Third Quarter 2026
Filed Oct 20, 2026Danaher reported third-quarter 2026 sales of $6.6 billion, up 8.5% year-over-year, and adjusted diluted net earnings per common share from continuing operations of $2.11, up 11.5%.
Reported sales, core sales excluding respiratory testing, adjusted EPS and cash flow increased year-over-year, while the company raised full-year adjusted diluted EPS guidance. Diagnostics core sales growth was modest and fourth-quarter respiratory testing is expected to be a headwind.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Sales, three-month period ended September 25, 2026GAAP | $6.55B | – | 8.5 % |
| Cost of sales, three-month period ended September 25, 2026GAAP | −$2.72B | – | – |
| Gross profit, three-month period ended September 25, 2026GAAP | $3.84B | – | – |
| Selling, general and administrative expenses, three-month period ended September 25, 2026GAAP | −$2.16B | – | – |
| Research and development expenses, three-month period ended September 25, 2026GAAP | −$433M | – | – |
| Operating profit, three-month period ended September 25, 2026GAAP | $1.25B | – | – |
| Other income (expense), net, three-month period ended September 25, 2026GAAP | −$9M | – | – |
| Interest expense, three-month period ended September 25, 2026GAAP | −$135M | – | – |
| Interest income, three-month period ended September 25, 2026GAAP | $31M | – | – |
| Earnings before income taxes, three-month period ended September 25, 2026GAAP | $1.13B | – | – |
| Income taxes, three-month period ended September 25, 2026GAAP | $75M | – | – |
| Net earnings from continuing operations, three-month period ended September 25, 2026GAAP | $1.21B | – | – |
| Earnings from discontinued operations, net of income taxes, three-month period ended September 25, 2026GAAP | $28M | – | – |
| Net earnings, three-month period ended September 25, 2026GAAP | $1.24B | – | up 34.5% year-over-year |
| Diluted net earnings per common share from continuing operations, three-month period ended September 25, 2026GAAP | $ 1.71 | – | – |
| Diluted net earnings per common share from discontinued operations, three-month period ended September 25, 2026GAAP | $ 0.04 | – | – |
| Diluted net earnings per common share, three-month period ended September 25, 2026GAAP | $ 1.75 | – | – |
| Average diluted common stock and common equivalent shares outstanding, three-month period ended September 25, 2026GAAP | 706.8M | – | – |
| Adjusted diluted net earnings per common share from continuing operations, three-month period ended September 25, 2026non-GAAP | $ 2.11 | – | 11.5% |
| Core sales growth, three-month period ended September 25, 2026non-GAAP | 3.0 % | – | 3.0 % |
| Core sales growth excluding respiratory testing, three-month period ended September 25, 2026non-GAAP | 5.5 % | – | 5.5 % |
| Net cash provided by operating activities from continuing operations, three-month period ended September 25, 2026GAAP | $1.89B | – | ~ 13.5 % |
| Payments for additions to property, plant & equipment (capital expenditures), three-month period ended September 25, 2026GAAP | −$255M | – | – |
| Proceeds from sales of property, plant & equipment (capital disposals), three-month period ended September 25, 2026GAAP | $1M | – | – |
| Free cash flow from continuing operations, three-month period ended September 25, 2026non-GAAP | $1.63B | – | ~ 19.0 % |
| Operating cash flow from continuing operations to net earnings from continuing operations conversion ratio, three-month period ended September 25, 2026GAAP | 1.56 | – | – |
| Free cash flow from continuing operations to net earnings from continuing operations conversion ratio, three-month period ended September 25, 2026non-GAAP | 1.35 | – | – |
| Sales, nine-month period ended September 25, 2026GAAP | $18.77B | – | 6.0 % |
| Gross profit, nine-month period ended September 25, 2026GAAP | $11.04B | – | – |
| Operating profit, nine-month period ended September 25, 2026GAAP | $3.72B | – | – |
| Net earnings from continuing operations, nine-month period ended September 25, 2026GAAP | $3.11B | – | – |
| Net earnings, nine-month period ended September 25, 2026GAAP | $3.13B | – | – |
| Diluted net earnings per common share from continuing operations, nine-month period ended September 25, 2026GAAP | $ 4.38 | – | – |
| Adjusted diluted net earnings per common share from continuing operations, nine-month period ended September 25, 2026non-GAAP | $ 6.11 | – | – |
| Core sales growth, nine-month period ended September 25, 2026non-GAAP | 2.0 % | – | 2.0 % |
