
Danaher is a leading global life sciences and diagnostics innovator, committed to advancing 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—accelerating the moment scientific discovery becomes human impact. 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. That's Innovation at the speed of life. Explore more at www.danaher.com.

*Automata received an investment from DHR in Jan 2026

SOURCE Danaher Corporation

Key Takeaways Danaher's Biotechnology sales rose 4% to $1.92 billion in the second quarter of 2026.Bioprocessing growth was fueled by stronger consumables demand and higher equipment sales.Danaher expects mid-single-digit Biotechnology core revenue growth in 2026. Danaher Corporation’s (DHR - Free Report) Biotechnology segment continues to be a key contributor to its growth. In the second quarter of 2026, the segment’s reported sales rose 4% year over year to $1.92 billion. Also, its core revenues increased 2.5% on a year-over-year basis. The robust performance was led by an increase in demand for products in China.

The segment’s bioprocessing business benefited from stronger consumables demand and higher equipment sales. In the second quarter, this resulted in low-single-digit core sales growth in the bioprocessing business. The discovery and medical business also improved, supported by higher consumables sales and a better academic and research funding environment.

However, difficult prior-year comparisons weighed on the performance of this segment’s results in Western Europe and North America. Also, shipment timing shifts by large customers remain near-term concerns for the segment. These factors may continue to create some volatility in the segment’s growth trajectory.

Despite these headwinds, Danaher expects the Biotechnology segment’s core revenues to grow in the mid-single digits year over year in 2026. Healthy demand trends in the bioprocessing business, along with improving conditions in discovery and medical markets, are expected to support the Biotechnology segment’s performance in the coming quarters.

Segment Snapshot of DHR's PeersAmong its major peers, Labcorp Holdings Inc.’s (LH - Free Report) Biopharma Laboratory Services segment generated net sales of $836.2 million in the second quarter of 2026, up 6.8% year over year. This was driven by Labcorp’s position across clinical development and ongoing demand within Central Laboratories. Labcorp derived 22.5% of its total revenues from this segment during the quarter.

Another peer of DHR, CVS Health Corporation’s (CVS - Free Report) Health Services segment reported net sales of $51.8 billion in the second quarter of 2026, up 11.5% year over year. CVS Health generated 48.8% of its total sales from this segment in the quarter. Favorable pharmacy drug mix and brand inflation aided the segment’s results in the second quarter.

DHR's Price Performance, Valuation and EstimatesShares of Danaher have gained 24.4% in the past month compared with the industry’s growth of 17.2%.

Image Source: Zacks Investment Research

From a valuation standpoint, DHR is trading at a forward price-to-earnings ratio of 23.90X, above the industry’s average of 16.63X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for DHR’s 2026 earnings has increased 1.1% over the past 60 days.

Image Source: Zacks Investment Research

Posted by Defense World Staff on Jul 22nd, 2026

Andra AP fonden raised its holdings in shares of Danaher Corporation (NYSE:DHR – Free Report) by 648.7% in the first quarter, according to its most recent Form 13F filing with the SEC. The institutional investor owned 76,642 shares of the conglomerate’s stock after buying an additional 66,405 shares during the period. Andra AP fonden’s holdings in Danaher were worth $14,531,000 as of its most recent SEC filing.

Several other hedge funds have also recently added to or reduced their stakes in DHR. Sivia Capital Partners LLC boosted its stake in shares of Danaher by 6.3% during the 2nd quarter. Sivia Capital Partners LLC now owns 2,009 shares of the conglomerate’s stock worth $397,000 after acquiring an additional 119 shares in the last quarter. First Trust Advisors LP lifted its holdings in shares of Danaher by 34.5% during the second quarter. First Trust Advisors LP now owns 55,418 shares of the conglomerate’s stock valued at $10,947,000 after purchasing an additional 14,217 shares during the last quarter. Main Street Financial Solutions LLC lifted its holdings in shares of Danaher by 40.2% during the second quarter. Main Street Financial Solutions LLC now owns 3,088 shares of the conglomerate’s stock valued at $610,000 after purchasing an additional 886 shares during the last quarter. Ieq Capital LLC boosted its position in shares of Danaher by 64.2% in the 2nd quarter. Ieq Capital LLC now owns 75,714 shares of the conglomerate’s stock valued at $14,957,000 after purchasing an additional 29,592 shares during the period. Finally, HUB Investment Partners LLC boosted its position in shares of Danaher by 30.7% in the 2nd quarter. HUB Investment Partners LLC now owns 1,383 shares of the conglomerate’s stock valued at $273,000 after purchasing an additional 325 shares during the period. Institutional investors and hedge funds own 79.05% of the company’s stock.

