Fortive Reports Third Quarter 2026 Results
Q3 revenue growth accelerated to 7.8% year-over-year on a reported basis and 7.2% on a core basis
Delivered Q3 GAAP diluted EPS of $0.57, up 63% year-over-year, and adjusted diluted EPS of $0.77, up 13% year-over-year
Completed ~$300 million of share repurchases in Q3, bringing total share repurchases since the launch of new Fortive to ~$2.3 billion, representing ~43 million shares or ~13% of shares outstanding
Raising our FY 2026 adjusted EPS guidance range to $3.10 to $3.14, up ~15% year- over-year at the midpoint
“Q3 was another quarter of strong and accelerating performance for Fortive. We delivered over 7% core growth, approximately 10% adjusted EBITDA growth, and 13% adjusted EPS growth, representing our fifth consecutive quarter of double-digit adjusted EPS growth. We are executing our Fortive Accelerated strategy and continue to see growing evidence that our investments in innovation acceleration, commercial acceleration, and recurring customer value are contributing to faster revenue growth and strong financial performance,” said Olumide Soroye, President and CEO.
“We are raising our full-year adjusted EPS guidance to $3.10 to $3.14, reflecting our strong year-to-date performance and our confidence in the trajectory of the business. We remain fully confident in our ability to deliver on the medium-term financial framework we shared at our last Investor Day. We are excited about our progress and continue to see meaningful opportunities to accelerate profitable growth, deploy capital with discipline and build investor trust to unlock the significant shareholder value creation opportunity ahead of us,” Mr. Soroye concluded.
• GAAP net earnings of $173 million, up 47.4% year-over-year, GAAP net earnings margin of 15.6%; adjusted EBITDA of $339 million, up 9.5% year-over-year, adjusted EBITDA margin of 30.6%
• GAAP diluted EPS of $0.57, up 62.9% year-over-year; adjusted diluted EPS of $0.77, up 13.2% year-over-year
• GAAP operating cash flow of $313 million, Trailing Twelve Months (TTM) GAAP operating cash flow of $1,177 million; free cash flow of $284 million, TTM free cash flow of $1,062 million
• Deployed ~$300 million towards share repurchases, representing ~5 million shares or ~2% of diluted shares outstanding
For FY 2026, Fortive now expects adjusted diluted earnings per share of $3.10 to $3.14. 1
Fortive Continuing Q3-26 Q3-25 Variance Operations Revenue $1,108M $1,027M 7.8% / 7.2% (reported / core) GAAP net earnings $173M $117M 47.4% GAAP net earnings margin 15.6% 11.4% 420 bps Adj. EBITDA $339M $309M 9.5% Adj. EBITDA margin 30.6% 30.1% 50 bps GAAP diluted earnings $0.57 $0.35 62.9% per share Adj. diluted earnings $0.77 $0.68 13.2% per share GAAP operating cash flow $313M $295M 6.3% Free cash flow $284M $266M 6.7% TTM GAAP operating cash $1,177M $1,019M 15.5% flow TTM free cash flow $1,062M $922M 15.2% Percentages presented may not recalculate based on the amounts shown due to rounding.
Intelligent Operating Q3-26 Q3-25 Variance Solutions Revenue $767M $699M 9.8% / 9.1% (reported / core) GAAP operating profit $223M $181M 23.6% GAAP operating margin 29.1% 25.9% 320 bps Adj. EBITDA $275M $242M 13.6% Adj. EBITDA margin 35.8% 34.6% 120 bps
Advanced Healthcare Q3-26 Q3-25 Variance Solutions Revenue $340M $328M 3.7% / 3.1% (reported / core) GAAP operating profit $38M $43M (10.1)% GAAP operating margin 11.2% 12.9% (170) bps Adj. EBITDA $88M $92M (4.8)% Adj. EBITDA margin 25.8% 28.1% (230) bps
On June 28, 2025 (the “Distribution Date”), the Company completed the separation (the “Separation” or the “PT Separation”) of its former Precision Technologies segment by distributing to Fortive shareholders on a pro rata basis all of the issued and outstanding common stock of Ralliant Corporation (“Ralliant”), the entity incorporated to hold the PT businesses. The requirements for reporting the Ralliant business as discontinued operations were met upon completion of the PT Separation. Unless otherwise indicated, all amounts herein refer to continuing operations. 2 CONFERENCE CALL DETAILS
Fortive will discuss results and outlook during its quarterly investor conference call today starting at 12:00 p.m. ET. The call and an accompanying slide presentation will be webcast on the “Investors” section of Fortive’s website, www.fortive.com, under “News & Events.” A replay of the webcast will be available at the same location shortly after the conclusion of the presentation.
You can access the conference call by dialing 877-407-3110 within the U.S. or +1 215-268-9915 outside the U.S. a few minutes before 12:00 p.m. ET and notifying the operator that you are dialing in for Fortive’s earnings conference call.
Fortive’s earnings press release, presentation, and other related materials will be posted to the "Investors" section of Fortive’s website under "Financial Info.”
Fortive innovates essential technologies to keep our world safe and productive. Fortive’s strategic segments - Intelligent Operating Solutions and Advanced Healthcare Solutions - include iconic inventor brands with leading positions in their markets. The company’s businesses design, develop, manufacture, and market products, software, and services, building on leading brand names, innovative technologies, and strong market positions. Fortive is headquartered in Everett, Washington and employs a team of more than 10,000 research and development, manufacturing, sales, distribution, service, and administrative team members in approximately 50 countries around the world. With a culture rooted in continuous improvement, the core of our company’s operating model is the Fortive Business System. For more information please visit: www.fortive.com.
In addition to the financial measures prepared in accordance with United States generally accepted accounting principles (GAAP), this earnings release also references “adjusted net earnings,” “adjusted diluted earnings per share,” “adjusted EBITDA”, “adjusted EBITDA margin”, “free cash flow,” and “core revenue growth,” which are non-GAAP financial measures. The reasons why we believe these measures, when used in conjunction with the GAAP financial measures, provide useful information to investors, how management uses such non-GAAP financial measures, a reconciliation of these measures to the most directly comparable GAAP measures and other information relating to these measures are included in the supplemental reconciliation schedule attached. The non-GAAP financial measures should not be considered in isolation or as a substitute for the GAAP financial measures, but should instead be read in conjunction with the GAAP financial measures. The non-GAAP financial measures used by Fortive in this release may be different from similarly-titled non-GAAP measures used by other companies. With respect to forward-looking non-GAAP measures, we have not reconciled with, or presented, corresponding forward-looking GAAP measures since doing so would require us to make assumptions with precision about acquisitions, currency translations, capital and other expenses and other similar adjustments during the future periods.
