Q2 FY2026
Filed Jul 29, 2026Fortive Reports Second Quarter 2026 Results
Revenue grew 7.9% year-over-year on a reported basis and 6.7% on a core basis, while GAAP net earnings rose 40.9%, adjusted EBITDA rose 12.0%, adjusted diluted EPS rose 28.5%, and the company raised FY 2026 adjusted diluted EPS guidance to $2.95 to $3.05.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $1,097M | – | 7.9% |
| Core revenue growthnon-GAAP | 6.7% | – | 6.7% |
| GAAP net earningsGAAP | $157M | – | 40.9% |
| GAAP net earnings marginGAAP | 14.3% | – | 330 bps |
| Adjusted EBITDAnon-GAAP | $323M | – | 12.0% |
| Adjusted EBITDA marginnon-GAAP | 29.5% | – | 110 bps |
| GAAP diluted earnings per shareGAAP | $0.51 | – | 54.5% |
| Adjusted diluted earnings per sharenon-GAAP | $0.74 | – | 28.5% |
| GAAP operating cash flowGAAP | $299M | – | 45.7% |
| Free cash flownon-GAAP | $271M | – | 50.3% |
| TTM GAAP operating cash flowGAAP | $1,158M | – | 12.5% |
| TTM free cash flownon-GAAP | $1,044M | – | 11.2% |
| Intelligent Operating Solutions GAAP operating profitGAAP | $204M | – | 19.1% |
| Intelligent Operating Solutions GAAP operating marginGAAP | 26.8% | – | 230 bps |
| Intelligent Operating Solutions adjusted EBITDAnon-GAAP | $264M | – | 12.2% |
| Intelligent Operating Solutions adjusted EBITDA marginnon-GAAP | 34.9% | – | 110 bps |
| Advanced Healthcare Solutions GAAP operating profitGAAP | $38M | – | 7.0% |
| Advanced Healthcare Solutions GAAP operating marginGAAP | 11.3% | – | 10 bps |
| Advanced Healthcare Solutions adjusted EBITDAnon-GAAP | $88M | – | 2.7% |
| Advanced Healthcare Solutions adjusted EBITDA marginnon-GAAP | 26.1% | – | (80) bps |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Intelligent Operating SolutionsRevenue increased on both a reported and core basis. | $758M | – | 8.8% / 7.4% (reported / core) |
| Advanced Healthcare SolutionsRevenue increased on both a reported and core basis. | $339M | – | 6.0% / 5.3% (reported / core) |
FY 2026 outlook
- NoteAdjusted diluted earnings per share of $2.95 to $3.05
Capital returns
- Deployed ~$200 million towards share repurchases, representing ~3 million shares or ~1% of diluted shares outstanding.
- Completed ~$200 million of share repurchases in Q2, bringing total share repurchases over the last four quarters to ~$2 billion, representing ~38 million shares or ~11% of shares outstanding.
What drove it
- Q2 reported revenue grew 7.9% year-over-year on a reported basis and 6.7% on a core basis.
- Intelligent Operating Solutions revenue grew 8.8% / 7.4% (reported / core).
- Advanced Healthcare Solutions revenue grew 6.0% / 5.3% (reported / core).
- The company cited early evidence that investments in innovation acceleration, commercial acceleration, and recurring customer value are contributing to improved growth and earnings performance.
- The company completed the separation of its former Precision Technologies segment on June 28, 2025; amounts in the release refer to continuing operations unless otherwise indicated.
Concerns
- Advanced Healthcare Solutions adjusted EBITDA margin was 26.1%, versus 26.9% in Q2-25, a change of (80) bps.
- The filing identifies risks including deterioration or instability in the economy and markets served, tariffs and trade restrictions, supply chain constraints, currency exchange rates, changes in tax rates and liabilities, debt obligations, and adverse effects of restructuring activities.
What to watch
- Execution against FY 2026 adjusted diluted earnings per share guidance of $2.95 to $3.05.
- Sustainability of 6.7% core revenue growth.
- Advanced Healthcare Solutions adjusted EBITDA margin following the (80) bps year-over-year change.
- Further deployment of capital toward share repurchases and the company’s focus on best relative returns.
- Progress on the Fortive Accelerated strategy, including innovation acceleration, commercial acceleration, and recurring customer value.
Balance sheet and cash flow
- GAAP operating cash flow of $299 million.
- Free cash flow of $271 million.
- Trailing Twelve Months (TTM) GAAP operating cash flow of $1,158M.
- TTM free cash flow of $1,044M.
Analysis
Fortive reported a strong second quarter from continuing operations. Revenue was $1,097M, up 7.9% year-over-year on a reported basis, with 6.7% core revenue growth. GAAP net earnings rose 40.9% to $157M and GAAP diluted earnings per share rose 54.5% to $0.51. Adjusted EBITDA increased 12.0% to $323M, while adjusted diluted earnings per share increased 28.5% to $0.74.
Both reported segments grew. Intelligent Operating Solutions delivered $758M of revenue, up 8.8% / 7.4% on a reported / core basis, and its GAAP operating margin expanded 230 bps to 26.8%. Its adjusted EBITDA margin expanded 110 bps to 34.9%. Advanced Healthcare Solutions generated $339M of revenue, up 6.0% / 5.3% on a reported / core basis. Its GAAP operating margin increased 10 bps to 11.3%, but adjusted EBITDA margin declined (80) bps to 26.1%.
Profitability and cash conversion improved versus Q2-25. GAAP net earnings margin was 14.3%, compared with 11.0%, and adjusted EBITDA margin was 29.5%, compared with 28.4%. GAAP operating cash flow was $299M and free cash flow was $271M, with both up more than 45% year-over-year. TTM GAAP operating cash flow was $1,158M and TTM free cash flow was $1,044M.
Capital allocation remained focused on repurchases. Fortive deployed ~$200 million toward share repurchases in Q2, representing ~3 million shares or ~1% of diluted shares outstanding. The company stated that repurchases over the last four quarters totaled ~$2 billion, representing ~38 million shares or ~11% of shares outstanding.
Management raised FY 2026 adjusted diluted earnings per share guidance to $2.95 to $3.05, citing strong first-half performance and confidence in the business trajectory. The release does not provide revenue, gross margin, operating expense, tax-rate, or GAAP earnings guidance. The stated operational focus remains profitable organic growth acceleration, disciplined capital allocation, and investor trust, with management citing innovation acceleration, commercial acceleration, and recurring customer value as areas supporting growth and earnings performance.
Management, verbatim
Q2 marked another quarter of strong financial performance and execution by our team. Core revenue growth accelerated to 6.7%, adjusted EBITDA grew 12%, and adjusted EPS growth was 28% in the quarter.
Olumide Soroye, President and CEO
Looking ahead, we are raising our full-year 2026 adjusted EPS guidance range to $2.95 to $3.05, reflecting our strong first-half performance and confidence in the trajectory of the business.
Olumide Soroye, President and CEO
Not in the filing
stated, not guessed- Period-end date.
- Consolidated GAAP gross profit and gross margin.
- Consolidated GAAP operating income or operating margin.
- Adjusted net earnings.
- Cash balance.
- Debt balance.
- Dividend declaration or payment information.
- Prior-quarter comparisons for reported metrics.
- FY 2026 revenue guidance.
- FY 2026 gross margin guidance.
- FY 2026 operating expense guidance.
- FY 2026 tax-rate guidance.
- Prior FY 2026 guidance necessary to compare actual results with prior guidance.
- Detailed CFO commentary.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.