- Price
- $231.27
- Fair value
- $247.00
- Discount
- 6.4%
- Uncertainty
- Medium
- LSEG rating
- 1.70
- Moat
- Wide
- Next earnings
- 2026-10-21
- Next earnings is estimate
- No
- Company name
- Danaher
- Sector
- Life sciences & diagnostics
- About
- Danaher makes instruments, consumables, software and services for life science research, drug manufacturing and medical diagnostics. Its main businesses include Cytiva and Pall, which sell bioprocessing products to companies that make biologic drugs, Beckman Coulter, Leica and Cepheid in diagnostics, and Masimo, a patient monitoring company it bought in June 2026. Most of its revenue comes from consumables, such as reagents, chromatography resins, filters and test cartridges, which customers buy again and again after they install an instrument. Revenue was $6.3 billion in Q2 2026. It runs its businesses with the Danaher Business System, a set of tools for continuous improvement. Its co-founders, Steven and Mitchell Rales, lead the board, and Julie Sawyer Montgomery became President and CEO on October 1, 2026.
- Thesis
- The market prices Danaher with a discount because its growth is slow after the pandemic boom, and its recovery depends on events it does not control. Core revenue grew only 0.5% in Q1 2026 and 3.0% in Q2 2026, and Danaher expects 3% to 4% for 2026. Large bioprocessing customers moved the timing of shipments, China's volume-based procurement program cut diagnostics prices, and respiratory test sales at Cepheid change with each flu season. The $9.8 billion purchase of Masimo in June 2026 also raised debt, and the CEO changed on October 1, 2026. For the gap to close, three things must be true. Core revenue growth must reach a mid-single-digit rate at the end of 2026, as management expects. The strong bioprocessing orders, which grew by mid-teens in Q2 2026, must turn into revenue. Masimo must add to earnings while Danaher repays the commercial paper that funded it. The first test is the Q3 2026 report on October 21, 2026, with guided core growth of 2% to 3%, and the 2027 guidance is expected in late January 2027. If growth speeds up as planned, the gap can close over the next three to five quarters. If bioprocessing customers delay orders again, the discount can last longer.
- Risks
- Bioprocessing demand depends on the plans of a few large drug makers. In Q2 2026, some large commercial customers moved the timing of shipments, and this cut revenue even though orders grew. A new delay would slow the recovery that management expects.
China's volume-based procurement program cuts the prices of diagnostic tests. It lowered Diagnostics prices by 1.5% in Q2 2026, and core sales in China fell in Diagnostics.
The Masimo purchase raised debt from $18.4 billion at December 31, 2025 to $26.6 billion at June 26, 2026, and much of it is short-term commercial paper. Danaher must also integrate Masimo and its legal cases, such as the patent case against Apple.
A new CEO took over on October 1, 2026, and the board added two directors in October 2026. A new leader can change priorities and the pace of acquisitions.
Respiratory test sales at Cepheid change with each flu and COVID-19 season, so quarterly revenue can miss expectations. A shareholder class action about past bioprocessing revenue statements has a settlement, which the court approved in a preliminary way on June 1, 2026; Danaher does not expect a material impact.
- Balance sheet
- Cash: $4.3B
Debt: $26.6B
Net debt: $22.2B
Interest cover: 15×
Undrawn credit line: $10.0B, to August 2028
Debt due within 12 months: $6.1B
Last debt due: 2056
Debt is the carrying value of notes payable and long-term debt at June 26, 2026. It includes $4.7 billion of euro commercial paper, which matures within a year but which Danaher shows as long-term debt because its credit lines can refinance it; this paper is part of the amount due within 12 months. Debt rose from $18.4 billion at December 31, 2025, because Danaher funded the $9.8 billion Masimo purchase with cash, €3.0 billion of notes issued on April 29, 2026, CHF 2.4 billion of private notes agreed on June 3, 2026, and commercial paper. Interest cover uses operating profit and interest expense for the first half of 2026. The $5.0 billion multi-year credit facility runs to August 11, 2028. Danaher also has a new $5.0 billion 364-day credit facility, signed on April 16, 2026, which expires on April 15, 2027. Neither facility had borrowings at June 26, 2026. The 10-Q does not state the credit ratings.
As of 2026-06-26.
- Checkpoints
- Oct 21, 2026: Q3 2026 results: core growth and bioprocessing. Pending. Watch: A pass is core revenue growth at or above the guided 2% to 3% with bioprocessing revenue growth; a fail is core growth below 2% or a lower 2026 guidance.
Jan 2027 (estimate): Q4 2026 results and 2027 guidance. Pending. Watch: A pass is a Q4 exit at mid-single-digit core growth and 2027 guidance at that rate; a fail is low-single-digit 2027 guidance.
Q2 2027 (estimate): Masimo integration and debt reduction. Pending. Watch: A pass is Masimo growth inside Diagnostics and lower commercial paper by mid-2027; a fail is a Masimo impairment or higher debt.
- Recent events
- 2026-10-14: Danaher announced a collaboration with NVIDIA on autonomous science. On October 7, it announced a new AI-powered autonomous lab for life sciences research.
2026-10-09: Danaher added two directors, Daniel Comas, its former CFO, and Robert Hershberg, the former CEO of HilleVax, so the board grew to 13 members. On the same day, Steven and Mitchell Rales gave up, for no payment, the restricted stock units for 500,000 shares each that the company granted them on August 4, 2026.
2026-08-03: Danaher named Julie Sawyer Montgomery, who led its Diagnostics business, as President and CEO from October 1, 2026. Rainer Blair retired as CEO on that date and stays as a senior advisor until March 31, 2027.
2026-07-21: Danaher reported Q2 2026 results. Revenue was $6.3 billion, up 5.5%, and core revenue grew 3.0%, or 4.5% without respiratory testing. Adjusted EPS grew 8.0% to $1.94. Bioprocessing orders grew by mid-teens. Danaher raised its 2026 adjusted EPS guidance to $8.45 to $8.60, and expected core revenue growth of 3% to 4% for 2026.
2026-06-10: Danaher completed the purchase of Masimo for about $9.8 billion in cash, or $180.00 per share. Masimo had revenue of about $1.5 billion in 2025 and is now part of the Diagnostics segment. Danaher paid with cash, new long-term debt and commercial paper, including CHF 2.4 billion of private notes that it agreed to sell on June 3, 2026.
2026-04-29: Danaher issued €3.0 billion of senior notes due from 2028 to 2038 to fund the Masimo purchase.
2026-04-21: Danaher reported Q1 2026 results. Revenue was $6.0 billion, up 3.5%, and core revenue grew 0.5%. Adjusted EPS grew 9.5% to $2.06. A weak respiratory season at Cepheid offset strength in bioprocessing.