AI Takeaway
Danaher delivered solid Q1 2026 results with revenue of $5.95B (+3.7% YoY), net income of $1.03B (+7.9% YoY), and diluted EPS of $1.45 (+9.8% YoY), reflecting disciplined cost management and improving profitability despite a slight gross margin compression.
Revenue
$5.95B
++3.66% YoY
EPS (Basic)
$1.45
++9.02% YoY
Gross Margin
60.3%
-0.81% YoY
Operating Income
$1.34B
++5.49% YoY
Filed · Source: SEC EDGAR 10-Q filing
Danaher grew total revenue by 3.7% YoY to $5.95B in Q1 2026, up from $5.74B in Q1 2025, suggesting a recovery in demand across its life sciences and diagnostics segments following prior-year headwinds.
Source: Source: 10-Q Income Statement, Q1 2026
Operating income rose 5.5% YoY to $1.34B while SG&A expenses were nearly flat at $1.86B (+0.1% YoY), demonstrating strong operating leverage as revenue growth outpaced cost growth and lifted operating margin to 22.6% from 22.2%.
Source: Source: 10-Q Income Statement, Q1 2026
Gross margin declined modestly to 60.3% from 61.2% a year ago, as cost of revenue grew 5.8% YoY — faster than revenue growth of 3.7% — indicating some input cost or mix pressures that management will need to monitor.
Source: Source: 10-Q Income Statement & Key Ratios, Q1 2026
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Upgrade to unlockLong-term debt increased 12.2% YoY to $18.48B, raising leverage concerns in a higher-for-longer interest rate environment. Increased debt service obligations could constrain future capital allocation flexibility, particularly if revenue growth moderates.
Source: Source: 10-Q Balance Sheet, Q1 2026
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Upgrade to unlockReported EPS of $2.06 versus the $1.96 analyst consensus — a +5.3% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $5.95B | $5.74B | +3.66% |
Cost of Revenue | $2.36B | $2.23B | +5.83% |
Gross Profit | $3.59B | $3.51B | +2.28% |
Operating Income | $1.34B | $1.27B | +5.49% |
Net Income | $1.03B | $954M | +7.86% |
EPS (Basic) | $1.45 | $1.33 | +9.02% |
EPS (Diluted) | $1.45 | $1.32 | +9.85% |
R&D Expense | $387M | $379M | +2.11% |
SG&A Expense | $1.86B | $1.86B | +0.11% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $83.54B | $79.12B | +5.60% |
Current Assets | $13.94B | $9.53B | +46.30% |
Current Liabilities | $7.46B | $6.64B | +12.26% |
Stockholders' Equity | $52.95B | $50.85B | +4.13% |
Long-Term Debt | $18.48B | $16.48B | +12.18% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.32B | $1.3B | +1.77% |
Investing Cash Flow | $-249M | $-242M | -2.89% |
Financing Cash Flow | $46M | $-1.25B | +103.67% |
Dividends Paid | $226M | $194M | +16.49% |
Share Buybacks | $0 | $1.08B | -100.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 60.3% | 61.2% | -0.81% |
Operating Margin | 22.6% | 22.2% | +0.39% |
Net Margin | 17.3% | — | — |
ROE | 1.9% | — | — |
ROA | 1.2% | — | — |
Current Ratio | $1.868 | — | — |
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Danaher reported Q1 2026 revenue of $5.95B (+3.7% YoY) and net income of $1.03B (+7.9% YoY), with diluted EPS of $1.45 (+9.8% YoY). Operating margin improved to 22.6% from 22.2%, reflecting strong cost discipline even as gross margin dipped slightly to 60.3%.
The key takeaways from DHR's Q1 2026 report are accelerating profitability growth (net income +7.9%, EPS +9.8%) outpacing revenue growth (+3.7%), near-flat SG&A expenses demonstrating operational leverage, and a complete pause in share buybacks (vs. $1.08B in Q1 2025). Long-term debt also rose 12.2% YoY to $18.5B, suggesting potential M&A activity ahead.
Yes, Danaher grew revenue 3.7% YoY to $5.95B in Q1 2026, up from $5.74B in Q1 2025. This marks a positive trend for the company following a period of softer demand in its life sciences and diagnostics end markets.
Danaher repurchased zero shares in Q1 2026, compared to $1.08B in buybacks during Q1 2025, a 100% YoY decline. While the company has not provided explicit reasons in the available filing data, the simultaneous increase in long-term debt (+12.2% to $18.5B) and surge in current assets (+46.3%) suggest capital may be being preserved for strategic acquisitions or balance sheet repositioning.
Danaher's financial health appears solid in Q1 2026, with a current ratio of 1.87, operating cash flow of $1.32B, and stockholders' equity of $52.9B. The main areas to watch are the 12.2% increase in long-term debt to $18.5B and the slight gross margin compression to 60.3%, though overall profitability metrics are improving.