FORWARD-LOOKING STATEMENTS Statements in this release that are not strictly historical, including statements regarding anticipated financial results, industry trends, the ability to execute the planned strategies, future prospects, shareholder value, and any other statements identified by their use of words like “anticipate,” “expect,” “believe,” “outlook,” “guidance,” "target", or “will” or other words of similar meaning, are “forward-looking statements" within the meaning of the United States federal securities laws. Factors that could cause actual results to differ materially from those in the forward-looking statements include, among other things: deterioration of or instability in the economy, the markets we serve, international trade policies and deteriorating trade relations with other countries, including imposition of tariffs and retaliatory tariffs between United States and China and other countries, responsive economic nationalism, trade restrictions, and enhanced regulation, impact of any prolonged government shutdown, the financial markets, geopolitical conditions and conflicts including in the Middle East and in Ukraine, security breaches, data exfiltration, or other disruptions of our information technology systems, supply chain constraints, our ability to adjust purchases and manufacturing capacity to reflect market conditions, impact of development, deployment, and use of artificial intelligence, reliance on sole sources of supply, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental regulations, our ability to recruit and retain key employees, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions or otherwise effectively deploy our capital, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with applicable laws and regulations and changes in applicable laws and regulations, risks relating to 3 international economic, geopolitical, including war and sanctions, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, adverse effects of restructuring activities, risk related to tax treatment of our prior separations, impact of our indemnification obligation to Ralliant and Vontier, impact of changes to U.S. GAAP, labor matters, and disruptions relating to man- made and natural disasters and climate change. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Reports on Form 10-Q for the subsequent quarters. These forward-looking statements speak only as of the date of this release, and Fortive does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. INVESTOR CONTACT
This information is presented for reference only. A complete copy of Fortive’s Form 10-Q financial statements is available on the Company’s website (www.fortive.com). 5
This information is presented for reference only. A complete copy of Fortive’s Form 10-Q financial statements is available on the Company’s website (www.fortive.com). 6
As of October 2, 2026 December 31, 2025 ────────────────────────────────────────────────────────────────────────────── ASSETS -unaudited Current assets: Cash and equivalents $ 377.3 $ 375.5 Accounts receivable less allowance for doubtful accounts of 669.5 683.6 $19.9 and $18.8, respectively Inventories: Finished goods 183.9 169.9 Work in process 13.0 12.3 Raw materials 118.3 109.6 Inventories 315.2 291.8 Prepaid expenses and other current 211.3 234.0 assets Current assets, discontinued 4.8 20.8 operations Total current assets 1,578.1 1,605.7 Property, plant and equipment, net of accumulated 278.6 269.8 depreciation of $462.8 and $430.2, respectively Other assets 380.8 375.5 Goodwill 7,334.0 7,298.3 Other intangible 1,931.3 2,188.4 assets, net Total assets $ 11,502.8 $ 11,737.7 LIABILITIES AND EQUITY Current liabilities: Current portion of $ — $ 899.5 long-term debt Trade accounts 424.7 436.4 payable Accrued expenses and other current 862.7 910.7 liabilities Total current 1,287.4 2,246.6 liabilities Other long-term 744.3 723.5 liabilities Long-term debt 3,514.2 2,306.5 Equity: Common stock: $0.01 par value, 2,000 shares authorized; 372.1 and 3.7 3.7 366.6 issued; 298.1 and 313.4 outstanding; respectively Additional paid-in 4,294.5 4,210.0 capital Treasury shares, at -4,239.1 -3,229.8 cost Retained earnings 5,837.4 5,428.5 Accumulated other comprehensive income 50.7 41.0 (loss) Total Fortive 5,947.2 6,453.4 stockholders’ equity Noncontrolling 9.7 7.7 interests Total stockholders’ 5,956.9 6,461.1 equity Total liabilities and $ 11,502.8 $ 11,737.7 equity
This information is presented for reference only. A complete copy of Fortive’s Form 10-Q financial statements is available on the Company’s website (www.fortive.com). 7
September 26, Nine Months Ended October 2, 2026 2025 ────────────────────────────────────────────────────────────────────────────── Cash flows from operating activities: Net earnings $ 466.2 $ 393.5 Less: net earnings from — -52.3 discontinued operations Net earnings from continuing 466.2 341.2 operations Adjustments to reconcile net earnings to net cash provided by operating activities: Amortization 274.0 274.3 Depreciation 65.0 52.0 Stock-based 66.1 96.9 compensation Change in certain assets and liabilities: Change in accounts 11.2 56.2 receivable, net Change in -25.6 -40.2 inventories Change in trade accounts -10.3 -4.1 payable Change in prepaid expenses and 17.8 -28.0 other assets Change in accrued expenses and -32.0 -56.8 other liabilities Total operating cash provided by 832.4 691.5 continuing operations Total operating cash provided by 1.8 25.8 discontinued operations Net cash provided by 834.2 717.3 operating activities Cash flows from investing activities: Purchases of property, plant -84.2 -74.7 and equipment Cash paid for acquisitions, -58.1 — net of cash received All other investing 7.2 11.2 activities Total investing cash used in -135.1 -63.5 continuing operations Total investing cash used in — -15.7 discontinued operations Net cash used in investing -135.1 -79.2 activities Cash flows from financing activities: Net proceeds from commercial 455.7 105.8 paper borrowings Repurchase of -1,000.4 -1,338.2 common shares Payment of -57.3 -73.4 dividends Proceeds from borrowings (maturities greater than 90 1,088.0 — days), net of issuance costs Repayment of borrowings (maturities -1,192.9 -715.7 greater than 90 days) Proceeds from Ralliant — 1,150.0 Dividend All other financing -0.6 8.7 activities Total financing cash used in -707.5 -862.8 continuing operations Total financing cash used in — -160.3 discontinued operations Net cash used in financing -707.5 -1,023.1 activities Effect of exchange rate 10.2 2.5 changes on cash and equivalents Net change in cash and 1.8 -382.5 equivalents Beginning balance of cash 375.5 813.3 and equivalents Ending balance of cash and $ 377.3 $ 430.8 equivalents
This information is presented for reference only. A complete copy of Fortive’s Form 10-Q financial statements is available on the Company’s website (www.fortive.com). 8
Management believes that each of the non-GAAP financial measures described below provide useful information to investors by reflecting additional ways of viewing aspects of our operations that, when reconciled to the corresponding GAAP measure, help our investors to understand the long-term profitability trends of our business, and facilitate comparisons of our operational performance and profitability to prior and future periods and to our peers.
The information presented below reflect GAAP to non-GAAP reconciliations for the non-GAAP measures of Fortive on a continuing operations basis.
These non-GAAP measures should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measures, and may not be comparable to similarly titled measures reported by other companies.
Adjusted Net Earnings, Adjusted Diluted Earnings per Share, Adjusted EBITDA, and Adjusted EBITDA Margin
We disclose the consolidated non-GAAP measures of adjusted net earnings, adjusted diluted earnings per share, and the non-GAAP measures of adjusted earnings before income taxes, interest, depreciation, and amortization (“adjusted EBITDA”), and adjusted EBITDA margin, which to the extent applicable, make the following adjustments to GAAP net earnings, GAAP diluted earnings per share, and GAAP net earnings margin:
• Excluding on a pretax basis amortization of acquisition related intangible assets;
• Excluding on a pretax basis acquisition, divestiture, and Separation related items;
• Excluding on a pretax basis the costs incurred pursuant to discrete restructuring plans that are fundamentally different from ongoing productivity improvements in terms of the size, strategic nature, planning requirements and the inconsistent frequency of such plans as well as the associated macroeconomic drivers which underlie such plans (the “Discrete Restructuring Charges”);
• Excluding on a pretax basis the effect of foreign currency transaction gains and losses related to Euro-denominated debt;
• Excluding on a pretax basis the effect of refunds for tariffs imposed under the International Emergency Economic Powers Act (“IEEPA”); and
• Excluding on a pretax basis the effect of the non-cash impairment of capitalized software.
