Fortive Raises 2026 EPS Outlook to $3.10–$3.14 After Quarterly Growth of 13.2%
Key Facts
Fortive reported third-quarter results on October 28 for the period ended October 2, 2026, and raised its adjusted diluted EPS outlook for the year to $3.10–$3.14. The company said the midpoint of the new range represents an increase of about 15% year over year. Revenue was $1.108 billion, compared with $1.027 billion in the year-earlier period, an increase of 7.8%, while core revenue growth was 7.2%. Adjusted diluted EPS rose to $0.77 from $0.68, an increase of 13.2%. GAAP net income also increased to $173 million from $117 million, up 47.4%.
Improvement extended to adjusted EBITDA, which reached $339 million, compared with $309 million in the third quarter of 2025, an increase of 9.5%. CEO Olumide Soroye said the company delivered core growth of more than 7%, adjusted EBITDA growth of nearly 10%, and adjusted EPS growth of 13%. He described it as “our fifth consecutive quarter of double-digit adjusted EPS growth.” The sequence places the quarter’s results within a continuing run of adjusted EPS growth, according to Soroye in the company’s statement. The metrics show core revenue growth of 7.2%, while adjusted EPS grew at a faster pace of 13.2%.
Intelligent Operating Solutions was the stronger of the two segments in core revenue growth, posting 9.1%, with revenue of $767 million. Reported revenue rose 9.8% from the year-earlier period, when it was $699 million. Its GAAP operating margin improved to 29.1% from 25.9% a year earlier. By contrast, Advanced Healthcare Solutions posted core revenue growth of 3.1%. The segment’s GAAP operating margin declined to 11.2% from 12.9%, while its adjusted EBITDA margin fell to 25.8% from 28.1%; margin trends therefore diverged between the two segments during the quarter.
Free cash flow was $284 million in the third quarter, compared with $266 million in the year-earlier period, an increase of 6.7%. Fortive said it allocated about $300 million to share repurchases during the quarter. The repurchases represented about 5 million shares, or nearly 2% of diluted shares outstanding, according to the company’s statement. The buyback adds to the picture of cash use during the period, alongside free cash flow above its level a year earlier. On earnings, GAAP net income rose 47.4%, while adjusted EBITDA increased 9.5%; the company reported these as separate measures of the quarter’s results.
Before the results announcement, Fortive shares closed at $60.25 on October 23, then at $60.78 on October 26, and at $61.62 on October 27, according to EL7 data. The closing-price sequence provides a comparison for the days before the October 28 announcement and does not include a price for the following day or measure the stock’s reaction after the results were released. The quarterly investor call to discuss results and outlook was scheduled for October 28 at 12 p.m. Eastern time. The call therefore took place on the same day as the results announcement, after the new annual guidance range was released. The company scheduled the call to discuss results and outlook with investors.