Danaher (DHR) AI Stock Analysis

• Market Cap: $147.32B
• Dividend Yield: 0.53%
• Average Volume (3M): 4.32M
• Price to Earnings (P/E): 41.3
• Beta (1Y): 0.85
• Revenue Growth: 2.90%
• EPS Growth: -4.81%
• Country: US
• Employees: 61,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Diagnostics & Research
• EPS (TTM): 2.23
• Shares Outstanding: 706,349,550
• 10 Day Avg. Volume: 4,556,441
• 30 Day Avg. Volume: 4,323,877
• PEG Ratio: -9.18
• Price to Book (P/B): 3.08
• Price to Sales (P/S): 6.59
• P/FCF Ratio: 30.78
• Enterprise Value/Market Cap: 1.10
• Enterprise Value/Revenue: 6.58
• Enterprise Value/Gross Profit: 10.80
• Enterprise Value/Ebitda: 23.28
• 1Y Price Target: $266.18
• Price Target Upside: 26.20% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 18
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: $231.00 ▲(9.52% Upside)
• Action: Reiterated Date: 02/18/26
• Date: Action: Reiterated 02/18/26

The score is driven primarily by solid financial quality (durable margins, strong free cash flow, and improving leverage), tempered by weaker recent growth/returns. Near-term technicals are notably soft (below key moving averages with negative MACD), and valuation is expensive (high P/E, low yield). Earnings call guidance and the Masimo deal add moderate support but include meaningful execution and end-market uncertainty.

Positive Factors

Recurring revenue mix

Danaher’s business model emphasizes equipment sales plus high-margin, repeatable consumables and maintenance contracts. That recurring revenue base supports predictable cash flow, reduces cyclicality, and underpins durable margins and customer stickiness across diagnostics and life-science end markets.

Strong free cash flow generation

Consistent, high free cash flow provides long-term financial flexibility to fund R&D, capital spending, dividends, and M&A without destabilizing the balance sheet. This track record supports disciplined capital allocation and buffers the business through uneven revenue cycles.

Innovation and product-led growth

A sustained cadence of new product launches drives share gains and higher-margin revenue streams. High new-product revenue growth signals effective R&D and commercial execution, supporting longer-term differentiation in diagnostics, bioprocessing, and lab instrumentation.

Negative Factors

Choppy multi-year revenue momentum

Intermittent revenue recoveries reflect uneven end-market demand and make forecasting and scaling investment harder. Persistent top-line volatility can constrain sustainable margin expansion, slow return-to-growth timing, and reduce visibility for multi-year planning and investor expectations.

Stepped-down profitability versus prior peaks

A meaningful decline in net margin versus recent peaks suggests structural pressure from mix shifts, cost inflation, or lower equipment leverage. Lower profitability reduces return on equity and cash generation per dollar of revenue, limiting reinvestment capacity and increasing sensitivity to growth disappointments.

M&A funding and integration risk (Masimo)

The near-$10B Masimo deal bolsters diagnostics but increases leverage and exposes Danaher to regulatory, integration, and execution risk. Successful realization of synergies and autonomy of the acquired business are critical; failure would pressure cash flow and distract management from organic growth initiatives.

Danaher Business Overview & Revenue Model

Company Description

Danaher Corporation designs, manufactures, and markets professional, medical, industrial, and commercial products and services worldwide. The company operates through three segments: Life Sciences, Diagnostics, and Environmental & Applied Solutions. The Life Sciences segment provides mass spectrometers; flow cytometry, genomics, lab automation, centrifugation, particle counting and characterization; microscopes; genomics consumables; and Gene and Cell Therapy. This segment also offers bioprocess technologies, consumables, and services; and filtration, separation, and purification technologies to the pharmaceutical and biopharmaceutical, food and beverage, medical, and life sciences companies, as well as universities, medical schools and research institutions, and various industrial manufacturers. The Diagnostics segment provides chemistry, immunoassay, microbiology, and automation systems, as well as hematology, molecular, acute care, and pathology diagnostics products. This segment offers clinical instruments, reagents, consumables, software, and services for hospitals, physicians' offices, reference laboratories, and other critical care settings. The Environmental & Applied Solutions segment offers instrumentation, consumables, software, services, and disinfection systems to analyze, treat, and manage ultra-pure, potable, industrial, waste, ground, source, and ocean water in residential, commercial, industrial, and natural resource applications. This segment also provides instruments, software, services, and consumables for various color and appearance management, packaging design and quality management, packaging converting, printing, marking, coding, and traceability applications for consumer, pharmaceutical, and industrial products. The company was formerly known as Diversified Mortgage Investors, Inc. and changed its name to Danaher Corporation in 1984. Danaher Corporation was founded in 1969 and is headquartered in Washington, the District of Columbia.

How the Company Makes Money

Danaher generates revenue through a diversified model primarily based on the sale of equipment, consumables, and software solutions. The Life Sciences segment, which includes products used for drug discovery and development, is a significant revenue driver, alongside the Diagnostics segment that offers diagnostic systems and instruments. The company benefits from recurring revenue streams through the sale of consumables and maintenance services associated with its equipment. Key partnerships with healthcare providers, research institutions, and industrial companies enhance Danaher's market reach and innovation capabilities. Additionally, the company's commitment to continuous improvement and investment in research and development leads to the introduction of new products, further contributing to its earnings.

Danaher Financial Statement Overview

Summary

Strong underlying profitability and cash generation with improving leverage (declining debt-to-equity). However, revenue and earnings momentum has been uneven since 2023 and returns have reset lower (net margin down vs. 2021–2022 peaks; ROE cooled), limiting the score despite a resilient foundation.

