Fortive (F03) Q3 2026 Earnings Report
CH:F03 Q3 2026 EPS Results
- Actual EPS
- CHF 0.63
- Consensus EPS
- CHF 0.58
- Beat/Miss
- Beat by +CHF 0.05
- One Year Ago EPS
- CHF 0.56
CH:F03 Q3 2026 Revenue Results
- Actual Revenue
- CHF 908.95M
- Expected Revenue
- CHF 877.14M
- Beat/Miss
- Beat by +CHF 31.81M
- YoY Revenue Growth
- +7.83%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/28/2026
- Time
- Before Open
- Conference Call
- Wednesday, October 28, 2026
Fortive's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was clearly positive overall. Highlights significantly outweighed the lowlights, with strong company-wide revenue, EBITDA, EPS, cash flow, capital returns, raised guidance, broad IOS momentum, and confidence in the Fortive Accelerated strategy. The main challenges were lower gross margins from product mix, declining AHS EBITDA and margin, inflation, China weakness, and a selling-day headwind expected in the fourth quarter.
Fortive raised full year 2026 adjusted EPS guidance to $3.10-$3.14 per share, representing just over 15% year-over-year growth at the midpoint; based on current foreign exchange rates, it expects full year reported revenue just north of $4.4 billion, full year core growth just north of 5%, full year Adjusted EBITDA margin expansion around the midpoint of the 50-100 basis points range, and full year net interest expense of approximately $145 million. For Q4, four fewer selling days versus the prior year's quarter are expected to drive about a $15 million-$20 million headwind to reported revenue and a 150 basis point headwind to core growth, including a 100 basis point headwind in IOS and a 300 basis point headwind in AHS; FX and M&A combined are expected to be about a 50 basis point tailwind to reported revenue, with a Q4 effective tax rate in the low double-digit range. Management expects pricing of a couple of hundred basis points, give or take, to continue through the balance of the year and out through 2027, and remains fully confident in delivering 50-100 basis points of annual Adjusted EBITDA margin expansion over the medium term.
- Strong Third-Quarter Financial PerformanceFortive reported third-quarter total revenue of $1.1 billion, up 8% year-over-year on a reported basis and up 7% on a core basis. Management also cited 7.2% core revenue growth, approximately 10% Adjusted EBITDA growth, and 13% adjusted EPS growth. Adjusted EPS was $0.77, marking the fifth consecutive quarter of double-digit adjusted EPS growth.
- Raised Full-Year 2026 Adjusted EPS GuidanceFortive raised its full-year 2026 adjusted EPS guidance to $3.10-$3.14 per share, representing just over 15% year-over-year growth at the midpoint. Management attributed the increase to strong year-to-date performance and continued confidence in the trajectory of the business.
- Positive Full-Year Revenue and Margin OutlookBased on current foreign exchange rates, management now expects full-year reported revenue just north of $4.4 billion and full-year core growth just north of 5%. Full-year Adjusted EBITDA margin expansion is expected around the midpoint of the previously stated 50-100 basis point range.
- Intelligent Operating Solutions Delivered Broad-Based GrowthIntelligent Operating Solutions revenue increased 10% on a reported basis, with core growth accelerating to 9%. Growth was broad-based across professional instrumentation, Facilities and Asset Lifecycle Solutions, and gas detection, with all regions contributing.
- IOS Profitability and Operating Leverage ImprovedIOS Adjusted EBITDA grew 13% to $275 million, while Adjusted EBITDA margin expanded 120 basis points year-over-year to just under 36%. The improvement was driven by adjusted gross profit growth, operating leverage, and discrete structural cost savings, partially offset by growth investments.
- Fluke Momentum and Data Center ExpansionFluke delivered strong broad-based growth led by its industrial and network product portfolios. Orders growth accelerated again, book-to-bill remained above one, and growth was achieved in all regions. Fortive expanded specialized data center sales capabilities, secured initial orders for its early-in-career product bundle, and continued developing products such as CertiFiber Max for hyperscaler data centers.