In addition to the adjustments noted above, with respect to the consolidated non-GAAP measures of adjusted EBITDA and adjusted EBITDA margin, we make the following adjustments to GAAP net earnings before income taxes:
In addition to the adjustments noted above, with respect to the non-GAAP measures of adjusted net earnings and adjusted diluted earnings per share, we make the following adjustments to GAAP net earnings and GAAP diluted earnings per share:
• Excluding the tax effect (to the extent tax deductible) of the pretax adjustments noted above. The tax effect of such adjustments was calculated by applying our overall estimated effective tax rate to the pretax amount of each adjustment (unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment).
We also disclose for each segment of Fortive, the non-GAAP measures of adjusted EBITDA and adjusted EBITDA margin, which to the extent applicable, make the following adjustments to GAAP operating profit and GAAP operating profit margin for the corresponding segment, which is deemed to be the most comparable GAAP measure given interest and taxes are not incurred at the segment level: 9 • Excluding on a pretax basis amortization of acquisition related intangible assets;
As a result of our acquisition activity, we have significant amortization expense associated with definite-lived intangible assets. We adjust for amortization expense of acquisition related intangible assets incurred in each period, and impairment charges incurred, if any. We believe that this adjustment provides our investors with additional insight into our operational performance and profitability as such impacts are not related to our core business performance.
While we have a history of acquisition and divestiture activity, we do not acquire and divest businesses or assets on a predictable cycle. The amount of an acquisition’s purchase price allocated to inventory fair value adjustments are unique to each acquisition and can vary significantly from acquisition to acquisition. In addition, transaction costs, which include acquisition, divestiture, integration, restructuring, and separation costs related to completed or announced transactions are unique to each transaction and are impacted from period to period depending on the number of acquisitions or divestitures evaluated, pending, or completed during such period, and the complexity of such transactions. In connection with the Separation, on a continuing operation basis, we also incurred incremental stock-based compensation expense, primarily due to the adjustment of outstanding stock-based awards to preserve the intrinsic value, and the accelerated compensation expense related to certain stock-based awards due to executive retirements. We adjust for transaction costs, incremental costs related to the Separation, integration costs and corresponding restructuring charges related to acquisitions, in each case, incurred in a given period. Restructuring costs related to the Separation are not included in this adjustment but are instead included in Discrete Restructuring Costs.
We will exclude costs incurred pursuant to discrete restructuring plans that are fundamentally different from the ongoing productivity improvements that result from application of the Fortive Business System or from execution of general cost saving strategies. These discrete restructuring plans differ in terms of the size, strategic nature and planning requirements, and are often triggered by significant macroeconomic shifts, significant divestitures such as the Separation, or material operational, economic or capital market disruptions. Because these restructuring plans will be incremental to the fundamental activities that arise in the ordinary course of our business and we believe are not indicative of our ongoing operating costs in a given period, we exclude these costs to facilitate a more consistent comparison of operating results over time. Restructuring costs related primarily to an acquisition as opposed to dispositions are not included in this adjustment but are instead included in acquisition related items. In the fourth quarter of 2024, we initiated a discrete restructuring plan related to the Separation that is expected to be completed by the end of 2026.
We adjust for the effect of unrealized foreign currency transaction gains and losses on the remeasurement of Euro-denominated debt that are not designated as hedging instruments for accounting purpose. As the fluctuations in foreign currency exchange rates continue to remain volatile, we believe this adjustment facilitates comparison of our performance with prior and future periods and provides our investors with additional insight into our operational performance. 10 IEEPA Tariff Refunds
On February 20, 2026, the Supreme Court of the United States issued a decision invalidating certain tariffs imposed under IEEPA. As a result, the U.S. Customs and Border Protection (“CBP”) has launched a system to process IEEPA tariff refund claims, and we recorded a recovery within cost of sales for refund claims that have been accepted by the CBP. Because the timing and amount of the gain from IEEPA tariff refunds in any period resulting from discrete legal and regulatory developments may not be reflective of the results of our operations in such period, we exclude the gain from IEEPA tariff refunds to facilitate a consistent comparison of our operating performance to prior and future periods.
We adjust for the effect of non-cash impairments of capitalized software as these charges relate to previous investment decisions and may not be indicative of our core business performance. Additionally, adjusting for these non-cash charges may facilitate a consistent comparison of our operating performance across periods.
We use the term “core revenue growth” when referring to a corresponding year- over-year GAAP revenue measure, excluding (1) the impact from acquired or divested businesses and (2) the impact of foreign currency translation. References to sales attributable to acquisitions or acquired businesses refer to GAAP sales from acquired businesses recorded prior to the first anniversary of the acquisition less the amount of sales attributable to certain divested businesses or product lines that have been divested or, at the time of reporting, are pending divestiture but are not, and will not be, considered discontinued operations prior to the first anniversary of the divestiture. The portion of sales attributable to the impact of currency translation is calculated as the difference between (a) the period-to-period change in sales (excluding sales impact from acquired businesses) and (b) the period-to-period change in sales (excluding sales impact from acquired businesses) after applying the current period foreign exchange rates to the prior year period.
We exclude the effect of acquisition and divestiture-related items because the nature, size and number of such transactions can vary dramatically from period to period and between us and our peers. We exclude the effect of currency translation from sales measures because currency translation is not under management’s control and is subject to volatility. We believe that such exclusions, when presented with the corresponding GAAP measures, may assist in assessing the business trends and making comparisons of long-term performance.
We use the term “free cash flow” when referring to net cash provided by operating activities calculated according to GAAP less payments for capital expenditures.
Management believes that such non-GAAP measure provides useful information to investors in assessing our ability to generate cash without external financing, fund acquisitions and other investments and, in the absence of refinancing, repay our debt obligations. However, it should be noted that free cash flow as a liquidity measure has material limitations because it excludes certain expenditures that are required or that we have committed to, such as debt service requirements and other non-discretionary expenditures. 11
Adjusted EBITDA and Adjusted EBITDA Margin from Continuing Operations (unaudited)
Three Months Ended $ in October 2, September 26, millions 2026 2025 ────────────────────────────────────────────────────────────────────────────── Revenue $ 1,107.5 $ 1,027.1 (GAAP) Net Earnings from Continuing $ 172.5 $ 117.0 Operations (GAAP) Interest 38.8 25.4 expense, net Income taxes 29.8 18.0 Depreciation 22.6 17.6 Amortization 89.3 91.5 EBITDA 353.0 269.5 (Non-GAAP) Pretax acquisition, divestiture, and 1.0 38.3 Separation related items(a) Pretax discrete 1.5 2.1 restructuri… charges Pretax foreign currency transaction (gains) and -4.9 -0.5 losses related to Euro-denomi… debt Pretax IEEPA tariff -18.0 — refunds Pretax capitalized 6.2 — software impairment Adjusted EBITDA $ 338.8 $ 309.4 (Non-GAAP) Net Earnings Margin from Continuing 15.6 % 11.4 % Operations (GAAP) Adjusted EBITDA 30.6 % 30.1 % Margin (Non-GAAP) (a) Includes pretax transaction costs, integration costs, correspondi… restructuri… charges related to acquisition… and certain Separation-… costs recorded in Net earnings from continuing operations.
