Fortive CorporationNYSE: FTV

Third Quarter 2026 Earnings Call Presentation

Oct 28, 2026 at 7:49 AM EDT · Issued by Fortive Corporation

Summary by 6ix AI

Fortive reported revenue of $1,107.5 million for the third quarter (three months ended October 2, 2026), up 7.8%, with core growth of 7.2% (excluding acquisitions, divestitures and currency effects). It raised its full-year 2026 adjusted earnings per share guidance to $3.10 to $3.14.

Key details

Adjusted earnings per share (EPS, excluding certain items such as amortization and one-time costs) were $0.77, up 13.2% from $0.68 a year earlier. Reported EPS from continuing operations was $0.57, up from $0.35, on net earnings from continuing operations of $172.5 million.
Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization, excluding certain items) was $338.8 million, up 9.5%, for a margin of 30.6%.
Intelligent Operating Solutions revenue was $767.1 million, with core growth of 9.1%. Advanced Healthcare Solutions revenue was $340.4 million, with core growth of 3.1%, while its adjusted EBITDA fell 4.8% to $87.9 million.
Fortive spent about $300 million buying back about 5 million shares in the quarter at an average price of $60.14, bringing buybacks to about $2.3 billion since the July 2025 launch of the new Fortive. It raised its regular quarterly dividend by about 17% year-over-year in the quarter.
As of October 2, 2026, Fortive had cash of $0.38B, gross debt of $3.53B and net debt of $3.15B, with gross debt at about 2.6 times trailing twelve-month adjusted EBITDA. Trailing twelve-month free cash flow was $1,062.0 million.

What’s still pending

The full-year 2026 adjusted EPS range of $3.10 to $3.14 is guidance given as of October 28, 2026, not a reported result.

6ix AI wrote this summary from the release below and checked it against the release.

On 6ix: 6ix.com/news/fortive-third-quarter-2026-earnings-call-presentation

Watch Fortive explain itFortive (NYSE:FTV) Q3 2026 Earnings Call · Replay · Oct 28, 2026 · From 1:48 · Q3 Highlights and Accelerated Strategy

Third Quarter 2026 Earnings EARNINGS PRESENTATION

October 28, 2026

Key Messages

Strong Q3 financial performance and execution by Fortive team, delivering +7.2% core growth, ~10% adjusted EBITDA growth and ~13% adjusted EPS growth

Deployed ~$300 million to share repurchases in Q3, bringing total share repurchases since the launch of new Fortive to ~$2.3 billion, consistent with our disciplined capital allocation approach

Fortive Accelerated strategy contributing to growth acceleration, reinforcing confidence in medium-term financial framework and value creation opportunity

Raising FY 2026 adjusted EPS guidance to $3.10 to $3.14, up ~15% year-over-year at the midpoint, reflecting strong year-to-date performance and confidence in the trajectory of the business

Fortive Accelerated Strategy

Faster Profitable Organic Growth

Innovation Acceleration
Commercial Acceleration
Recurring Customer Value
Powered by FBS Amplified
2
Disciplined Capital Allocation
Invest in organic growth
Smaller bolt-on M&A
n
Share repurchases
Modest growing dividend
3
Build and Maintain Investor Trust
Clear expectations and consistent delivery
Simplified guidance and disclosure

Do what we say we will do

Recent new product introductions and commercial investments translating into core growth acceleration; continued strength in recurring revenue growth

Deployed ~$2.3 billion to share repurchases since launch of new Fortive, representing ~43 million shares or ~13% of diluted shares outstanding1

Revamped bolt-on M&A engine in place, executing on opportunities that meet rigorous strategic and financial criteria

Revamped internal financial processes for better forecast accuracy

Redesigned investor messaging and guidance framework

Delivered solid performance in every quarter since the July 2025 launch of new Fortive

Demonstrated progress

Ambition: 3-5 Year Total Shareholder Return > the S&P 500 Index2

Calculated based on shares outstanding at the end of Q3 2026 as compared to shares outstanding at the end of Q2 2025. 4
Represents management's goal and not a forecast.

