Danaher (DHR) Q1 2026 earnings summary

Executive summary

• Revenues increased 3.5% year-over-year to $6.0 billion for Q1 2026, with core sales up 0.5% and net earnings rising to $1.03 billion ($1.45 per diluted share); adjusted diluted EPS up 9.5% to $2.06.

• Growth was driven by Biotechnology and Life Sciences, offsetting a decline in Diagnostics; foreign currency contributed 3.0% to reported sales growth.

• Adjusted operating profit margin rose by 60 basis points to 30.2%.

• Announced pending acquisition of Masimo Corporation for $9.9 billion, expected to be accretive to adjusted EPS in the first full year post-acquisition.

• Robust free cash flow and strong balance sheet position company for further capital deployment.

Financial highlights

• Q1 2026 revenue was $6.0 billion, up from $5.74 billion in Q1 2025; core revenue up 0.5% year-over-year.

• Gross profit margin at 60.3%; adjusted operating profit margin at 30.2%, up 60 bps year-over-year.

• Adjusted diluted EPS of $2.06, up 9.5% year-over-year.

• Free cash flow of $1.1 billion; free cash flow to net income conversion ratio of 105%.

• Operating cash flow was $1.3 billion, up 2% from Q1 2025.

Outlook and guidance

• Full-year 2026 core revenue growth expected in the 3%-6% range; respiratory revenue outlook lowered to $1.6-$1.7 billion, offset by better core growth elsewhere.

• Raised full-year adjusted diluted EPS guidance to $8.35-$8.55.

• Q2 core revenue expected up low single digits; Q2 adjusted operating profit margin expected at ~26.5%.

• Effective tax rate expected at ~17.0% for 2026.

• Currency expected to add ~0.5% to sales for both Q2 and full year 2026.