| Core sales growth excluding respiratory testing, nine-month period ended September 25, 2026non-GAAP | 4.5 % | – | 4.5 % |
| Net cash provided by operating activities from continuing operations, nine-month period ended September 25, 2026GAAP | $4.74B | – | ~ 10.5 % |
| Free cash flow from continuing operations, nine-month period ended September 25, 2026non-GAAP | $3.98B | – | ~ 13.0 % |
Fourth Quarter and Full Year 2026 outlook
- Tax rate~17.0 % for the three-month period ending December 31, 2026 and year ending December 31, 2026
- NoteFourth-quarter total company core sales growth: ~+3.0%
- NoteFourth-quarter core sales growth excluding respiratory testing: +4.0% - +5.0%
- NoteFourth-quarter Biotechnology core sales growth: +Mid-single digit
- NoteFourth-quarter Life Sciences core sales growth: +4.0% - +5.0%
- NoteFourth-quarter Diagnostics core sales growth: +Up slightly
- NoteFourth-quarter impact of respiratory testing: ~+150 basis points
- NoteFull-year total company core sales growth: ~+2.5%
- NoteFull-year core sales growth excluding respiratory testing: +Mid-single digit
- NoteFull-year Biotechnology core sales growth: +Mid-single digit
- NoteFull-year Life Sciences core sales growth: +3.0% - +4.0%
- NoteFull-year Diagnostics core sales growth: ~Flat
- NoteFull-year impact of respiratory testing: +Low-single digit
- NoteFourth-quarter adjusted operating profit margin: ~29.5 %
- NoteFull-year adjusted diluted net earnings per common share from continuing operations: $8.57 - $8.62
- NoteFourth-quarter impact of currency exchange rates on sales: ~Flat
- NoteFull-year impact of currency exchange rates on sales: ~+1.0%
- NoteFourth-quarter amortization of acquisition-related intangible assets: ~$(500) million
- NoteFull-year amortization of acquisition-related intangible assets: ~$(1,900) million
- NoteFourth-quarter corporate expense: ~$(90) million
- NoteFull-year corporate expense: ~$(355) million
- NoteFourth-quarter interest expense, net: ~$(120) million
- NoteFull-year interest expense, net: ~$(305) million
- NoteFourth-quarter average adjusted diluted shares: ~707 million
- NoteFull-year average adjusted diluted shares: ~708 million
What drove it
- Third-quarter total sales growth was 8.5 %, while core sales growth was 3.0 % and core sales growth excluding respiratory testing was 5.5 %.
- Third-quarter Biotechnology core sales growth was 5.0 %, Life Sciences core sales growth was 4.5 %, and Diagnostics core sales growth was 0.5 %.
- Third-quarter Biotechnology core sales growth excluding respiratory testing was 7.0 %.
- The company cited continued acceleration in core revenue growth excluding respiratory revenue and DBS-driven execution.
- Net discrete tax benefits of $263 million in the third quarter were related primarily to the release of reserves for uncertain tax positions resulting from audit settlements.
Concerns
- Fourth-quarter respiratory revenue is expected to be an approximately 150 basis point headwind to core revenue growth.
- Third-quarter Diagnostics core sales growth was 0.5 %.
- Third-quarter interest expense was $ (135) million, compared with $ (67) million in the comparable 2025 period.
- The company identified the impact of debt obligations, including debt incurred to finance the acquisition of Masimo Corporation, as a risk to operations and liquidity.
- The company recorded $52 million pretax impairment charges related to a facility in the Biotechnology segment in the three-month period ended September 25, 2026.
What to watch
- Fourth-quarter core sales growth excluding respiratory testing guidance of +4.0% - +5.0%.
- Fourth-quarter Biotechnology, Life Sciences and Diagnostics core sales growth guidance.
- Fourth-quarter adjusted operating profit margin guidance of ~29.5 %.
- Execution against full-year adjusted diluted net earnings per common share guidance of $8.57 - $8.62.
- The expected fourth-quarter respiratory testing headwind of ~+150 basis points and full-year Diagnostics core sales growth guidance of ~Flat.
Balance sheet and cash flow
- Net cash provided by operating activities from continuing operations was $ 1,886 million for the three-month period ended September 25, 2026, compared with $ 1,662 million for the comparable 2025 period.
- Free cash flow from continuing operations was $ 1,632 million for the three-month period ended September 25, 2026, compared with $ 1,370 million for the comparable 2025 period.
