DHR · Q2 FY2026
DANAHER CORP /DE/ Q2 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $6.265B | $5.936B (yr ago) | Beat |
| EPS | $1.23 GAAP | $0.77 GAAP (yr ago) | Beat |
| Free Cash Flow | $1.265B | $1.094B (yr ago) | Beat |
| Gross Margin | 57.6% | 59.3% (yr ago) | Miss |
| Operating Margin | 18.0% | 12.8% (yr ago) | Beat |
What changed
Revenue rose 5.5% and GAAP EPS increased 59.7%, while free cash flow advanced 15.5%. The quality of the print was mixed: operating margin recovered sharply from a prior-year quarter affected by impairment charges, but gross margin contracted 1.7 percentage points and net debt increased to $22.21B following the Masimo acquisition.
Impact on the investment thesis
There was no prior SageNoodle fair value, so this update establishes rather than moves fair value at $213.10 per share. Better core growth and higher adjusted EPS guidance support the valuation, but lower gross margin and acquisition-related leverage prevent a more bullish revision.