Income Statement

Revenue has recovered modestly in 2025 after a flat 2024 and a sharp 2023 decline, but the multi-year trajectory is still choppy versus the stronger 2020–2022 run. Profitability remains solid for the industry (gross margin ~60% and EBITDA margin high-20s to low-30s), yet earnings power has clearly stepped down from 2021–2022 peaks, with net margin falling from ~22–23% (2021–2022) to ~15% (2025). Overall: strong underlying margins, but growth consistency and bottom-line momentum have weakened.

Balance Sheet

Leverage looks moderate and improving over time, with debt-to-equity declining from ~0.53 (2020) to ~0.35 (2025), suggesting a more conservative capital structure. Equity has expanded meaningfully (roughly $39.8B to $52.5B from 2020 to 2025), providing balance-sheet resilience. The key watch item is profitability on equity: return on equity has cooled materially from ~14% (2021–2022) to ~6.9% (2025), indicating reduced efficiency in converting shareholder capital into earnings.

Cash Flow

Cash generation is consistently strong, with free cash flow staying healthy (~$5.3B in 2025) and generally tracking earnings well (free cash flow around ~0.79–0.87 of net income across the period). However, cash flow has softened from 2021–2022 highs, and free-cash-flow growth has been volatile (declines in 2023–2024 followed by a rebound in 2025). Operating cash flow coverage is around ~0.94–1.03 in recent years, signaling solid—though not exceptional—cash conversion consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	24.57B	23.88B	23.89B	26.64B	29.45B
Gross Profit	14.97B	14.21B	14.03B	16.19B	17.95B
EBITDA	6.95B	7.28B	7.50B	9.48B	10.01B
Net Income	3.61B	3.90B	4.76B	7.21B	6.43B
Balance Sheet
Total Assets	83.46B	77.54B	84.49B	84.35B	83.18B
Cash, Cash Equivalents and Short-Term Investments	4.62B	2.08B	5.86B	6.00B	2.59B
Total Debt	18.42B	17.15B	19.54B	20.62B	23.27B
Total Liabilities	30.93B	27.99B	31.00B	34.26B	38.01B
Stockholders Equity	52.53B	49.54B	53.49B	50.08B	45.17B
Cash Flow
Free Cash Flow	5.26B	5.30B	5.78B	7.37B	7.06B
Operating Cash Flow	6.42B	6.69B	7.16B	8.52B	8.36B
Investing Cash Flow	-1.20B	-1.98B	-7.08B	-2.23B	-12.99B
Financing Cash Flow	-2.96B	-8.38B	-273.00M	-2.57B	1.29B

Danaher Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 210.92
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHR, the sentiment is Negative. The current price of 210.92 is below the 20-day moving average (MA) of 217.90, below the 50-day MA of 226.61, and above the 200-day MA of 209.19, indicating a neutral trend. The MACD of -5.36 indicates Positive momentum. The RSI at 38.54 is Neutral, neither overbought nor oversold. The STOCH value of 48.12 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DHR.

Danaher Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
A	73 Outperform	$35.90B	27.77	20.62%	0.72%	6.73%	3.34%
IDXX	70 Outperform	$50.70B	48.24	66.20%	―	8.39%	21.44%
WAT	69 Neutral	$32.13B	30.53	29.28%	―	6.90%	3.86%
DHR	67 Neutral	$147.32B	41.30	7.05%	0.53%	2.90%	-4.81%
MTD	66 Neutral	$27.96B	32.68	―	―	4.77%	7.93%
TMO	61 Neutral	$192.95B	28.95	13.04%	0.30%	3.91%	7.09%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Danaher Corporate Events

Danaher to Acquire Masimo, Expanding Diagnostics Portfolio

On February 17, 2026, Danaher announced a definitive agreement to acquire Masimo Corporation, a specialty diagnostics company known for pulse oximetry and patient monitoring solutions used primarily in acute care settings. Danaher will pay $180 per share in cash, implying an enterprise value of about $9.9 billion and valuing the deal at roughly 18 times estimated 2027 EBITDA, or 15 times including anticipated synergies.

Masimo will become a standalone operating company within Danaher’s Diagnostics segment, a move expected to strengthen Danaher’s diagnostics franchise with advanced sensor and AI-enabled monitoring technologies. The transaction, slated to close in the second half of 2026 subject to regulatory and shareholder approvals, is projected to be accretive to adjusted earnings, enhance core revenue growth, and deliver significant cost and revenue synergies, underscoring Danaher’s push to expand its position in hospital diagnostics and critical-care decision support.

Under Danaher’s ownership, Masimo is projected to generate more than $530 million in EBITDA in 2027, supported by over $125 million in annual cost synergies and more than $50 million in annual revenue synergies by the fifth full year after closing. Danaher plans to fund the acquisition with cash on hand and debt financing, signaling continued balance-sheet capacity for strategic deals while intensifying competitive pressure in the global diagnostics and patient-monitoring market.

The most recent analyst rating on (DHR) stock is a Buy with a $270.00 price target. To see the full list of analyst forecasts on Danaher stock, see the DHR Stock Forecast page.

Danaher Announces Retirement of Board Member Jessica Mega

On February 5, 2026, Danaher Corporation announced that board member Jessica L. Mega retired from its Board of Directors, effective the same day, citing increased commitments related to her other professional obligations. The company emphasized that Dr. Mega’s departure did not stem from any disagreement over Danaher’s operations, policies, or practices, suggesting continuity in governance and strategic direction despite the change in board composition.

The most recent analyst rating on (DHR) stock is a Buy with a $270.00 price target. To see the full list of analyst forecasts on Danaher stock, see the DHR Stock Forecast page.