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Danaher Corp. (DHR)
NYSE:DHR
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Danaher (DHR) AI Stock Analysis

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DHR

Danaher

(NYSE:DHR)

Rating:69Neutral
Price Target:
$217.00
▲(5.21% Upside)
Danaher's overall stock score is driven by its strong financial performance and positive earnings call insights, highlighting robust growth in key segments. However, high valuation metrics and neutral technical indicators temper the score, with challenges in revenue growth and global trade tensions posing risks.
Positive Factors
Earnings
Danaher reported second-quarter results that were largely in line with to better than expectations, including a slight beat on the top line and a healthy EPS beat on the bottom line.
Financial Guidance
DHR has raised the EPS guide on the back of more favorable FX and benefit from cost actions.
Recurring Revenue
DHR is seen as the leader in the highly attractive, recurring revenue market of bioprocess tools.
Negative Factors
Demand
Weaker demand and uncertain end-market conditions in biotech and academia offset the encouraging strength in bioprocessing.
Market Conditions
There are still headwinds, including weak US markets and a downturn in China.

Danaher (DHR) vs. SPDR S&P 500 ETF (SPY)

Danaher Business Overview & Revenue Model

Company DescriptionDanaher Corporation (DHR) is a global science and technology company that designs, manufactures, and markets innovative products and services in the fields of life sciences, diagnostics, dental, and environmental & applied solutions. Operating through multiple segments, Danaher leverages its diverse portfolio of brands to provide advanced instruments, software, and consumables that enhance the efficiency and effectiveness of healthcare and industrial applications.
How the Company Makes MoneyDanaher generates revenue primarily through the sale of its products and services across its various segments. Key revenue streams include life sciences equipment and reagents, diagnostic instruments and consumables, dental products, and environmental monitoring solutions. The company's business model is characterized by a focus on high-margin, recurring revenue sources, such as consumables and service contracts, which provide stability and predictability in earnings. Additionally, Danaher benefits from strategic partnerships and acquisitions, which enhance its product offerings and expand its market reach. The company invests significantly in research and development to drive innovation and maintain a competitive edge, further contributing to its revenue generation.

Danaher Key Performance Indicators (KPIs)

Any
Any
Recurring Revenue
Recurring Revenue
Measures the portion of revenue expected to continue in the future, indicating business stability and potential for sustained growth.
Chart InsightsDanaher's recurring revenue shows a recovery trend post-2022 dip, driven by strong bioprocessing and diagnostics growth. Despite challenges in life sciences and China, the company maintains a positive outlook with innovations and new product launches bolstering long-term growth. The recent earnings call highlights robust cash flow and earnings growth, supporting a stable financial position. However, global trade tensions and flat high-growth market revenues, particularly in China, pose risks. Investors should watch for potential impacts on future revenue growth amid these challenges.
Data provided by:Main Street Data

Danaher Earnings Call Summary

Earnings Call Date:Jul 22, 2025
(Q2-2025)
|
% Change Since: 9.67%|
Next Earnings Date:Oct 28, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with strong growth in the bioprocessing segment and solid financial performance, despite challenges in the life sciences segment and the China market, as well as uncertainties due to global trade tensions.
Q2-2025 Updates
Positive Updates
Strong Bioprocessing Growth
Core revenue in the biotechnology segment increased by 6%, with bioprocessing up high single digits, driven by double-digit growth in consumables due to robust demand for commercialized therapy.
Solid Financial Performance
Sales were $5.9 billion in the second quarter with a 1.5% core revenue growth. Adjusted diluted net earnings per share rose by approximately 5% year-over-year to $1.80. Free cash flow was $1.1 billion for the quarter.
New Product Launches
Important new product and technology launches in biotechnology, life sciences, and diagnostics, including new protein A resins and the Xenotov 8600 mass spectrometer, reinforcing competitive positioning.
Partnership with AstraZeneca
A new partnership with AstraZeneca was announced to develop diagnostic tools for precision medicine, leveraging Danaher Centers for enabling precision medicine.
Positive Momentum in Diagnostics
Core revenue increased by 2% in diagnostics, with non-respiratory revenue growing by double digits, driven by sexual health, virology, and hospital-acquired infections tests.
Negative Updates
Decline in Life Sciences Core Revenue
Core revenue in the life sciences segment decreased by 2.5%, with core revenue in life sciences instrument businesses collectively declining in the quarter.
Challenges in China Market
Core revenues in high-growth markets were flat overall, with a mid-single-digit decline in China, due to declines in diagnostics from volume-based procurement and reimbursement changes.
Uncertainty from Global Trade Tensions
Global trade tensions and tariff uncertainties are creating delays in larger capital investment decisions, particularly affecting bioprocessing equipment orders.
Company Guidance
During the second quarter 2025 earnings call, Danaher Corporation highlighted its strong financial performance, driven by a 1.5% core revenue growth and sales of $5.9 billion. The adjusted operating profit margin was 27.3%, and the company generated $1.1 billion in free cash flow for the quarter. Key financial metrics included an adjusted diluted net earnings per share increase of approximately 5% year-over-year to $1.80, and a year-to-date free cash flow to net income conversion ratio of 143%. Despite global trade tensions, the company maintained its full-year core revenue growth expectation of approximately 3% and raised its full-year adjusted diluted net EPS guidance to a range of $7.70 to $7.80. Bioprocessing showed promising trends with high single-digit growth expectations for the second half, supported by robust demand for consumables and a consistent order book. Life sciences saw a modest recovery in pharma spending, while diagnostics experienced stable core revenue growth. Danaher remains focused on innovation and long-term growth, with significant investments in new product launches and technology advancements across its portfolio.

