AI Takeaway
Danaher's Q2 FY2026 revenue grew 5.5% YoY to $6.265B and net income rose 56.8% to $870M (EPS $1.23), driven by core sales growth and the absence of a prior-year $432M trade-name impairment, while the company closed its ~$9.8B acquisition of Masimo on June 10, 2026, adding significant long-term debt and goodwill.
Revenue
$6.26B
++5.54% YoY
EPS (Basic)
$1.23
++59.74% YoY
Gross Margin
57.6%
-1.71% YoY
Operating Income
$1.13B
++48.29% YoY
Filed · Source: SEC EDGAR 10-Q filing
Danaher (DHR) reported Q2 FY2026 revenue of $6.26B, up 5.5% year over year. The company posted net income of $870M, up 56.8% from a year earlier, with diluted EPS of $1.23. Gross margin was 57.6%.
Total Q2 FY2026 revenue growth of 5.5% (GAAP) broke down into 3.0% core sales growth, 1.5% from acquisitions, and 1.0% from favorable currency. Core sales growth was led by the Life Sciences segment, with lesser contributions from Biotechnology and Diagnostics; core sales excluding respiratory testing rose 4.5%.
Source: 10-Q Item 2 MD&A
On June 10, 2026, Danaher acquired Masimo (2025 revenue ~$1.5B) for approximately $9.8 billion, or $180.00 per share net of cash acquired, financed with cash on hand plus new long-term debt and commercial paper; the deal is now part of the Diagnostics segment and preliminarily added ~$5.0B of goodwill.
Source: 10-Q Item 2 MD&A
Operating profit margin rose 520 basis points YoY to 18.0% in Q2 FY2026, primarily because Q2 FY2025 included a 730-bps impact from a Life Sciences trade-name impairment charge, partially offset by 175 bps of unfavorable Masimo-related fair value/transaction costs and 30 bps of dilutive effect from acquired businesses.
Source: 10-Q Item 2 MD&A
High-growth markets sales increased 15% YoY (core sales up more than 10%) and represented approximately 31% of total Q2 FY2026 sales, while developed market sales grew only 2% with core sales down slightly due to declines in Western Europe and North America, driven by tough comps in Biotechnology and lower respiratory sales in Diagnostics.
Source: 10-Q Item 2 MD&A
Following a February 2026 U.S. Supreme Court ruling that IEEPA does not authorize certain tariffs, the administration implemented new tariffs under alternative authority; refund timing/impact remain uncertain but 2025-2026 tariffs to date have not been material. The Middle East conflict caused delays and higher logistics costs but no material supply chain interruption in H1 2026.
Source: 10-Q Item 2 MD&A
The $9.8 billion Masimo acquisition, closed June 10, 2026, generated 175 basis points of unfavorable operating margin impact in Q2 from fair value inventory adjustments, significant transaction costs, and pre-acquisition share-based/change-in-control payments; successful integration and realization of anticipated benefits are not guaranteed.
Source: 10-Q Item 2 MD&A
Danaher financed a portion of the Masimo purchase price with new long-term debt and commercial paper, contributing to a 53.0% YoY increase in long-term debt to $26.558B; the filing notes that increased indebtedness may limit operations and use of cash flow and could negatively impact credit ratings.
Source: 10-Q Item 1A Risk Factors
Ongoing military conflict in the Middle East has disrupted energy supplies and supply chains, increased costs for energy and other supplies, and created capital markets volatility; the Company already experienced delays and higher logistics costs delivering goods to the region in H1 2026, and further escalation could adversely affect the business.
Source: 10-Q Item 1A Risk Factors
A February 2026 U.S. Supreme Court ruling invalidated certain IEEPA-based tariffs, prompting the administration to impose new tariffs under alternative statutory authority; the timing and extent of any refunds and the impact of new tariffs remain uncertain, and litigation is ongoing.
Source: 10-Q Item 2 MD&A
Core sales in developed markets declined slightly in Q2 FY2026, with low-single digit declines in Western Europe and a slight decline in North America, driven by difficult prior-year comparisons in Biotechnology and lower respiratory testing sales in Diagnostics, indicating uneven regional demand.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.26B | $5.94B | +5.54% |
Cost of Revenue | $2.65B | $2.41B | +9.99% |
Gross Profit | $3.61B | $3.52B | +2.50% |
Operating Income | $1.13B | $760M | +48.29% |
Net Income | $870M | $555M | +56.76% |
EPS (Basic) | $1.23 | $0.77 | +59.74% |
EPS (Diluted) | $1.23 | $0.77 | +59.74% |
R&D Expense | $412M | $403M | +2.23% |
SG&A Expense | $2.07B | $2.36B | -12.20% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $92.37B | $81.62B | +13.17% |
Current Assets | $13.38B | $11B | +21.66% |
Current Liabilities | $8.11B | $6.79B | +19.33% |
Stockholders' Equity | $52.58B | $52.33B | +0.47% |
Long-Term Debt | $26.56B | $17.36B | +53.03% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $2.86B | $2.64B | +8.30% |
Investing Cash FlowYTD | $-10.4B | $-500M | -1979.20% |
Financing Cash FlowYTD | $7.32B | $-1.5B | +587.28% |
Dividends PaidYTD | $509M | $423M | +20.33% |
Share BuybacksYTD | $894M | $1.08B | -17.07% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 57.6% | 59.3% | -1.71% |
Operating Margin | 18.0% | 12.8% | +5.19% |
Net Margin | 13.9% | — | — |
ROE | 1.7% | — | — |
ROA | 0.9% | — | — |
Current Ratio | $1.651 | — | — |
Expected release date, analyst estimates & what to watch
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.
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.
Other companies in Life Sciences Tools & Services
The filing does not disclose analyst consensus estimates, so a beat/miss cannot be confirmed from this data. However, Danaher reported strong YoY growth with revenue up 5.5% to $6.265B and diluted EPS up 59.7% to $1.23, aided by the absence of a prior-year impairment charge.
Net income rose 56.8% YoY to $870M primarily because Q2 FY2025 included a $432M impairment charge ($328M after-tax, or $0.46 per diluted share) related to a Life Sciences trade name that did not recur in 2026. Higher core sales of 3.0% also contributed to the improvement.
Danaher closed its approximately $9.8 billion acquisition of Masimo on June 10, 2026, financed with cash on hand and new long-term debt and commercial paper. This contributed to long-term debt rising 53.0% YoY to $26.558B and total assets increasing 13.2% YoY to $92.367B, including approximately $5.0B of preliminary goodwill.
Diagnostics was the largest segment at $2.466B in sales (up from $2.309B), followed by Biotechnology at $1.920B and Life Sciences at $1.879B. Life Sciences showed the strongest core sales growth (5.5% GAAP growth) and swung to a 13.0% operating margin from a prior-year operating loss margin of -13.4%, mainly due to the non-recurrence of a trade-name impairment.
Danaher added a new risk factor around military conflicts, particularly ongoing conflict in the Middle East, which has disrupted energy supplies, increased logistics costs, and created capital markets volatility. The filing also flags integration risk and elevated leverage tied to the debt-financed $9.8B Masimo acquisition, plus uncertainty around evolving U.S. tariff policy following a February 2026 Supreme Court ruling.