Analyst Ratings Changes Several research analysts have commented on DHR shares. Evercore reiterated an “outperform” rating and issued a $230.00 target price on shares of Danaher in a report on Monday, July 6th. Barclays reduced their price target on shares of Danaher from $250.00 to $230.00 and set an “overweight” rating for the company in a research report on Tuesday, April 14th. The Goldman Sachs Group decreased their price objective on shares of Danaher from $265.00 to $230.00 and set a “buy” rating for the company in a research note on Monday, April 13th. Rothschild & Co Redburn set a $205.00 price objective on shares of Danaher in a research report on Friday, April 17th. Finally, Argus cut their target price on shares of Danaher from $265.00 to $230.00 and set a “buy” rating on the stock in a research note on Friday, April 24th. One investment analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and five have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $231.64.

Check Out Our Latest Stock Analysis on Danaher

Danaher News Summary Here are the key news stories impacting Danaher this week:

Positive Sentiment: Danaher posted Q2 adjusted EPS of $1.94, above the $1.84 consensus, and revenue of about $6.26 billion to $6.3 billion, also ahead of estimates. Danaher Reports Second Quarter 2026 Results Positive Sentiment: Management raised full-year adjusted EPS guidance, showing confidence in profitability despite the softer sales backdrop. Danaher Corp (DHR) Q2 2026 Earnings Call Highlights Neutral Sentiment: Life Sciences was a bright spot, with stronger sales growth, but bioprocessing revenue came in weaker than expected and was cited as a drag on sentiment. Reuters: Danaher’s revenue outlook cut, biotech miss overshadow profit forecast raise Negative Sentiment: Investors reacted negatively to the reduced core revenue growth outlook and cautious near-term guidance, which outweighed the earnings beat and led to the stock decline. Danaher stock slips despite Q2 earnings beat, raised guidance Negative Sentiment: Analysts also highlighted “surprisingly soft” bioprocessing sales, reinforcing concerns that growth may slow more than expected. Danaher Plummets After One Segment Comes In ‘Surprisingly Soft’ Danaher Trading Down 11.0% Danaher stock opened at $179.01 on Wednesday. The company has a debt-to-equity ratio of 0.33, a current ratio of 1.87 and a quick ratio of 1.52. The company has a market capitalization of $126.70 billion, a price-to-earnings ratio of 34.62, a PEG ratio of 2.48 and a beta of 0.79. Danaher Corporation has a one year low of $160.93 and a one year high of $242.80. The company’s fifty day moving average price is $184.22 and its two-hundred day moving average price is $197.69.

Danaher (NYSE:DHR – Get Free Report) last announced its quarterly earnings results on Tuesday, July 21st. The conglomerate reported $1.94 earnings per share for the quarter, topping analysts’ consensus estimates of $1.84 by $0.10. The company had revenue of $6.26 billion during the quarter, compared to analysts’ expectations of $6.11 billion. Danaher had a return on equity of 10.91% and a net margin of 14.89%.The business’s quarterly revenue was up 5.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $0.77 earnings per share. On average, analysts forecast that Danaher Corporation will post 8.45 earnings per share for the current fiscal year.

Danaher Dividend Announcement The firm also recently disclosed a quarterly dividend, which will be paid on Friday, July 31st. Stockholders of record on Friday, June 26th will be paid a $0.40 dividend. The ex-dividend date is Friday, June 26th. This represents a $1.60 dividend on an annualized basis and a dividend yield of 0.9%. Danaher’s payout ratio is presently 30.95%.

