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Danaher Corporation — Q2 2026 Danaher Earnings Presentation
Danaher Corporation (DHR) · 0 slides · Filed Oct 21, 2026
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Slide 1 — Danaher
Danaher Corporation Second Quarter 2026 Earnings Release July 21, 2026
Slide 2 — Forward Looking Statements
2 Forward Looking Statements Statements in this presentation that are not strictly historical, including any statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward- looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause actual results, developments and business decisions to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other things: the impact of the tariffs and related actions implemented by the U.S. and other countries, the impact of our debt obligations (including debt we incurred to finance the acquisition of Masimo Corporation) on our operations and liquidity, deterioration of or instability in the global economy, the markets we serve and the financial markets, uncertainties with respect to the development, deployment, and use of artificial intelligence in our business and products, the impact of global health crises, uncertainties relating to national laws or policies, including laws or policies to protect or promote domestic interests and/or address foreign competition, our ability to successfully identify and consummate appropriate acquisitions and strategic investments, our ability to integrate the businesses we acquire and achieve the anticipated growth, synergies and other benefits of such acquisitions, contingent liabilities and other risks relating to acquisitions, investments, strategic relationships and divestitures (in each case, including with respect to our acquisition of Masimo Corporation), including tax-related and other contingent liabilities relating to past and future IPOs, split-offs or spin-offs, contractions or growth rates and cyclicality of markets we serve, competition, our ability to develop and successfully market new products and technologies and expand into new markets, the potential for improper conduct by our employees, agents or business partners, our compliance with applicable laws and regulations (including rules relating to off-label marketing and other regulations relating to medical devices and the health care industry), the results of our clinical trials and perceptions thereof, our ability to effectively address cost reductions and other changes in the health care industry, security breaches or other disruptions of our information technology systems or violations of data privacy laws, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, changes in tax laws applicable to multinational companies, litigation, regulatory proceedings and other contingent liabilities including intellectual property and environmental, health and safety matters, the rights of the United States government with respect to our production capacity in times of national emergency or with respect to intellectual property/production capacity developed using government funding, risks relating to product, service or software defects, product liability and recalls, risks relating to our manufacturing operations, the impact of climate change, legal or regulatory measures to address climate change and other sustainability topics and our ability to address regulatory requirements or stakeholder expectations relating to climate change and other sustainability topics, risks relating to fluctuations in the cost and availability of the supplies we use (including commodities) and labor we need for our operations, our relationships with and the performance of our channel partners, uncertainties relating to collaboration arrangements with third-parties, the impact of deregulation on demand for our products and services, labor matters and our ability to recruit, retain and motivate talented employees, U.S. and non-U.S. economic, political, geopolitical, legal, compliance, social and business factors (including the impact of elections, regulatory and policy changes or uncertainty, government shutdowns and military conflicts such as the conflict in the Middle East), disruptions and other impacts relating to man-made and natural disasters, inflation and the impact of our By-law exclusive forum provisions. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our 2025 Annual Report on Form 10-K and Quarterly Report on Form 10-Q for the second quarter of 2026. These forward-looking statements speak only as of the date of this document (July 20, 2026) and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. With respect to the non-GAAP financial measures referenced in the following presentation, calculations of these measures, explanations of what these measures represent, the reasons why we believe these measures provide useful information to investors, a reconciliation of these measures to the most directly comparable GAAP measures, as applicable, and other information relating to these non- GAAP measures required by SEC Regulation G can be found in the accompanying information at the end of this presentation or in the “Investors” section of Danaher’s web site, www.danaher.com, under the subheading “Quarterly Earnings.” In addition, in addressing various financial metrics the presentation describes certain of the more significant factors that impacted year-over-year performance. For additional factors that impacted year-over-year performance, please refer to our earnings release and the other related presentation materials supplementing today’s call, as well as our second quarter Form 10-Q, all of which are available in the “Investors” section of Danaher’s web site under the subheadings “Financial Reports” and “Quarterly Earnings." All references in this presentation (1) to financial metrics relate only to the continuing operations of Danaher’s business, unless otherwise noted; and (2) to “growth” or other period-to-period changes, refer to year-over-year comparisons unless otherwise indicated. We may also describe certain products and devices which have applications submitted and pending for certain regulatory approvals.
