Danaher Q3 EPS $1.75; Sales Up 8.5% on Masimo, Adds $1.4B StatLab Deal
DHR sits 37% above its 52-week low of $160.93 on elevated volume (2.2× avg).
Summary
Danaher grew Q3 sales 8.5% to $6.55B and earned $1.75 per diluted share, though core growth was just 3.0% and a $263M tax benefit did much of the EPS work. Debt rose to $26.5B to fund Masimo, and the company added StatLab for $1.4B right after quarter-end.
Key Events · Earnings and Guidance · DHR
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Q3 Sales $6.55B, Core Up 3.0%
Reported sales rose 8.5% year-over-year, but acquisitions contributed 6.5 points and tariff refunds to customers cut 1.0 point, leaving core growth of 3.0% (5.5% excluding respiratory testing).
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EPS $1.75 Aided by Tax Benefit
Net earnings were $1,235M and diluted EPS $1.75; a $263M discrete tax benefit drove the effective rate to -6.6% for the quarter, versus 15.6% a year ago.
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Debt Climbs to $26.5B for Masimo
Total debt rose from $18.4B at December 31, 2025 to $26.5B, with interest expense up to $135M from $67M; a $5.0B 364-day facility was added April 16, 2026 and remains undrawn.
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StatLab Acquired for $1.4B
On September 28, 2026 Danaher bought StatLab Medical Products for about $1.4B in cash, including assumed debt; StatLab had roughly $250M of 2025 revenue and joins the Diagnostics segment in Q4.
Analysis · DHR · Industrial Applications And Services
The Masimo acquisition is doing the heavy lifting in Danaher's third quarter: reported sales rose 8.5% to $6.55B, but core growth was only 3.0% (5.5% excluding respiratory testing), meaning roughly two-thirds of the top-line gain came from acquisitions rather than the base business. Net earnings of $1.24B and $1.75 per diluted share were flattered by a $263M discrete tax benefit that pushed the effective rate to negative 6.6% — strip that out and the quarter looks far more ordinary. The balance sheet tells the real story: total debt jumped to $26.5B from $18.4B at year-end to fund Masimo, interest expense nearly doubled to $135M, and the company layered on a $5.0B 364-day facility in April. Management kept buying — StatLab closed September 28 for about $1.4B in cash — while buybacks slowed sharply to $903M year-to-date versus $3.1B a year ago. Separately, the founders' October 9 waiver of their RSUs will cost a $185M non-cash charge in Q4, and the inherited Masimo litigation now includes a $634M Apple verdict plus $184M of pre-judgment interest, both under appeal.
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At the time of this filing, DHR was trading at $221.20 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $157.6B. The 52-week trading range was $160.93 to $242.80. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.