FTV

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Fortive (NYSE:FTV) and the best and worst performers in the professional tools and equipment industry. Automation that increases efficiency and connected equipment that collects analyzable data have been trending, creating new demand. Some professional tools and equipment companies also provide software to accompany measurement or automated machinery, adding a stream of recurring revenues to their businesses. On the other hand, professional tools and equipment companies are at the whim of economic cycles. Consumer spending and interest rates, for example, can greatly impact the industrial production that drives demand for these companies’ offerings. The 9 professional tools and equipment stocks we track reported a strong Q2. As a group, revenues beat analysts’ consensus estimates by 2.1% while next quarter’s revenue guidance was 14.3% above. While some professional tools and equipment stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 2.3% since the latest earnings results. Taking its name from the Latin root of "strong", Fortive (NYSE:FTV) manufactures products and develops industrial software for numerous industries. Fortive reported revenues of $1.10 billion, up 7.9% year on year. This print exceeded analysts’ expectations by 2.5%. Overall, it was a strong quarter for the company with a decent beat of analysts’ EBITDA estimates and a beat of analysts’ EPS estimates. “Q2 marked another quarter of strong financial performance and execution by our team. Core revenue growth accelerated to 6.7%, adjusted EBITDA grew 12%, and adjusted EPS growth was 28% in the quarter. In addition to accelerating profitable growth, we continued to deliver on our commitment to disciplined capital allocation by completing an additional ~$200 million of share repurchases in the quarter, bringing total repurchases over the last four quarters to ~$2 billion,” said Olumide Soroye, President and CEO. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 7.7% since reporting and currently trades at $59.19. Is now the time to buy Fortive? Access our full analysis of the earnings results here, it’s free. Involved in manufacturing hard tips of anti-tank projectiles in World War II, Kennametal (NYSE:KMT) is a provider of industrial materials and tools for various sectors. Kennametal reported revenues of $736.6 million, up 42.6% year on year, outperforming analysts’ expectations by 1.3%. The business had a stunning quarter with EPS guidance for next quarter exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Kennametal scored the fastest revenue growth and highest full-year guidance raise among its peers. Although it had a fine quarter compared to its peers, the market seems unhappy with the results as the stock is down 15% since reporting. It currently trades at $30.66. Is now the time to buy Kennametal? Access our full analysis of the earnings results here, it’s free. Headquartered in Ohio, Lincoln Electric (NASDAQ:LECO) manufactures and sells welding equipment for various industries. Lincoln Electric reported revenues of $1.22 billion, up 12% year on year, exceeding analysts’ expectations by 4.6%. Still, it was a mixed quarter as it posted a significant miss of analysts’ organic revenue estimates. Interestingly, the stock is up 8.6% since the results and currently trades at $280.12. Read our full analysis of Lincoln Electric’s results here. Founded in 1920, Snap-on (NYSE:SNA) is a global provider of tools, equipment, and diagnostics for various industries such as vehicle repair, aerospace, and the military. Snap-on reported revenues of $1.33 billion, up 4.2% year on year. This result beat analysts’ expectations by 1.1%. Overall, it was a satisfactory quarter as it also recorded a narrow beat of analysts’ EPS estimates. The stock is down 3% since reporting and currently trades at $393.93. Read our full, actionable report on Snap-on here, it’s free. Founded in 1954, Nordson Corporation (NASDAQ:NDSN) manufactures dispensing equipment and industrial adhesives, sealants and coatings. Nordson reported revenues of $817.7 million, up 10.3% year on year. This number topped analysts’ expectations by 4.8%. Overall, it was a strong quarter as it also produced full-year EPS guidance exceeding analysts’ expectations and full-year revenue guidance exceeding analysts’ expectations. Nordson pulled off the biggest analyst estimate beat in the group. The stock is up 7.5% since reporting and currently trades at $333.25. Read our full, actionable report on Nordson here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Hidden Gem Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

EVERETT, Wash., August 20, 2026--(BUSINESS WIRE)--Fortive Corporation ("Fortive") (NYSE: FTV) announced today that its Board of Directors declared a regular quarterly cash dividend of $0.07 per share of its common stock, par value $0.01 per share, payable on September 25, 2026 to common stockholders of record on September 4, 2026. This declared dividend represents an increase of 16.7% over the prior quarterly dividend. Although Fortive expects to pay dividends on a quarterly basis, any subsequent declaration of dividends, including the amount, the record dates and the payment dates for any such future dividend payments, is subject to the discretion of the Board of Directors. ABOUT FORTIVE Fortive innovates essential technologies to keep our world safe and productive. Fortive’s strategic segments - Intelligent Operating Solutions and Advanced Healthcare Solutions - include iconic inventor brands with leading positions in their markets. The company’s businesses design, develop, manufacture, and market products, software, and services, building on leading brand names, innovative technologies, and strong market positions. Fortive is headquartered in Everett, Washington, and employs a team of more than 10,000 research and development, manufacturing, sales, distribution, service, and administrative team members in approximately 50 countries around the world. For more information please visit: www.fortive.com. FORWARD-LOOKING STATEMENTS Statements in this release that are not strictly historical, including the statements regarding the expected future timing of any dividend payments and the Company's expectations on paying dividends at any level in the future, and any other statements identified by their use of words like "expect," or other words of similar meaning are "forward-looking" statements within the meaning of the federal securities laws. There are a number of important factors that could cause dividend payments and dividend schedule to differ materially from those suggested or indicated by such forward-looking statements and you should not place undue reliance on any such forward-looking statements. These factors include, among other things: deterioration of or instability in the economy, the markets we serve, international trade policies and deteriorating trade relations with other countries, including imposition of tariffs and retaliatory tariffs between United States and China and other countries, responsive economic nationalism, trade restrictions, and enhanced regulation, impact of any prolonged government shutdown, the financial markets, geopolitical conditions and conflicts including in the Middle East and in Ukraine, security breaches, data exfiltration, or other disruptions of our information technology systems, supply chain constraints, our ability to adjust purchases and manufacturing capacity to reflect market conditions, reliance on sole sources of supply, contractions or lower growth rates and cyclicality of markets we serve, competition, changes in industry standards and governmental regulations, our ability to recruit and retain key employees, our ability to successfully identify, consummate, integrate and realize the anticipated value of appropriate acquisitions or otherwise effectively deploy our capital, our ability to develop and successfully market new products, software, and services and expand into new markets, the potential for improper conduct by our employees, agents or business partners, contingent liabilities relating to acquisitions and divestitures, impact of changes to tax laws, our compliance with applicable laws and regulations and changes in applicable laws and regulations, risks relating to international economic, geopolitical, including war and sanctions, legal, compliance and business factors, risks relating to potential impairment of goodwill and other intangible assets, currency exchange rates, tax audits and changes in our tax rate and income tax liabilities, the impact of our debt obligations on our operations, litigation and other contingent liabilities including intellectual property and environmental, health and safety matters, our ability to adequately protect our intellectual property rights, risks relating to product, service or software defects, product liability and recalls, risks relating to product manufacturing, our relationships with and the performance of our channel partners, commodity costs and surcharges, adverse effects of restructuring activities, our separation into two independent, publicly-traded companies, risk related to tax treatment of our prior separations, impact of our indemnification obligation to Ralliant and Vontier, impact of changes to U.S. GAAP, labor matters, and disruptions relating to man-made and natural disasters and climate change. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings, including our Annual Report on Form 10-K for the year ended December 31, 2025 and Quarterly Reports on Form 10-Q for the subsequent quarters. These forward-looking statements speak only as of the date of this release, and Fortive does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise. View source version on businesswire.com: https://www.businesswire.com/news/home/20260820954230/en/ Contacts Christina JonesVice President, Investor RelationsFortive Corporation6920 Seaway BoulevardEverett, WA 98203Telephone: (425) 446-5000Email: [email protected]