- Total cash used in investing activities for continuing operations was $ (300) million for the three-month period ended September 25, 2026, compared with $ (312) million for the comparable 2025 period.
- Total cash used in financing activities for continuing operations was $ (262) million for the three-month period ended September 25, 2026, compared with $ (2,781) million for the comparable 2025 period.
- Net cash provided by operating activities from continuing operations was $ 4,742 million for the nine-month period ended September 25, 2026, compared with $ 4,299 million for the comparable 2025 period.
- Free cash flow from continuing operations was $ 3,982 million for the nine-month period ended September 25, 2026, compared with $ 3,524 million for the comparable 2025 period.
- Total cash used in investing activities for continuing operations was $ (10,696) million for the nine-month period ended September 25, 2026, compared with $ (812) million for the comparable 2025 period.
- Total cash provided by financing activities for continuing operations was $ 7,057 million for the nine-month period ended September 25, 2026, compared with cash used in financing activities of $ (4,283) million for the comparable 2025 period.
Analysis
Danaher reported third-quarter sales of $ 6,554 million, up 8.5 %, and core sales growth of 3.0 %. Excluding respiratory testing, core sales growth was 5.5 %. The gap reflects a 2.5 % impact of respiratory testing on total-company core sales growth, while acquisitions/divestitures and tariff refunds to customers were also identified as components of reported sales growth.
Underlying growth was led by Biotechnology, where core sales growth was 5.0 % and core sales growth excluding respiratory testing was 7.0 %. Life Sciences core sales growth was 4.5 %. Diagnostics recorded 17.0 % total sales growth but only 0.5 % core sales growth, and respiratory testing affected its core-sales comparison by 6.5 %.
GAAP net earnings were $ 1,235 million and diluted net earnings per common share were $ 1.75. Net earnings from continuing operations were $ 1,207 million, or $ 1.71 per diluted share. Adjusted diluted net earnings per common share from continuing operations rose to $ 2.11 from $ 1.89. The quarter included net discrete tax benefits of $263 million related primarily to releases of reserves for uncertain tax positions resulting from audit settlements, as well as a $52 million pretax Biotechnology facility impairment.
Cash generation increased. Operating cash flow from continuing operations was $ 1,886 million, compared with $ 1,662 million, and free cash flow was $ 1,632 million, compared with $ 1,370 million. Capital expenditures were $ (255) million. For the first nine months, investing cash use was $ (10,696) million and financing cash provided was $ 7,057 million.
The company expects fourth-quarter core sales growth excluding respiratory testing of +4.0% - +5.0%, with respiratory revenue an approximately 150 basis point headwind and total-company core sales growth of approximately 3.0%. Danaher raised full-year adjusted diluted net earnings per common share guidance to $8.57 - $8.62 from previous guidance of $8.45 - $8.60. Full-year core sales growth is guided to ~+2.5%, and the company expects full-year Diagnostics core sales growth to be ~Flat.
Management, verbatim
We delivered better-than-expected third quarter revenue, earnings and cash flow, and are encouraged by the improving trends we saw across our end markets. The continued acceleration in core revenue growth excluding respiratory revenue, together with DBS-driven execution drove double-digit adjusted EPS growth and underscored our ability to convert improving demand into strong financial performance.
Julie Sawyer Montgomery, President and Chief Executive Officer
Danaher has built a strong foundation, and the time I’ve spent with our teams and customers during my transition into the CEO role has only reinforced my conviction in the opportunities ahead. Looking forward, the opportunity for Danaher is clear: to become the defining leader in Life Sciences and Diagnostics–a company that unambiguously gains share, delivers sustainable profitable growth, and helps our customers improve outcomes for patients around the world.
Julie Sawyer Montgomery, President and Chief Executive Officer
Not in the filing
stated, not guessed- Segment revenue amounts for Biotechnology, Life Sciences and Diagnostics were not reported in the filing.
- Gross margin was not reported.
- Operating margin was not reported.
- Actual effective tax rate was not reported.
- Prior-quarter financial results and sequential comparisons were not reported.
- Cash and debt balances were not reported.
- Share repurchases, dividends and other capital-return amounts were not reported.
- GAAP revenue guidance, GAAP gross-margin guidance and GAAP operating-expense guidance were not reported.
- A previous outlook document was not provided; therefore, no reported actual-versus-prior-guidance comparison is included.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.