Fortive (FTV) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered strong results with revenue up 7.7% year-over-year to $1.07 billion, core revenue growth of 5.3%, and adjusted EPS up 25.4%, aided by additional selling days and robust execution across both segments.

• Adjusted EBITDA grew 13.2% year-over-year, with margin expanding to 29.3%, and GAAP diluted net EPS reached $0.44.

• Strategic focus on innovation, commercial acceleration, and recurring revenue initiatives drove broad-based growth, especially in data centers, healthcare, and software.

• Approximately $500 million was deployed toward share repurchases in Q1, reducing diluted shares outstanding by about 3%.

• The company reaffirmed its FY 2026 adjusted EPS guidance of $2.90 to $3.00, trending toward the upper half.

Financial highlights

• Q1 2026 revenue was $1.07 billion, up 7.7% year-over-year, with core revenue up 5.3%.

• Adjusted gross margin was 63.2%, down about 100 basis points year-over-year due to tariffs.

• Adjusted EBITDA reached $314 million (29.3% margin), up 13.2% year-over-year.

• Adjusted EPS was $0.70, up 25.4% year-over-year, marking the third consecutive quarter of double-digit growth.

• Free cash flow for Q1 was $194 million, with trailing twelve-month conversion above 100%.

Outlook and guidance

• Full-year 2026 adjusted EPS guidance of $2.90-$3.00 per share reaffirmed, trending toward the upper half.

• Full-year reported revenue expected around $4.3 billion, with core growth in the 2%-3% range, trending toward the upper end.

• Q2 and Q3 adjusted EPS expected to be broadly similar to Q1; Q4 faces a $15-$20 million revenue headwind due to fewer selling days.

• FX and M&A expected to provide a 150 basis point tailwind to Q2 revenue, moderating in the second half.

• Medium-term financial framework remains intact, with continued focus on profitable organic growth and disciplined capital allocation.