Image source: The Motley Fool. Wednesday, July 29, 2026 at 12:00 p.m. ET Vice President of Investor Relations - Christina Jones President and Chief Executive Officer - Olumide Soroye Chief Financial Officer - Mark D. Okerstrom Operator: My name is Daryl, and I will be your conference facilitator this afternoon. At this time, I would like to welcome everyone to Fortive Corporation's Second Quarter 2026 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. If you would like to ask a question during that time, simply press star then the number one on your telephone keypad. If you would like to withdraw your question, please press star then the number two. I would now like to turn the call over to Ms. Christina Jones, Vice President of Investor Relations Ms. Jones, you may begin your conference. Christina Jones: Thank you. And thank you everyone for joining us on today's call. I am joined today by Olumide Soroye, Fortive' President and CEO and Mark D. Okerstrom, Fortive CFO. During today's call, we present certain non-GAAP financial measures. Information required by Regulation G is available on the Investors section of our website at fortive.com. We will also make forward-looking statements, including statements regarding events or developments that we expect or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks and actual results might differ materially from any forward-looking statements that we make today. Information regarding these risk factors is available in our SEC filings. Including our annual report on Form 10-K and the subsequent quarterly reports on Form 10-Q. These forward-looking statements speak only as of the date that they are made, and we do not assume any obligation to update any forward-looking statements. Our statements on period-to-period increases or decreases refer to year-over-year comparisons unless otherwise specified. And our results and outlook discussed today are on a continuing operations basis. With that, I will turn the call over to Olumide. Olumide Soroye: Thank you, Christina. And thank you all for joining our call today. Let me begin on slide 3. Q2 marked another quarter of strong results and execution of the Fortive Accelerated strategy by our Fortive team. Four key messages from the quarter. First, our teams delivered strong financial performance across both segments. On a consolidated basis, we delivered core revenue growth of 6.7% adjusted EBITDA growth of 12% and adjusted EPS growth of 28%. Importantly, our results reflect continued progress on our objective of driving faster profitable organic growth powered by our Fortive Business System (FBS) Amplified. Second, we remain disciplined in our capital allocation approach with relentless focus on optimizing shareholder returns over the medium- to long-term. This quarter, we executed a small bolt-on acquisition and deployed another roughly $200 million to share repurchases. Bringing total share repurchases since our launch of New Fortive a year ago to approximately 38 million shares or 11% of shares. Third, we continued to execute our Fortive Accelerated strategy. And we are pleased to see evidence that our investments in innovation commercial and recurring customer value are contributing to accelerating growth margin expansion and earnings performance. Reinforcing our confidence in our medium-term financial framework and value creation opportunity. Finally, we are raising our full-year 2026 adjusted EPS guidance to $2.95 to $3.05 reflecting our solid first half performance and our confidence in the trajectory of the business. Moving to slide 4, let me highlight some of the progress we are making in executing the three pillars of our Fortive Accelerated strategy. Starting with the first pillar, delivering faster profitable organic growth. Overall, we remain encouraged by the progress we are seeing across innovation, commercial, and recurring customer value. All of which are building the foundation for durable, faster organic growth. This quarter, our accelerating innovation velocity again translated into faster growth. At Fluke, our innovation funnel is steadily expanding. With new product introductions tightly aligned to strategic growth areas such as data centers, defense and early-in-career technicians. Demand for CertiFiber Max continues to exceed expectations. Helping establish Fluke's position in the rapidly growing data center commissioning and maintenance market. And driving pull-through of the broader Fluke portfolio into this high-growth area. In Facilities and Asset Lifecycle Solutions, we are expanding our AI-enabled predictive maintenance portfolio, our ServiceChannel and our [Inaudible] including tools that help field service technicians diagnose and fix issues more accurately in the field. At Gordian, our Flash AI solution launched in Q1 is now in production across many of our strategic accounts and running well above plan. Cutting construction cost estimating time from days to minutes and creating measurable value for customers and for Gordian. In healthcare, ASP received FDA clearance for a 50-pound expanded load capacity. Further strengthening our position in robotic assisted surgery applications, one of the faster-growing areas within the operating room environment. On the commercial side, we maintained our focus on faster-growing end markets and regions where we have made deliberate targeted investments to capture growth. At Fluke, investments in data center expertise drove incremental demand for our networks, power quality and battery testing product lines. Additionally, we continue to see strong momentum in India where our localized service and support investments are strengthening customer relationships and helping drive growth. ServiceChannel is investing in commercial and market resources across Europe to capture the meaningful international opportunity in the business. At Gordian, our investment in growing contractual engagement is reinforcing the competitive differentiation of our two-sided procurement marketplace. Healthcare, we continue to deepen our engagement with enterprise health systems and ambulatory surgical center networks through coordinated commercial efforts across ASP, Censis, and our other advanced healthcare solutions operating brands. On our recurring customer value initiatives, we made further progress on deepening customer lifecycle engagement and improving revenue durability. In Q2, recurring revenue growth remained strong across both segments. At Fluke, recurring revenue growth was driven by strong performance in services and software offerings. Early customer feedback on AI-enabled capabilities recently introduced within Fluke's eMaint platform has been very encouraging. ASP consumables and services had another quarter of strong growth with solid growth contributions from every major region. Moving to the second pillar, disciplined capital allocation is an integral component of our Fortive Accelerated strategy. Consistent with our priorities, we deployed another roughly $200 million to share repurchases in Q2. Since the spin-off, we have deployed nearly $2 billion to share repurchases. Representing 38 million shares or approximately 11% of diluted shares outstanding. Our revamped bolt-on M&A engine and team is now in place. And we are continually evaluating opportunities for high-quality accretive bolt-on acquisitions that meet our rigorous strategic and financial criteria. This quarter, we completed the acquisition of a majority stake in