Danaher Profile (Free Report)

Danaher Corporation (NYSE: DHR) is a global science and technology company that designs, manufactures and markets products and services for the life sciences, diagnostics, and environmental and applied markets. The company organizes its operations into business segments focused on Life Sciences, Diagnostics, and Environmental & Applied Solutions, supplying instruments, reagents, software and related services that support research, clinical testing, biopharmaceutical development, and industrial and environmental monitoring.

Products and services in Danaher’s portfolio include analytical and diagnostic instruments, laboratory consumables and reagents, digital and software solutions for workflow and data management, field and industrial monitoring equipment, and service and maintenance programs.

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, /PRNewswire/ -- Danaher Corporation (NYSE: DHR) today announced results for the second quarter 2026. All results in this release reflect only continuing operations and period-to-period comparisons are year-over-year unless otherwise noted.

Key Second Quarter 2026 Results

Net earnings were $870 million, or $1.23 per diluted common share, up 60% year-over-year. Non-GAAP adjusted diluted net earnings per common share grew 8.0% to $1.94. Revenues increased 5.5% year-over-year to $6.3 billion. Non-GAAP core revenue increased 3.0% year-over-year and non-GAAP core revenue excluding respiratory testing revenue increased 4.5% year-over-year. Operating cash flow was $1.5 billion and non-GAAP free cash flow was $1.3 billion. Strong Q2 earnings performance and earlier-than-anticipated completion of Masimo acquisition enabling increased full year 2026 adjusted diluted net earnings per common share guidance. Rainer M. Blair, President and Chief Executive Officer, stated, "We delivered a better than expected second quarter, with core growth improving versus the first quarter and disciplined execution driving high-single-digits adjusted EPS growth. Our Life Sciences businesses delivered their strongest quarter in several years and while customer project timing impacted bioprocessing revenue, underlying order trends remained strong and bioprocessing orders grew mid-teens in the quarter."

Mr. Blair continued, "Looking ahead, continued end-market recovery and traction from our recent growth initiatives support our expectation to exit 2026 at a mid-single-digit core revenue growth rate. Longer term, Danaher's leading portfolio, capital deployment optionality and talented team — all powered by the Danaher Business System — position us to accelerate the impact of science and technology, help customers move from discovery to delivery faster, and create sustainable long-term shareholder value."

Third 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 U.S. generally accepted accounting principles (GAAP) because (except for estimated amortization of acquisition-related intangible assets of $0.5 billion for the third quarter and $1.9 billion for the year ending December 31, 2026 and the estimated impact of foreign currency on sales, which is estimated to decrease sales by 1.0% in the third quarter and increase sales by 0.5% in the full year, assuming the currency exchange rates in effect as of June 26, 2026) the additional elements that would be reflected in any such GAAP measures (such as the impact of currency exchange rates on profitability, future acquisitions, divested product lines, discrete tax adjustments, impairments, gains and losses on investments and the outcome of legal proceedings) are difficult to predict and estimate and are often dependent on future events that may be uncertain or outside of our control. The impact of these additional elements could be material to our results computed in accordance with GAAP.

For the third quarter 2026, the Company anticipates that non-GAAP core revenue will increase in the 2.0% to 3.0% range year-over-year.

For full year 2026, the Company expects non-GAAP core revenue will increase in the 3.0% to 4.0% range year-over-year. The Company is also increasing its full year adjusted diluted net earnings per common share guidance to a range of $8.45 to $8.60 versus previous guidance of $8.35 to $8.55.

Conference Call and Webcast Information

Danaher will discuss its second quarter results and financial guidance for the third 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 833-419-0865, within the U.S. or +1 785-838-9333 outside the U.S. a few minutes before 8:00 a.m. ET and notifying the operator that you are dialing in for Danaher's earnings conference call (Conference ID: DHRQ226). A replay of the conference call will be available shortly after the conclusion of the call and until August 4, 2026. You can access the replay dial-in information on the "Investors" section of Danaher's website under the subheading "Events & Presentations."

