AI Takeaway
DHR (Danaher) delivered FY2025 revenue of $24.6B (+2.9% YoY), but profitability declined with net income falling 7.3% to $3.6B as rising SG&A costs and higher long-term debt weighed on margins.
Revenue
$24.57B
++2.90% YoY
EPS (Basic)
$5.07
-4.88% YoY
Gross Margin
59.1%
-0.39% YoY
Operating Income
$4.69B
-3.56% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Danaher grew total revenue by 2.9% YoY to $24.57B in FY2025, up from $23.88B in the prior year, suggesting modest organic recovery across its life sciences and diagnostics segments following prior-year headwinds.
Source: Source: 10-K Income Statement (XBRL Financial Data)
SG&A expenses surged 6.1% YoY to $8.24B, significantly outpacing revenue growth of 2.9%, which drove operating income down 3.6% to $4.69B and compressed operating margin by approximately 130 basis points to 19.1%.
Source: Source: 10-K Income Statement (XBRL Financial Data)
Gross margin declined modestly by approximately 40 basis points to 59.1% from 59.5%, as cost of revenue grew 3.9% — faster than revenue growth of 2.9% — indicating modest input cost pressures.
Source: Source: 10-K Income Statement & Key Ratios (XBRL Financial Data)
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Upgrade to unlockSG&A expenses grew 6.1% YoY to $8.24B, far exceeding revenue growth of 2.9%, which compressed operating margin to 19.1% from 20.4%. If this cost trend continues without corresponding revenue acceleration, operating profitability could deteriorate further.
Source: Source: 10-K Income Statement (XBRL Financial Data)
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Upgrade to unlockReported EPS of $2.23 versus the $2.17 analyst consensus — a +2.6% beat for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $24.57B | $23.88B | +2.90% |
Cost of Revenue | $10.04B | $9.67B | +3.89% |
Gross Profit | $14.52B | $14.21B | +2.23% |
Operating Income | $4.69B | $4.86B | -3.56% |
Net Income | $3.61B | $3.9B | -7.31% |
EPS (Basic) | $5.07 | $5.33 | -4.88% |
EPS (Diluted) | $5.05 | $5.29 | -4.54% |
R&D Expense | $1.6B | $1.58B | +0.88% |
SG&A Expense | $8.23B | $7.76B | +6.13% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $83.46B | $77.54B | +7.64% |
Current Assets | $12.76B | $9.5B | +34.32% |
Current Liabilities | $6.81B | $6.8B | +0.13% |
Stockholders' Equity | $52.53B | $49.54B | +6.04% |
Long-Term Debt | $18.42B | $16B | +15.08% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $6.42B | $6.69B | -4.07% |
Investing Cash Flow | $-1.2B | $-1.98B | +39.63% |
Financing Cash Flow | $-2.96B | $-8.38B | +64.69% |
Dividends Paid | $878M | $768M | +14.32% |
Share Buybacks | $3.09B | $5.98B | -48.35% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 59.1% | 59.5% | -0.39% |
Operating Margin | 19.1% | 20.4% | -1.28% |
Net Margin | 14.7% | — | — |
ROE | 6.9% | — | — |
ROA | 4.3% | — | — |
Current Ratio | $1.874 | — | — |
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Danaher reported FY2025 revenue of $24.57B, up 2.9% YoY, but net income declined 7.3% to $3.61B due to rising SG&A costs and higher debt. Diluted EPS fell 4.5% to $5.05, reflecting the earnings pressure despite top-line growth.
SG&A expenses surged 6.1% to $8.24B — far outpacing revenue growth of 2.9% — which compressed operating margin from 20.4% to 19.1%. Additionally, long-term debt rose 15.1% to $18.4B, likely increasing interest expense and further weighing on net income.
Danaher's balance sheet remains solid with a current ratio of 1.87 and stockholders' equity of $52.5B, but long-term debt has risen to $18.4B (+15.1% YoY). Operating cash flow of $6.42B provides ample liquidity, though the rising debt load warrants monitoring.
Yes, Danaher significantly reduced share repurchases by 48.4% to $3.09B in FY2025, down from $5.98B in the prior year. However, dividends paid increased 14.3% to $878M, suggesting a shift in capital return strategy rather than an outright reduction.
The key financial risks evident from the FY2025 data include rapidly rising SG&A costs eroding operating margins, a 15.1% increase in long-term debt raising leverage risk, and declining operating cash flow of $6.42B (-4.1% YoY). These trends, if sustained, could further pressure earnings and financial flexibility.