Danaher Corporation (NYSE: DHR) has shed roughly 22% of its value so far in 2026, raising questions among investors about whether the selloff represents a buying opportunity.
The central issue weighing on the stock is Danaher’s February agreement to acquire Masimo Corporation for $180 per share in an all-cash transaction valued at approximately $9.9 billion including debt.
Masimo will operate as a standalone business unit and brand within Danaher’s Diagnostics segment, maintaining autonomous operations while expanding the company’s presence in acute care settings.
The deal drew attention from analysts who noted that Masimo pushes Danaher further into patient monitoring, a space that sits outside the company’s more established life sciences tools focus.
Reuters reported on analyst surprise at the move, with some observers questioning how cleanly the acquisition fits within Danaher’s longer-term strategic identity.
Under Danaher’s ownership, Masimo is expected to generate EBITDA of more than $530 million in 2027, providing a measure of financial scale that management believes justifies the price paid.
Danaher has projected more than $125 million in annual cost synergies and more than $50 million in annual revenue synergies by the fifth full year following the close of the transaction.
Masimo shareholders voted in favor of the merger on May 1, 2026, clearing a significant procedural hurdle and moving the deal closer to its anticipated completion in the second half of the year.
The transaction remains subject to customary closing conditions, including the receipt of applicable regulatory clearances, meaning the deal is not yet finalized heading into the latter half of 2026.
On the earnings front, Danaher posted first-quarter 2026 revenue growth of 3.5% alongside adjusted earnings per share of $2.06, and management subsequently raised its full-year EPS guidance.
The company ended 2025 carrying $15.1 billion of net debt, a figure that will grow with the Masimo acquisition before the deal begins contributing to the bottom line.
Management expects the Masimo acquisition to add approximately $0.15 to $0.20 to earnings in the first full year after closing, rising to roughly $0.70 by year five as synergies are realized.
For investors weighing the stock’s 22% decline against the company’s improving operating results, the core question is whether near-term debt concerns and deal uncertainty are already reflected in the current share price.