Danaher Financial Statement Overview

Summary
Danaher demonstrates strong profitability and a robust capital structure, with efficient operational management. However, challenges in revenue growth and sustaining free cash flow levels could impact future financial performance. The balance sheet remains a strength, while cash flow management requires careful attention.
Income Statement
75
Positive
Danaher's income statement shows a consistent revenue base with a slight increase in TTM compared to the previous annual period. The gross profit margin is robust at 59.66%, and the net profit margin stands at 14.21% for the TTM, indicating healthy profitability. However, the revenue growth has been stagnant, with only a minor increase from the previous year. The EBIT and EBITDA margins remain strong at 18.39% and 25.73%, respectively, for the TTM, showcasing operational efficiency.
Balance Sheet
70
Positive
The balance sheet reveals a solid equity base with a debt-to-equity ratio of 0.33, reflecting moderate leverage levels. The equity ratio is healthy at 64.11%, suggesting a strong capital structure. Return on equity for the TTM is commendable at 6.52%, although it has decreased from previous levels, indicating a need for improved net income performance relative to equity growth.
Cash Flow
68
Positive
The cash flow statement shows a slight decrease in free cash flow from the previous year, with a negative growth rate of -8.20%. The operating cash flow to net income ratio is strong at 1.81, indicating efficient cash generation from operations. However, the free cash flow to net income ratio has decreased to 1.42, suggesting reduced cash flow available after capital expenditures.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue24.01B23.88B23.89B26.64B29.45B22.28B
Gross Profit14.77B14.21B14.03B16.19B17.95B12.47B
EBITDA6.75B7.28B7.50B9.48B10.01B6.54B
Net Income3.41B3.90B4.76B7.21B6.43B3.65B
Balance Sheet
Total Assets81.62B77.54B84.49B84.35B83.18B76.16B
Cash, Cash Equivalents and Short-Term Investments2.96B2.08B5.86B6.00B2.59B6.04B
Total Debt18.55B17.15B19.54B20.62B23.27B22.18B
Total Liabilities29.28B27.99B31.00B34.26B38.01B36.38B
Stockholders Equity52.33B49.54B53.49B50.08B45.17B39.77B
Cash Flow
Free Cash Flow4.86B5.30B5.78B7.37B7.06B5.42B
Operating Cash Flow6.17B6.69B7.16B8.52B8.36B6.21B
Investing Cash Flow-1.80B-1.98B-7.08B-2.23B-12.99B-21.24B
Financing Cash Flow-4.04B-8.38B-273.00M-2.57B1.29B1.01B

Danaher Technical Analysis

Technical Analysis Sentiment
Positive
Last Price206.25
Price Trends
50DMA
200.92
Positive
100DMA
196.68
Positive
200DMA
210.15
Negative
Market Momentum
MACD
2.64
Negative
RSI
52.34
Neutral
STOCH
48.62
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DHR, the sentiment is Positive. The current price of 206.25 is above the 20-day moving average (MA) of 204.35, above the 50-day MA of 200.92, and below the 200-day MA of 210.15, indicating a neutral trend. The MACD of 2.64 indicates Negative momentum. The RSI at 52.34 is Neutral, neither overbought nor oversold. The STOCH value of 48.62 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DHR.

Danaher Risk Analysis

Danaher disclosed 43 risk factors in its most recent earnings report. Danaher reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Danaher Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
$33.85B30.0018.88%0.83%0.56%-4.08%
79
Outperform
$185.31B28.9413.44%0.34%2.05%7.03%
77
Outperform
$51.31B53.3864.87%6.68%18.84%
70
Outperform
$17.63B26.7037.03%5.89%10.61%
69
Neutral
$148.75B44.996.68%0.57%-3.24%-16.60%
64
Neutral
$10.59B39.103.61%0.30%3.33%32.86%
51
Neutral
$7.83B-0.15-40.10%2.29%21.46%-2.01%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
DHR
Danaher
206.25
-61.16
-22.87%
A
Agilent
118.30
-21.72
-15.51%
IDXX
Idexx Laboratories
641.72
159.16
32.98%
RVTY
Revvity
91.23
-30.89
-25.29%
TMO
Thermo Fisher
488.48
-119.93
-19.71%
WAT
Waters
296.14
-40.63
-12.06%

Danaher Corporate Events

Executive/Board Changes
Danaher Announces General Counsel’s Upcoming Departure
Neutral
Jul 31, 2025

On July 28, 2025, Danaher Corporation announced that Brian W. Ellis, the Senior Vice President and General Counsel, will step down from his role as General Counsel on August 25, 2025. He will remain as Senior Vice President until his retirement on February 28, 2026, marking a significant transition in the company’s executive leadership.

The most recent analyst rating on (DHR) stock is a Buy with a $268.00 price target. To see the full list of analyst forecasts on Danaher stock, see the DHR Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Danaher Announces CFO Transition with Gugino Appointment
Positive
Jul 24, 2025

On July 21, 2025, Danaher Corporation announced that Matthew M. McGrew, the current Chief Financial Officer, will step down from his role on February 28, 2026, and will be succeeded by Matthew E. Gugino. Gugino, who has been with Danaher since 2013, currently serves as Vice President-Corporate FP&A and Group CFO for the Life Sciences Innovations businesses. The transition is part of a strategic move to ensure continuity in leadership as McGrew transitions towards retirement. The announcement also detailed changes in compensation for both executives, with Gugino receiving significant increases in salary and equity awards as he assumes the CFO role. This transition is expected to support Danaher’s continued growth and strengthen its position as a leader in science and technology.

The most recent analyst rating on (DHR) stock is a Buy with a $315.00 price target. To see the full list of analyst forecasts on Danaher stock, see the DHR Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 08, 2025