UV Smart, an innovative company whose complementary UVC high-level disinfection technology expands ASP's portfolio and enables more efficient disinfection of specialized instruments. Looking forward, our capital allocation priorities remain clear. Invest in organic growth, pursue bolt-on M&A where risk-adjusted returns exceed other uses of capital, return capital through share repurchases, and maintain a modest growing dividend. All with a focus on best relative returns and maximizing medium- to long-term shareholder value. Moving to our final pillar, building and maintaining investor trust. We are pleased to deliver strong performance ahead of expectations for a fourth consecutive quarter as New Fortive. We remain laser-focused on executing against our 2026 financial and strategic plan and continue to have strong confidence in our medium-term financial framework that we shared at our last Investor Day. With that, I will turn it over to Mark to walk through our financial results for the second quarter in more detail. Mark D. Okerstrom: Thanks, Olumide. Begin with Slide 5. In the second quarter, we delivered total revenue of nearly $1.1 billion up almost 8% year-over-year on a reported basis and up 6.7% on a core basis. We were pleased to see price and volume growth again in both segments. With results driven by healthy customer demand and strong commercial and operational execution across the portfolio. Software-related revenue remained a meaningful contributor to growth in the quarter reflecting the underlying strength of our businesses. And robust customer demand. For our increasingly AI-driven new product releases. Regarding core growth by geography, North America saw modest sequential acceleration in Q2 and continues to be our strongest performing region. Revenue in the Europe, Middle East and Africa region declined modestly due to macroeconomic uncertainty associated with heightened geopolitical tensions and continued economic softness across the region. Pressure in EMEA was more than offset by year-over-year growth and sequential acceleration in APAC and LatAm. Driven by strong demand for Professional Instrumentation and healthcare consumables. Adjusted gross margin was 63% in the quarter down approximately 100-basis-point year-over-year. Adjusted gross margin performance was primarily driven by product mix dynamics, resulting from outsized growth in certain lower-margin products, partially offset by operating leverage. Note that tariffs had a minimal impact this quarter as the prior year Q2 also reflected tariff-related costs for most of the period. Q2 adjusted EBITDA was $323 million up 12% year-over-year. This strong performance was driven by adjusted gross profit growth operating leverage and discrete structural cost savings, partially offset by growth investments to support our Fortive Accelerated strategy. Adjusted EBITDA margin in the quarter expanded by approximately 110 basis points year-over-year, to 29.5% We delivered adjusted earnings per share of $0.74 in Q2, up over 28% year-over-year marking our fourth consecutive quarter of double-digit adjusted EPS growth. Strong adjusted EPS performance in Q2 was driven by growth in adjusted EBITDA, and the positive year-over-year impact of share repurchases. We generated roughly $270 million of free cash flow in the second quarter with our trailing 12-month free cash flow topping $1 billion with conversion on net income well north of 100%. Please note that during the quarter, we recognized a $4.5 million IEEPA tariff refund benefit in GAAP earnings. We expect another roughly $20 million to $25 million of tariff refunds in the coming quarters. To help investors more easily compare results across periods, we exclude the impact of IEEPA tariff refunds from our adjusted metrics and expect to continue doing so going forward. But the cash benefit is very real. And will be deployed using our disciplined capital allocation framework. Moving to our segment results, starting with Intelligent Operating Solutions on slide 6. Revenue for this segment grew about 9% on a reported basis, with core revenue growth of 7.4%. And we are pleased to see broad momentum continue across the segment. Core growth was driven by both price and volume, reflecting solid performance across Professional Instrumentation, facility and asset lifecycle solutions and gas detection products. At Fluke, order volume remained strong with order growth modestly outpacing revenue growth during the quarter. Customer demand continues to be robust across our industry-leading portfolio and across a broad set of geographies. Our Fluke team executed with discipline, across the board while increasing investments aimed at further tapping into key high-growth end markets including data centers and defense. North America remained our strongest growth driver, with broad-based contributions across product lines. While performance in Europe was affected by macroeconomic uncertainty, this was more than offset by strong growth in APAC and LatAm. Where increased commercial investments in strategic growth markets are yielding promising early results. Growth in Facilities and Asset Lifecycle Solutions was strong again in Q2. Led by strong performance in multisite facility maintenance and marketplace software in North America. We continue to see evidence that our commercial and innovation investments are driving increased demand for our increasingly AI-enhanced products. Our gas detection business is growing nicely, buoyed by strong demand for our hardware-as-a-service product line in North America, The Middle East, and in Latin America. Adjusted gross margin in this segment was just over 65%, down about 100-basis-point year-over-year. Primarily due to strong growth for some of our lower-margin products serving multisite retail customers, partially offset by operating leverage. Q2 adjusted EBITDA in the segment grew 12% to $264 million driven by adjusted gross profit growth operating leverage and discrete structural cost savings, partially offset by growth investments. Adjusted EBITDA margin for Q2 expanded by about 100-basis-point year-over-year to just under 35%. Moving to our Advanced Healthcare Solutions segment on slide 7. Delivered total revenue of nearly $340 million, Revenue grew 6% year-over-year and 5.3% on a core basis. Q2 growth was driven by solid demand for healthcare consumables, services, and software, in Latin America, APAC, and North America. Our software products in the segment continue to deliver strong growth driven by effective execution and strong provider demand for our gastrointestinal case documentation solution. Low-temperature sterilization capital demand improved modestly again in Q2 and contributed to growth. Adjusted gross margin in the segment was roughly 58%, down about 110 basis points year-over-year. Reflecting product mix dynamics and strategic growth investments partially offset by operating leverage. Q2 adjusted EBITDA in the segment was $88 million up 3% year-over-year driven by adjusted gross profit growth, operating leverage and discrete structural cost savings partially offset by growth investments. Adjusted EBITDA margin contracted by about 80 basis points year-over-year, while remaining a healthy 26%. Turning to slide 8. Our balance sheet remains strong. We finished the quarter at 2.7x gross debt-to-adjusted EBITDA. Modestly delevering from last quarter. As noted earlier, we deployed roughly $200 million to share repurchases in the second quarter. Reflecting our continued focus on deploying capital with a laser focus on driving best relative risk-adjusted returns and confidence in our ability to deliver on our value creation plan. As a result, we had approximately 307 million diluted shares outstanding at the end of Q2. In terms of M&A, we completed the acquisition of a majority stake in UV Smart. Towards the end of Q2, and the execution of our value creation plans for the two small bolt-on acquisitions we completed in Q4 of last year both going according to plan. We continue to evaluate high-quality, accretive bolt-on deals that meet our rigorous strategic and financial criteria and deliver superior returns relative to alternative uses of capital. And we now have the team and processes in place to execute effectively on our M&A strategy. We have a healthy balance sheet and a growing business with high durability, strong margins, low capital intensity, very attractive free cash flow generation characteristics. All of this gives us ample capacity to execute on our capital allocation priorities with a relentless focus on optimizing shareholder returns over the medium- to long-term. Moving to slide 9, we are raising our full-year 2026 adjusted EPS guidance range to $2.95 to $3.05 reflecting solid first half