Key Highlights

  • Consensus EPS of 0.70 compares with second-quarter GAAP diluted EPS of 0.51 and adjusted diluted EPS of 0.74.
  • Consensus revenue of USD 1.07 billion compares with second-quarter revenue of USD 1,096.8 million, against USD 1,016.4 million.
  • Management raised 2026 adjusted EPS guidance to 2.95 to 3.05 and core revenue growth guidance to approximately 4%.
  • Adjusted EBITDA was USD 323.1 million with a 29.5% margin, and free cash flow was USD 270.6 million.

Fortive (NYSE:FTV) reports third-quarter results on Wednesday, Oct. 28, before the market opens. Consensus stands at EPS of 0.70 on revenue of USD 1.07 billion, and the company has a market capitalization of USD 18.36 billion.

Fortive operates the Intelligent Operating Solutions and Advanced Healthcare Solutions segments. Second-quarter revenue was USD 1,096.8 million against USD 1,016.4 million, with Intelligent Operating Solutions at USD 758.2 million and Advanced Healthcare Solutions at USD 338.6 million.

Estimates Against Raised 2026 Guidance

The EPS estimate of 0.70 is below the second-quarter adjusted diluted EPS of 0.74 and above the GAAP diluted EPS of 0.51, which compared with 0.49 a year earlier. The estimates table does not state its EPS basis. The revenue estimate of USD 1.07 billion is below the USD 1,096.8 million reported.

Management raised 2026 adjusted EPS guidance to 2.95 to 3.05 and core revenue growth guidance to approximately 4% from 2% to 3%. It put full-year reported revenue at approximately USD 4.35 billion at current exchange rates.

What Management Guided and What It Left Open

Management said third-quarter reported revenue as a share of the year is broadly in line with historical patterns, while the fourth quarter has four fewer selling days and a revenue headwind of USD 15 million to USD 20 million. It said the outlook assumes second-quarter market dynamics and current tariff rates.

Management left open the tariff refund timing, recognizing USD 4.5 million of IEEPA refunds in the quarter and citing USD 20 million to USD 25 million in upcoming periods. It also noted that EMEA revenue declined modestly on macroeconomic uncertainty and geopolitical tensions.

Segment Margins and Core Growth

Reported revenue rose 7.9% and core revenue rose 6.7%. Intelligent Operating Solutions core growth was 7.4% with an adjusted EBITDA margin of 34.9%, up 100 basis points, and Advanced Healthcare Solutions core growth was 5.3% with a margin of 26.1%, down 80 basis points.

Adjusted gross margin was 63.0%, down 100 basis points, on faster growth in lower-margin products. Gross profit was USD 695.3 million against USD 645.5 million, and operating income was USD 209.9 million against USD 169.8 million.

Cash Flow, Buybacks and Leverage

Free cash flow was USD 270.6 million, and trailing twelve-month free cash flow was USD 1.04 billion. The company spent USD 200 million repurchasing approximately 3 million shares, for 38 million shares since the New Fortive launch.

Gross debt to adjusted EBITDA was 2.7x. Net income was USD 157.3 million against USD 166.6 million, and interest expense was USD 35.4 million against USD 32.1 million. The estimates table lists a market capitalization of USD 18.36 billion.

Items to Track in the Report

Reported EPS against 0.70 and revenue against USD 1.07 billion are the headline comparisons. Other markers are Healthcare margins, EMEA demand and the 2026 guidance ranges.