DHR
Danaher Corporation
Healthcare · Diagnostics & Research · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- A perfect dividend score driven by a sustainable 24.3% payout ratio anchors the Dividend Candidate label and contributes meaningfully to the overall composite score.
- Strong financial health, reflected in a 0.35 debt-to-equity ratio and an $83,464,000,000 asset base, supports a high financial health score and the Low risk rating.
- Mixed growth signals — modest 2.9% revenue growth offset by a 7.3% net income decline — and a moderate momentum score from the 2026Q1 pullback keep the total score from reaching higher tiers.
Why Not Higher
- Declining net income (-7.3%) and EPS (-4.5%) in FY2025 weighed heavily on the growth score, preventing a stronger overall composite result.
- The absence of any macro theme assignment means Danaher receives no theme-related score points, capping the maximum achievable composite score under the current model.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew modestly from FY2024 to FY2025, rising from $23,875,000,000 to $24,568,000,000 (+2.9%), but net income declined from $3,899,000,000 to $3,614,000,000 (-7.3%) and diluted EPS fell from $5.29 to $5.05 (-4.5%) over the same period.
The model rewarded the modest top-line expansion but penalized the contraction in bottom-line profitability and earnings per share, resulting in a below-midpoint growth score that reflects mixed signals between revenue and earnings trajectories.
In FY2025, Danaher posted an operating margin of 19.1%, a net margin of 14.7%, and a return on assets of 4.3%.
The model recognized solid operating and net margins as indicators of meaningful pricing power and cost discipline, while the relatively modest return on assets — reflecting the company's large asset base — tempered the overall profitability score.
In FY2025, Danaher reported a debt-to-equity ratio of 0.35 and total assets of $83,464,000,000.
The low debt-to-equity ratio of 0.35 in FY2025 signals conservative leverage relative to equity, which the model rewarded as a sign of balance sheet resilience; the substantial total asset base further supports a high financial health score.
Over the last four reported quarters, revenue moved from $5,936,000,000 in 2025Q2 to $6,053,000,000 in 2025Q3, peaked at $6,838,000,000 in 2025Q4, then pulled back to $5,951,000,000 in 2026Q1. Net income and operating income followed a similar arc, with net income rising from $555,000,000 in 2025Q2 to $1,197,000,000 in 2025Q4 before easing to $1,029,000,000 in 2026Q1, and operating income climbing from $760,000,000 in 2025Q2 to $1,502,000,000 in 2025Q4 before retreating to $1,344,000,000 in 2026Q1.
The model captured a pattern of strong sequential improvement through 2025Q4 followed by a notable pullback in 2026Q1 across revenue, net income, and operating income, producing a moderate momentum score that reflects the mixed near-term trend.
In FY2025, Danaher's dividend payout ratio stood at 24.3% of net income.
A payout ratio of 24.3% in FY2025 indicates the company returns a meaningful portion of earnings to shareholders while retaining the majority for reinvestment, a balance the model appears to have rewarded with a perfect dividend score.
Danaher is not currently assigned to any of the 24 tracked macro themes.
Because no macro theme assignment exists for this security at this time, the model did not award theme-related score points; this reflects the current classification status and should not be read as a commentary on the company's business quality.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Danaher Corporation earns a composite score of 62.2/100 with a Low risk rating and is classified as a Dividend Candidate. The company demonstrated modest top-line growth of 2.9% in FY2025, though net income and diluted EPS declined year-over-year, reflecting mixed profitability dynamics. Its balance sheet is conservatively leveraged with a debt-to-equity ratio of 0.35, and its 24.3% dividend payout ratio signals a disciplined approach to returning capital while retaining earnings for reinvestment. Near-term momentum showed a strong build through 2025Q4 followed by a pullback in 2026Q1, adding some uncertainty to the near-term outlook.
Plain English
Danaher is a large, financially stable company that pays a modest dividend and keeps its debt low, but its profits actually shrank last year even as sales grew slightly, and its recent quarterly results peaked late in 2025 before dipping again early in 2026.
Bull Case vs. Bear Case
Bull Case
- Conservative balance sheet: a debt-to-equity ratio of just 0.35 in FY2025 signals low financial risk and significant capacity to weather downturns or pursue opportunities.
- Solid profitability margins: a 19.1% operating margin and 14.7% net margin in FY2025 indicate meaningful pricing power and cost discipline relative to peers.
- Disciplined dividend policy: a 24.3% payout ratio in FY2025 means Danaher returns capital to shareholders while retaining the majority of earnings for reinvestment, supporting long-term compounding.
Bear Case
- Earnings contraction: net income fell 7.3% and diluted EPS dropped 4.5% from FY2024 to FY2025 despite modest revenue growth, signaling margin pressure at the bottom line.
- Momentum pullback: after peaking at $6,838,000,000 in revenue and $1,197,000,000 in net income in 2025Q4, both metrics retreated in 2026Q1, raising questions about near-term trajectory.
- Low return on assets: a 4.3% ROA in FY2025 reflects the drag of a very large asset base of $83,464,000,000, limiting capital efficiency relative to the company's scale.
What Could Change the Picture
Bullish Triggers
- A sustained recovery in quarterly revenue and net income beyond 2026Q1 levels would suggest the 2025Q4 peak was not an anomaly and that growth momentum is re-establishing itself.
- Improvement in net income and EPS growth on a year-over-year basis would resolve the current tension between rising revenues and declining bottom-line profitability.
Bearish Triggers
- Further deterioration in net income or operating income in upcoming quarters beyond the 2026Q1 pullback would signal a more structural profitability challenge rather than a seasonal dip.
- A meaningful increase in the debt-to-equity ratio from its current low level of 0.35 could erode the balance sheet strength that currently underpins the Low risk rating.
Risk Profile
Low RiskDanaher's Low risk rating is supported by its conservative debt-to-equity ratio of 0.35 and its substantial $83,464,000,000 asset base, which together indicate a resilient balance sheet. However, the sequential pullback in revenue, net income, and operating income in 2026Q1 after a strong 2025Q4 introduces some near-term operational uncertainty.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.