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Danaher’s Masimo Acquisition — Can Its $1.6 Billion Cash Flow Offset Deal Costs?

Danaher Corporation reported its third quarter 2026 results, showing a mixed performance with several positive financial metrics alongside certain challenges and headwinds. Net earnings from continuing operations reached $1.2 billion, or $1.71 per diluted share, representing a 34.5% increase year-over-year. On a non-GAAP basis, adjusted diluted net earnings per share grew 11.5% to $2.11. Revenues for the period rose 8.5% to $6.6 billion, supported by a 3.0% year-over-year increase in non-GAAP core revenue and a 5.5% increase when excluding respiratory testing revenues, an area that has been noted as volatile and dependent on respiratory illness prevalence. Operational cash flow was $1.9 billion, while non-GAAP free cash flow reached $1.6 billion, reflecting improvements in cash generation capacity. These figures support a positive cash flow conversion ratio, though the company reported increased interest expenses, likely influenced by debt related to the acquisition of Masimo Corporation.