Fortive Corporation

What they do

Fortive designs, develops, manufactures and markets products, software and services through two strategic segments. Intelligent Operating Solutions provides advanced instrumentation, software and services including professional instruments for maintenance, repair, measurement and condition monitoring, facility and asset lifecycle software, and connected worker safety and compliance solutions. Advanced Healthcare Solutions serves healthcare customers. The company is headquartered in Everett, Washington, employs more than 10,000 people in approximately 50 countries, and is listed on the NYSE.

Revenue drivers

• Intelligent Operating Solutions — Largest segment, with Q2 2026 revenue of $758M, up 8.8% reported and 7.4% core, and GAAP operating profit of $204M (26.8% margin); sells instruments, software and services into manufacturing, process industries, healthcare, utilities and power, and communications and electronics.
• Advanced Healthcare Solutions — Second segment, with Q2 2026 revenue of $339M, up 6.0% reported and 5.3% core, and GAAP operating profit of $38M (11.3% margin).
• Products and software — Q2 2026 products and software sales were $876.8M versus $812.5M a year earlier, representing the majority of total revenue.
• Services — Q2 2026 services sales were $220.0M versus $203.9M a year earlier; service cost of sales was $114.1M versus $93.8M, reflecting a lower service gross margin.

Recent performance

For Q2 2026, Fortive reported total sales of $1,096.8M, up 7.9% reported and 6.7% core from $1,016.4M a year earlier. GAAP net earnings from continuing operations were $157.3M, or $0.51 diluted, versus $111.6M, or $0.33 diluted, in Q2 2025; adjusted diluted EPS was $0.74 versus $0.58. GAAP operating profit rose to $209.9M from $169.8M, and the company reported adjusted EBITDA of $323M, up 12.0% with a 29.5% margin. GAAP operating cash flow was $299M and free cash flow was $271M; TTM free cash flow was $1,044M. Intelligent Operating Solutions grew 8.8% reported (7.4% core) to $758M, while Advanced Healthcare Solutions grew 6.0% reported (5.3% core) to $339M.

Strategy

Fortive is executing its "Fortive Accelerated" strategy, built on faster profitable growth, disciplined capital allocation and maintaining investor trust. The company runs the Fortive Business System (FBS) as its continuous-improvement operating model and is incorporating technology enablers such as artificial intelligence and machine learning. It cites early evidence that investments in innovation acceleration, commercial acceleration and recurring customer value are improving growth and earnings. Capital allocation is concentrated on best relative returns, demonstrated by $200M of share repurchases in Q2 2026 and $2 billion over the trailing four quarters. On June 28, 2025, the company completed the tax-free spin-off of its Precision Technologies segment as Ralliant Corporation.

Risks

• Economic and market conditions — Adverse global economic conditions, reduced demand or consumer confidence, high inflation, interest rate policies and changes in global trade policies could reduce demand for Fortive's products, software and services and lengthen sales cycles.
• Supply chain and component availability — Fortive's reliance on sole or limited sources for certain materials, components and services could cause production interruptions, delays and inefficiencies if it cannot adjust manufacturing capacity and purchases to reflect changes in market conditions and customer demand.
• Commodity and component cost fluctuations — Financial results are subject to fluctuations in the cost and availability of commodities or components used in operations.
• Cyclical end markets — Growth could suffer if the markets Fortive sells into decline, do not grow as anticipated, or experience cyclicality.

Outlook

Management raised its full-year 2026 adjusted diluted EPS guidance range to $2.95 to $3.05, citing strong first-half performance and confidence in the trajectory of the business. The company states its medium-term financial framework remains solidly intact and that it is confident in the significant shareholder value creation opportunity ahead. No further specific guidance figures were provided in the excerpt.