Fortive Results Q3 2026 COMMENTARY

	Q3 2026
Revenue	$1,107.5M
Reported Growth	+7.8%
Core Growth	+7.2%
Adj. Gross Profit	$692.6M
Adj. Gross Profit Growth (YoY)	+6.5%
Adj. Gross Margin	62.5%
Adj. EBITDA	$338.8M
Adj. EBITDA Growth (YoY)	+9.5%
Adj. EBITDA Margin	30.6%
Adj. EPS	$0.77
Adj. EPS Growth (YoY)	13.2%
Trailing Twelve Month (TTM) Free Cash Flow	$1,062.0
TTM FCF Conversion on Adj. Net Income	+109.5%

Core revenue growth of +7.2%, led by strong performance in IOS segment
Adj. Gross Margin of 62.5%, down ~80 bps year-over-year, driven primarily by product mix, partially offset by operating leverage
Adj. EBITDA grew ~10% year-over-year, reflecting adjusted gross profit growth, operating leverage and discrete structural cost savings, partially offset by growth investments; Adj. EBITDA margin expanded
~50 bps to 30.6%
Adj. EPS grew ~13% year-over-year, driven by Adj. EBITDA growth and favorable impact of share repurchases, partially offset by higher interest and tax expense
TTM Free Cash Flow Conversion on Adj. Net Income >100%

Intelligent Operating Solutions Q3 2026

Q3 2026

Revenue

Reported Growth Core Growth

$767.1M

+9.8%

+9.1%

Adj. Gross Profit

Adj. Gross Profit Growth (YoY) Adj. Gross Margin

$496.9M

+8.3%

64.8%

Adj. EBITDA

Adj. EBITDA Growth (YoY) Adj. EBITDA Margin

$274.7M

+13.6%

35.8%

COMMENTARY

Core revenue growth of +9.1%, driven by acceleration in professional instrumentation, Facilities and Asset Lifecycle solutions and gas detection
Adj. Gross Margin of ~65%, similar to Q2, and down ~90 bps year-over-year, driven primarily by product mix, partially offset by operating leverage
Adj. EBITDA grew ~14%, driven by adjusted gross profit growth, operating leverage and discrete structural cost savings, partially offset by growth investments
Adj. EBITDA margin expanded by ~120 basis points year-over-year to ~36%
Advanced Healthcare Solutions Q3 2026
Q3 2026
Revenue
Reported Growth Core Growth
$340.4M
+3.7%
+3.1%
Adj. Gross Profit
Adj. Gross Profit Growth (YoY) Adj. Gross Margin
$195.7M
+2.1%
57.5%
Adj. EBITDA
Adj. EBITDA Growth (YoY) Adj. EBITDA Margin
$87.9M
(4.8)%
25.8%
COMMENTARY
Core revenue growth of +3.1%, driven by solid demand for healthcare consumables and SaaS offerings, with modest growth in capital equipment
Adj. Gross Margin of ~58%, down about 90 bps year-over-year, driven primarily by product mix, partially offset by operating leverage
Adj. EBITDA Margin of ~26%, ~flat sequentially and down YoY, driven by growth investments and the year-over-year headwind from discrete cost benefits in Q3'25, partially offset by operating leverage

Balance Sheet & Capital Allocation Q3 2026

Balance Sheet	As of October 2, 2026
Cash and equivalents	$0.38B
Gross Debt, principal amounts	$3.53B
Net Debt	$3.15B
Leverage Q3 2026 TTM Adj. EBITDA	$1.33B
Gross Debt / Adj. EBITDA	~2.6X
Net Debt / Adj. EBITDA	~2.4X

Cash Flow

TTM as of October 2, 2026

TTM Operating Cash Flow $1,176.6M

TTM Capital Expenditures ($114.6M)