13 Adjusted Net Earnings and Adjusted Diluted Earnings Per Share from Continuing Operations (unaudited)
Full text with the tables
Exhibit 99.1
Fortive Reports Third Quarter 2026 Results
•
Q3 revenue growth accelerated to 7.8% year-over-year on a reported basis and
7.2% on a core basis
•
Delivered Q3 GAAP diluted EPS of $0.57, up 63% year-over-year, and adjusted
diluted EPS of $0.77, up 13% year-over-year
•
Completed ~$300 million of share repurchases in Q3, bringing total share
repurchases since the launch of new Fortive to ~$2.3 billion, representing ~43
million shares or ~13% of shares outstanding
•
Raising our FY 2026 adjusted EPS guidance range to $3.10 to $3.14, up ~15% year-
over-year at the midpoint
EVERETT, WA, October 28, 2026 - Fortive Corporation (“Fortive”) (NYSE: FTV)
today announced financial results for the third quarter of 2026.
“Q3 was another quarter of strong and accelerating performance for Fortive. We
delivered over 7% core growth, approximately 10% adjusted EBITDA growth, and 13%
adjusted EPS growth, representing our fifth consecutive quarter of double-digit
adjusted EPS growth. We are executing our Fortive Accelerated strategy and
continue to see growing evidence that our investments in innovation
acceleration, commercial acceleration, and recurring customer value are
contributing to faster revenue growth and strong financial performance,” said
Olumide Soroye, President and CEO.
“We are raising our full-year adjusted EPS guidance to $3.10 to $3.14,
reflecting our strong year-to-date performance and our confidence in the
trajectory of the business. We remain fully confident in our ability to deliver
on the medium-term financial framework we shared at our last Investor Day. We
are excited about our progress and continue to see meaningful opportunities to
accelerate profitable growth, deploy capital with discipline and build investor
trust to unlock the significant shareholder value creation opportunity ahead of
us,” Mr. Soroye concluded.
Financial Highlights for Third Quarter 2026
• Revenue of $1.11 billion, up 7.8% year-over-year; core revenue up 7.2%
• GAAP net earnings of $173 million, up 47.4% year-over-year, GAAP net earnings
margin of 15.6%; adjusted EBITDA of $339 million, up 9.5% year-over-year,
adjusted EBITDA margin of 30.6%
• GAAP diluted EPS of $0.57, up 62.9% year-over-year; adjusted diluted EPS of
$0.77, up 13.2% year-over-year
• GAAP operating cash flow of $313 million, Trailing Twelve Months (TTM) GAAP
operating cash flow of $1,177 million; free cash flow of $284 million, TTM free
cash flow of $1,062 million
• Deployed ~$300 million towards share repurchases, representing ~5 million
shares or ~2% of diluted shares outstanding
Raising Full Year 2026 Guidance
For FY 2026, Fortive now expects adjusted diluted earnings per share of $3.10 to
$3.14.
1
Summary Financial Results
, Continuing Operations
Fortive Continuing Q3-26 Q3-25 Variance
Operations
Revenue $1,108M $1,027M 7.8% / 7.2% (reported /
core)
GAAP net earnings $173M $117M 47.4%
GAAP net earnings margin 15.6% 11.4% 420 bps
Adj. EBITDA $339M $309M 9.5%
Adj. EBITDA margin 30.6% 30.1% 50 bps
GAAP diluted earnings $0.57 $0.35 62.9%
per share
Adj. diluted earnings $0.77 $0.68 13.2%
per share
GAAP operating cash flow $313M $295M 6.3%
Free cash flow $284M $266M 6.7%
TTM GAAP operating cash $1,177M $1,019M 15.5%
flow
TTM free cash flow $1,062M $922M 15.2%
Percentages presented
may not
recalculate based on the
amounts shown
due to rounding.
Summary Financial Results by Segment
, Continuing Operations
Intelligent Operating Q3-26 Q3-25 Variance
Solutions
Revenue $767M $699M 9.8% / 9.1% (reported /
core)
GAAP operating profit $223M $181M 23.6%
GAAP operating margin 29.1% 25.9% 320 bps
Adj. EBITDA $275M $242M 13.6%
Adj. EBITDA margin 35.8% 34.6% 120 bps
Advanced Healthcare Q3-26 Q3-25 Variance
Solutions
Revenue $340M $328M 3.7% / 3.1% (reported /
core)
GAAP operating profit $38M $43M (10.1)%
GAAP operating margin 11.2% 12.9% (170) bps
Adj. EBITDA $88M $92M (4.8)%
Adj. EBITDA margin 25.8% 28.1% (230) bps
PRECISION TECHNOLOGIES SEPARATION
On June 28, 2025 (the “Distribution Date”), the Company completed the separation
(the “Separation” or the “PT Separation”) of its former Precision Technologies
segment by distributing to Fortive shareholders on a pro rata basis all of the
issued and outstanding common stock of Ralliant Corporation (“Ralliant”), the
entity incorporated to hold the PT businesses. The requirements for reporting
the Ralliant business as discontinued operations were met upon completion of the
PT Separation. Unless otherwise indicated, all amounts herein refer to
continuing operations.
2
CONFERENCE CALL DETAILS
Fortive will discuss results and outlook during its quarterly investor
conference call today starting at 12:00 p.m. ET. The call and an accompanying
slide presentation will be webcast on the “Investors” section of Fortive’s
website, www.fortive.com, under “News & Events.” A replay of the webcast will be
available at the same location shortly after the conclusion of the presentation.
You can access the conference call by dialing 877-407-3110 within the U.S. or +1
215-268-9915 outside the U.S. a few minutes before 12:00 p.m. ET and notifying
the operator that you are dialing in for Fortive’s earnings conference call.
Fortive’s earnings press release, presentation, and other related materials will
be posted to the "Investors" section of Fortive’s website under "Financial
Info.”
ABOUT FORTIVE
Fortive innovates essential technologies to keep our world safe and productive.
Fortive’s strategic segments - Intelligent Operating Solutions and Advanced
Healthcare Solutions - include iconic inventor brands with leading positions in
their markets. The company’s businesses design, develop, manufacture, and market
products, software, and services, building on leading brand names, innovative
technologies, and strong market positions. Fortive is headquartered in Everett,
Washington and employs a team of more than 10,000 research and development,
manufacturing, sales, distribution, service, and administrative team members in
approximately 50 countries around the world. With a culture rooted in continuous
improvement, the core of our company’s operating model is the Fortive Business
System. For more information please visit: www.fortive.com.
