DHR · 10-Q · 2026Q2 · Full report
Operating Expense Trends
DANAHER CORP /DE/ · 2026-07-21 · Importance 50 · Surprise 58 · No source text
Second-quarter SG&A expense decreased to $2.072 billion from $2.360 billion, and six-month SG&A decreased to $3.932 billion from $4.218 billion. SG&A as a percentage of sales fell to 33.1% from 39.8% in the second quarter and to 32.2% from 36.1% for the six-month period. The decrease primarily reflected the $432 million Life Sciences trade-name impairment recorded in the second quarter of 2025, partly offset by Masimo-related pre-acquisition share-based and change-in-control payments and transaction costs of $62 million in the quarter and $79 million year to date. R&D expense as a percentage of sales declined slightly to 6.6% in the second quarter and 6.5% for the first six months because sales increased faster than R&D spending.
Key facts
- SG&A expenses were $2,072 million for the three-month period ended June 26, 2026 and $2,360 million for the comparable period in 2025. source
- SG&A as a percentage of sales decreased to 33.1% for the three-month period ended June 26, 2026 from 39.8% in the comparable period of 2025. source
- SG&A as a percentage of sales decreased to 32.2% for the six-month period ended June 26, 2026 from 36.1% in the comparable period of 2025. source
- The aggregate of prepaid expenses and other assets, deferred income taxes and accrued expenses and other liabilities used $490 million of operating cash flows during the first six months of 2026, compared to $573 million of operating cash flows used in the comparable period of 2025. source
- SG&A decreases were primarily driven by the $432 million impairment charge related to a trade name in the Life Sciences segment recorded in the second quarter of 2025, partially offset by pre-acquisition share-based and change-in-control payments and transaction costs of $62 million and $79 million in the three and six-month periods ended June 26, 2026, respectively, related to the Masimo Acquisition. source
- SG&A expenses were $3,932 million for the six-month period ended June 26, 2026 and $4,218 million for the comparable period in 2025. source
- Impairment charges in 2025 of $432 million ($328 million after-tax or $0.46 per diluted common share) were recorded in the three-month period ended June 27, 2025. source
- Impairment charges in 2025 of $447 million ($339 million after-tax or $0.47 per diluted common share) were recorded in the six-month period ended June 27, 2025. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | +6.7% | SG&A as a percentage of sales decreased to 33.1% for the three-month period ended June 26, 2026 from 39.8% in the comparable period of 2025. |
| operating_income | positive | realized | +4.6% | SG&A expenses were $2,072 million for the three-month period ended June 26, 2026 and $2,360 million for the comparable period in 2025. |
| margin | positive | realized | +3.9% | SG&A as a percentage of sales decreased to 32.2% for the six-month period ended June 26, 2026 from 36.1% in the comparable period of 2025. |
| operating_income | negative | realized | -1.3% | SG&A decreases were primarily driven by the $432 million impairment charge related to a trade name in the Life Sciences segment recorded… |
| cash | negative | realized | -0.5% | The aggregate of prepaid expenses and other assets, deferred income taxes and accrued expenses and other liabilities used $490 million of… |