TTM Free Cash Flow $1,062.0M

TTM Free Cash Conversion on Adj. Net Income 109.5%

COMMENTARY & CAPITAL ALLOCATION HIGHLIGHTS

Deployed ~$300 million towards share repurchase in Q3, representing ~5M shares, at an average price of $60.14
Increased regular quarterly dividend by
~17% year-over-year in Q3
Reduced leverage to 2.6x Gross Debt / Adjusted EBITDA
Robust Free Cash Flow generation provides further capacity and flexibility to execute our capital deployment priorities, always with a disciplined focus on allocating capital to optimize shareholder returns over the medium to long term

Raising FY 2026 Guidance

Adj. EPS | FY 2026

$3.10 to $3.14

Guidance as of date of Q3 2026 earnings call: October 28, 2026. 9

Fortive Accelerated

Innovating essential technologies to keep our world safe and productive

Appendix & Supplemental Reconciliation Data CORE REVENUE GROWTH AND REVENUE BY GEOGRAPHY

	Intelligent Operating Solutions	Advanced Healthcare	Total Fortive
Total revenue growth (GAAP)	9.8 %	3.7 %	7.8 %
Excluding impact of:
Acquisitions and divestitures	(0.4)%	(0.5)%	(0.5)%
Currency exchange rates	(0.3)%	(0.1)%	(0.1)%
Core revenue growth (Non-GAAP)	9.1 %	3.1 %	7.2 %
Contribution to core growth:
Price	2.1 %	2.8 %	2.3 %
Volume	7.0 %	0.3 %	4.9 %

Three Months Ended October 2, 2026 Solutions

				Three Months Ended
$ in millions	Intelligent Operating Solutions			Advanced Healthcare Solutions			Total Fortive
	October 2,	September	Change (%)	October 2,	September	Change (%)	October 2,	September	Change (%)
	2026	26, 2025		2026	26, 2025		2026	26, 2025
North America	$ 483.2	$ 433.2	11.5 %	$ 194.9	$ 191.5	1.8 %	$ 678.1	$ 624.7	8.5 %
Asia-Pacific	117.8	111.4	5.7 %	74.8	70.0	6.9 %	192.6	181.4	6.2 %
Europe, Middle East, and Africa	135.1	126.3	7.0 %	41.6	41.6	- %	176.7	167.9	5.2 %
Latin America	31.0	27.9	11.1 %	29.1	25.2	15.5 %	60.1	53.1	13.2 %
Total Revenue (GAAP)	767.1	698.8	9.8 %	340.4	328.3	3.7 %	1,107.5	1,027.1	7.8 %

ADJUSTED GROSS PROFIT AND ADJUSTED GROSS PROFIT MARGIN

Three Months Ended October 2, 2026 Three Months Ended September 26, 2025

$ in millions Intelligent

Operating Solutions

Advanced Healthcare Solutions

Total Fortive

Intelligent Operating Solutions

Advanced Healthcare Solutions

Total Fortive

Revenue (GAAP)	$ 767.1	$ 340.4	$ 1,107.5	$ 698.8	$ 328.3	$ 1,027.1
Gross Profit (GAAP)	$ 514.2	$ 196.4	$ 710.6	$ 457.5	$ 191.7	$ 649.2
Adjustments

Discrete Restructuring Charges -		-	-	1.4	-	1.4
IEEPA tariff refunds (17.3)		(0.7)	(18.0)	-	-	-
Total Adjustments (Non-GAAP) $ (17.3)		$ (0.7)	$ (18.0)	$ 1.4	$ -	$ 1.4
Adjusted Gross Profit (Non-GAAP) $ 496.9		$ 195.7	$ 692.6	$ 458.9	$ 191.7	$ 650.6
Gross Profit Margin (GAAP)	67.0 %	57.7 %	64.2 %	65.5 %	58.4 %	63.2 %
Adjusted Gross Profit Margin (Non-GAAP)	64.8 %	57.5 %	62.5 %	65.7 %	58.4 %	63.3 %

ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN FROM CONTINUING OPERATIONS

Three Months Ended

$ in millions	October 2, 2026	July 3, 2026	April 3, 2026	December 31, 2025	September 26, 2025
Revenue (GAAP)	$ 1,107.5	$ 1,096.8	$ 1,069.4	$ 1,122.5	$ 1,027.1

Net Earnings from Continuing Operations (GAAP)	$ 172.5	$ 157.3	$ 136.4	$ 191.5	$ 117.0
Interest expense, net	38.8	35.4	31.6	31.0	25.4
Income taxes	29.8	22.2	27.2	2.4	18.0
Depreciation	22.6	22.0	20.4	18.1	17.6
Amortization	89.3	91.5	93.2	93.2	91.5
EBITDA (Non-GAAP)	353.0	328.4	308.8	336.2	269.5
Pretax acquisition, divestiture, and Separation related items (a)	1.0	1.4	1.9	2.1	38.3
Pretax discrete restructuring charges	1.5	2.4	6.3	18.5	2.1
Pretax foreign currency transaction (gains) and losses related to Euro-denominated debt	(4.9)	(4.6)	(3.3)	1.2	(0.5)
Pretax IEEPA tariff refunds	(18.0)	(4.5)	-	-	-
Pretax capitalized software impairment	6.2	-	-	-	-
Pretax gain from divestiture	-	-	-	(0.1)	-
Adjusted EBITDA (Non-GAAP)	$ 338.8	$ 323.1	$ 313.7	$ 357.9	$ 309.4

Trailing Twelve Months Adjusted EBITDA (Non-GAAP) as of October 2, 2026	$ 1,333.5

Net Earnings Margin from Continuing Operations (GAAP)	15.6 %	14.3 %	12.8 %	17.1 %	11.4 %
Adjusted EBITDA Margin (Non-GAAP)	30.6 %	29.5 %	29.3 %	31.9 %	30.1 %

(a) Includes pretax transaction costs, integration costs, corresponding restructuring charges related to acquisitions, and certain Separation-related costs recorded in Net earnings from continuing operations. The sum of the components of adjusted EBITDA may not equal due to rounding.

OPERATING PROFIT & OPERATING PROFIT MARGIN TO ADJUSTED EBITDA AND ADJUSTED MARGIN BRIDGE

Three Months Ended

$ in millions October 2, 2026 September 26, 2025

Revenue (GAAP)	$	1,107.5	$	1,027.1

Operating Profit (GAAP)	$	235.9	$	159.6
Amortization of acquisition-related intangible assets		89.3		91.5
Acquisition, divestiture, and Separation related items (a)		1.0		38.3
Discrete restructuring charges		1.5		2.1
IEEPA tariff refunds		(18.0)		-
Capitalized software impairment 6.2 -
Adjusted Operating Profit (Non-GAAP)		315.9		291.5
Depreciation		22.6		17.6
Other		0.3		0.3
Adjusted EBITDA (Non-GAAP)	$	338.8	$	309.4
Operating Profit Margin (GAAP)		21.3 %		15.5 %
Adjusted Operating Profit Margin (Non-GAAP)		28.5 %		28.4 %
Adjusted EBITDA Margin (Non-GAAP) (a) Includes pretax transaction costs, integration costs, corresponding restructuring charges related to acquisitions, and certain Separation-related costs.		30.6 %		30.1 %
The sum of the components of adjusted operating profit may not equal due to rounding.

