DANAHER CORP /DE/ (DHR)

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AI: Overvalued

Price checkThis price looks expensive because it already assumes a strong, lasting recovery.

At the latest quote verifiable through live search, $198.45, Danaher’s stock-market value was roughly $139.5 billion using 702.9 million shares. The price equals about 23.3 times management’s 2026 adjusted earnings midpoint of $8.525 per share. Adjusted earnings omit items including substantial acquisition-related amortization; trailing reported earnings were about $5.64 per share. Trailing free cash flow—cash left after operations and capital spending—was approximately $5.47 billion, giving buyers only a 3.9% cash yield before considering debt. That supports an Overvalued verdict.

Big pictureCash generation remains dependable, but profits have not regained their pandemic-era peak.

Operating cash exceeded net income in every supplied year from 2020 through 2025. In 2025, Danaher produced $6.42 billion of operating cash and approximately $5.26 billion of free cash flow. However, 2025 revenue of $24.57 billion remained below 2022’s $26.64 billion, while operating income fell from $7.54 billion to $4.69 billion and earnings per share dropped from $9.66 to $5.05. Second-quarter 2026 revenue rose 5.5% and operating cash reached $1.53 billion, showing recovery, but respiratory testing and bioprocessing demand remain cyclical.

Business strengthStrong liquidity and buybacks help, while the Masimo purchase sharply increased debt.

At June 26, Danaher had $13.38 billion of current assets against $8.11 billion of near-term liabilities, but debt reached $26.56 billion and net debt was $22.21 billion after the Masimo purchase. The company spent $9.8 billion for Masimo, partly with borrowing. Buybacks reduced outstanding shares from 739.2 million in 2023 to 702.9 million, including $903 million spent in first-half 2026. Stock compensation was $151 million that half, and new executive and founder awards could offset some reduction. Liquidity is sound, but leverage leaves less room for acquisition mistakes.

What could change the storyFaster bioprocessing growth and successful Masimo integration must outweigh testing volatility.

The bull case strengthened when second-quarter Life Sciences core sales grew 5.5% and bioprocessing orders rose by the mid-teens, suggesting delayed projects could become future revenue. Masimo also targets more than $125 million of annual cost savings and $50 million of revenue benefits by its fifth full year. The bear case is third-quarter core growth guidance of only 2%–3%, including a 2.5-point respiratory-testing drag. At this price, free cash flow would need to approach $7 billion merely to provide a 5% yield, requiring durable recovery, successful integration, and debt reduction.

$198.45 price considered

AI: News

New chief executiveDanaher promoted its diagnostics leader while reaffirming guidance and granting substantial long-term share awards.

On August 3, Danaher named Julie Sawyer Montgomery chief executive effective October 1, succeeding Rainer Blair. The company left third-quarter and full-year guidance unchanged. Montgomery received a $20 million option award, while the founders received a combined two million options and one million restricted share units, which vest over time. Options dilute existing owners only if exercised. Investing.com reported a 2% after-hours rise; the timing suggests a favorable initial response but does not establish the announcement as the sole cause.

Mixed second-quarter updateResults beat expectations, but slower sales guidance exposed continuing weakness in important testing markets.

On July 21, Danaher reported $6.27 billion of revenue, up 5.5%, and adjusted earnings of $1.94 per share. It raised full-year adjusted earnings guidance to $8.45–$8.60 but narrowed core revenue growth guidance to 3%–4% from 3%–6%. Shares closed 10.99% lower at $179.01. Reuters reporting attributed investor concern mainly to weaker biotechnology revenue and the reduced sales outlook, although same-day price movement cannot prove that these disclosures alone caused the decline.

Masimo acquisition completedThe large diagnostics purchase adds hospital-monitoring products but materially increases debt and integration risk.

Danaher completed the Masimo acquisition on June 10 for approximately $9.8 billion in cash, net of acquired cash, or $180 per Masimo share. Masimo generated about $1.5 billion of 2025 revenue, and Danaher initially recorded roughly $5.0 billion of goodwill, an accounting asset representing value paid above identifiable net assets. Financing helped lift Danaher’s debt from $18.42 billion at year-end 2025 to $26.56 billion. Future value therefore depends heavily on delivering promised growth and savings without weakening cash generation.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014	2013	2012	2011	2010	2009	2008	2007
Revenue	$24.57B	$23.88B	$23.89B	$26.64B	$24.80B	$22.28B	$17.91B	$17.05B	$15.52B	$16.88B	$14.43B	$12.87B	$18.28B	$18.26B	$16.09B	$12.55B	$10.52B	$12.70B	$11.03B
Gross profit	$14.52B	$14.21B	$14.03B	$16.19B	$15.24B	$12.47B	$9.98B	$9.51B	$8.57B	$9.33B	$7.77B	$6.85B	$9.34B	$9.41B	$8.18B	$6.40B	$5.07B	$5.94B	—
Research & development	$1.60B	$1.58B	$1.50B	$1.53B	$1.50B	$1.35B	$1.13B	$1.06B	$956.4M	$975.1M	$861.4M	$769.4M	$1.10B	$1.14B	$1.02B	$774.0M	$600.3M	$725.4M	$601.4M
Operating income	$4.69B	$4.86B	$5.20B	$7.54B	$6.38B	$4.23B	$3.27B	$3.06B	$2.57B	$2.74B	$2.16B	$2.04B	$3.12B	$3.17B	$2.62B	$2.05B	$1.44B	$1.87B	$1.74B
EBITDAderived	$7.14B	$7.21B	$7.37B	$9.67B	$8.44B	$6.01B	$4.46B	$4.23B	$3.69B	$3.86B	$3.04B	$2.76B	$3.97B	$4.00B	$3.25B	$2.44B	$1.77B	$2.21B	—
Net income	$3.61B	$3.90B	$4.76B	$7.21B	$6.43B	$3.65B	$3.01B	$2.65B	$2.49B	$2.55B	$3.36B	$2.60B	$2.69B	$2.39B	$2.17B	$1.79B	$1.15B	$1.32B	$1.37B
Basic EPSper diluted share	$5.07	$5.33	$6.44	$9.80	$8.77	$4.97	$4.11	$3.78	$3.58	$3.69	$4.81	$3.70	$3.87	$3.45	$3.21	$2.74	$1.80	$2.06	$4.40
Diluted EPSper diluted share	$5.05	$5.29	$6.38	$9.66	$8.61	$4.89	$4.05	$3.74	$3.53	$3.65	$4.74	$3.63	$3.80	$3.36	$3.11	$2.64	$1.73	$1.98	$4.19

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys0$0.00 disclosed value

Sells (SEC code S)38$519.36M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 1, 2026Form 4	SPOON ALAN GDirector	SellCommon Stock	1.4K	$174.67	$237.2K	124.1K
Feb 19, 2026Form 4	Milosevich Gregory MExecutive Vice President	SellCommon Stock	1.3K	$208.01	$274.6K	5.1K
Nov 25, 2025Form 4	RALES MITCHELL PChairman of Exec. Committee	SellCommon Stock, par value $.01 · indirect	4.7K	$231.19	$1.09M	850.0K
Nov 25, 2025Form 4	RALES MITCHELL PChairman of Exec. Committee	SellCommon Stock, par value $.01 · indirect	35.9K	$230.27	$8.27M	854.7K
Nov 18, 2025Form 4	List TeriDirector	SellCommon Stock	3.3K	$226.50	$747.0K	20.8K

Review ownership filings at SEC.gov ↗

DANAHER CORP /DE/ (DHR)

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Insider buys & sells