Fortive (FTV) Q3 2025 earnings summary

Executive summary

• Completed the separation of the Precision Technologies segment (Ralliant), resulting in a simpler, more focused company structure and reporting it as discontinued operations for all periods presented.

• Achieved strong Q3 execution with core revenue growth of 1.9–2%, adjusted EBITDA growth of 10–10.4%, and adjusted EPS growth of 15–15.3% year-over-year.

• Raised full-year adjusted EPS guidance to $2.63–$2.67 per share, reflecting Q3 overperformance and share buybacks.

• Deployed $1 billion for share repurchases in Q3, retiring 21 million shares (about 6% of diluted share count).

• Strategic focus on innovation, recurring revenue growth, and disciplined capital allocation.

Financial highlights

• Q3 2025 revenue was $1,027 million, up 2.3% year-over-year; core growth was 1.9%.

• Adjusted EBITDA was $309 million (30.1% margin), up 10.4% year-over-year.

• Adjusted EPS was $0.68, up 15.3% year-over-year.

• Free cash flow for Q3 was $266 million; trailing twelve-month free cash flow was $922 million, with conversion above 100%.

• Adjusted gross margin was 63.2–63.3%, slightly down year-over-year due to tariff-related costs.

Outlook and guidance

• Full-year adjusted EPS guidance raised to $2.63–$2.67 per share.

• Q4 expected to see moderated core growth, with AHS in line with Q3 and modest growth at IOS.

• Guidance incorporates current demand environment and tariff impacts.

• Full-year adjusted effective tax rate expected in the mid-teens; Q4 tax rate in single digits due to discrete items.

• Sequential increase in net interest expense anticipated in Q4.