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Danaher Corporation

DHR Healthcare Diagnostics & Research

Danaher Corporation’s revenue for fiscal 2025 (year ended December 2025) was $24.6 billion, up 2.90% from fiscal 2024. In the quarter to June 2026, revenue grew 5.54%, EPS grew 59.7%, free cash flow grew 15.6% and total debt rose 49.2%, each against the same quarter a year earlier. Member of the S&P 500.

228.97 2.53 −1.09%
Market cap
$162.7B
P/E
40.5×
Fwd P/E
29.2×
Dividend yield
0.66%
F-score
6/9
Altman Z
4.52
Beneish M
−2.57
Dividend safety
69/100
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios Filings 10-Q 10-K

Danaher Corporation (DHR) Financial Analysis

Updated · Covers results through Q2 FY2026 · Sources · How this is made

Snapshot

Danaher recorded revenue of $24.6 billion, operating income of $4.7 billion, and net income of $3.6 billion in FY2025. Diluted EPS was $5.05 and free cash flow was $5.3 billion in FY2025.

Revenue was $6.3 billion, gross profit was $3.6 billion, and operating income was $1.1 billion in Q2 FY2026. Net income reached $870.0 million and diluted EPS was $1.23 in Q2 FY2026. Free cash flow was $1.3 billion in Q2 FY2026, while net debt was $20.8 billion in Q2 FY2026.

On a trailing basis, revenue was $25.1 billion, net income was $4.0 billion, and operating cash flow was $6.6 billion in TTM to Q2 FY2026.

Growth

Revenue increased 2.90% in FY2025 against FY2024, reaching $24.6 billion in FY2025 from $23.9 billion in FY2024. Revenue compound annual growth was −2.67% in FY2022–FY2025 and 1.97% in FY2020–FY2025. Diluted EPS declined 4.54% in FY2025 against FY2024 to $5.05 in FY2025, and its compound annual growth was −19.4% in FY2022–FY2025.

Free cash flow was $5.3 billion in FY2025 and changed −0.30% in FY2025 against FY2024; its compound annual growth was −10.6% in FY2022–FY2025. Revenue increased 5.54%, diluted EPS increased 59.7%, and free cash flow increased 15.6% in Q2 FY2026 against Q2 FY2025.

Profitability

Gross margin was 59.1%, operating margin was 19.1%, pre-tax margin was 17.2%, and net margin was 14.7% in FY2025. Gross margin changed 3.1 percentage points in FY2020–FY2025, while operating margin changed 0.1 percentage points, pre-tax margin changed −2.9 percentage points, and net margin changed −1.7 percentage points in FY2020–FY2025.

Return on equity was 7.08%, return on assets was 4.49%, and return on invested capital was 4.42% in FY2025. These returns were lower than 15.7%, 8.48%, and 7.45%, respectively, in FY2022. Operating margin was 18.0% and gross margin was 57.6% in Q2 FY2026. Industry-median comparisons for margins and returns are not reported.

Balance sheet

Total debt was $18.4 billion, net debt was $13.8 billion, and cash and short-term investments were $4.6 billion in FY2025. Shareholders’ equity was $52.5 billion, working capital was $5.9 billion, and book value per share was $73.72 in FY2025. Total debt was higher than $15.5 billion in FY2024, while net debt was higher than $13.4 billion in FY2024.

Net debt rose to $20.8 billion in Q2 FY2026 from $11.9 billion in Q1 FY2026. The current ratio was 1.7× and debt to equity was 0.5× in Q2 FY2026. Management says it incurred debt to finance a portion of the Masimo acquisition in Q2 FY2026.

Cash flow & capital return

Operating cash flow was $6.4 billion and capital expenditure was $1.1 billion in FY2025. Free cash flow was $5.3 billion in FY2025, unchanged from $5.3 billion in FY2024, and represented 146.5% of net income in FY2025. Operating cash flow changed −4.07% in FY2025 against FY2024.

Dividends paid were $878.0 million and net share repurchases were $3.0 billion in FY2025. Capital returned to shareholders was $3.9 billion in FY2025 and $12.7 billion in FY2021–FY2025. Weighted average shares were 712.7 million shares in FY2025, compared with 731.0 million shares in FY2024. Free cash flow was $1.3 billion in Q2 FY2026.

Valuation

Market capitalisation was $160.3 billion as of September 28, 2026. P/E was 40.2× as of September 28, 2026, higher than the five-year median of 36.4× and ten-year median of 33.2×, and higher than the industry median of 34.6× as of September 28, 2026.

P/S was 6.4× as of September 28, 2026, below the five-year median of 7.0×, above the ten-year median of 6.3×, and higher than the industry median of 4.9×. P/B was 3.0× as of September 28, 2026, below its five-year median of 3.4× and ten-year median of 3.3×, and below the industry median of 3.1×. EV/Sales was 7.2× as of September 28, 2026, below its five-year median and above its ten-year and industry medians.

What changed since last quarter

Revenue increased 5.28% in Q2 FY2026 against Q1 FY2026, while diluted EPS declined −15.2%, free cash flow increased 16.6%, and net debt increased $8.9 billion in Q2 FY2026 against Q1 FY2026. Gross margin declined −2.7 percentage points and operating margin declined −4.6 percentage points in Q2 FY2026 against Q1 FY2026.

Against Q2 FY2025, revenue increased 5.54%, diluted EPS increased 59.7%, and free cash flow increased 15.6% in Q2 FY2026. Management attributes the revenue increase in the three-month period ended June 26, 2026 to higher core sales, acquisitions, and foreign currency, with Life Sciences the largest core-sales contributor. Management says the year-over-year increase in net earnings and EPS for the three-month period ended June 26, 2026 was driven by impairment charges recorded in the comparable 2025 period.

Open questions

  • How will the Masimo acquisition affect debt, cash flow, and profitability over subsequent reporting periods?
  • To what extent will demand for respiratory tests affect Diagnostics sales in later periods?
  • How will pricing and reimbursement changes in China affect sales and margins?
  • How will currency movements and higher logistics costs affect reported results?

Sources

This page is for information only. It is not investment advice, a recommendation or an offer to buy or sell any security. Figures come from the sources listed above and may contain errors; verify against the company's filings.