performance and confidence in the trajectory of the business. This outlook assumes a continuation of the market dynamics we experienced in Q2 and reflects current tariff rates. Now let me provide some additional considerations to assist with modeling. Based on current foreign exchange rates, we now expect full-year reported revenue of approximately $4.35 billion. Given solid performance to date, we now expect full-year core growth of approximately 4% up from our prior expectation of 2% to 3%. In terms of the shape of the balance of the year, we expect Q3 reported revenue as a percent of total to be broadly in line with historical patterns. While Q4 will be a smaller than usual percentage due to there being four fewer selling days in the quarter versus prior year. As we mentioned last quarter, this will also drive about a $15 million to $20 million headwind to reported revenue and a 150-basis-point headwind to core growth in Q4. We expect FX and M&A combined to be about a 50-basis-point tailwind to reported revenue. In each of Q3 and Q4, we are expecting Q3 adjusted EBITDA margin to be slightly below Q2 levels, driven by slightly lower revenue on an absolute basis and the impact of modest strategic growth investments. On a year-over-year basis, EBITDA margin trends will also be impacted by a more difficult Q3 OpEx comparable. We now expect a Q3 effective tax rate in the mid-teens and Q4 in the low double-digit range. And full-year net interest expense of about $140 million From a bottom-line perspective, as we look forward to the balance of the year, as has historically been the case, we expect adjusted EPS delivery to be weighted towards the fourth quarter with Q3 EPS up very slightly year-over-year. As we said last quarter, broadly consistent with what we saw in the first quarter of this year. As the balance of the year unfolds and we continue to execute on our Fortive Accelerated strategy, quarterly phasing may evolve. As a final note before turning it back to Olumide for closing remarks and Q&A, our first half results reinforce our confidence in the Fortive Accelerated strategy and financial framework we outlined at our last Investor Day. And we remain focused on delivering benchmark-beating returns for our shareholders. I will now turn it back over to Olumide. Thanks, Mark. Olumide Soroye: Let me close with a few observations on the quarter and where we are headed. Q2 represented another strong quarter of performance. We delivered 6.7% core growth approximately 12% adjusted EBITDA growth and 28% adjusted EPS growth. Our fourth consecutive quarter of delivering double-digit adjusted EPS growth and exceeding expectations. One year after our launch of New Fortive, we are generating momentum from our Fortive Accelerated strategy. And our confidence in the 2026, 2027 financial framework we outlined at our last Investor Day is fully intact. We are pleased with the progress we have made. We believe we are still in the early stages of realizing Fortive's full potential. And we are excited about the value creation runway ahead of us. I want to thank our customers for placing their trust in us every day. And all our Fortive team members around the world for their commitment to our shared purpose of innovating essential technologies to keep our world safe and productive. With that, I will turn it back to Christina to open the call for questions. Christina Jones: Thanks, Olumide. That concludes our prepared remarks. We are now ready for questions. Operator: Thank you. We will now be conducting a question-and-answer session. [Operator Instructions] A moment, please, while we poll for your questions. Our first questions come from the line of Scott Davis with Melius Research. Please proceed with your questions. Scott Davis: Hey, Olumide, Mark and Christina. Good morning. I think it is still morning there. So good morning to you. Olumide Soroye: Good morning. Scott Davis: I wanted to touch on 2 things. The first being new products and the second 1 being bolt-ons. But new products, is it something when you talk about NPIs and you think about the KPIs around that you guys look at internally, are new products having a tangible impact on top line growth or sometimes see it in price or you see it in margins because it is--you know, you are selling something that is that is iterative. But is there a tangible, you know, sign at least that, that you think you are getting a return there? Olumide Soroye: Well, thanks for the question. I think short answer is yes, absolutely. I mean, we have been really clear in our Fortive Accelerated strategy that the three vectors that would drive this company to grow faster. The first of those is innovation and new products. Second is commercial. And the third is recurring customer value, which means we do more for the 100,000 customers we have that trust us every day. And what we have seen really is from a product innovation point of view, all 10 of our brands have really been introducing products and have a funnel of new products that is deeper and richer than we have ever had. And that is also more pointed at really high-growth vectors. So the fact that we are growing 6.7% core this quarter in Q2 and we have been accelerating the last four quarters. That certainly has had the fingerprints of those new products on it. We have talked about some examples of those at Fluke with CertiFiber Max. ServiceChannel, with some of the exciting AI-enabled, innovation we have introduced for work order anomaly detection and conversational work order completion and other things. So short answer is yes. And as you can imagine, knowing us well, we have extensive instrumentation on how we track the portfolio of new products and each individual product. In terms of what we expect and what we are delivering, and we feel quite good about what we are getting out of them. Scott Davis: Fair enough. And then on the bolt-on side, are there are there I do not know what proper word to use here is my fourth call today, and my brain's starting to fry. But are there limitations meaning particular businesses that you would not want to bolt-on to or areas that you do have limited interest in expanding or you looking at bolt-ons across the entire portfolio, you know, software, not software, healthcare, non-healthcare. I mean, just any sense of kind of priorities there and where we might expect to see the lion's share of bolt-ons? Olumide Soroye: Yeah. So I mean, we first of all have a much simpler portfolio. It is really quite interesting because if you think about the company today, Fluke is more than 40% of what we do. Business at ASP is another really big chunk of what we do. And then there is the rest of the company. So if you think about just the surface area, we have to look for bolt-ons in. It certainly would skew towards our strongest platforms, you know, I will use Fluke as an example of those and ASP as a good example as well. So while we do not exclude any area, we are generally building a funnel that sort of looking at what is available and what is strategically and financially interesting for each of our brands. You are going to see us skew towards our strongest brands. On your point about software, you know, I mentioned this, I think, a few calls ago. We like the software brands we have because of the attributes they have. Around proprietary data and regulatory lock-in and two-sided networks And so if we are looking to bolt-on anything, that thing has to have those attributes that we like as well. It has to be at a financial proposition that fits our criteria in terms of returns. So software bolt-ons are possible, but it is a very narrow path. To find something that works and is affordable. So that is the way we think about it. We build a funnel, but I think if you think about what is going to come out as executed deals, you will see them skew towards our biggest brands where we are strongest and probably less towards software and more towards differentiated hardware businesses. Scott Davis: That makes a lot of sense. Okay. I will pass it on. Best of luck. Mark D. Okerstrom: I appreciate it. Olumide Soroye: Thanks, Scott. Operator: Thank you. Our next question comes from the line of Nigel Coe with Wolfe Research. Please proceed with your question. Nigel Coe: Thanks. Good morning, everyone. Thanks for the question. I know that Christina will do a great job of kind of sending an email with all the modeling items. Just wanted to clarify your comments on Q3 mark. We have revenues and margin down modestly sequentially? I think that would be normal seasonality. Just wanted to clarify that. And then it seems like there is some moving pieces on the tax between Q3 and Q4. I think you said mid-teens in Q3, that is now mid-teens and Q4 is looking to be a bit