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 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 third quarter and full year 2026, the Company's expectations regarding growth and market recovery, the Company's positioning to create 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 U.S. and other countries, the impact of our debt obligations (including debt we incurred to finance the acquisition of Masimo Corporation) on our operations and liquidity, deterioration of or instability in the global economy, the markets we serve and the financial markets, uncertainties with respect to the development, deployment, and use of artificial intelligence in our business and products, the impact of global health crises, uncertainties relating to national laws or policies, including laws or policies to protect or promote domestic interests and/or address foreign competition, our ability to successfully identify and consummate appropriate acquisitions and strategic investments, our ability to integrate the businesses we acquire and achieve the anticipated growth, synergies and other benefits of such acquisitions, contingent liabilities and other risks relating to acquisitions, investments, strategic relationships and divestitures (in each case, including with respect to our acquisition of Masimo Corporation), including tax-related and other contingent liabilities relating to past and future IPOs, split-offs or spin-offs, contractions or growth rates and cyclicality of markets we serve, competition, our ability to develop and successfully market new products and technologies and expand into new markets, the potential for improper conduct by our employees, agents or business partners, our compliance with applicable laws and regulations (including rules relating to off-label marketing and other regulations relating to medical devices and the health care industry), the results of our clinical trials and perceptions thereof, our ability to effectively address cost reductions and other changes in the health care industry, security breaches or other disruptions of our information technology systems or violations of data privacy laws, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, changes in tax laws applicable to multinational companies, litigation, regulatory proceedings and other contingent liabilities including intellectual property and environmental, health and safety matters, the rights of the United States government with respect to our production capacity in times of national emergency or with respect to intellectual property/production capacity developed using government funding, risks relating to product, service or software defects, product liability and recalls, risks relating to our manufacturing operations, the impact of climate change, legal or regulatory measures to address climate change and other sustainability topics and our ability to address regulatory requirements or stakeholder expectations relating to climate change and other sustainability topics, risks relating to fluctuations in the cost and availability of the supplies we use (including commodities) and labor we need for our operations, our relationships with and the performance of our channel partners, uncertainties relating to collaboration arrangements with third-parties, the impact of deregulation on demand for our products and services, labor matters and our ability to recruit, retain and motivate talented employees, U.S. and non-U.S. economic, political, geopolitical, legal, compliance, social and business factors (including the impact of elections, regulatory and policy changes or uncertainty, government shutdowns and military conflicts such as the conflict in the Middle East), disruptions and other impacts relating to man-made and natural disasters, inflation and the impact of our By-law exclusive forum provisions. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2025 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the second quarter of 2026. These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

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

Six-Month Period Ended

June 26, 2026

June 27, 2025

June 26, 2026

June 27, 2025

Sales

$           6,265

$           5,936

$          12,216

$          11,677

Cost of sales

(2,654)

(2,413)

(5,014)

(4,643)

Gross profit

3,611

3,523

7,202

7,034

Operating costs:

Selling, general and administrative expenses     

(2,072)

(2,360)

(3,932)

(4,218)

Research and development expenses

(412)

(403)

(799)

(782)

Operating profit

1,127

760

2,471

2,034

Nonoperating income (expense):

Other income (expense), net

(3)

(42)

(76)

(121)

Interest expense

(107)

(71)

(170)

(143)

Interest income

61

8

88

14

Earnings before income taxes

1,078

655

2,313

1,784

Income taxes

(208)

(100)

(414)

(275)

Net earnings

$              870

$              555

$           1,899

$           1,509

Net earnings per common share:

Basic

$             1.23

$             0.77

$             2.69

(a)

$             2.11

(a)

Diluted

$             1.23

$             0.77

$             2.68

$             2.10

(a)

Average common stock and common
equivalent shares outstanding:

Basic

705.3

716.5

706.6

716.4

Diluted

707.6

719.1

709.4

719.9

(a) Net earnings per common share amounts for the relevant three-month periods do not add to the six-month period amount due to rounding.

