Danaher to Acquire Masimo for $9.9 Billion — Q1 Revenue Beats at $6 Billion

Danaher is acquiring Masimo for $9.9 billion at $180 per share in cash. Q1 revenue hit $6 billion, beating estimates. Steve Cohen holds DHR as a top large-cap pick.

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Danaher (NYSE: DHR) is acquiring Masimo Corporation (MASI) in a $9.9 billion all-cash deal at $180 per share. Masimo shareholders approved the merger on May 1. Regulatory clearance is pending, with deal close expected in the second half of 2026. Danaher aims to integrate Masimo's pulse oximetry and patient monitoring technology into its Diagnostics segment, expanding its high-margin healthcare portfolio.

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Q1 2026: Revenue $6B, Adjusted EPS +9.5%

Danaher reported Q1 2026 results on April 21. Revenue rose 3.5% year-over-year to $6 billion. Net earnings were $1 billion, or $1.45 per diluted share. Adjusted EPS grew 9.5% to $2.06, beating consensus. A steady recovery in Bioprocessing and better-than-expected Life Sciences performance drove the outperformance.

• Q1 revenue: $6.0 billion (+3.5% YoY)
• Net earnings: $1 billion
• Diluted EPS: $1.45
• Adjusted EPS: $2.06 (+9.5%)

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2026 Guidance Raised: Full-Year Adjusted EPS $8.35-$8.55

Management guided Q2 non-GAAP core revenue growth in the low single digits and full-year growth of 3-6%. Annual adjusted diluted EPS guidance was raised to $8.35-$8.55 from the prior range of $8.35-$8.50. The Masimo acquisition impact will begin flowing through after deal close.

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Masimo Acquisition: Entering Acute Care Monitoring

Masimo is a market leader in pulse oximetry and patient monitoring for acute care settings. Integration into Danaher's Life Sciences and Diagnostics platform adds recurring high-margin consumable and software revenue streams. Masimo reported Q1 earnings on May 11 -- likely its last standalone quarter -- with profitability improving despite a seasonal revenue dip, signaling operational stability heading into the merger.

This deal highlights Danaher's push to expand its healthcare technology footprint with high-margin, innovative monitoring solutions.

Danaher Management

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Why Steve Cohen Holds DHR

Billionaire hedge fund manager Steve Cohen's Point72 Asset Management holds Danaher as one of its large-cap picks with the highest upside potential. The investment thesis centers on the cyclical recovery in Life Sciences and Bioprocessing demand normalization. The Masimo acquisition, once closed, further raises DHR's healthcare technology exposure and recurring revenue mix.