Our results and outlook discussed today are on a continuing operations basis. On a consolidated basis, we delivered core revenue growth of 6.7%, adjusted EBITDA growth of 12%, and adjusted EPS growth of 28%. Importantly, our results reflect continued progress on our objective of driving faster profitable organic growth powered by our Fortive Business System Amplified. Second, we remain disciplined in our capital allocation approach with relentless focus on optimizing shareholder returns over the medium to long term.
Finally, we are raising our full-year 2026 adjusted EPS guidance to $2.95-$3.05, reflecting our solid first-half performance and our confidence in the trajectory of the business. Overall, we remain encouraged by the progress we're seeing across innovation, commercial, and recurring customer value, all of which are building the foundation for durable, faster organic growth. At Fluke, our innovation funnel is steadily expanding with new product introductions tightly aligned to strategic growth areas such as data centers, defense, and early-in-career technicians. Demand for CertiFiber Max continues to exceed expectations, helping establish Fluke's position in the rapidly growing data center commissioning and maintenance market and driving pull-through of the broader Fluke portfolio into this high-growth area.
On the commercial side, we maintained our focus on faster-growing end markets and regions where we've made deliberate targeted investments to capture growth. At Fluke, investments in data center expertise drove incremental demand for our networks, power quality, and battery testing product lines. Additionally, we continue to see strong momentum in India, where our localized service and support investments are strengthening customer relationships and helping drive growth. On our recurring customer value initiatives, we made further progress on deepening customer life cycle engagement and improving revenue durability.
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EPS | FY2026 | Raised to $2.95-$3.05 |
| Core revenue growth | FY2026 | ~4% (near the high end of the Investor Day framework) |
| Reported revenue | FY2026 | ~$4.35 billion (current FX); FX+M&A ~50 bps tailwind in Q3 and Q4 |
| Adjusted EBITDA margin expansion | FY2026 | Within the 50-100 bps framework (trending toward the lower end) |
| Adjusted EBITDA margin / EPS phasing | Q3 2026 | EBITDA margin slightly below Q2 (tougher comp, mix, smaller quarter); Q3 EPS up only very slightly YoY, delivery weighted to Q4 |
| Tax rate / interest | FY2026 | Mid-teens full-year tax rate (Q3 mid-teens, Q4 low double digits); net interest ~$140M |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +7.9% to $1.10B | 6.7% core growth (price and volume in both segments) plus FX/M&A; continuing operations. |
| Adjusted EPS | +28% to $0.74 | Adjusted EBITDA growth plus the benefit of share repurchases; GAAP diluted EPS $0.51. |
| Adjusted EBITDA | +12% to $323M | Adjusted gross-profit growth, operating leverage and discrete structural cost savings, partly offset by growth investments; margin +110 bps to 29.5%. |
| Intelligent Operating Solutions core | +7.4% | Broad momentum across professional instrumentation (Fluke), Facilities/Asset Lifecycle software and gas detection; segment adjusted EBITDA +12% to $264M (~35% margin). |
| Advanced Healthcare Solutions core | +5.3% | Strong ASP consumables/services across all regions plus software (Provation) and capital returning to growth; segment adjusted EBITDA +3% to $88M (~26% margin). |
| Adjusted gross margin | -100 bps to 63% | Product-mix dynamics from outsized lower-margin product growth, partly offset by operating leverage. |
| Free cash flow | ~$270M (TTM >$1B) | Over 100% conversion on net income, underscoring the low-capital-intensity model. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Fortive Accelerated strategy | Launched at spin (~1 year ago) | Three pillars - faster profitable organic growth (innovation, commercial, recurring customer value), disciplined capital allocation, and investor trust - driving four straight quarters of accelerating core growth and margin expansion. | — |
| Fluke and data center pull-through | Data center one of many end markets | New products aimed at data centers (CertiFiber Max high-density fiber testing, well above plan) are pulling through Fluke's broader portfolio; Fluke (>40% of the company) had broad-based price+volume strength, book-to-bill above one, and record European POS despite channel deferrals. | — |
| AI-enabled software | AI Center of Excellence (7 years) | Measurable-ROI AI features deployed across six software brands (Gordian Flash AI cutting cost-estimating from days to minutes, Fluke eMaint), monetized via explicit sales, outcome-based pricing, token pass-through and higher net dollar retention, at modest incremental investment. | — |
| Advanced Healthcare recovery | Hospital CapEx pressure | ASP capital demand returned to growth as hospital budget pressure eased, consumables/services grew in every region, and an FDA clearance for expanded 50-lb STERRAD load capacity enlarges the robotic-surgery sterilization market; UV Smart bolt-on deepens the offering. | — |
| Disciplined capital allocation and bolt-on M&A | Buyback-heavy post-spin | ~$2B of buybacks (~11% of shares) since spin, a revamped bolt-on M&A engine now in place (UV Smart completed) skewing toward strongest platforms (Fluke, ASP) and differentiated hardware over software, at 2.7x leverage. | — |
| Recurring revenue and lifecycle value | Device-centric model | Recurring revenue growing double digits at Fluke (services/software/calibration), as customers increasingly want lifecycle experiences (calibration + software + services) rather than just hardware, deepening a loyal installed base. | — |