NON-GAAP FINANCIAL MEASURES
In addition to the financial measures prepared in accordance with United States
generally accepted accounting principles (GAAP), this earnings release also
references “adjusted net earnings,” “adjusted diluted earnings per share,”
“adjusted EBITDA”, “adjusted EBITDA margin”, “free cash flow,” and “core revenue
growth,” which are non-GAAP financial measures. The reasons why we believe these
measures, when used in conjunction with the GAAP financial measures, provide
useful information to investors, how management uses such non-GAAP financial
measures, a reconciliation of these measures to the most directly comparable
GAAP measures and other information relating to these measures are included in
the supplemental reconciliation schedule attached. The non-GAAP financial
measures should not be considered in isolation or as a substitute for the GAAP
financial measures, but should instead be read in conjunction with the GAAP
financial measures. The non-GAAP financial measures used by Fortive in this
release may be different from similarly-titled non-GAAP measures used by other
companies. With respect to forward-looking non-GAAP measures, we have not
reconciled with, or presented, corresponding forward-looking GAAP measures since
doing so would require us to make assumptions with precision about acquisitions,
currency translations, capital and other expenses and other similar adjustments
during the future periods.
FORWARD-LOOKING STATEMENTS
Statements in this release that are not strictly historical, including
statements regarding anticipated financial results, industry trends, the ability
to execute the planned strategies, future prospects, shareholder value, and any
other statements identified by their use of words like “anticipate,” “expect,”
“believe,” “outlook,” “guidance,” "target", or “will” or other words of similar
meaning, are “forward-looking statements" within the meaning of the United
States federal securities laws. Factors that could cause actual results to
differ materially from those in the forward-looking statements include, among
other things: deterioration of or instability in the economy, the markets we
serve, international trade policies and deteriorating trade relations with other
countries, including imposition of tariffs and retaliatory tariffs between
United States and China and other countries, responsive economic nationalism,
trade restrictions, and enhanced regulation, impact of any prolonged government
shutdown, the financial markets, geopolitical conditions and conflicts including
in the Middle East and in Ukraine, security breaches, data exfiltration, or
other disruptions of our information technology systems, supply chain
constraints, our ability to adjust purchases and manufacturing capacity to
reflect market conditions, impact of development, deployment, and use of
artificial intelligence, reliance on sole sources of supply, contractions or
lower growth rates and cyclicality of markets we serve, competition, changes in
industry standards and governmental regulations, our ability to recruit and
retain key employees, our ability to successfully identify, consummate,
integrate and realize the anticipated value of appropriate acquisitions or
otherwise effectively deploy our capital, our ability to develop and
successfully market new products, software, and services and expand into new
markets, the potential for improper conduct by our employees, agents or business
partners, contingent liabilities relating to acquisitions and divestitures,
impact of changes to tax laws, our compliance with applicable laws and
regulations and changes in applicable laws and regulations, risks relating to
3
international economic, geopolitical, including war and sanctions, legal,
compliance and business factors, risks relating to potential impairment of
goodwill and other intangible assets, currency exchange rates, tax audits and
changes in our tax rate and income tax liabilities, the impact of our debt
obligations on our operations, litigation and other contingent liabilities
including intellectual property and environmental, health and safety matters,
our ability to adequately protect our intellectual property rights, risks
relating to product, service or software defects, product liability and recalls,
risks relating to product manufacturing, our relationships with and the
performance of our channel partners, commodity costs and surcharges, adverse
effects of restructuring activities, risk related to tax treatment of our prior
separations, impact of our indemnification obligation to Ralliant and Vontier,
impact of changes to U.S. GAAP, labor matters, and disruptions relating to man-
made and natural disasters and climate change. Additional information regarding
the factors that may cause actual results to differ materially from these
forward-looking statements is available in our SEC filings, including our Annual
Report on Form 10-K for the year ended December 31, 2025 and Quarterly Reports
on Form 10-Q for the subsequent quarters. These forward-looking statements speak
only as of the date of this release, and Fortive does not assume any obligation
to update or revise any forward-looking statement, whether as a result of new
information, future events and developments or otherwise.
INVESTOR CONTACT
Christina Jones
Vice President, Investor Relations
Fortive Corporation
6920 Seaway Boulevard
Everett, WA 98203
Telephone: (425) 446-5000
Email: investors@fortive.com
4
FORTIVE CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
($ and shares in millions, except per share amounts)
(unaudited)
Three Septem… Nine
Months October 26, Months October Septemb…
Ended 2, 2026 2025 Ended 2, 2026 26, 2025
──────────────────────────────────────────────────────────────────────────────
Sales 1,107.5 1,027.1 3,273.7 3,036.6
Cost
of -396.9 -377.9 -1,192… -1,104.4
sales
Gross 710.6 649.2 2,081.4 1,932.2
profit
Opera…
costs:
Selli…
gener… -406.5 -427.6 -1,241… -1,244.3
and
admin…
Resea…
and -68.2 -62.0 -202.2 -193.2
devel…
Opera… 235.9 159.6 637.5 494.7
profit
Non-o…
income
(expe…
net:
Inter…
expen… -38.8 -25.4 -105.8 -89.5
net
Other
non-o… 5.2 0.8 13.7 3.1
incom…
net
Earni…
from
conti…
opera… 202.3 135.0 545.4 408.3
before
income
taxes
Income -29.8 -18.0 -79.2 -67.1
taxes
Net
earni…
from 172.5 117.0 466.2 341.2
conti…
opera…
Net
earni…
from — -62.0 — 52.3
disco…
opera…
Net $ 172.5 $ 55.0 $ 466.2 $ 393.5
earni…
Net
earni…
per
common
share
from
conti…
opera…
Basic $ 0.57 $ 0.35 $ 1.53 $ 1.01
Dilut… $ 0.57 $ 0.35 $ 1.51 $ 1.00
Net
earni…
per
common
share
from
disco…
opera…
Basic $ — $ -0.19 $ — $ 0.16
Dilut… $ — $ -0.19 $ — $ 0.15
Net
earni…
per
share:
Basic $ 0.57 $ 0.17 $ 1.53 $ 1.17
Dilut… $ 0.57 $ 0.16 $ 1.51 $ 1.16
Avera…
common
stock
and
common
equiv…
shares
outst…
Basic 300.4 330.8 304.7 337.2
Dilut… 303.9 333.4 308.2 339.9
This information is presented for reference only. A complete copy of Fortive’s
Form 10-Q financial statements is available on the Company’s website
(www.fortive.com).