SEGMENT ADJUSTED EBITDA AND SEGMENT ADJUSTED EBITDA MARGIN

Three Months Ended October 2, 2026 Three Months Ended September 26, 2025

$ in millions Intelligent

Operating

Advanced Healthcare

Unallocated Corporate

Total Fortive

Intelligent Operating

Advanced Healthcare

Unallocated Corporate

Total Fortive

Adjustments
Amortization of acquisition-related intangible assets	44.7	44.6	-	89.3	46.4 45.1 - 91.5
Acquisition, divestiture, and Separation related items (a)	0.4	0.2	0.4	1.0	0.1 0.1 38.1 38.3
Discrete restructuring charges	0.7	-	0.8	1.5	2.0 0.1 - 2.1
IEEPA tariff refunds	(17.3)	(0.7)	-	(18.0)	- - - -
Capitalized software impairment	6.2	-	-	6.2	- - - -

Solutions

Costs & Other

Solutions Solutions Costs & Other

Revenue (GAAP)	$ 767.1	$ 340.4	$ - $	1,107.5	$ 698.8	$ 328.3	$ - $	1,027.1
Operating Profit (GAAP)	$ 223.4	$ 38.2	$ (25.7) $	235.9	$ 180.7	$ 42.5	$ (63.6) $	159.6

Total Adjustments (Non-GAAP)	34.7	44.1	1.2	80.0	48.5	45.3	38.1	131.9
Adjusted Operating Profit (Non-GAAP)	258.1	82.3	(24.5)	315.9	229.2	87.8	(25.6)	291.5
Depreciation	16.6	5.6			$ 12.7	$ 4.5
Adjusted EBITDA (Non-GAAP)	$ 274.7	$ 87.9			$ 241.9	$ 92.3
Operating Profit Margin (GAAP)	29.1 %	11.2 %			25.9 %	12.9 %
Adjusted Operating Profit Margin (Non-GAAP)	33.6 %	24.2 %			32.8 %	26.7 %
Adjusted EBITDA Margin (Non-GAAP)	35.8 %	25.8 %			34.6 %	28.1 %

(a) Includes pretax transaction costs, integration costs, corresponding restructuring charges related to acquisitions, and certain Separation-related costs.

The sum of the components of adjusted operating profit may not equal due to rounding.

ADJUSTED NET EARNINGS AND ADJUSTED DILUTED EPS FROM CONTINUING OPERATIONS

Three Months Ended

$ in millions, except per share amounts October 2, 2026 September 26, 2025

Per share value

Net Earnings and Earnings Per Share from Continuing Operations (GAAP)	$ 172.5	$ 0.57	$ 117.0	$ 0.35
Pretax amortization of acquisition related intangible assets	89.3		0.29	91.5	0.27
Pretax acquisition, divestiture, and Separation related items (a)	1.0		-	38.3	0.11
Pretax discrete restructuring charges	1.5		-	2.1	0.01
Pretax foreign currency transaction (gains) and losses related to Euro-denominated debt	(4.9)		(0.02)	(0.5)	-
Pretax IEEPA tariff refunds	(18.0)		(0.06)	-	-
Pretax capitalized software impairment	6.2		0.02	-	-
Tax effect of the adjustments reflected above	(12.2)		(0.03)	(20.1)	(0.06)
Adjusted Net Earnings and Adjusted Earnings Per Share from Continuing Operations (Non-GAAP)	$ 235.4 $		0.77	$ 228.3 $	0.68

Average Common Diluted Stock Outstanding (shares in millions)			303.9		333.4

(a) Includes pretax transaction costs, integration costs, corresponding restructuring charges related to acquisitions, and certain Separation-related costs recorded in Net earnings from continuing operations. Percentages presented elsewhere may not recalculate based on the amounts shown due to rounding.

