We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Fortive's Q3 adjusted EPS rose 13.2% to 77 cents, while revenues grew 7.8% to $1.11 billion.
Intelligent Operating Solutions led growth with a 9.1% core revenue gain and 120-bps EBITDA margin increase.
Fortive raised its 2026 EPS outlook to $3.10-$3.14 and repurchased about $300 million in shares in Q3.
Fortive Corporation (FTV - Free Report) reported third-quarter 2026 adjusted earnings of 77 cents per share, which increased 13.2% year over year and topped the Zacks Consensus Estimate of 70 cents by 10%.
Revenues rose 7.8% year over year to $1.11 billion and surpassed the consensus estimate of $1.05 billion by 5.2%. Core revenues increased 7.2%, driven by strong performance in Intelligent Operating Solutions. Price contributed 2.3 percentage points to core growth, while volume added 4.9 percentage points.
Fortive’s shares are up around 1% in the pre-market trading session today. The stock has gained 22.4% in the past year compared with the Zacks Electronics - Testing Equipment industry's growth of 25.4%.
Image Source: Zacks Investment Research
FTV's Core Growth Accelerates
Reported revenue growth benefited from acquisitions, divestitures and currency translation, which collectively contributed approximately 0.6 percentage points. The remaining expansion came from core operations, reflecting stronger underlying demand and commercial execution.
Management attributed the acceleration to its Fortive Accelerated strategy, particularly investments in innovation, commercial capabilities and recurring customer value. Management highlighted the company's fifth consecutive quarter of double-digit adjusted earnings growth, supported by improving organic growth and operating performance.
Fortive's Intelligent Operating Solutions Lead
Intelligent Operating Solutions generated revenues of $767.1 million, up 9.8% year over year. Core revenues increased 9.1%, driven by accelerating demand in professional instrumentation, Facilities and Asset Lifecycle solutions, and gas detection.
Adjusted EBITDA increased 13.6% to $274.7 million. The adjusted EBITDA margin expanded 120 basis points (bps) to 35.8%, benefiting from higher adjusted gross profit, operating leverage and structural cost savings. Growth investments partially offset these gains.
The segment's adjusted gross profit rose 8.3% to $496.9 million. However, adjusted gross margin contracted 90 bps to 64.8%, primarily reflecting an unfavorable product mix, partly mitigated by operating leverage.
FTV's Healthcare Business Faces Margin Pressure
Advanced Healthcare Solutions reported revenues of $340.4 million, increasing 3.7% from the prior-year quarter. Core revenues grew 3.1%, supported by solid demand for healthcare consumables and software-as-a-service offerings, alongside modest growth in capital equipment.
Adjusted EBITDA declined 4.8% to $87.9 million. The adjusted EBITDA margin contracted 230 bps to 25.8%, reflecting growth investments and the unfavorable comparison with discrete cost benefits recorded in the year-ago quarter. Operating leverage provided a partial offset.
Adjusted gross profit advanced 2.1% to $195.7 million, while adjusted gross margin declined 90 bps to 57.5%. Product mix remained the primary headwind to profitability.
Fortive Delivers Higher Profitability
Consolidated adjusted gross profit increased 6.5% year over year to $692.6 million. However, adjusted gross margin contracted 80 bps to 62.5%, primarily due to product mix, partially offset by operating leverage.
Adjusted EBITDA rose 9.5% to $338.8 million, while the corresponding margin expanded 50 bps to 30.6%. Higher gross profit, operating leverage and structural cost savings supported profitability, although strategic growth investments partly offset the improvement.
Adjusted operating profit increased to $315.9 million from $291.5 million a year earlier. Adjusted operating margin improved 10 bps to 28.5%. GAAP net earnings from continuing operations increased 47.4% to $172.5 million, with the net earnings margin expanding 420 bps to 15.6%.
Fortive Corporation Price, Consensus and EPS Surprise
Operating cash flow from continuing operations was $313.3 million compared with $294.7 million in the prior-year quarter. Free cash flow increased to $283.8 million from $266.1 million, representing conversion of 120.6% of adjusted net earnings.
Trailing-12-month free cash flow totaled $1.06 billion, with conversion of 109.5%. Fortive ended the quarter with $377.3 million in cash and equivalents, while net debt was $3.15 billion. Gross leverage was 2.6 times adjusted EBITDA, while net leverage remained at 2.4 times.
Fortive Raises 2026 Earnings Outlook
Fortive raised its full-year 2026 adjusted earnings guidance to $3.10-$3.14 per share, representing approximately 15% year-over-year growth at the midpoint. The revision reflects strong year-to-date performance and management's confidence in the company's business trajectory.