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

Six-Month Period Ended

June 26, 2026

June 27, 2025

June 26, 2026

June 27, 2025

Diluted Net Earnings Per Common Share     
(GAAP)

$             1.23

$             0.77

$             2.68

$             2.10

Amortization of acquisition-related
intangible assets A

0.65

0.59

1.26

1.16

Fair value net (gains) losses on
investments B

0.01

0.06

0.12

0.19

Acquisition-related items C

0.15

—

0.18

—

Impairments D

—

0.60

—

0.62

Gain on a product line disposition E

—

—

—

(0.01)

Tax effect of the above adjustments F

(0.13)

(0.26)

(0.27)

(0.39)

Discrete tax adjustments G

0.03

0.03

0.03

0.02

Rounding

—

0.01

—

(0.01)

Adjusted Diluted Net Earnings Per
Common Share (Non-GAAP)

$             1.94

$             1.80

$             4.00

$             3.68

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

Six-Month Period Ended

June 26, 2026

June 27, 2025

June 26, 2026

June 27, 2025

Pretax

$              463

$              426

$              897

$              836

After-tax     

384

354

744

694

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

Six-Month Period Ended

June 26, 2026

June 27, 2025

June 26, 2026

June 27, 2025

Pretax

$                 7

$               44

$               84

$              134

After-tax     

5

33

64

101

C 

Fair value adjustments to inventory, transaction costs deemed significant and pre-acquisition share-based and change-in-control payments, in each case related to the acquisition of Masimo Corporation ("Masimo") in the three and six-month periods ended June 26, 2026 ($108 million and $125 million pretax as reported in this line item, $95 million and $110 million after-tax). The Company deems acquisition-related transaction costs incurred in a given period to be significant (generally relating to the Company's larger acquisitions) if it determines that such costs exceed the range of acquisition-related transaction costs typical for Danaher in a given period.

D 

Impairment charges related to a trade name in the Life Sciences segment recorded in the three and six-month periods ended June 27, 2025 ($432 million pretax as reported in this line item, $328 million after-tax) and a facility in the Biotechnology segment recorded in the six-month period ended June 27, 2025 ($15 million pretax as reported in this line item, $11 million after-tax).

E 

Gain on a product line disposition in the six-month period ended June 27, 2025 ($9 million pretax as reported in this line item, $7 million after-tax).

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 

Discrete tax adjustments and other tax-related adjustments for both the three and six-month periods ended June 26, 2026, include the impact of net discrete tax charges of $21 million related primarily to changes in estimates associated with prior period uncertain tax positions, partially offset by benefits from the release of reserves for uncertain tax positions resulting from audit settlements and the expiration of statutes of limitations during the six-month period. Discrete tax adjustments and other tax-related adjustments for the three-month period ended June 27, 2025, include the impact of net discrete tax charges of $22 million related primarily to changes in uncertain tax positions and other items. Discrete tax adjustments and other tax-related adjustments for the six-month period ended June 27, 2025, include the impact of net discrete tax charges of $12 million related primarily to the release of reserves for uncertain tax positions due to the expiration of statutes of limitations, partially offset by changes in uncertain tax positions and other items.

Sales Growth by Segment, Core Sales Growth (Decline) by Segment and Core Sales Growth Excluding Respiratory Testing

% Change Three-Month Period Ended June 26, 2026 vs. Comparable 2025 Period

Segments

Total Company

Biotechnology

Life Sciences

Diagnostics

Total sales growth (GAAP)

5.5 %

4.0 %

5.5 %

7.0 %

Impact of:

Acquisitions

(1.5) %

— %

— %

(4.0) %

Currency exchange rates

(1.0) %

(1.5) %

— %

(1.0) %

Core sales growth (non-GAAP)

3.0 %

2.5 %

5.5 %

2.0 %

Impact of respiratory testing

1.5 %

3.0 %

Core sales growth excluding respiratory
testing (non-GAAP)     

4.5 %

5.0 %

% Change Six-Month Period Ended June 26, 2026 vs. Comparable 2025 Period

Segments

Total Company

Biotechnology

Life Sciences

Diagnostics

Total sales growth (GAAP)