higher. Are we still on that path for mid-teens tax rate for the full-year? Mark D. Okerstrom: I think you have got it entirely right. So I think normal seasonality, as we said, Q3 revenue would track in normal path, and that would be a sequential step down. You know, along with the commentary we made on adjusted EBITDA margins. And then absolutely right on the tax rate, we are continuing to expect something in the mid-teens on a full-year basis, and again, mid-teens in Q3 and low-double-digits in the fourth quarter. Nigel Coe: Okay. That is great, Mark. I just want to clarify that. Mark D. Okerstrom: And then just maybe just elaborate a little bit more on the mix headwinds. Nigel Coe: Nigel Coe: That you called out, especially within ASP. Just wanted to understand how persistent that is. And then just kind of beyond that, maybe just talk about memory chip inflation. I think you might have touched on this last quarter. You know, is that weighing on conversion rates in the back-half of the year 2020 in a degree? Mark D. Okerstrom: Sure. Happy to take both of those. So gross margin, yes, again, mix shift was a big driver in both segments. Specifically in AHS, as you called out, we saw mix shift driven in part by just resumed growth in the capital part of ASP. They also made some strategic investments against some larger accounts that also impacted gross margins in the quarter. And, again, overall, just as a reminder, mix shift was predominantly impacting gross margins in iOS. As a result of strength and high-growth in one of our lower-margin products strategic product, in ServiceChannel in particular. With respect to inflation generally in memory chips, you know, I would say FBS is incredibly good at offsetting these, and we certainly had price cost was positive for us in the quarter. You know, on the margin, you know, there are projects that the teams are working on to make sure that we have multiple sources for things as some things like you know, rare earths and memory chips become harder to come by. It is not a material factor that you would notice in our results, at this point in converting orders or in backlog to revenue. But it is something that we are actively working to countermeasure. Okay. Nigel Coe: Okay. Thanks, Mark. And also I am saying, across the adjusting out the tariff benefits makes a lot easier. Thanks a lot. Olumide Soroye: Thank you. Mark D. Okerstrom: That is our goal, make your life easier. Operator: Thank you. Our next questions come from the line of Deane Dray with RBC Capital Markets. Please proceed with your question. Deane Dray: Thank you. Good day, everyone. Olumide Soroye: Good day. Deane Dray: Hey, Olumide, I really was interested in your prepared remarks today. Where you walk through all of the different new AI products in your software offerings. And this is, as far as we are concerned, really important proof points on the AI as an asset, not a threat debate. And could you just step back and kind of give us a sense of where is Fortive in the rollout of these AI features? Is there any way that you can size the investment that you have made? And then even probably harder, how you measure enhanced functionality and benefits and so forth. But just further color on this would be really important to hear. Olumide Soroye: Yes, Deane, thanks for the question. So just maybe the context on this is for us, started with an AI Center of Excellence seven years ago before generative AI made it more fashionable. And so we at some level, for an industrial healthcare technology company, we have been ahead of the curve quite a bit. With some of the top companies as partners over several years. So that really gave us a head start. And what we have done across our six software brands is we have been able to very quickly figure out the best use cases for AI like real use cases, that deliver measurable returns for customers, i.e., we save them millions of dollars, we help them improve outputs in measurable ways And our teams have done a terrific job of really deploying those very quickly across our brands. And we have talked about some examples of those. I will say to you that it has been really terrific to see the adoption of those. We refer to the eMaint example in the prepared remarks this time. Every single month we have another one of those AI-enabled stories on our software platforms that are great. So we are well into it at this point. We are seeing customers adopting it. We are capturing value in terms of returns to your point in multiple ways. In some cases, it is an explicit additional sale that a customer pays for. And in some cases, those are outcome-based. In some cases, it is a pass-through of the token cost plus a markup. In some cases it helps kind of our overall NDR on the account and just deepens our presence with the customer. As you can imagine with FBS, we have got deep instrumentation and how we track the returns on each of these. The investment level has not been significant for us, again, because it was not a new initiative for us. We have had this Center of Excellence for a long time. We have been able to scale it by adding capacity in India and making sure that the partnerships we had give us good pricing in terms of any additional tools that we were using. So overall, it has been a great story for us. The fact that our software business has continued to do really well, is not exactly separate from how well we have been able to leverage AI. And we feel good about the setup. Deane Dray: Great. Deane Dray: And then just as a follow-up, and I will keep this one a bit more direct. Can you give us an update on Fluke? We are always interested in the sell-in versus sell-through inventory in the channel, so forth. Whatever you can share there is helpful. Thanks. Olumide Soroye: Yes. Thanks, Deane. And look, here's a big part of what we do. And if Fluke had another just terrific quarter in terms of performance and it was broad-based strength really across product lines and across both volume and price, which was great to see. So we are gaining share, we are capturing price. From a regional perspective, North America remained our strongest growth driver with sustained strong POS in terms of sell-through. We have talked about that now for several quarters and the strength continues. Europe was affected by some of the macroeconomic uncertainty. But really it was more a few channel customers that deferred purchases. If you look at the POS in Europe, it was actually the best we had seen in six quarters. So it really was a channel holdback in, which is good from an inventory point of view. Because we are leaving the quarter with a much better inventory, channel inventory position. APAC and Latin America both posted really solid growth at Fluke and really partially reflecting the increased commercial investments that we have referenced that we have been making in these regions the last few quarters. As part of our Fortive Accelerated strategy. And you know, orders grew modestly faster than revenues. So book-to-bill was nicely above one and we just we feel really good about the setup. But the Fluke team continues to drive just a terrific innovation funnel. We continue to have probably the best commercial intensity we have ever had in that business with a focus on some of the high-growth verticals like data center and defense and early-in-career professionals that now need to be tooled up and want them to start with Fluke and stay with Fluke all through their career. So we really like the performance trajectory and setup for Fluke, which again is well over 40% of our entire company. So we like that. Deane Dray: Great. Thank you for all the color. Olumide Soroye: Thanks, Deane. Operator: Thank you. Our next questions come from the line of Andy Kaplowitz with Citi. Please proceed with your questions. Andy Kaplowitz: Hey, good morning, everyone. Olumide or Mark? AHS growth continued to be solid in Q2, but maybe you could talk about what is going on between consumables where the growth seems to be strong. And capital equipment where you said growth has been maybe a little more modest. Are you still being slowed down at all by tight hospital CapEx budgets? Are they starting to get better? what is the outlook there? Olumide Soroye: Yes. Thanks for the question. We are really happy with what we saw in the AHS segment overall, frankly, and in ASP especially. And we, you know, we really see it as an opportunity to reach environments as we dig more into those businesses. They are just a lot of exciting initiatives that can deliver sustainable growth and profitable growth for years to come. So we really like what we are seeing there. In terms of Q2, the strength was broad-based. To your point, in ASP, the consumables and services business