Slide 3 — Second Quarter 2026 Performance Summary
3 Second Quarter 2026 Performance Summary Throughout this presentation, with respect to revenue performance, for the definitions of “Core”, "Acquisitions" and “FX”, please refer to Danaher’s most recent Quarterly and Annual Reports filed with the SEC, which are available in the “Investors” section of Danaher’s website under the subheading "Financial Reports”. Revenue +5.5% Core +3.0% Acquisitions +1.5% FX +1.0% Adjusted Diluted Net Earnings Per Common Share +8.0% ($ millions) Adjusted Operating Profit Margin -20 BPS
Slide 4 — Second Quarter 2026: Biotechnology
4 Second Quarter 2026: Biotechnology Revenue Adjusted Operating Profit Margin Flat 4.0% Core +2.5% FX +1.5% ($ millions)
Slide 5 — Second Quarter 2026: Life Sciences
5 Second Quarter 2026: Life Sciences Revenue Adjusted Operating Profit Margin +5.5% ($ millions) Core +5.5% +170 BPS
Slide 6 — Second Quarter 2026: Diagnostics
6 Second Quarter 2026: Diagnostics Revenue Adjusted Operating Profit Margin -160 BPS +7.0% ($ millions) Core +2.0% Acquisitions +4.0% FX +1.0%
Slide 7 — Historical Core Revenue Growth Excluding Respiratory Testing Revenue
7 Historical Core Revenue Growth Excluding Respiratory Testing Revenue Q1 Q2 Q3 Q4 FY25 Q1 Q2 Q3E Q4E FY26E Biotechnology 7.0% 6.0% 6.5% 6.0% 6.5% 7.0% 2.5% +MSD +MSD Life Sciences -4.0% -2.5% -1.0% 0.5% -1.5% 0.5% 5.5% ~3.0-4.0% ~3.0% to 4.0% Diagnostics -1.5% 2.0% 3.5% 2.0% 1.5% -4.0% 2.0% ~Flat +Up slightly Danaher 0.0% 1.5% 3.0% 2.5% 2.0% 0.5% 3.0% ~2.0-3.0% +MSD ~3.0% to 4.0% Danaher ex respiratory 1.0% 2.0% 2.5% 4.0% 2.5% 3.0% 4.5% ~5.0% +MSD +MSD Respiratory impact -1.0% -0.5% 0.5% -1.5% -0.5% -2.5% -1.5% ~ -2.5% ~Flat -LSD Respiratory revenue* ~$650M ~$300M ~$500M ~$500M ~$1.9B ~$500M ~$250M ~$325M ~$500M ~$1.6B Respiratory revenue y/y % change ~ -25% ~ - 15% ~-35% ~Flat -High-teens *Actuals round to nearest $50M 2025 2026 2025 and 2026 Danaher Core Revenue Growth
Slide 8 — Guidance
8 Guidance
Slide 9 — Q&A
9 Q&A
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Slide 25 — related to the acquisition of Masimo Corporation (“Masimo”) in the three and six-month periods ended June 26, 2026 ($108 million and $125 million pretax
A Amortization of acquisition-related intangible assets in the following historical periods (only the pretax amounts set forth below are reflected in the amortization line item above): Three-Month Period Ended Six-Month Period Ended June 26, 2026 June 27, 2025 June 26, 2026 June 27, 2025 Pretax $ 463 $ 426 $ 897 $ 836 After-tax 384 354 744 694 B Net (gains) losses on the Company's equity and limited partnership investments recorded in the following historical periods (only the pretax amounts set forth below are reflected in the fair value net (gains) losses on investments line above): Three-Month Period Ended Six-Month Period Ended June 26, 2026 June 27, 2025 June 26, 2026 June 27, 2025 Pretax $ 7 $ 44 $ 84 $ 134 After-tax 5 33 64 101 C Fair value adjustments to inventory, transaction costs deemed significant and pre-acquisition share-based and change-in-control payments, in each case related to the acquisition of Masimo Corporation (“Masimo”) in the three and six-month periods ended June 26, 2026 ($108 million and $125 million pretax as reported in this line item, $95 million and $110 million after-tax). The Company deems acquisition-related transaction costs incurred in a given period to be significant (generally relating to the Company’s larger acquisitions) if it determines that such costs exceed the range of acquisition-related transaction costs typical for Danaher in a given period. D Impairment charges related to a trade name in the Life Sciences segment recorded in the three and six-month periods ended June 27, 2025 ($432 million pretax as reported in this line item, $328 million after-tax) and a facility in the Biotechnology segment recorded in the six-month period ended June 27, 2025 ($15 million pretax as reported in this line item, $11 million after-tax). E Gain on a product line disposition in the six-month period ended June 27, 2025 ($9 million pretax as reported in this line item, $7 million after-tax). F This line item reflects the aggregate tax effect of all nontax adjustments reflected in the preceding line items of the table. In addition, the footnotes above indicate the after-tax amount of each individual adjustment item. Danaher estimates the tax effect of each adjustment item by applying Danaher’s overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment. G Discrete tax adjustments and other tax-related adjustments for both the three and six-month periods ended June 26, 2026, include the impact of net discrete tax charges of $21 million related primarily to changes in estimates associated with prior period uncertain tax positions, partially offset by benefits from the release of reserves for uncertain tax positions resulting from audit settlements and the expiration of statutes of limitations during the six-month period. Discrete tax adjustments and other tax-related adjustments for the three-month period ended June 27, 2025, include the impact of net discrete tax charges of $22 million related primarily to changes in uncertain tax positions and other items. Discrete tax adjustments and other tax-related adjustments for the six-month period ended June 27, 2025, include the impact of net discrete tax charges of $12 million related primarily to the release of reserves for uncertain tax positions due to the expiration of statutes of limitations, partially offset by changes in uncertain tax positions and other items. DANAHER CORPORATION Other Non-GAAP Adjusted P&L Measures ($ in millions, except per share data) 13
