Fortive (FTV) investor relations material

Executive summary

• Q3 revenue was $1,107.5M, up 7.8% reported and 7.2% core; adjusted EBITDA rose 9.5% and adjusted diluted EPS rose 13.2% YoY.

• FY 2026 adjusted diluted EPS guidance increased to $3.10–$3.14, representing ~15% growth at the midpoint.

• IOS led segment growth; reported operating-margin expansion included tariff refunds and prior-year separation-related costs.

Financial highlights

• Adjusted gross profit was $692.6M, up 6.5%; adjusted gross margin was 62.5%, down ~80 bps YoY, primarily from product mix.

• Adjusted EBITDA was $338.8M, up 9.5%; adjusted EBITDA margin expanded ~50 bps to 30.6%.

• Adjusted net earnings were $235.4M and adjusted diluted EPS was $0.77, versus $228.3M and $0.68 a year earlier.

• GAAP operating profit was $235.9M versus $159.6M; GAAP net earnings from continuing operations were $172.5M versus $117.0M, and diluted EPS was $0.57 versus $0.35.

• Q3 operating cash flow was $313.3M and free cash flow was $283.8M; TTM free cash flow was $1,062.0M, with 109.5% conversion on adjusted net earnings.

Outlook and guidance

• FY 2026 adjusted diluted EPS guidance rose to $3.10–$3.14, up ~15% YoY at the midpoint; assumptions reflect current market conditions and tariff rates.

• FY 2026 reported revenue is expected just north of $4.4B, core growth just north of 5%, and adjusted EBITDA margin expansion near the midpoint of the 50–100 bps framework.

• Four fewer Q4 selling days are expected to reduce reported revenue by $15M–$20M and core growth by 150 bps, including 100 bps in IOS and 300 bps in AHS.

• FY 2026 net interest expense is expected at ~$145M; Q4 effective tax rate is expected in the low double-digit range.

• Medium-term priorities include faster profitable organic growth, recurring customer value and disciplined capital allocation; TSR ambition is to exceed the S&P 500 over 3–5 years.