5
FORTIVE CORPORATION AND SUBSIDIARIES
SEGMENT INFORMATION
($ in millions)
(unaudited)
Three Octob… Sept… Nine Octo… Septe…
Mont… 2, 26, Months 2, 26,
Ended 2026 2025 Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Sale…
Inte…
Oper… $ 767.1 $ 698.8 $ 2,26… $ 2,086…
Solu…
Adva…
Heal… 340.4 328.3 1,00… 950.0
Solu…
Total $ 1,107… $ 1,02… $ 3,27… $ 3,036…
Oper…
Prof…
Inte…
Oper… $ 223.4 $ 180.7 $ 613.1 $ 526.1
Solu…
Adva…
Heal… 38.2 42.5 109.2 100.0
Solu…
Othe… -25.7 -63.6 -84.8 -131.4
Total $ 235.9 $ 159.6 $ 637.5 $ 494.7
Oper…
Marg…
Inte…
Oper… 29.1 % 25.9 % 27.0 % 25.2 %
Solu…
Adva…
Heal… 11.2 % 12.9 % 10.9 % 10.5 %
Solu…
Total 21.3 % 15.5 % 19.5 % 16.3 %
(a)
Oper…
prof…
amou…
in
the
“Oth…
cate…
cons…
of
unal…
corp…
costs
and
other
costs
not
cons…
part
of
our
eval…
of
repo…
segm…
oper…
perf…
In
2025,
the
Other
cate…
incl…
$33
mill…
of
stock
based
comp…
expe…
rela…
to
adju…
incu…
in
the
third
quar…
in
conn…
with
the
PT
Sepa…
This information is presented for reference only. A complete copy of Fortive’s
Form 10-Q financial statements is available on the Company’s website
(www.fortive.com).
6
FORTIVE CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
($ and shares in millions, except per share amounts)
As of October 2, 2026 December 31, 2025
──────────────────────────────────────────────────────────────────────────────
ASSETS -unaudited
Current assets:
Cash and equivalents $ 377.3 $ 375.5
Accounts receivable
less allowance for
doubtful accounts of 669.5 683.6
$19.9 and $18.8,
respectively
Inventories:
Finished goods 183.9 169.9
Work in process 13.0 12.3
Raw materials 118.3 109.6
Inventories 315.2 291.8
Prepaid expenses and
other current 211.3 234.0
assets
Current assets,
discontinued 4.8 20.8
operations
Total current assets 1,578.1 1,605.7
Property, plant and
equipment, net of
accumulated 278.6 269.8
depreciation of
$462.8 and
$430.2, respectively
Other assets 380.8 375.5
Goodwill 7,334.0 7,298.3
Other intangible 1,931.3 2,188.4
assets, net
Total assets $ 11,502.8 $ 11,737.7
LIABILITIES AND
EQUITY
Current liabilities:
Current portion of $ — $ 899.5
long-term debt
Trade accounts 424.7 436.4
payable
Accrued expenses and
other current 862.7 910.7
liabilities
Total current 1,287.4 2,246.6
liabilities
Other long-term 744.3 723.5
liabilities
Long-term debt 3,514.2 2,306.5
Equity:
Common stock:
$0.01 par value,
2,000 shares
authorized; 372.1 and 3.7 3.7
366.6 issued;
298.1 and 313.4
outstanding;
respectively
Additional paid-in 4,294.5 4,210.0
capital
Treasury shares, at -4,239.1 -3,229.8
cost
Retained earnings 5,837.4 5,428.5
Accumulated other
comprehensive income 50.7 41.0
(loss)
Total Fortive 5,947.2 6,453.4
stockholders’ equity
Noncontrolling 9.7 7.7
interests
Total stockholders’ 5,956.9 6,461.1
equity
Total liabilities and $ 11,502.8 $ 11,737.7
equity
This information is presented for reference only. A complete copy of Fortive’s
Form 10-Q financial statements is available on the Company’s website
(www.fortive.com).
7
FORTIVE CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
($ in millions)
(unaudited)
September 26,
Nine Months Ended October 2, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cash flows from
operating
activities:
Net earnings $ 466.2 $ 393.5
Less: net
earnings from — -52.3
discontinued
operations
Net earnings
from continuing 466.2 341.2
operations
Adjustments to
reconcile net
earnings to
net cash
provided by
operating
activities:
Amortization 274.0 274.3
Depreciation 65.0 52.0
Stock-based 66.1 96.9
compensation
Change in
certain assets
and
liabilities:
Change in
accounts 11.2 56.2
receivable, net
Change in -25.6 -40.2
inventories
Change in trade
accounts -10.3 -4.1
payable
Change in
prepaid
expenses and 17.8 -28.0
other
assets
Change in
accrued
expenses and -32.0 -56.8
other
liabilities
Total operating
cash provided
by 832.4 691.5
continuing
operations
Total operating
cash provided
by 1.8 25.8
discontinued
operations
Net cash
provided by 834.2 717.3
operating
activities
Cash flows from
investing
activities:
Purchases of
property, plant -84.2 -74.7
and
equipment
Cash paid for
acquisitions, -58.1 —
net of cash
received
All other
investing 7.2 11.2
activities
Total investing
cash used in -135.1 -63.5
continuing
operations
Total investing
cash used in — -15.7
discontinued
operations
Net cash used
in investing -135.1 -79.2
activities
Cash flows from
financing
activities:
Net proceeds
from commercial 455.7 105.8
paper
borrowings
Repurchase of -1,000.4 -1,338.2
common shares
Payment of -57.3 -73.4
dividends
Proceeds from
borrowings
(maturities
greater than 90 1,088.0 —
days), net of
issuance
costs
Repayment of
borrowings
(maturities -1,192.9 -715.7
greater than 90
days)
Proceeds from
Ralliant — 1,150.0
Dividend
All other
financing -0.6 8.7
activities
Total financing
cash used in -707.5 -862.8
continuing
operations
Total financing
cash used in — -160.3
discontinued
operations
Net cash used
in financing -707.5 -1,023.1
activities
Effect of
exchange rate 10.2 2.5
changes on cash
and equivalents
Net change in
cash and 1.8 -382.5
equivalents
Beginning
balance of cash 375.5 813.3
and
equivalents
Ending balance
of cash and $ 377.3 $ 430.8
equivalents
This information is presented for reference only. A complete copy of Fortive’s
Form 10-Q financial statements is available on the Company’s website
(www.fortive.com).
8
FORTIVE CORPORATION AND SUBSIDIARIES
RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
AND OTHER INFORMATION
Management believes that each of the non-GAAP financial measures described below
provide useful information to investors by reflecting additional ways of viewing
aspects of our operations that, when reconciled to the corresponding GAAP
measure, help our investors to understand the long-term profitability trends of
our business, and facilitate comparisons of our operational performance and
profitability to prior and future periods and to our peers.
The information presented below reflect GAAP to non-GAAP reconciliations for the
non-GAAP measures of Fortive on a continuing operations basis.
These non-GAAP measures should be considered in addition to, and not as a
replacement for or superior to, the comparable GAAP measures, and may not be
comparable to similarly titled measures reported by other companies.
Adjusted Net Earnings, Adjusted Diluted Earnings per Share, Adjusted EBITDA, and
Adjusted EBITDA Margin
We disclose the consolidated non-GAAP measures of adjusted net earnings,
adjusted diluted earnings per share, and the non-GAAP measures of adjusted
earnings before income taxes, interest, depreciation, and amortization
(“adjusted EBITDA”), and adjusted EBITDA margin, which to the extent applicable,
make the following adjustments to GAAP net earnings, GAAP diluted earnings per
share, and GAAP net earnings margin:
• Excluding on a pretax basis amortization of acquisition related intangible
assets;
• Excluding on a pretax basis acquisition, divestiture, and Separation related
items;
• Excluding on a pretax basis the costs incurred pursuant to discrete
restructuring plans that are fundamentally different from ongoing productivity
improvements in terms of the size, strategic nature, planning requirements and
the inconsistent frequency of such plans as well as the associated macroeconomic
drivers which underlie such plans (the “Discrete Restructuring Charges”);
• Excluding on a pretax basis the effect of foreign currency transaction gains
and losses related to Euro-denominated debt;
• Excluding on a pretax basis the effect of refunds for tariffs imposed under
the International Emergency Economic Powers Act (“IEEPA”); and
• Excluding on a pretax basis the effect of the non-cash impairment of
capitalized software.
