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Why Is Danaher (DHR) Down 7% Since Last Earnings Report?
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It has been about a month since the last earnings report for Danaher (DHR - Free Report) . Shares have lost about 7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Danaher due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Danaher Corporation before we dive into how investors and analysts have reacted as of late.
Danaher Q1 Earnings Beat Estimates, Life Sciences Sales Up Y/Y
Danaher’s 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%.
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’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.
Balance Sheet & Cash Flow
Exiting the first quarter, it had cash and equivalents of $5.70 billion compared with $4.62 billion at 2025-end. Long-term debt was $17.6 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, it 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Danaher has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Danaher has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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Why Is Danaher (DHR) Down 7% Since Last Earnings Report?
It has been about a month since the last earnings report for Danaher (DHR - Free Report) . Shares have lost about 7% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Danaher due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Danaher Corporation before we dive into how investors and analysts have reacted as of late.
Danaher Q1 Earnings Beat Estimates, Life Sciences Sales Up Y/Y
Danaher’s 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%.
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’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.
Balance Sheet & Cash Flow
Exiting the first quarter, it had cash and equivalents of $5.70 billion compared with $4.62 billion at 2025-end. Long-term debt was $17.6 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, it 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.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
VGM Scores
At this time, Danaher has a subpar Growth Score of D, a grade with the same score on the momentum front. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Danaher has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.