Slide 26 — Three-Month Period Ended June 27, 2025 Operating Profit Margins (GAAP)
Segments Total Company Biotechnology Life Sciences Diagnostics Three-Month Period Ended June 27, 2025 Operating Profit Margins (GAAP) 12.80 % 28.70 % (13.40) % 24.00 % Second quarter 2026 impact from operating profit margin of businesses that have been owned for less than one year (0.30) — — (1.05) Second quarter 2026 fair value adjustments to inventory, transaction costs deemed significant and pre-acquisition share-based and change-in-control payments, in each case related to the acquisition of Masimo (1.75) — — (4.40) Second quarter 2025 impairment charge related to a trade name in the Life Sciences segment 7.30 — 24.30 — Year-over-year core operating profit margin changes for the second quarter 2026 (defined as all year-over-year operating profit margin changes other than the changes identified in the line items above) (non-GAAP) (0.05) 0.30 2.10 (1.65) Three-Month Period Ended June 26, 2026 Operating Profit Margins (GAAP) 18.00 % 29.00 % 13.00 % 16.90 % Segments Total Company Biotechnology Life Sciences Diagnostics Six-Month Period Ended June 27, 2025 Operating Profit Margins (GAAP) 17.40 % 28.10 % (1.10) % 26.70 % First half of 2026 impact from operating profit margins of businesses that have been owned for less than one year (0.20) — — (0.60) First half of 2026 fair value adjustments to inventory, transaction costs deemed significant and pre-acquisition share-based and change-in-control payments, in each case related to the acquisition of Masimo (1.00) — — (2.55) First half of 2025 impairment charges related to a trade name in the Life Sciences segment and a facility in the Biotechnology segment 3.85 0.45 12.50 — Year-over-year core operating profit margin changes for the first half of 2026 (defined as all year-over-year operating profit margin changes other than the changes identified in the line items above) (non-GAAP) 0.15 0.75 1.60 (1.25) Six-Month Period Ended June 26, 2026 Operating Profit Margins (GAAP) 20.20 % 29.30 % 13.00 % 22.30 % DANAHER CORPORATION Operating Profit Margins and Year-Over-Year Core Operating Profit Margin Changes 14
Slide 27 — Total Cash Flow:
Three-Month Period Ended Year-over-Year Change Six-Month Period Ended Year-over-Year Change June 26, 2026 June 27, 2025 June 26, 2026 June 27, 2025 Total Cash Flow: Net cash provided by operating activities (GAAP) $ 1,534 $ 1,338 $ 2,856 $ 2,637 Total cash used in investing activities (GAAP) $ (10,147) $ (258) $ (10,396) $ (500) Total cash provided by (used in) financing activities (GAAP) $ 7,273 $ (247) $ 7,319 $ (1,502) Free Cash Flow: Net cash provided by operating activities (GAAP) $ 1,534 $ 1,338 ~ 14.5 % $ 2,856 $ 2,637 ~ 8.5 % Less: payments for additions to property, plant & equipment (capital expenditures) (GAAP) (269) (248) (506) (493) Plus: proceeds from sales of property, plant & equipment (capital disposals) (GAAP) — 4 — 10 Free cash flow (non-GAAP) $ 1,265 $ 1,094 ~ 15.5 % $ 2,350 $ 2,154 ~ 9.0 % Operating Cash Flow to Net Earnings Conversion Ratio: Net cash provided by operating activities (GAAP) $ 1,534 $ 1,338 $ 2,856 $ 2,637 Net earnings (GAAP) 870 555 1,899 1,509 Operating cash flow to net earnings conversion ratio (GAAP) 1.76 2.41 1.50 1.75 Free Cash Flow to Net Earnings Conversion Ratio: Free cash flow from above (non-GAAP) $ 1,265 $ 1,094 $ 2,350 $ 2,154 Net earnings (GAAP) 870 555 1,899 1,509 Free cash flow to net earnings conversion ratio (non- GAAP) 1.45 1.97 1.24 1.43 We define free cash flow as operating cash flows, less payments for additions to property, plant and equipment (“capital expenditures”) plus the proceeds from sales of plant, property and equipment (“capital disposals”). DANAHER CORPORATION Total Cash Flow, Free Cash Flow and Related Measures ($ in millions) 15
Slide 28 — DANAHER CORPORATION
Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies. Management believes that these measures provide useful information to investors by offering additional ways of viewing Danaher Corporation’s (“Danaher” or the “Company”) results that, when reconciled to the corresponding GAAP measure, help our investors: • with respect to the profitability-related non-GAAP measures, understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers; • with respect to the non-GAAP measures related to core sales, identify underlying growth trends in our business and compare our sales performance with prior and future periods and to our peers; and • with respect to free cash flow and related non-GAAP cash flow measures (the “FCF Measure”), understand Danaher’s ability to generate cash without external financings, strengthen its balance sheet, invest in its business and grow its business through acquisitions and other strategic opportunities (although a limitation of free cash flow is that it does not take into account the Company’s debt service requirements and other non-discretionary expenditures, and as a result the entire free cash flow amount is not necessarily available for discretionary expenditures). Management uses the non-GAAP measures referenced above to measure the Company’s operating and financial performance, and uses core sales and non-GAAP measures similar to Adjusted Diluted Net Earnings Per Common Share, Adjusted Operating Profit and the FCF Measure in the Company’s executive compensation program. • The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons: ◦ Amortization of Intangible Assets: We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate. While we have a history of significant acquisition activity we do not acquire businesses on a predictable cycle, and the amount of an acquisition’s purchase price allocated to intangible assets and the related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition. Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non- acquisitive peer companies. We believe however that it is important for investors to understand that such intangible assets contribute to sales generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized. ◦ Restructuring Charges: We exclude costs incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature and planning requirements, as well as the inconsistent frequency, of such plans) from the ongoing productivity improvements that result from application of the Danaher Business System. Because these restructuring plans are incremental to the core activities that arise in the ordinary course of our business and we believe are not indicative of Danaher’s ongoing operating costs in a given period, we exclude these costs to facilitate a more consistent comparison of operating results over time. ◦ Other Adjustments: With respect to the other items excluded from the profitability-related non-GAAP measures, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that may be unrelated to Danaher's commercial performance during the period and/or we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult. • With respect to core operating profit margin changes, in addition to the explanation set forth in the bullets above relating to "restructuring charges” and “other adjustments”, we exclude the impact of businesses owned for less than one year (or disposed of during such period and not treated as discontinued operations) because the timing, size, number and nature of such transactions can vary significantly from period to period and may obscure underlying business trends and make comparisons of long-term performance difficult. • We calculate adjusted EBITDA by adding to operating profit amounts equal to depreciation and amortization and making the other adjustments reflected in the applicable tables above, which allows us to calculate and disclose such measure by segment. Given Danaher’s diversification, we believe this helps our investors compare the profitability of our individual segments to peer companies with like business lines. • With respect to core sales, (1) we exclude the impact of currency translation because it is not under management’s control, is subject to volatility and can obscure underlying business trends, and (2) we exclude the effect of acquisitions and divested product lines because the timing, size, number and nature of such transactions can vary significantly from period-to-period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult. Please see “Sales Growth by Segment, Core Sales Growth (Decline) by Segment and Core Sales Growth Excluding Respiratory Testing” above for an explanation on why we exclude respiratory testing revenues from the non-GAAP measure “Core sales excluding DANAHER CORPORATION Statement Regarding Non-GAAP Measures 16
Slide 29 — DANAHER CORPORATION
respiratory testing”. In addition, beginning with the Company’s Quarterly Report on Form 10-Q in the third quarter of 2026, the Company intends to exclude from core sales the impact of tariff refunds related to prior period tariffs that are returned, or expected to be returned, if any, to customers as the Company believes these amounts may obscure underlying business trends. • With respect to the FCF Measure, we deduct payments for additions to property, plant and equipment (net of the proceeds from capital disposals) to demonstrate the amount of operating cash flow for the period that remains after accounting for the Company’s capital expenditure requirements. DANAHER CORPORATION Statement Regarding Non-GAAP Measures 17
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