grew in every major region with particular strength in APAC and Latin America, was great to see. But every region grew on consumables and services To your point on the capital business, we have talked about the hospital budget pressure now for several quarters. There is still some of that, but it is continued to improve. And that capital business returned to growth this quarter. Which was great to see and the commercial pipeline remains strong and very healthy. And then the software parts of the segment continue to deliver strong growth led by Provation and our SaaS sales in North America. So it was a great quarter because the strength was really broad-based and across regions and components of what we do for customers. Andy Kaplowitz: Very helpful. And then I think last quarter, Olumide, you said that FAL growth was accretive to this segment. Is that still the case? And then I think you said ServiceChannel has led growth for you in FAL. But could you clarify what you are seeing between ServiceChannel, Gordian and Accruent? Olumide Soroye: Yeah. So, again, great quarter for the FAL platform overall. It was led by ServiceChannel, which continues to benefit from the robust demand in multisite facility maintenance solutions and marketplace software But every part of the FAL portfolio performed really well. Gordian, for example, had a solid quarter. As you know, Q2 is an important one for them for some of the state and local government year end. And it was a solid quarter for Gordian. So we like that. And Accruent continues on its improvement trajectory as well, which led us to an outcome where FAL delivered really strong growth, as did every other piece of the iOS segment. Frankly, we have talked about Fluke and the gas detection piece as well. So a good quarter for our team there. Andy Kaplowitz: Appreciate all the color. Thanks. Operator: Thank you. Our next question is coming from the line of Chris Snyder with Morgan Stanley. Please proceed with your questions. Chris Snyder: Thank you. I wanted to ask about back-half margins. And I understand that corporate is a headwind to the overall Fortive margin into the back-half. But it seems like if my math is right, it seems like you guys are calling for the segments to be maybe flat to down on margins into the back-half. So I guess, is that right? What are the drivers of that? Is that just investment coming through? Is there gross margin that remains down in the back-half? Just any kind of color on the segment margins. Thank you. Mark D. Okerstrom: Yeah. Happy to provide a little bit more color, Christopher. I think you know, first of all, you know, we continue to operate the business in accordance with 50 to 100 basis point EBITDA margin expansion framework on an annualized basis. And I would expect that for this year. And again, it is part of the framework, so we will run it through next year as well. There are a lot of puts and takes in terms of just what is happening quarter by quarter this year. We talked about in Q3, particularly some EBITDA margin pressure. Part of that is driven by a tougher comp. From Q3 of last year. And then we also continue to see some of the mix shift dynamics on a gross margin basis across both segments as we look through third quarter as well. Q3 also is just a smaller quarter from a revenue perspective. So that is just on an OpEx base when we have again, small tactical incremental investments like we do that puts pressure on the margin as well. On a corporate cost basis, I would continue to think about corporate cost in the $26 million to $27 million zone per quarter. Was a little bit of a step up this quarter just due to some mark-to-market of some incentive compensation matters. And I think as you look through Q4, again, you have got the smaller selling days for 4 less selling days that creates an interesting dynamic. But you should see a better actually margin outlook in the fourth quarter compared to the third quarter. Chris Snyder: Thank you for that. It makes sense. And then I also I wanna follow-up on Fluke. You guys are have been talking, think, couple quarters now about some data center opportunities there. And I guess kind of my question is, is there something new happening in data center? Because we did not really kind of associate that vertical that might. We did not hear a lot about that opportunity in Fluke, you know, going back a year or 2. And of course, data center has been strong for a long time. So is anything specifically happening? I am hearing about some maybe fluke opportunities within fiber specifically as that comes to market? So I do not know. Is it new innovation, new product? Why is that seems like it is coming through a little sharper now in the first half of 2026? Thank you. Olumide Soroye: Yeah. No. Thanks for the question. I think the beauty of Fluke is the kind of durability that comes from the fact that we play in so many different sort of end users. Data centers have always been a part of what we did at Fluke, but it is one of many, many growth drivers for us within Fluke. So it is not--Fluke's not a data center company. it is just one of many things that we do. And Fluke already participates in the tool belt for data centers with a wide range of products from power quality monitoring to high voltage diagnostics and to your point, high density fiber testing, you know, electric ground fault detection. So we have always provided a lot of tools that have been used mostly, frankly, in the commissioning, but as well as operations and maintenance of data centers. What is new is that as part of all the things our team at Fluke is doing to drive innovation, they have actually pointed some exciting new products towards the data center use case. That has become a pull-through for everything else we already do. And so we have talked about the CertiFiber Max example which to your point on fiber testing that is for testing kind of cables that have tiny 32 fibers in them. And this tool essentially helps the certification process to go a lot faster. than the existing tool set that these technicians use. And as you know, one of the key things right now is everyone trying to get their data center off as quickly as they can. So these tools come in at a time that addresses a really unique need. And so what the team's then done is taken the demand for CertiFiber Max is way above our plan. And it is now pulling through other things that we have always done for data centers at Fluke. So it is really a good example of how our team can pivot when there is momentum in a particular market. that is one of many that we play in. And, you know, we have seen just incredible growth in the products at Fluke that are relevant and aimed towards data centers within our overall mix. So that is the way to think about it. I would not say, you know, data center is a new thing for us at Fluke, but we have certainly been able to leverage our existing strength plus innovation plus, obviously, the momentum in that space. to benefit from that. And the growth we are seeing at Fluke is quite exceptional, and it is not completely unrelated to how we have tapped into that velocity in the end market at data center. Mark D. Okerstrom: No. Yeah. Chris Snyder: Great to see all of that coming together and driving nice organic growth. Thank you. Olumide Soroye: Thanks. Operator: Thank you. Our next questions come from the line of Andrew Buscaglia with BNP Paribas. Please proceed with your question. Andrew Buscaglia: Hey, good morning everyone. Olumide Soroye: Good morning. Andrew Buscaglia: Just wanted to touch on, you know, some of the comments you made in as it pertains to recurring revenue. And the thought I had is manufacturing complexities increasing in some of these areas, like semis and aerospace. Life sciences. You guys know, you kinda discussed those as faster-growing. Are you seeing any changes in how customers calibrate equipment or use the equipment that could provide more wear and tear that would require more upgrades and a higher velocity of repurchases. Just wondering if that is a I do not know, a new dynamic we are seeing out of Fortive these days. Olumide Soroye: Yeah. Look. I think that trend's been it has been building for several years in terms of how customers use especially some of these higher end tools. And what that means for the calibration cycle and do they calibrate it more frequently, less frequently? Do they do it themselves? with third parties, do they use Fluke. So that is always been an evolving space for us. The thing I would say is that we are seeing customers more interested in innovative ideas from Fluke both on the calibration side, on the service plan side and on the software side, that helped them get better outcomes and more productivity out of