Management reaffirmed confidence in its medium-term financial framework, supported by initiatives targeting faster profitable organic growth, disciplined capital allocation and improved investor trust.
FTV Advances Shareholder Returns
Fortive deployed approximately $300 million toward share repurchases during the third quarter, acquiring roughly 5 million shares at an average price of $60.14. Cumulative repurchases since the launch of the new Fortive reached roughly $2.3 billion, representing around 43 million shares, or 13% of diluted shares outstanding. The company also increased its regular quarterly dividend by approximately 17% year over year.
Fortive continues to prioritize organic investments, selective bolt-on acquisitions, share repurchases and a modestly growing dividend. Its capital allocation strategy remains focused on optimizing shareholder returns over the medium to long term.
Progress Software Corporation (PRGS - Free Report) reported third-quarter fiscal 2026 results wherein revenues came in at $246 million, down 2% year over year and on a constant currency (cc) basis. ARR of $873 million inched up 1% year over year on a cc basis. Progress Software Corporation reported a 13% year-over-year increase in non-GAAP earnings per share, which stood at $1.69.
Shares of Progress Software Corporation have gained 6.4% in the past year.
Synopsys, Inc (SNPS - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of $3.91 per share, which increased 15.3% year over year and beat the Zacks Consensus Estimate by 6.5%. Broad-based strength, led by EDA and Ansys, supported the earnings outperformance.
Revenues for Synopsys rose 42.4% year over year to $2.48 billion, topping the consensus mark by 1.7%. Backlog remained strong at $10.9 billion, while Design IP returned to year-over-year growth.
Shares of Synopsys have gained 4.2% in the past year.
Oracle (ORCL - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of $1.92 per share, which beat the Zacks Consensus Estimate by 10.3% and increased 30% in dollar terms and 30% in cc on a year-over-year basis.
Total quarterly revenues increased 30% year over year to $19.3 billion, which beat the consensus mark by 1.11%, reflecting strong demand for Oracle's cloud infrastructure and applications suites, particularly from AI-focused enterprises.
Shares of Oracle have lost 52.6% in the past year.
View the Zacks #1 Rank List
Image: Bigstock
Fortive Q3 Earnings Beat Estimates on Strong Core Growth, View Raised
Key Takeaways
Fortive Corporation (FTV - Free Report) reported third-quarter 2026 adjusted earnings of 77 cents per share, which increased 13.2% year over year and topped the Zacks Consensus Estimate of 70 cents by 10%.
Revenues rose 7.8% year over year to $1.11 billion and surpassed the consensus estimate of $1.05 billion by 5.2%. Core revenues increased 7.2%, driven by strong performance in Intelligent Operating Solutions. Price contributed 2.3 percentage points to core growth, while volume added 4.9 percentage points.
Fortive’s shares are up around 1% in the pre-market trading session today. The stock has gained 22.4% in the past year compared with the Zacks Electronics - Testing Equipment industry's growth of 25.4%.
Image Source: Zacks Investment Research
FTV's Core Growth Accelerates
Reported revenue growth benefited from acquisitions, divestitures and currency translation, which collectively contributed approximately 0.6 percentage points. The remaining expansion came from core operations, reflecting stronger underlying demand and commercial execution.
Management attributed the acceleration to its Fortive Accelerated strategy, particularly investments in innovation, commercial capabilities and recurring customer value. Management highlighted the company's fifth consecutive quarter of double-digit adjusted earnings growth, supported by improving organic growth and operating performance.
Fortive's Intelligent Operating Solutions Lead
Intelligent Operating Solutions generated revenues of $767.1 million, up 9.8% year over year. Core revenues increased 9.1%, driven by accelerating demand in professional instrumentation, Facilities and Asset Lifecycle solutions, and gas detection.
Adjusted EBITDA increased 13.6% to $274.7 million. The adjusted EBITDA margin expanded 120 basis points (bps) to 35.8%, benefiting from higher adjusted gross profit, operating leverage and structural cost savings. Growth investments partially offset these gains.
The segment's adjusted gross profit rose 8.3% to $496.9 million. However, adjusted gross margin contracted 90 bps to 64.8%, primarily reflecting an unfavorable product mix, partly mitigated by operating leverage.
FTV's Healthcare Business Faces Margin Pressure
Advanced Healthcare Solutions reported revenues of $340.4 million, increasing 3.7% from the prior-year quarter. Core revenues grew 3.1%, supported by solid demand for healthcare consumables and software-as-a-service offerings, alongside modest growth in capital equipment.
