Fortive (FTV) AI Stock Analysis

Company Guidance

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.