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Life Sciences and Biotechnology drove gains, while Diagnostics sales declined y/y.
Danaher raised its 2026 EPS view and acquired Masimo to boost its diagnostics portfolio.
Danaher Corporation’s (DHR - Free Report) first-quarter 2026 adjusted earnings of $2.06 per share beat the Zacks Consensus Estimate of $1.95. The bottom line increased 9.6% year over year.
Danaher reported net sales of $5.95 billion, which missed the consensus estimate of $5.99 billion. However, the metric increased 3.5% year over year. The quarter reflected continued strength in the bioprocessing business and better-than-expected performance in the Life Sciences segment.
DHR’s core sales increased 0.5% year over year in the quarter. Foreign-currency translations had a positive impact of 3%.
DHR’s Q1 Segmental Discussion
Revenues from the Life Sciences segment totaled $1.74 billion, up 3.5% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $1.73 billion. Core sales increased 0.5% year over year. Foreign-currency translations had a positive impact of 3%. Operating profit was $225 million compared with $205 million reported in the year-ago quarter.
Revenues from the Diagnostics segment totaled $2.42 billion, down 1.5% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.47 billion. Core sales declined 4.0% while foreign currency had a positive impact of 2.5% on sales. Operating profit was $674 million, down 6.1% on a year-over-year basis.
Revenues from the Biotechnology segment totaled $1.80 billion, up 11.5% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $1.79 billion. Core sales increased 7% year over year and foreign-currency translations had a positive impact of 4.5%. Operating profit was $534 million, up 21.1% year over year.
Danaher Corporation Price, Consensus and EPS Surprise
In the first quarter, Danaher’s cost of sales increased 5.8% year over year to $2.36 billion. Gross profit of $3.59 billion increased 2.3% year over year. The gross margin was 60.3% compared with 61.2% in the year-ago quarter.
Selling, general and administrative expenses were flat at $1.86 billion. Research and development expenses were $387 million, up 2.1% year over year.
Danaher’s operating profit increased 5.5% year over year to $1.34 billion. Operating margin increased to 22.6% from 22.2% in the year-ago quarter.
DHR’s Q1 Balance Sheet & Cash Flow
Exiting the first quarter, DHR had cash and equivalents of $5.70 billion compared with $4.62 billion at 2025-end. Long-term debt was $17.5 billion at the end of the quarter compared with $18.4 billion at the end of December 2025.
Danaher generated net cash of $1.32 billion from operating activities in the first three months of 2026 compared with $1.30 billion in the previous year’s comparable period. Capital expenditures totaled $237 million in the same period, down 3.3% year over year. Adjusted free cash flow increased 2.4% year over year to $1.09 billion in the first three months of 2026.
In the same period, DHR paid out dividends of $226 million, up 16.5% on a year-over-year basis.
Danaher Raises 2026 EPS View
For the second quarter of 2026, Danaher expects adjusted core sales to increase in the low single digits on a year-over-year basis.
The metric is anticipated to increase 3-6% on a year-over-year basis in 2026. The company expects adjusted earnings to be $8.35-$8.55 per share compared with $8.35-$8.50 expected earlier.
Masimo Deal in Focus
In February 2026, Danaher inked a deal to acquire Masimo Corp. for $9.9 billion. The addition of Masimo’s advanced sensor technology and AI-enabled monitoring will enable DHR to enhance its diagnostics portfolio. The acquired company will operate as a standalone company within Danaher’s Diagnostics segment, alongside Radiometer, Leica Biosystems, Cepheid and Beckman Coulter Diagnostics. Subject to customary closing conditions, the acquisition is expected to close in the second half of 2026.
DHR’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked companies are discussed below.
Alcoa Corporation (AA - Free Report) presently sports a Zacks Rank #1 (Strong Buy). Alcoa’s earnings surpassed the consensus estimate in three of the trailing four quarters, while missing the mark in one. The average earnings surprise was 35.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for AA’s 2026 earnings has increased 42.8%.
Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%.
In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 (ending October 2026) earnings has increased 1.8%.
EnerSys (ENS - Free Report) currently carries a Zacks Rank of 2. ENS’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 4.6%.
In the past 60 days, the Zacks Consensus Estimate for EnerSys’ fiscal 2026 (ended March 2026) earnings has increased 0.3%.
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Danaher Q1 Earnings Beat Estimates, Life Sciences Sales Up Y/Y
Key Takeaways
Danaher Corporation’s (DHR - Free Report) first-quarter 2026 adjusted earnings of $2.06 per share beat the Zacks Consensus Estimate of $1.95. The bottom line increased 9.6% year over year.
