Fortive (NYSE:FTV) reported second-quarter 2026 results that included 6.7% core revenue growth, 12% adjusted EBITDA growth and a 28% increase in adjusted earnings per share, prompting the company to raise its full-year adjusted EPS outlook.
President and CEO Olumide Soroye said the quarter marked continued execution of the company’s “Fortive Accelerated” strategy, which emphasizes innovation, commercial investments, recurring customer value and disciplined capital allocation. Fortive generated nearly $1.1 billion in revenue, up almost 8% on a reported basis, while adjusted EPS rose to $0.74.
Revenue Growth Across Segments
CFO Mark Okerstrom said growth reflected both price and volume gains in Fortive’s two operating segments. North America remained the company’s strongest region, while growth in Asia-Pacific and Latin America more than offset a modest revenue decline in Europe, the Middle East and Africa. Management attributed the EMEA weakness to geopolitical tensions and continued economic softness in the region.
Intelligent Operating Solutions revenue grew about 9% on a reported basis and 7.4% organically. The segment benefited from growth across professional instrumentation, facilities and asset lifecycle solutions, and gas detection products. Segment adjusted EBITDA increased 12% to $264 million, while adjusted EBITDA margin expanded roughly 100 basis points to just under 35%.
Fluke recorded strong order volume, with orders growing modestly faster than revenue. Soroye said North American sell-through remained strong and that the business exited the quarter with improved channel inventory. Growth in Europe was affected by deferred purchases from a small number of channel customers, though management said point-of-sale trends in the region were the strongest seen in six quarters.
Fluke also continued to benefit from its focus on data centers. Demand for the company’s CertiFiber Max product exceeded expectations, according to management. The product is intended to speed fiber-cable certification for data center construction, and Fortive said it has also helped drive demand for Fluke’s broader portfolio of power quality, battery testing and diagnostic products.
Advanced Healthcare Solutions generated nearly $340 million in revenue, up 6% year over year and 5.3% on a core basis. Growth was supported by healthcare consumables, services and software sales in Latin America, Asia-Pacific and North America. Segment adjusted EBITDA rose about 3% to $88 million, although adjusted EBITDA margin declined approximately 80 basis points to 26%.
Management said ASP’s consumables and services business expanded in every major region, while low-temperature sterilization capital-equipment demand improved and returned to growth. Soroye said hospital capital budgets remain under pressure but have continued to improve. The company also cited strong provider demand for its gastrointestinal case documentation software.
Margins, Cash Flow and Tariff Refunds
Fortive’s adjusted gross margin was 63%, down about 100 basis points from a year earlier, primarily because of product mix. Okerstrom said certain lower-margin products posted outsized growth, including products serving multi-site retail customers within Intelligent Operating Solutions. In healthcare, margin was affected by resumed growth in ASP capital products and strategic investments tied to larger accounts.
Despite gross-margin pressure, consolidated adjusted EBITDA increased to $323 million and adjusted EBITDA margin expanded about 110 basis points to 29.5%. The company credited adjusted gross-profit growth, operating leverage and structural cost savings, partly offset by investments in its growth strategy.
Fortive generated roughly $270 million of free cash flow during the quarter. Trailing 12-month free cash flow exceeded $1 billion, with conversion on net income “well north of 100%,” Okerstrom said.
The company recognized a $4.5 million benefit from refunds tied to IEEPA tariffs in its GAAP earnings. Fortive expects an additional $20 million to $25 million in tariff refunds in coming quarters, but excludes those refunds from adjusted metrics to facilitate comparisons between reporting periods.
Capital Allocation, AI and Acquisitions
Fortive repurchased roughly $200 million of shares in the second quarter. Since the launch of “New Fortive” a year earlier, the company has deployed nearly $2 billion toward buybacks, repurchasing approximately 38 million shares, or about 11% of shares outstanding.
Fortive also acquired a majority stake in UV Smart, whose UVC high-level disinfection technology expands ASP’s disinfection portfolio for specialized instruments. Management said future bolt-on acquisitions will likely be concentrated in the company’s largest platforms, including Fluke and ASP, while software acquisitions would need to meet strict strategic and financial criteria.
The company highlighted artificial intelligence-enabled offerings across its software businesses, including predictive-maintenance tools at ServiceChannel and Accruent, Flash AI at Gordian, and new capabilities in Fluke’s eMaint platform. Soroye said Fortive’s AI investments have been supported by an internal AI Center of Excellence established seven years ago and have not required significant incremental spending.
Outlook Raised
Fortive raised its 2026 adjusted EPS guidance to a range of $2.95 to $3.05. The company now expects full-year reported revenue of approximately $4.35 billion and core revenue growth of about 4%, compared with its prior expectation of 2% to 3% growth.
Management expects third-quarter revenue to follow normal seasonal patterns, with adjusted EBITDA margin slightly below second-quarter levels because of lower absolute revenue and modest strategic investments. Fourth-quarter reported revenue will be affected by four fewer selling days than the prior-year period, which Fortive expects will create a $15 million to $20 million revenue headwind and a 150-basis-point headwind to core growth.
Okerstrom said Fortive expects to continue operating within its targeted annual adjusted EBITDA margin expansion range of 50 to 100 basis points in 2026 and 2027.
About Fortive (NYSE:FTV)
Fortive Corporation (NYSE: FTV) is a diversified industrial technology company headquartered in Everett, Washington. The company was created through a spin‑off from Danaher Corporation in 2016 and has since focused on building a portfolio of professional instrumentation and industrial technology businesses. In 2020 Fortive completed a further portfolio separation with the spin‑off of Vontier, concentrating Fortive’s activities on higher‑margin instrumentation, software and services.
Fortive’s operations center on professional test and measurement, sensing and monitoring, software‑enabled solutions, and lifecycle services that support industrial and commercial customers.