the entire tool Fleet. And that is again, we have talked about the recurring revenue at Fluke growing double-digits now for many quarters. And we are seeing that trend that you would kind of reference in a piece of that. As the underlying driver of why customers are more interested in do not just sell me a device. But actually help me with a lifetime experience that includes a calibration pattern, includes software, includes services And for a business like Fluke, that is as big and broad and global as we are, that is just a great chance to attach recurring revenue to an incredibly loyal customer base that we have and we like that. Andrew Buscaglia: Yeah. it is interesting. I guess as a follow-up, I think how does that inform where you go with your you know, these growth you talked about and/or M&A in that, like, some would argue that the hardware and the instruments are becoming more important. But you are kind of could argue arguably seeing more interest in your software in the software applications you provide, and then the you know, ability to help your customers optimize all these assets. I am wondering where you know. Where do you think is the more interesting place to go that sets you up for the next five years of growth? Olumide Soroye: Yeah. Well, the way we think about it is we kinda go where we have the strength and the right to win. So for example, in this question you asked, the way we will think about it is, well, if you think about our business at Fluke, it is a business that has an incredible footprint of hardware. And then we have some services and we have some software. And so if we see a piece of software that can attach to our extensive footprint of hardware and we think we can deploy to half our hardware footprint that will be interesting because nobody else can do that. With our software asset. If we see a piece of hardware that is aimed towards a really attractive end market and it is differentiated, we will be really interested in that because it extends our installed base. And so we really think about it in terms of not just whether it is hardware or software services, but is it something that fits with our strength? And is it something where we have a real commercial plan to scale it in a way nobody else can. I think what you would find is given our footprint is more than 70% differentiated hardware and maybe just about 20% real software and, you know, a little bit that is a mix of data and integrated services that we are going to skew towards hardware in the M&A that we do. But any software we do will have that kind of advantage to our natural strengths. Andrew Buscaglia: Okay. Very interesting. Thank you. Olumide Soroye: Thanks. Operator: Thank you. Our next questions come from the line of Quinn Fredrickson with Baird. Please proceed with your questions. Quinn Fredrickson: Thanks. On ASP, there is some mixed feedback out there regarding the impact of ACA expiration on elective procedures. I am curious if you think you are seeing any impact or expect to see an impact on either capital equipment or consumables demand based on your conversations with customers? Olumide Soroye: Yeah. Thanks for the question. Look, as you know, the healthcare reimbursement space has been a dynamic one for a while. So we feel quite good about proximity to customers and their decision process and their funnel. I guess what I would say on that specific question is, it is totally comprehended in the way we think about ASP right now, which is it is in recovery Q2 of last year from a capital point of view was the epicenter of the One Big Beautiful Bill causing these hospitals to holdback on procurement. that is been opening up as they consider a whole bunch of other things. They have concluded that they actually have to keep enabling the operating rooms to run. So we are seeing those orders flow through. And we expect that will continue to be the case. And procedure volumes as well have to recover and continue to recover because that is in the end what drives the economics of this hospital. So we see that continue to get better, and we continue to deepen our presence with our key customers including some of the investments that Mark referred to that is making us even deeper with them and something like the UV Smart bolt-on that we did gives us something else that we bring to this customer. So we feel good. I think all the ACA and other movements is within a broader range of changes all of which I think we like the way it sets us up at ASP. Quinn Fredrickson: Thanks. And on the FDA clearance you mentioned you received in the quarter, can you just expand on what that means for you? Is this enabling you to go after new robotic surgery OEMs? Or just any color you can share? Olumide Soroye: Yes. So this is really for our main sort of low-temperature sterilization on capital equipment that is called STERRAD. And with the approval we got is to be able to run things more than up to 50 pounds through the chamber in these machines. And so what that does is for a lot of our customers most of the robotic equipment that they need to sterilize generally need something that can handle that weight range. So now we have an addressable market in terms of this equipment for robotic surgery that is bigger than we had before. And so what that means is, you know, customers that were maybe saying, well, if you had that, we will be interested, we now have a compelling offer for them. So we are excited about it. Our teams out there, it is going to show up as increased win rates and expansion in that funnel. And better growth in the business. Quinn Fredrickson: That is helpful. Thank you. Quinn Fredrickson: Thanks. Operator: Thank you. Our next questions come from the line of Jamie Cook with Truist Securities. Please proceed with your question. Jamie Cook: Hi, good morning. I guess just two questions. Just on the guidance, Mark, it looks like just based on putting everything together, like the EBITDA margin expansion this year should probably be more like, I think, at the lower end of 50 basis points. I just want to confirm that. And I guess my longer-term question is understanding we are making investments, in particular in AHS and sounds like those investments might be going into it sounds like lower-margin product lines, etcetera. I am just wondering when we start to see the payoffs of that and just sort of set up for 2027 on margins. You know what I mean? Just given the margins where margins are coming out this year on what I would argue probably better than you expected core organic growth? Thank you. Mark D. Okerstrom: We are happy to tackle those. You know, I think I would just start by saying that we are very happy with the margins of the business, gross margins at 63%, I think that is a pretty good indicator of, you know, the strength of the brands, differentiated products, FBS's ability to drive down manufacturing costs, I think it is a good indication of what we would expect for a full-year basis. And I think EBITDA margin is in around 30% that we saw in the quarter. Again, good strong cost discipline while reinvesting in the quarter, and I think that is a good range to be in for a full-year. We do continue to expect to operate within that 50- to 100-basis-point range. And we are going to continue to do that, you know, through, you know, 2026, and we expect to do that in 2027 as well. The investments that we are making I would not necessarily assume they are going into lower-margin products. I think we saw in the second quarter particular strength from lower-margin products due to strong customer demand. We saw that at ASP. We saw that in the iOS segment as well. But, you know, a number of the products that we are launching, including the CertiFiber Max, for example, it is a highly differentiated product, has, you know, very strong margins and margins, you know, at or better than the Fleet. And as we look around at innovation just generally, we are going to innovate on products that have those similar characteristics just strong innovation, which is in high demand, from our customers and that command premium prices. And then as is the case always with Fortive and FBS, over time, margins just generally improve, because we continue to find ways to drive costs out of manufacturing, overall. So we feel good about the margin trajectory of the business, both gross margins and EBITDA, and we are going to continue to drive price through innovation. We are going to continue to drive commercial acceleration and recurring customer value. All in line with the Fortive Accelerated strategy. Jamie Cook: Thank you. Mark D. Okerstrom: You are welcome. Operator: Thank you. Our next questions come from the line of Chigusa Katoku with JPMorgan. Please proceed with your questions. Chigusa