4.5 %

7.5 %

4.5 %

2.5 %

Impact of:

Acquisitions

(0.5) %

— %

— %

(2.0) %

Currency exchange rates

(2.0) %

(3.0) %

(1.5) %

(1.5) %

Core sales growth (decline) (non-GAAP)

2.0 %

4.5 %

3.0 %

(1.0) %

Impact of respiratory testing

2.0 %

5.0 %

Core sales growth excluding respiratory
testing (non-GAAP)

4.0 %

4.0 %

Note: Beginning with the Company's Quarterly Report on Form 10-Q for the second quarter of 2026, in addition to disclosing core sales growth, the Company is disclosing a new non-GAAP measure, titled "Core sales growth excluding respiratory testing." This new measure adjusts core sales to exclude revenues related to the sale of respiratory testing products in the Company's molecular diagnostics business in the Diagnostics segment. Demand for respiratory testing depends significantly on the severity levels of influenza and influenza-like illness in a given period, and these severity levels are not under management's control. As a result, presenting core sales on a basis that combines respiratory testing revenue with other Diagnostics business revenues can obscure underlying growth trends within the Diagnostics businesses.  The Company believes that presenting this additional measure will complement core sales, enhance investors' understanding of the historical and anticipated performance of the Diagnostics businesses and Danaher as a whole, including with respect to underlying growth trends, and facilitate comparisons of period-to-period performance. In addition, beginning with the Company's Quarterly Report on Form 10-Q for the third quarter of 2026, the Company intends to exclude from the core sales measures the impact, if any, of tariff refunds (related to tariff payments made in prior periods) that are returned, or expected to be returned, to customers. The Company believes this adjustment will help investors better understand underlying growth trends in the Company's business that otherwise may be obscured by the above-noted tariff-related impacts.

Non-GAAP Forward-Looking Information

% Change Three-
Month Period Ending
September 25, 2026
vs. Comparable 2025
Period

% Change Three-
Month Period Ending
December 31, 2026
vs. Comparable 2025
Period

% Change Year
Ending December 31,
2026 vs. Comparable
2025 Period

Core sales growth (non-GAAP)

Biotechnology

+Mid-single digit

+Mid-single digit

Life Sciences

+3.0% - +4.0%

+3.0% - +4.0%

Diagnostics

Flat

+Up slightly

Total Company

+2.0% - +3.0%

+Mid-single digit

+3.0% - +4.0%

Impact of respiratory testing

+2.5 %

Flat

+Low-single digit

Core sales growth excluding respiratory testing (non-GAAP)     

~+5.0%

+Mid-single digit

+Mid-single digit

Three-Month Period
Ending

September 25, 2026

Year Ending

December 31, 2026

Adjusted operating profit margin (non-GAAP)

 ~26.5  %

Adjusted diluted net earnings per common share (non-GAAP)

$8.45 - $8.60

Other Forward-Looking Information

Three-Month Period
Ending

September 25, 2026

Year Ending

December 31, 2026

Impact of currency exchange rates on sales H

~(1.0)%

~+0.5%

Amortization of acquisition-related intangible assets ($ in millions)     

~$(500)

~$(1,900)

Corporate expense I ($ in millions)

~$(90)

~$(360)

Interest expense, net J ($ in millions)

~$(115)

~$(310)

Effective tax rate

 ~17.0  %

 ~17.0  %

Average adjusted diluted shares (in millions)

~707

~709

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 June 26, 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 June 26, 2026 are to prevail throughout the remainder of the period indicated and no change in the amount of commercial paper outstanding.

Pending SLMP LLC "StatLab" Acquisition

Earlier this month, Leica Biosystems, our anatomic pathology business, announced their intention to acquire StatLab, a leading manufacturer of products across the core histology workflow, from specimen collection through slide staining. The business has >85% recurring revenue and is complementary to Leica Biosystems' existing oncology instrument portfolio.