In addition to the adjustments noted above, with respect to the consolidated
non-GAAP measures of adjusted EBITDA and adjusted EBITDA margin, we make the
following adjustments to GAAP net earnings before income taxes:
• Excluding on a pretax basis net interest expense;
• Excluding on a pretax basis depreciation expense; and
• Excluding income taxes.
In addition to the adjustments noted above, with respect to the non-GAAP
measures of adjusted net earnings and adjusted diluted earnings per share, we
make the following adjustments to GAAP net earnings and GAAP diluted earnings
per share:
• Excluding the tax effect (to the extent tax deductible) of the pretax
adjustments noted above. The tax effect of such adjustments was calculated by
applying our overall estimated effective tax rate to the pretax amount of each
adjustment (unless the nature of the item and/or the tax jurisdiction in which
the item has been recorded requires application of a specific tax rate or tax
treatment, in which case the tax effect of such item is estimated by applying
such specific tax rate or tax treatment).
We also disclose for each segment of Fortive, the non-GAAP measures of adjusted
EBITDA and adjusted EBITDA margin, which to the extent applicable, make the
following adjustments to GAAP operating profit and GAAP operating profit margin
for the corresponding segment, which is deemed to be the most comparable GAAP
measure given interest and taxes are not incurred at the segment level:
9
• Excluding on a pretax basis amortization of acquisition related intangible
assets;
• Excluding on a pretax basis acquisition and divestiture related items;
• Excluding on a pretax basis Discrete Restructuring Charges;
• Excluding on a pretax basis IEEPA tariff refunds;
• Excluding on a pretax basis non-cash impairment of capitalized software; and
• Excluding on a pretax basis depreciation expense.
Amortization of Acquisition Related Intangible Assets
As a result of our acquisition activity, we have significant amortization
expense associated with definite-lived intangible assets. We adjust for
amortization expense of acquisition related intangible assets incurred in each
period, and impairment charges incurred, if any. We believe that this adjustment
provides our investors with additional insight into our operational performance
and profitability as such impacts are not related to our core business
performance.
Acquisition, Divestiture, and Separation Related Items
While we have a history of acquisition and divestiture activity, we do not
acquire and divest businesses or assets on a predictable cycle. The amount of an
acquisition’s purchase price allocated to inventory fair value adjustments are
unique to each acquisition and can vary significantly from acquisition to
acquisition. In addition, transaction costs, which include acquisition,
divestiture, integration, restructuring, and separation costs related to
completed or announced transactions are unique to each transaction and are
impacted from period to period depending on the number of acquisitions or
divestitures evaluated, pending, or completed during such period, and the
complexity of such transactions. In connection with the Separation, on a
continuing operation basis, we also incurred incremental stock-based
compensation expense, primarily due to the adjustment of outstanding stock-based
awards to preserve the intrinsic value, and the accelerated compensation expense
related to certain stock-based awards due to executive retirements. We adjust
for transaction costs, incremental costs related to the Separation, integration
costs and corresponding restructuring charges related to acquisitions, in each
case, incurred in a given period. Restructuring costs related to the Separation
are not included in this adjustment but are instead included in Discrete
Restructuring Costs.
Discrete Restructuring Costs
We will exclude costs incurred pursuant to discrete restructuring plans that are
fundamentally different from the ongoing productivity improvements that result
from application of the Fortive Business System or from execution of general
cost saving strategies. These discrete restructuring plans differ in terms of
the size, strategic nature and planning requirements, and are often triggered by
significant macroeconomic shifts, significant divestitures such as the
Separation, or material operational, economic or capital market disruptions.
Because these restructuring plans will be incremental to the fundamental
activities that arise in the ordinary course of our business and we believe are
not indicative of our ongoing operating costs in a given period, we exclude
these costs to facilitate a more consistent comparison of operating results over
time. Restructuring costs related primarily to an acquisition as opposed to
dispositions are not included in this adjustment but are instead included in
acquisition related items. In the fourth quarter of 2024, we initiated a
discrete restructuring plan related to the Separation that is expected to be
completed by the end of 2026.
Foreign Currency Transaction Gains and Losses Related to Euro-denominated Debt
We adjust for the effect of unrealized foreign currency transaction gains and
losses on the remeasurement of Euro-denominated debt that are not designated as
hedging instruments for accounting purpose. As the fluctuations in foreign
currency exchange rates continue to remain volatile, we believe this adjustment
facilitates comparison of our performance with prior and future periods and
provides our investors with additional insight into our operational performance.
10
IEEPA Tariff Refunds
On February 20, 2026, the Supreme Court of the United States issued a decision
invalidating certain tariffs imposed under IEEPA. As a result, the U.S. Customs
and Border Protection (“CBP”) has launched a system to process IEEPA tariff
refund claims, and we recorded a recovery within cost of sales for refund claims
that have been accepted by the CBP. Because the timing and amount of the gain
from IEEPA tariff refunds in any period resulting from discrete legal and
regulatory developments may not be reflective of the results of our operations
in such period, we exclude the gain from IEEPA tariff refunds to facilitate a
consistent comparison of our operating performance to prior and future periods.
Impairment of Capitalized Software
We adjust for the effect of non-cash impairments of capitalized software as
these charges relate to previous investment decisions and may not be indicative
of our core business performance. Additionally, adjusting for these non-cash
charges may facilitate a consistent comparison of our operating performance
across periods.
Core Revenue Growth
We use the term “core revenue growth” when referring to a corresponding year-
over-year GAAP revenue measure, excluding (1) the impact from acquired or
divested businesses and (2) the impact of foreign currency translation.
References to sales attributable to acquisitions or acquired businesses refer to
GAAP sales from acquired businesses recorded prior to the first anniversary of
the acquisition less the amount of sales attributable to certain divested
businesses or product lines that have been divested or, at the time of
reporting, are pending divestiture but are not, and will not be, considered
discontinued operations prior to the first anniversary of the divestiture. The
portion of sales attributable to the impact of currency translation is
calculated as the difference between (a) the period-to-period change in sales
(excluding sales impact from acquired businesses) and (b) the period-to-period
change in sales (excluding sales impact from acquired businesses) after applying
the current period foreign exchange rates to the prior year period.
We exclude the effect of acquisition and divestiture-related items because the
nature, size and number of such transactions can vary dramatically from period
to period and between us and our peers. We exclude the effect of currency
translation from sales measures because currency translation is not under
management’s control and is subject to volatility. We believe that such
exclusions, when presented with the corresponding GAAP measures, may assist in
assessing the business trends and making comparisons of long-term performance.
