Danaher (DHR) Financials

Danaher Corporation (NYSE: DHR) has demonstrated consistent financial growth across the last four years based on the analyzed quarterly data ranging from Q3 2022 through Q2 2025. Below are key highlights and trends from the income statements, cash flow statements, and balance sheets.

• Revenue Growth: Operating revenues increased from approximately $5.9 billion in Q2 2023 to $5.9 billion in Q2 2025, showing steady growth with some fluctuations but overall growth over the period.
• Solid Gross Profit Margins: Gross profit has remained robust, around $3.5 billion in recent quarters, indicating consistent profitability at the gross level despite cost pressures.
• Strong Net Income: Net income attributable to common shareholders remained strong, with quarterly net income of $555 million in Q2 2025, albeit somewhat lower than prior quarters (e.g., $954 million in Q1 2025), reflecting generally healthy earnings.
• Consistent Cash Flow from Operations: Danaher generated substantial net cash from continuing operating activities—about $1.34 billion in Q2 2025 and similar figures across recent quarters—indicating solid cash generation capability from core operations.
• Investment in Growth: The company continues to invest significantly in property, plant, and equipment, averaging roughly $250 to $500 million per quarter, which supports long-term capacity and innovation.
• Decreasing Long-Term Debt: There has been a gradual repayment of long-term debt; for example, long-term debt dropped from about $25.8 billion in Q2 2022 to $16.9 billion by Q2 2025, indicating improving balance sheet leverage.
• Shareholder Returns: Danaher maintained steady cash dividends per share around $0.27-$0.28 and engaged in share repurchases, supporting shareholder value.

• Operating Expenses: Selling, General & Administrative (SG&A) and R&D expenses rose over time but remained in proportion to revenue growth, indicating controlled expense management.
• Other Income (Expense), net: Has fluctuated including some negative quarters (e.g., -$42 million in Q2 2025), which slightly depresses net income but does not significantly impact overall profitability trends.
• Exchange Rate Impact: Effect of exchange rate changes has varied, positively impacting cash by over $130 million in recent quarters but occasionally resulting in currency headwinds.

• Non-Cash Adjustments and Amortization: High amortization and non-cash adjustments (e.g., $426 million amortization in Q2 2025) reflect significant intangible assets, which may indicate large acquisition-related expenses impacting reported earnings quality.
• Increase in Working Capital: Changes in operating assets and liabilities have occasionally reduced cash flow significantly (e.g., -$395 million in Q2 2025), implying some working capital management challenges.
• Significant Goodwill and Intangible Assets: Goodwill and intangible assets remain very large ($42.99 billion and $18.63 billion respectively in Q2 2025), suggesting reliance on acquisitions that carry risk of impairments and potential overvaluation.
• Large Repurchase of Equity: In some periods (e.g., Q1 2025), the company repurchased substantial amounts of common equity (over $1 billion), which affects cash balances and could reduce financial flexibility.
• Fluctuating Net Income: Although generally positive, quarterly net income shows volatility (e.g., a drop from $954 million in Q1 2025 to $555 million in Q2 2025), which may concern investors about earnings stability.

Summary: Danaher maintains healthy revenue growth, strong profitability, and excellent operational cash flow generation. The company invests heavily in property, plant, and equipment and continues deleveraging its long-term debt, which supports financial strength. However, large goodwill and intangible balances, fluctuating net income, and working capital intensity introduce some risks. Overall, Danaher's financial profile reflects a solid and growing industrial and technology conglomerate with consistent shareholder returns.