Danaher (DHR) investor relations material

Executive summary

• Q2 2026 revenue grew 5.5% year-over-year to $6.3 billion, with core revenue up 3% and core revenue excluding respiratory testing up 4.5%; acquisitions contributed 1.5% and FX 1.0%.

• Net earnings for Q2 were $870 million, or $1.23 per diluted share, up 60% year-over-year; adjusted diluted EPS rose 8% to $1.94.

• Life Sciences and Diagnostics segments led growth, while Biotechnology saw moderate gains; bioprocessing orders grew mid-teens despite shipment delays.

• The Masimo acquisition was completed ahead of schedule for $9.8 billion, expanding Diagnostics and contributing to raised full-year adjusted EPS guidance.

• StatLab acquisition announced, expected to close by end of 2026 and be accretive to adjusted EPS in the first full year.

Financial highlights

• Q2 2026 sales were $6.27 billion, up from $5.94 billion year-over-year; gross profit margin was 57.6%; adjusted operating profit margin 27.1%, down 20 bps year-over-year.

• Adjusted diluted EPS was $1.94, up from $1.80 year-over-year; net earnings margin was 13.9%.

• Free cash flow for Q2 was $1.3 billion, up 15.5% year-over-year; operating cash flow for the six months was $2.86 billion, up 8%.

• Free cash flow to net income conversion ratio was 124% YTD; operating cash flow to net earnings conversion ratio for Q2 was 1.76.

• Long-term debt increased to $25.1 billion from $18.4 billion at year-end 2025, reflecting Masimo financing.

Outlook and guidance

• Q3 2026 core revenue expected to grow 2%-3% year-over-year, with a 250 bps headwind from respiratory testing; full-year 2026 core revenue growth outlook raised to 3%-4%.

• Full-year adjusted diluted EPS guidance raised to $8.45–$8.60.

• Diagnostics segment core sales growth expected to be flat to up slightly in the second half of 2026; effective tax rate projected at ~17.0%.

• Currency expected to decrease Q3 sales by 1.0% and increase full-year sales by 0.5%.

• Management expects continued growth in high-growth markets and further integration of Masimo.