Free Cash Flow
We use the term “free cash flow” when referring to net cash provided by
operating activities calculated according to GAAP less payments for capital
expenditures.
Management believes that such non-GAAP measure provides useful information to
investors in assessing our ability to generate cash without external financing,
fund acquisitions and other investments and, in the absence of refinancing,
repay our debt obligations. However, it should be noted that free cash flow as a
liquidity measure has material limitations because it excludes certain
expenditures that are required or that we have committed to, such as debt
service requirements and other non-discretionary expenditures.
11
Core Revenue Growth (unaudited)
Three
Months
Ended
October 2,
2026
──────────────────────────────────────────────────────────────────────────────
Intellige… Advanced Total
Operating Healthca… Fortive
Solutions Solutions
Total
Revenue 9.8 % 3.7 % 7.8 %
Growth
(GAAP)
Excludi…
impact
of:
Acquisi…
and -0.4 % -0.5 % -0.5 %
divesti…
Currency
exchange -0.3 % -0.1 % -0.1 %
rates
Core
Revenue 9.1 % 3.1 % 7.2 %
Growth
(Non-GA…
Adjusted EBITDA and Adjusted EBITDA Margin from Continuing Operations
(unaudited)
Three Months
Ended
$ in October 2, September 26,
millions 2026 2025
──────────────────────────────────────────────────────────────────────────────
Revenue $ 1,107.5 $ 1,027.1
(GAAP)
Net Earnings
from
Continuing $ 172.5 $ 117.0
Operations
(GAAP)
Interest 38.8 25.4
expense, net
Income taxes 29.8 18.0
Depreciation 22.6 17.6
Amortization 89.3 91.5
EBITDA 353.0 269.5
(Non-GAAP)
Pretax
acquisition,
divestiture,
and 1.0 38.3
Separation
related
items(a)
Pretax
discrete 1.5 2.1
restructuri…
charges
Pretax
foreign
currency
transaction
(gains) and -4.9 -0.5
losses
related to
Euro-denomi…
debt
Pretax IEEPA
tariff -18.0 —
refunds
Pretax
capitalized 6.2 —
software
impairment
Adjusted
EBITDA $ 338.8 $ 309.4
(Non-GAAP)
Net Earnings
Margin from
Continuing 15.6 % 11.4 %
Operations
(GAAP)
Adjusted
EBITDA 30.6 % 30.1 %
Margin
(Non-GAAP)
(a) Includes
pretax
transaction
costs,
integration
costs,
correspondi…
restructuri…
charges
related to
acquisition…
and certain
Separation-…
costs
recorded in
Net
earnings
from
continuing
operations.
12
Segment Adjusted EBITDA, Segment Adjusted EBITDA Margin (unaudited)
Thr… Thr…
Mon… Mon…
End… End…
Oct… Sep…
2, 26,
2026 2025
──────────────────────────────────────────────────────────────────────────────
$ Int… Adv… In… Ad…
in Ope… Hea… Op… He…
mi… Sol… Sol… So… So…
Re… $ 767… $ 34… $ 698… $ 328…
(G…
Op…
Pr… $ 223… $ 38… $ 180… $ 42.5
(G…
Am…
of
ac… 44.7 44… 46.4 45.1
in…
as…
Ac…
di…
and 0.4 0.2 0.1 0.1
Se…
re…
it…
Di…
re… 0.7 — 2.0 0.1
ch…
IE…
ta… -17… -0… — —
re…
Ca…
so… 6.2 — — —
im…
Ad…
Op… 258… 82… 229… 87.8
Pr…
(N…
De… 16.6 5.6 12.7 4.5
Ad…
EB… $ 274… $ 87… $ 241… $ 92.3
(N…
Op…
Pr… 29.1 % 11… % 25.9 % 12.9 %
Ma…
(G…
Ad…
Op…
Pr… 33.6 % 24… % 32.8 % 26.7 %
Ma…
(N…
Ad…
EB… 35.8 % 25… % 34.6 % 28.1 %
Ma…
(N…
(a)
In…
pr…
tr…
co…
in…
co…
co…
re…
ch…
re…
to
ac…
and
ce…
Se…
co…
13
Adjusted Net Earnings and Adjusted Diluted Earnings Per Share from Continuing
Operations (unaudited)
($ in
milli…
except
per Three Octob… Septe…
share Months 2, 26,
amoun… Ended 2026 2025
──────────────────────────────────────────────────────────────────────────────
Per Per
share share
values values
Net
Earn…
and
Earn…
Per $ 172.5 $ 0.57 $ 117.0 $ 0.35
Share
from
Cont…
Oper…
(GAA…
Pret…
amor…
of
acqu… 89.3 0.29 91.5 0.27
rela…
inta…
asse…
Pret…
acqu…
dive…
and 1.0 — 38.3 0.11
Sepa…
rela…
item…
Pret…
disc… 1.5 — 2.1 0.01
rest…
char…
Pret…
fore…
curr…
tran…
(gai…
and -4.9 -0.02 -0.5 —
loss…
rela…
to
Euro…
debt
Pret…
IEEPA -18.0 -0.06 — —
tari…
refu…
Pret…
capi… 6.2 0.02 — —
soft…
impa…
Tax
effe…
of
the -12.2 -0.03 -20.1 -0.06
adju…
refl…
above
Adju…
Net
Earn…
and
Adju…
Earn… $ 235.4 $ 0.77 $ 228.3 $ 0.68
Per
Share
from
Cont…
Oper…
(Non…
Aver…
Comm…
Dilu…
Stock 303.9 333.4
Outs…
(sha…
in
mill…
(a)
Incl…
pret…
tran…
cost…
inte…
cost…
corr…
rest…
char…
rela…
to
acqu…
and
cert…
Sepa…
costs
reco…
in
Net
earn…
from
cont…
oper…
Perc…
pres…
else…
may
not
reca…
based
on
the
amou…
shown
due
to
roun…
Free Cash Flow from Continuing Operations - Trailing Twelve Months (unaudited)
Thr…
Mon…
End…
($ Oct… July Apr… Dec… Trai…
in 2, 3, 3, 31, Twel…
mi… 2026 2026 2026 2025 Mont…
──────────────────────────────────────────────────────────────────────────────
Op…
Ca…
Fl…
fr… $ 313… $ 298… $ 220… $ 344… $ 1,1…
Co…
Op…
(G…
Le…
Pu…
of
pr…
pl… -29… -28… -26… -30… -11…
&
eq…
(c…
ex…
(G…
Fr…
Ca… $ 283… $ 270… $ 193… $ 313… $ 1,0…
Fl…
(N…
Thr…
Mon…
End…
($ Sep… June Mar… Dec… Trai…
in 26, 27, 28, 31, Twel…
mi… 2025 2025 2025 2024 Mont…
──────────────────────────────────────────────────────────────────────────────
Op…
Ca…
Fl…
fr… $ 294… $ 205… $ 191… $ 327… $ 1,0…
Co…
Op…
(G…
Le…
Pu…
of
pr…
pl… -28… -25… -21… -22… -97…
&
eq…
(c…
ex…
(G…
Fr…
Ca… $ 266… $ 180… $ 170… $ 305… $ 921…
Fl…
(N…
14