Below is some information on StatLab:

StatLab generated ~$250M in revenue for the full year 2025 The Company expects StatLab to have +high-single digit core sales growth over the long term The Company expects StatLab to be accretive to Adjusted diluted net earnings per common share (non-GAAP) in the 1st full year of ownership The Company expects to close this acquisition by the end of 2026, subject to customary closing conditions and regulatory approvals Historical Sales (Decline) Growth, Core Sales Growth and Core Sales Growth Excluding Respiratory Testing

% Change Three-Month Period Ended vs. Comparable 2024 Period

% Change Year
Ended
December 31,
2025 vs.
Comparable
2024 Period

% Change
Three-Month
Period Ended
March 27, 2026
vs. Comparable
2025 Period

March 28, 2025

June 27, 2025

September 26,
2025

December 31,
2025

Total sales (decline) growth
(GAAP)

(1.0) %

3.5 %

4.5 %

4.5 %

3.0 %

3.5 %

Impact of:

Acquisitions/divestitures

(0.5) %

— %

— %

0.5 %

— %

— %

Currency exchange rates

1.5 %

(2.0) %

(1.5) %

(2.5) %

(1.0) %

(3.0) %

Core sales growth (non-GAAP)

— %

1.5 %

3.0 %

2.5 %

2.0 %

0.5 %

Impact of respiratory testing

1.0 %

0.5 %

(0.5) %

1.5 %

0.5 %

2.5 %

Core sales growth excluding
respiratory testing (non-GAAP)     

1.0 %

2.0 %

2.5 %

4.0 %

2.5 %

3.0 %

Note: For the impact of respiratory testing, a positive amount represents a year-over-year headwind to core sales growth, and a negative amount represents a year-over-year tailwind to core sales growth.

Historical and Forward-Looking Respiratory Testing Sales

($ in millions)

 Three-Month Period Ended

Year
Ended
December
31, 2025 K

Three-Month Period
Ended

Three-Month Period
Ending

Year
Ending
December
31, 2026 K

March 28,
2025

June 27,
2025

September
26, 2025

December
31, 2025

March 27,
2026

June 26,
2026

September
25, 2026

December
31, 2026

Respiratory     
testing
sales L

~$650

~$300

~$500

~$500

~$1,900

~$500

~$250

~$325

~$500

~$1,600

K

Respiratory testing sales amounts for the relevant three-month periods may not add to the year-to-date period amount due to rounding.

L

Actual respiratory testing sales are rounded to the nearest $50 million.

Cash Flow and Free Cash Flow

($ in millions)

Three-Month Period Ended

Year-over-
Year Change

Six-Month Period Ended

Year-over-
Year Change

June 26, 2026

June 27, 2025

June 26, 2026

June 27, 2025

Total Cash Flow:

Net cash provided by
operating activities
(GAAP)

$            1,534

$           1,338

$           2,856

$           2,637

Total cash used in
investing activities
(GAAP)

$         (10,147)

$             (258)

$        (10,396)

$            (500)

Total cash provided by
(used in) financing
activities (GAAP)

$            7,273

$             (247)

$           7,319

$         (1,502)

Free Cash Flow:

Net cash provided by
operating activities
(GAAP)

$            1,534

$           1,338

 ~ 14.5 %

$           2,856

$           2,637

 ~ 8.5   %

Less: payments for
additions to property, plant     
& equipment (capital
expenditures) (GAAP)     

(269)

(248)

(506)

(493)

Plus: proceeds from sales
of property, plant &
equipment (capital
disposals) (GAAP)

—

4

—

10

Free cash flow (non-
GAAP)

$            1,265

$           1,094

 ~ 15.5 %

$           2,350

$           2,154

 ~ 9.0   %

Operating Cash Flow to
Net Earnings
Conversion Ratio:

Net cash provided by
operating activities
(GAAP)

$            1,534

$           1,338

$           2,856

$           2,637

Net earnings (GAAP)

870

555

1,899

1,509

Operating cash flow to net
earnings conversion ratio
(GAAP)

1.76

2.41

1.50

1.75

Free Cash Flow to Net
Earnings Conversion
Ratio:

