01—Abstract
Summary
Summary of the 8-K filed April 21, 2026. Cited figures are marked; the original filing is the authoritative source.
Danaher reported first quarter 2026 results (quarter ended March 27, 2026) with GAAP net earnings of $1.0 billiona, or $1.45 per diluted share, up from $1.32 a year earlier.
Non-GAAP adjusted diluted EPS rose 9.5% to $2.06b. Reported sales increased 3.5% to $5.95 billion, but this was driven largely by favorable currency (roughly +3.0 points); non-GAAP core sales grew only 0.5%. Biotechnology was the standout, with core sales up 7.0%, while Diagnostics declined 4.0% core, reflecting a lighter-than-typical respiratory season at Cepheid.
Operating cash flow was $1.3 billionc and free cash flow was $1.1 billion. Management raised the low end of full-year 2026 adjusted EPS guidance, moving the range to $8.35 to $8.55 from $8.35 to $8.50, and kept the 3% to 6% core revenue growth outlook. Second-quarter core growth is guided to the low-single-digit range.
The company also disclosed its intention to acquire Masimo Corporation, a pulse oximetry and patient monitoring provider, subject to customary closing conditions including regulatory approval. Investors should note that the filing does not quantify the purchase price or financing, and the guidance excludes incremental interest expense tied to the deal, so the transaction could change the outlook materially once it is finalized. Quality of the beat is mixed.
EPS growth benefited from lower share count and operating leverage, while core top-line growth remained modest and the Diagnostics segment is under pressure. The main near-term watch items are the Masimo financing and integration, Cepheid respiratory revenue (guided to about $1.6 to $1.7 billiond for 2026), and whether Bioprocessing momentum continues.
02—Key points
Key Highlights
- GAAP diluted EPS of $1.45 (vs. $1.32) and non-GAAP adjusted diluted EPS of $2.06, up 9.5% year-over-year.
- Reported sales rose 3.5% to $5.95 billion, but non-GAAP core sales grew only 0.5%; currency contributed about 3.0 points.
- Biotechnology core sales grew 7.0%, while Diagnostics core sales fell 4.0%, reflecting a weak respiratory season at Cepheid.
- Full-year 2026 adjusted diluted EPS guidance raised to $8.35–$8.55 (low end up from $8.35 to $8.50 prior range in the release wording); core revenue growth guidance held at 3%–6%.
- Q1 operating cash flow of $1.3 billion and free cash flow of $1.1 billion, both roughly flat-to-up year-over-year.
- Announced intention to acquire Masimo Corporation, subject to regulatory approval; guidance excludes incremental financing costs for the deal.
- Q1 GAAP operating profit rose to $1.34 billion from $1.27 billion, and net earnings rose to $1.03 billion from $0.95 billion.
03—Questions
Frequently Asked Questions
How strong was Danaher's underlying organic growth in Q1 2026?
Underlying growth was modest. Reported sales grew 3.5%, but currency added about 3.0 points, leaving non-GAAP core sales growth of just 0.5%. Biotechnology (+7.0%) was the strength, while Diagnostics (-4.0%) and Life Sciences (+0.5%) lagged.
Why did adjusted EPS grow faster than core sales?
Adjusted EPS growth of 9.5% benefited from a lower diluted share count (711.2 million vs. 720.8 million), higher operating profit, and higher interest income, partly offset by higher tax expense. Core revenue growth was much lower, so the EPS gain reflects margin and capital structure effects more than top-line expansion.
What is the Masimo acquisition, and what does it mean for investors?
Danaher announced its intention to acquire Masimo Corporation, a provider of pulse oximetry and patient monitoring solutions in acute care. The filing does not disclose price or financing terms. The deal is subject to customary closing conditions, including regulatory approval, and the 2026 guidance excludes its incremental interest expense, so it could affect leverage, EPS, and capital deployment once finalized.
Did full-year guidance change?
Adjusted diluted EPS guidance was raised to $8.35–$8.55. Core revenue growth guidance of 3%–6% was unchanged. Second-quarter core growth is expected to be in the low-single-digit range, and Cepheid respiratory revenue is expected to be about $1.6–$1.7 billion for 2026.
What are the main risks highlighted for Danaher going forward?
Key risks include Diagnostics weakness tied to respiratory testing volumes, tariff and trade-policy impacts, currency fluctuations, debt levels from the pending Masimo financing, integration and acquisition risks, and general macroeconomic and healthcare-industry pressures.
04—Continue