Adjusted EBITDA declined 4.8% to $87.9 million. The adjusted EBITDA margin contracted 230 bps to 25.8%, reflecting growth investments and the unfavorable comparison with discrete cost benefits recorded in the year-ago quarter. Operating leverage provided a partial offset.
Adjusted gross profit advanced 2.1% to $195.7 million, while adjusted gross margin declined 90 bps to 57.5%. Product mix remained the primary headwind to profitability.
Fortive Delivers Higher Profitability
Consolidated adjusted gross profit increased 6.5% year over year to $692.6 million. However, adjusted gross margin contracted 80 bps to 62.5%, primarily due to product mix, partially offset by operating leverage.
Adjusted EBITDA rose 9.5% to $338.8 million, while the corresponding margin expanded 50 bps to 30.6%. Higher gross profit, operating leverage and structural cost savings supported profitability, although strategic growth investments partly offset the improvement.
Adjusted operating profit increased to $315.9 million from $291.5 million a year earlier. Adjusted operating margin improved 10 bps to 28.5%. GAAP net earnings from continuing operations increased 47.4% to $172.5 million, with the net earnings margin expanding 420 bps to 15.6%.
Fortive Corporation Price, Consensus and EPS Surprise
Fortive Corporation price-consensus-eps-surprise-chart | Fortive Corporation Quote
FTV Strengthens Cash Generation
Operating cash flow from continuing operations was $313.3 million compared with $294.7 million in the prior-year quarter. Free cash flow increased to $283.8 million from $266.1 million, representing conversion of 120.6% of adjusted net earnings.
Trailing-12-month free cash flow totaled $1.06 billion, with conversion of 109.5%. Fortive ended the quarter with $377.3 million in cash and equivalents, while net debt was $3.15 billion. Gross leverage was 2.6 times adjusted EBITDA, while net leverage remained at 2.4 times.
Fortive Raises 2026 Earnings Outlook
Fortive raised its full-year 2026 adjusted earnings guidance to $3.10-$3.14 per share, representing approximately 15% year-over-year growth at the midpoint. The revision reflects strong year-to-date performance and management's confidence in the company's business trajectory.
Management reaffirmed confidence in its medium-term financial framework, supported by initiatives targeting faster profitable organic growth, disciplined capital allocation and improved investor trust.
FTV Advances Shareholder Returns
Fortive deployed approximately $300 million toward share repurchases during the third quarter, acquiring roughly 5 million shares at an average price of $60.14.
Cumulative repurchases since the launch of the new Fortive reached roughly $2.3 billion, representing around 43 million shares, or 13% of diluted shares outstanding. The company also increased its regular quarterly dividend by approximately 17% year over year.
Fortive continues to prioritize organic investments, selective bolt-on acquisitions, share repurchases and a modestly growing dividend. Its capital allocation strategy remains focused on optimizing shareholder returns over the medium to long term.
FTV’s Zacks Rank
Fortive currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performances
Progress Software Corporation (PRGS - Free Report) reported third-quarter fiscal 2026 results wherein revenues came in at $246 million, down 2% year over year and on a constant currency (cc) basis. ARR of $873 million inched up 1% year over year on a cc basis. Progress Software Corporation reported a 13% year-over-year increase in non-GAAP earnings per share, which stood at $1.69.
Shares of Progress Software Corporation have gained 6.4% in the past year.
Synopsys, Inc (SNPS - Free Report) reported third-quarter fiscal 2026 non-GAAP earnings of $3.91 per share, which increased 15.3% year over year and beat the Zacks Consensus Estimate by 6.5%. Broad-based strength, led by EDA and Ansys, supported the earnings outperformance.
Revenues for Synopsys rose 42.4% year over year to $2.48 billion, topping the consensus mark by 1.7%. Backlog remained strong at $10.9 billion, while Design IP returned to year-over-year growth.
Shares of Synopsys have gained 4.2% in the past year.
Oracle (ORCL - Free Report) reported first-quarter fiscal 2027 non-GAAP earnings of $1.92 per share, which beat the Zacks Consensus Estimate by 10.3% and increased 30% in dollar terms and 30% in cc on a year-over-year basis.
Total quarterly revenues increased 30% year over year to $19.3 billion, which beat the consensus mark by 1.11%, reflecting strong demand for Oracle's cloud infrastructure and applications suites, particularly from AI-focused enterprises.
Shares of Oracle have lost 52.6% in the past year.