Net debt (Non-GAAP)	$ 3,154.7
TTM Adjusted EBITDA (Non-GAAP)	$ 1,333.5
Gross Leverage	2.6X
Net Leverage	2.4X

DEBT PRINCIPAL, NET DEBT, AND LEVERAGE

$ in millions	October 2, 2026
Current portion of long-term debt, carrying value	$ -
Long-term debt, carrying value	3,514.2
Debt, net carrying value (GAAP)	3,514.2
Plus: Aggregate unamortized debt discounts, premiums, and issuance costs	17.8
Debt, principal amounts	3,532.0
Less: Cash and equivalents	377.3

FREE CASH FLOW FROM CONTINUING OPERATIONS

Three Months Ended Trailing Twelve

Operating Cash Flows from Continuing Operations (GAAP)	$ 313.3	$	298.7	$	220.4	$	344.2	$ 1,176.6
Less: Purchases of property, plant & equipment (capital expenditures) (GAAP)	(29.5)		(28.1)		(26.6)		(30.4)	(114.6)

$ in millions October 2, 2026 July 3, 2026 April 3, 2026 December 31, 2025

Months

Free Cash Flow (Non-GAAP)	$ 283.8	$ 270.6	$ 193.8	$ 313.8	$ 1,062.0
Adjusted Net Earnings from Continuing Operations (Non-GAAP)	$ 235.4	$ 228.5	$ 217.5	$ 288.9	$ 970.3
Free Cash Flow Conversion on Adjusted Net Earnings from Continuing Operations	120.6 %	118.4 %	89.1 %	108.6 %	109.5 %

Three Months Ended Trailing Twelve

Operating Cash Flows from Continuing Operations (GAAP)	$ 294.7	$	205.0	$	191.8	$	327.7	$ 1,019.2
Less: Purchases of property, plant & equipment (capital expenditures) (GAAP)	(28.6)		(25.0)		(21.1)		(22.6)	(97.3)

September 26, 2025 June 27, 2025 March 28, 2025 December 31, 2024

Months

Free Cash Flow (Non-GAAP)	$ 266.1	$ 180.0	$ 170.7	$ 305.1	$ 921.9
Adjusted Net Earnings from Continuing Operations (Non-GAAP)	$ 228.3	$ 197.8	$ 191.1	$ 279.8	$ 897.0
Free Cash Flow Conversion on Adjusted Net Earnings from Continuing Operations	116.6 %	91.0 %	89.3 %	109.0 %	102.8 %

ADJUSTED P&L

Intelligent Operating Solutions			Advanced Healthcare Solutions			Unallocated Corporate Costs & Other		Total Fortive
Adjust- Adjusted			Adjust- Adjusted			GAAP $ - -	Adjust- Adjusted ments (Non-GAAP) $ - $ - - -	Adjust- Adjusted
GAAP ments (Non-GAAP)			GAAP ments (Non-GAAP)					GAAP ments (Non-GAAP)
$ 767.1 $ - $ 767.1			$ 340.4 $ - $ 340.4					$ 1,107.5 $ - $ 1,107.5
(252.9) 17.3 (270.2)			(144.0) 0.7 (144.7)					(396.9) 18.0 (414.9)
514.2	(17.3)	496.9	196.4	(0.7)	195.7	-	- -	710.6	(18.0)	692.6
(290.8)	52.0	(238.8)	(158.2)	44.8	(113.4)	(25.7)	1.2 (24.5)	(474.7)	98.0	(376.7)
$ 223.4 $ 34.7		$ 258.1	$ 38.2 $ 44.1		$ 82.3	$ (25.7) $ 1.2		$ (24.5)	$ 235.9	$ 80.0	$ 315.9
									(38.8)	-	(38.8)
									5.2	(4.9)	0.3
									202.3	75.1	277.4
									(29.8)	(12.2)	(42.0)
									$ 172.5 $ 62.9	$ 235.4
									303.9 -	303.9
									$ 0.57 $ 0.20	$ 0.77
$ 223.4 $ 34.7		$ 258.1	$ 38.2 $ 44.1		$ 82.3	$ (25.7) $ 1.2		$ (24.5)	$ 235.9 $ 80.0	$ 315.9
16.6 -		16.6	5.6 -		5.6	0.4 -		0.4	22.6 -	22.6
						0.3 -		0.3	0.3 -	0.3
		$ 274.7			$ 87.9			$ (23.8)		$ 338.8