Danaher reported net sales of $5.95 billion, which missed the consensus estimate of $5.99 billion. However, the metric increased 3.5% year over year. The quarter reflected continued strength in the bioprocessing business and better-than-expected performance in the Life Sciences segment.
DHR’s core sales increased 0.5% year over year in the quarter. Foreign-currency translations had a positive impact of 3%.
DHR’s Q1 Segmental Discussion
Revenues from the Life Sciences segment totaled $1.74 billion, up 3.5% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $1.73 billion. Core sales increased 0.5% year over year. Foreign-currency translations had a positive impact of 3%. Operating profit was $225 million compared with $205 million reported in the year-ago quarter.
Revenues from the Diagnostics segment totaled $2.42 billion, down 1.5% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $2.47 billion. Core sales declined 4.0% while foreign currency had a positive impact of 2.5% on sales. Operating profit was $674 million, down 6.1% on a year-over-year basis.
Revenues from the Biotechnology segment totaled $1.80 billion, up 11.5% year over year. The Zacks Consensus Estimate for the segment’s revenues was pegged at $1.79 billion. Core sales increased 7% year over year and foreign-currency translations had a positive impact of 4.5%. Operating profit was $534 million, up 21.1% year over year.
Danaher Corporation Price, Consensus and EPS Surprise
Danaher Corporation price-consensus-eps-surprise-chart | Danaher Corporation Quote
Danaher’s Margin Profile
In the first quarter, Danaher’s cost of sales increased 5.8% year over year to $2.36 billion. Gross profit of $3.59 billion increased 2.3% year over year. The gross margin was 60.3% compared with 61.2% in the year-ago quarter.
Selling, general and administrative expenses were flat at $1.86 billion. Research and development expenses were $387 million, up 2.1% year over year.
Danaher’s operating profit increased 5.5% year over year to $1.34 billion. Operating margin increased to 22.6% from 22.2% in the year-ago quarter.
DHR’s Q1 Balance Sheet & Cash Flow
Exiting the first quarter, DHR had cash and equivalents of $5.70 billion compared with $4.62 billion at 2025-end. Long-term debt was $17.5 billion at the end of the quarter compared with $18.4 billion at the end of December 2025.
Danaher generated net cash of $1.32 billion from operating activities in the first three months of 2026 compared with $1.30 billion in the previous year’s comparable period. Capital expenditures totaled $237 million in the same period, down 3.3% year over year. Adjusted free cash flow increased 2.4% year over year to $1.09 billion in the first three months of 2026.
In the same period, DHR paid out dividends of $226 million, up 16.5% on a year-over-year basis.
Danaher Raises 2026 EPS View
For the second quarter of 2026, Danaher expects adjusted core sales to increase in the low single digits on a year-over-year basis.
The metric is anticipated to increase 3-6% on a year-over-year basis in 2026. The company expects adjusted earnings to be $8.35-$8.55 per share compared with $8.35-$8.50 expected earlier.
Masimo Deal in Focus
In February 2026, Danaher inked a deal to acquire Masimo Corp. for $9.9 billion. The addition of Masimo’s advanced sensor technology and AI-enabled monitoring will enable DHR to enhance its diagnostics portfolio. The acquired company will operate as a standalone company within Danaher’s Diagnostics segment, alongside Radiometer, Leica Biosystems, Cepheid and Beckman Coulter Diagnostics. Subject to customary closing conditions, the acquisition is expected to close in the second half of 2026.
DHR’s Zacks Rank
The company currently carries a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked companies are discussed below.
Alcoa Corporation (AA - Free Report) presently sports a Zacks Rank #1 (Strong Buy). Alcoa’s earnings surpassed the consensus estimate in three of the trailing four quarters, while missing the mark in one. The average earnings surprise was 35.3%. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 60 days, the Zacks Consensus Estimate for AA’s 2026 earnings has increased 42.8%.
Nordson Corporation (NDSN - Free Report) currently carries a Zacks Rank #2 (Buy). Nordson’s earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 2.5%.
In the past 60 days, the Zacks Consensus Estimate for Nordson’s fiscal 2026 (ending October 2026) earnings has increased 1.8%.
EnerSys (ENS - Free Report) currently carries a Zacks Rank of 2. ENS’ earnings topped the consensus estimate in each of the trailing four quarters. The average earnings surprise was 4.6%.
In the past 60 days, the Zacks Consensus Estimate for EnerSys’ fiscal 2026 (ended March 2026) earnings has increased 0.3%.