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DHRBullishEarningsnews
High materiality8/10

Danaher lifts 2026 guidance after Masimo deal closes

Jul 21, 2026, 6:05 AM EDT1 sourcesAI-analyzed
Why it may matterVerify against the original reporting

Strong Q2 beat, EPS upgrade, and Masimo integration create a clearer path to higher annual earnings and cash flow, supporting multiple expansion versus prior levels. History shows Danaher’s results-driven stock tends to respond positively to earnings upgrades and meaningful M&A-driven synergies, though execution risk and integration costs remain headwinds.

AI summary

What happened, with direct paths to the underlying reporting

Danaher reported solid Q2 2026 results with revenue up 5.5% to $6.3B and net earnings of $870M ($1.23 per share). Non-GAAP core revenue rose 3.0% (4.5% excluding respiratory testing), and operating cash flow reached $1.5B with $1.3B in free cash flow. The earlier-than-expected Masimo acquisition completion supports an elevated 2026 EPS guidance of $8.45–$8.60 and mid-single-digit core revenue growth for the year.

  • Revenue $6.3B, up 5.5% YoY; net earnings $870M, EPS $1.23.
  • Non-GAAP core revenue up 3.0%; excluding respiratory testing, +4.5%.
  • Masimo acquisition completed earlier-than-expected; raises 2026 EPS guidance.
  • Operating cash flow $1.5B; non-GAAP free cash flow $1.3B.
  • Guidance raised: 2026 core revenue +3–4%; adjusted EPS $8.45–$8.60.

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