Free cash flow from
above (non-GAAP)

$            1,265

$           1,094

$           2,350

$           2,154

Net earnings (GAAP)

870

555

1,899

1,509

Free cash flow to net
earnings conversion ratio
(non-GAAP)

1.45

1.97

1.24

1.43

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 the non-GAAP measures related 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. Please see "Sales Growth by Segment, Core Sales Growth (Decline) by Segment and Core Sales Growth Excluding Respiratory Testing" above for an explanation on why we exclude respiratory testing revenues from the non-GAAP measure "Core sales excluding respiratory testing". In addition, beginning with the Company's Quarterly Report on Form 10-Q in the third quarter of 2026, the Company intends to exclude from core sales the impact of tariff refunds related to prior period tariffs that are returned, or expected to be returned, if any, to customers as the Company believes these amounts may obscure underlying business trends.  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. SOURCE Danaher Corporation

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Abbott Laboratories (NYSE:ABT | ABT Price Prediction) and Danaher (NYSE:DHR) both closed the books on Q1 2026 with very different stories. Abbott leaned on consumer-facing devices and diagnostics that sit inside pharmacies and homes. Danaher leaned on bioprocessing tools and lab equipment sold to drugmakers. One business feels recession resistant. The other depends on capital spending decisions inside biotech.

FreeStyle Libre Carries Abbott. Cepheid Drags Danaher. Abbott’s Medical Devices segment hit $5.539 billion, up 13.2%, with FreeStyle Libre continuous glucose monitors alone bringing in $2.08 billion. That is a device sold to millions of everyday diabetics, and CEO Robert Ford told investors the addressable market sits at “between 70 million and 80 million people” globally against roughly 10 to 12 million users today. Cologuard, absorbed through the $21 billion Exact Sciences deal closed March 23, grew mid-teens.

Danaher’s picture is messier. Diagnostics core sales fell 4.0% as Cepheid respiratory revenue dropped roughly 25% year over year on a soft flu season. Bioprocessing equipment declined modestly, though CEO Rainer Blair pointed to “orders growth of more than 30%, marking the first quarter of year-over-year equipment order growth in nearly 2 years.” Encouraging, but customer wallets stay tight.

Consumer Cash Flow Versus Capital Equipment Cycles Lens Abbott Danaher Core Bet Consumer medical devices, CGM, cancer screening Bioprocessing tools, lab instruments, diagnostics Growth Engine FreeStyle Libre, Cologuard, Electrophysiology Cytiva bioprocessing consumables Main Vulnerability Nutrition volume, FX, tariffs Biotech capex cycle, respiratory seasonality Abbott’s growth reads like a consumer staples business dressed as healthcare. Rhythm Management posted its third consecutive quarter of double-digit growth, and Ford framed Cologuard’s edge against a “fixed amount of colonoscopy capacity”. Danaher’s fortunes depend on when biotech customers greenlight new bioreactor lines. Nutrition remains Abbott’s soft spot at -6.0%, which I would not ignore.

The Next Test Is Biotech Capex Danaher raised its full-year adjusted EPS band to $8.35 to $8.55 and guided Q2 adjusted operating margin near 26.5%. The Masimo acquisition adds patient monitoring, but integration risk is real. Abbott guided full-year comparable sales growth of 6.5% to 7.5% and Q2 adjusted EPS of $1.25 to $1.31. Polymarket traders currently assign a 32% probability that Abbott’s Q2 comparable sales growth lands in the 8% to 10% range.

Why I Lean Toward Abbott Right Now I want the business that gets paid whether or not biotech venture funding thaws. Abbott sells sensors, screening tests, and cardiac devices to patients and insurers, and it just paid its 409th consecutive quarterly dividend in a 54th consecutive year of increases. Shares are down 26.76% year to date, a notable drawdown against the CGM runway.

Danaher fits a different investor. For investors who believe the bioprocessing order rebound is real and durable, DHR trades at $190.48, offering leverage to that recovery. The consumer cash flow engine looks more durable today, with Danaher worth revisiting once brownfield projects convert into greenfield builds.

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