Fortive Q2 Earnings Call Highlights

Fortive delivered strong second-quarter results, with 6.7% core revenue growth, 12% adjusted EBITDA growth and a 28% increase in adjusted EPS to $0.74.

Performance was led by Intelligent Operating Solutions and continued demand for Fluke’s data-center products.

The company generated approximately $270 million in quarterly free cash flow and repurchased about $200 million of shares, bringing buybacks since the “New Fortive” launch to nearly $2 billion.

Fortive also acquired a majority stake in UV Smart to expand its healthcare disinfection portfolio.

Fortive raised its 2026 outlook, now forecasting adjusted EPS of $2.95–$3.05, reported revenue of roughly $4.35 billion and core revenue growth of about 4%, up from its previous 2%–3% estimate.

Fortive NYSE: FTV reported second-quarter 2026 results that included 6.7% core revenue growth, 12% adjusted EBITDA growth and a 28% increase in adjusted earnings per share, prompting the company to raise its full-year adjusted EPS outlook.

President and CEO Olumide Soroye said the quarter marked continued execution of the company’s “Fortive Accelerated” strategy, which emphasizes innovation, commercial investments, recurring customer value and disciplined capital allocation.

Fortive generated nearly $1.1 billion in revenue, up almost 8% on a reported basis, while adjusted EPS rose to $0.74.

“Q2 marked another quarter of strong results and execution,” Soroye said, noting that the company has now produced four consecutive quarters of double-digit adjusted EPS growth.

North America remained the company’s strongest region, while growth in Asia-Pacific and Latin America more than offset a modest revenue decline in Europe, the Middle East and Africa.

Management attributed the EMEA weakness to geopolitical tensions and continued economic softness in the region.

Intelligent Operating Solutions revenue grew about 9% on a reported basis and 7.4% organically.

The segment benefited from growth across professional instrumentation, facilities and asset lifecycle solutions, and gas detection products.

Segment adjusted EBITDA increased 12% to $264 million, while adjusted EBITDA margin expanded roughly 100 basis points to just under 35%.

Fluke recorded strong order volume, with orders growing modestly faster than revenue.

Soroye said North American sell-through remained strong and that the business exited the quarter with improved channel inventory.

Growth in Europe was affected by deferred purchases from a small number of channel customers, though management said point-of-sale trends in the region were the strongest seen in six quarters.

Fluke also continued to benefit from its focus on data centers.

Demand for the company’s CertiFiber Max product exceeded expectations, according to management.

The product is intended to speed fiber-cable certification for data center construction, and Fortive said it has also helped drive demand for Fluke’s broader portfolio of power quality, battery testing and diagnostic products.

Advanced Healthcare Solutions generated nearly $340 million in revenue, up 6% year over year and 5.3% on a core basis.

Growth was supported by healthcare consumables, services and software sales in Latin America, Asia-Pacific and North America.

Segment adjusted EBITDA rose about 3% to $88 million, although adjusted EBITDA margin declined approximately 80 basis points to 26%.

Management said ASP’s consumables and services business expanded in every major region, while low-temperature sterilization capital-equipment demand impr...