- Continued Innovation Across the PortfolioFluke expanded its innovation funnel with iSee Pro thermal and acoustic imagers. Industrial Scientific launched iNet Insights, a reimagined platform that expands the value of its recurring iNet subscription offering. ServiceChannel introduced AI-powered asset recognition and intelligent agents, while Provation continued deploying AI-enabled capabilities, including voice documentation and insights based on its proprietary database.
- Growth in Software and Recurring Customer ValueManagement reported strong growth in both recurring and non-recurring revenue, with non-recurring revenue growing faster in the quarter due to strong Fluke performance. eMaint continued to gain customers and advance migrations to its next-generation platform, while ServiceChannel and Gordian led strong FAL performance through AI-enabled features and procurement and planning solutions.
- Healthcare Segment Delivered Revenue GrowthAdvanced Healthcare Solutions generated $340 million of revenue, up 3.7% year-over-year on a reported basis and 3.1% on a core basis. Growth was broad-based, supported by low-temperature sterilization capital, healthcare consumables, biomedical testing equipment, radiation monitoring, and Provation SaaS products.
- Healthcare Demand Trends Improved in Several MarketsManagement said the U.S. healthcare environment was stable to improving, with healthy procedure volumes and capital spending trends more supportive than the prior year, although still somewhat constrained. Outside the U.S., management described the market as strong, and noted that the shift toward ambulatory surgery centers creates an opportunity for Fortive.
- Capital Returns and Dividend IncreaseFortive deployed another $300 million toward share repurchases in the third quarter, bringing total repurchases since the launch of new Fortive to $2.3 billion, or 13% of shares outstanding. The company also raised its quarterly dividend by 17%.
- Strong Cash Generation and Balance Sheet PositionFortive generated more than $280 million of third-quarter free cash flow, with trailing 12-month free cash flow above $1 billion and conversion on net income well north of 100%. The company ended the quarter at 2.6x gross debt to Adjusted EBITDA and modestly deleveraged from the prior quarter.
- Bolt-On Acquisitions Performing as ExpectedManagement said recent acquisitions, including Aeroqual and UV Smart, were performing solidly in line with their deal cases and were expected to contribute to accelerating growth over the coming years. The company continues to evaluate additional high-quality, accretive bolt-on opportunities.
- Positive Pricing and Inflation MitigationPrice cost remained strongly positive despite increased inflationary pressures. Fortive offset inflation through value engineering, sourcing, procurement, supply chain activities, and productivity countermeasures. Management said innovation enabled continued pricing power, with a couple of hundred basis points, give or take, described as a good pricing marker.
- Confidence in Fortive Accelerated StrategyManagement said the Fortive Accelerated strategy had contributed to sequential core growth acceleration in each of the five quarters since its launch. Full-year core growth is tracking just north of 5%, ahead of the 3%-4% medium-term framework discussed for 2026-2027, and management said the strategy's longer-term 'plus plus' opportunity remained available.
CH:F03 Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 04, 2027 | 2026 (Q4) | 0.73- | 0.74 | ― | ― |
| Oct 28, 2026 | 2026 (Q3) | 0.580.63 | 0.56 | 13.24% (+0.07) | |
| Jul 29, 2026 | 2026 (Q2) | 0.580.61 | 0.48 | 27.59% (+0.13) | |
| Apr 30, 2026 | 2026 (Q1) | 0.530.57 | 0.53 | 9.38% (+0.05) | |
| Feb 04, 2026 | 2025 (Q4) | 0.690.74 | 0.72 | 2.16% (+0.02) | |
| Oct 29, 2025 | 2025 (Q3) | 0.470.56 | 0.6 | -6.98% (-0.04) | |
| Jul 30, 2025 | 2025 (Q2) | 0.480.48 | 0.58 | -17.26% (-0.10) | |
| May 01, 2025 | 2025 (Q1) | 0.530.53 | 0.51 | 2.40% (+0.01) | |
| Feb 07, 2025 | 2024 (Q4) | 0.690.72 | 0.61 | 19.38% (+0.12) | |
| Oct 30, 2024 | 2024 (Q3) | 0.580.60 | 0.53 | 14.22% (+0.07) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