Katoku: Hi, good afternoon. Thanks for taking my question. Just following up on the margins, I also think that I also see you trending maybe towards the lower end for this year. Just if you could give a little bit more color on why you could do more in the range of 50 to 100 in 2027 I think Roper talked about some margin pressures. as they are making investments in AI, but are you seeing any of those? Mark D. Okerstrom: Yeah. You know, I would just remind you that the 50- to 100-basis-point is something that we have on a rollover. We use it as a framework to guide our investment frameworks. We are investing you know, very tactically against high-return initiatives, you know, across the three pillars of the accelerated organic growth pillar of the Fortive Accelerated strategy. We have seen you know, four quarters of sequential growth acceleration. And on a normalized basis, I think, as we talked about when we gave our updated expectations for core growth, of 4% for the year, you know, we, at least based on what we see today, seem to be trending at least for this year, near the higher end of our core growth framework that we laid out at Investor Day. So the margin expansion story continues to be in line with the framework. We are driving organic growth, you know, quite frankly, ahead of where we expected. And I think that gives us opportunity for margin expansion and also for increased investment levels. And that gives us confidence that, you know, our aspiration, which is ultimately to grow faster than our framework is in 2027 and beyond is definitely in sight for us. Chigusa Katoku: Great. Thanks for the color. And then a little bit on organic growth. Is it directionally correct that third quarter you expect organic growth around the same range as the full-year, around 4%? I will leave it there. Thank you. Mark D. Okerstrom: Yeah. I think you are, I think you are in the zone. I think it is just as a reminder for everyone, there are a number of year-over-year comparable and calendar impacts that are impacting just the year-over-year comparisons this year, as a reminder, in the first quarter, we had four extra days. That was about a 150-basis-point tailwind to that 5.3% core growth. This quarter, we had a slightly easier comp relative to last year. If you remember, the impacts that Olumide mentioned in the second quarter of last year, Q3 does look like a more normalized quarter for us. And then as a reminder, in Q4, you get the opposite impact we had in Q1 which is about a 150-basis-point headwind to core growth of $15 million to $20 million on a reported basis. Think the important thing to say is that on a normalized basis, this is a business that is gathering momentum and we see the broad course and speed of the businesses as one of accelerating. And it is really a testament to the good work that our teams have been doing to implement the Fortive Accelerated strategy across all 10 of our iconic operating brands. Chigusa Katoku: Okay. Thanks for the color. Mark D. Okerstrom: You are welcome. Operator: Thank you. Have reached the end of our question-and-answer session. I would now like to hand the call back over to management for any closing comments. Olumide Soroye: Well, thank you, everyone, for your interest in Fortive. We are excited about the acceleration in our business over the last year. Our entire organization is aligned and energized about our Fortive Accelerated strategy and our Fortive Business System that is enabling us to execute that. And, we are laser-focused on delivering a strong 2026 and setting the foundation for an even stronger performance and shareholder value creation in the years ahead. And thank you for joining us today and we look forward to speaking with you next quarter. Have a great day. Operator: Thank you so much, ladies and gentlemen. This does now conclude today's teleconference. We appreciate your participation. You may disconnect your lines at this time. Enjoy the rest of your day. Before you buy stock in Fortive, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Fortive wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. 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As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Fortive (FTV) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

FUJIFILM Holdings Corporation FUJIY reported first-quarter fiscal 2026 earnings of ¥31.26 per share, down 30% year over year. Net income attributable to FUJIFILM Holdings fell 30.4% to ¥37.4 billion. Revenues rose 10.3% to a record first-quarter ¥826.5 billion, aided by Healthcare, Electronics, Imaging and favorable currency effects. Semiconductor Materials revenue jumped 31.3%, reflecting strong AI-related demand. Operating income declined 32% year over year to ¥51.2 billion, while the operating margin contracted to 6.2% from 10%. Higher fixed costs in Bio CDMO, one-time Business Innovation restructuring costs and rising raw material prices outweighed profit growth in Electronics and Imaging. Gross profit increased 3.5% to ¥323.4 billion, but the gross margin fell to 39.1% from 41.7%. Selling, general and administrative expenses climbed 16.9% to ¥229.9 billion, while research and development expenses rose 4.1% to ¥42.3 billion. Healthcare revenues increased 12.4% to ¥256.8 billion, but the segment posted an operating loss of ¥12.7 billion versus income of ¥4.3 billion a year earlier. Medical Systems revenues rose 12.8% to ¥162.4 billion, supported by higher endoscope and medical IT sales. Bio CDMO revenues increased 6.4% to ¥57.7 billion. Expanded large-scale operations were offset by unplanned shutdowns at small- to medium-scale U.S. facilities for regulatory inspections and upfront costs tied to the new U.S. site. LS Solutions revenues advanced 21.4% to ¥36.7 billion. Fujifilm Holdings Corp. price-consensus-eps-surprise-chart | Fujifilm Holdings Corp. Quote Electronics revenues surged 25% to ¥127.7 billion, while operating income rose 38.2% to ¥31.1 billion. The segment's operating margin expanded to 24.4% from 22.1%. Semiconductor Materials revenues reached ¥84.9 billion as sales of CMP slurry, NTI developers, advanced photoresists and liquid polyimides benefited from AI semiconductor demand. AF Materials revenues rose to ¥42.8 billion, helped by higher data-tape sales to major IT companies. Imaging revenues advanced 16.2% to ¥168.8 billion, and operating income increased 3.9% to ¥43.4 billion. Consumer Imaging revenues climbed 25.1% to ¥96.7 billion as instax sales benefited from strong mid-to-high-priced models and expanded film supply. Professional Imaging revenues rose 6% to ¥72.1 billion on digital-camera demand, particularly in Asia. However, revenue declined 4.6% on a constant-currency basis because of a tough comparison with strong new-product sales in the prior-year quarter. Business Innovation revenues edged down 0.1% to ¥273.2 billion, while the segment recorded a ¥1.4 billion operating loss versus ¥15.6 billion of income a year ago. Office Solutions revenues fell 4.6% to ¥114.5 billion amid lower exports to Europe and the United States and weaker sales in China. Business Solutions revenues rose 2.7% to ¥77.8 billion, while Graphic Communications revenues increased 4.1% to ¥81 billion. FUJIFILM also began assessing a partial spin-off of Business Innovation, with execution being considered within the next two to three years. Net cash provided by operating activities was ¥92.3 billion compared with ¥94.8 billion a year earlier. Investing activities used ¥124.9 billion, producing negative free cash flow of ¥32.6 billion. Cash and cash equivalents ended June at ¥150.7 billion, down ¥19.9 billion from March. Total assets increased to ¥6,167.3 billion, while inventories rose ¥66.3 billion to ¥667.1 billion. FUJIFILM raised its fiscal 2026 revenue forecast by ¥90 billion to ¥3,560 billion, representing 6% growth from fiscal 2025. The company maintained its operating income forecast at ¥365 billion and net income outlook at ¥280 billion, implying increases of 4.2% and 1.2%, respectively. Healthcare operating income guidance was cut to ¥41 billion from ¥69 billion because of delayed Bio CDMO profitability. Electronics operating income guidance was raised to ¥120 billion from ¥106 billion, while Business Innovation was lifted to ¥80 billion from ¥65 billion. Imaging remained at ¥162 billion. Currently, FUJIFILM has a Zacks Rank #3 (Hold). In the past year, shares have lost 6.8% against the Zacks Semiconductor Equipment – Photomasks industry’s growth of 57.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Image Source: Zacks Investment Research Fortive Corporation FTV reported second-quarter 2026 adjusted earnings of 74 cents per share, which jumped 28.5% year over year and topped the Zacks Consensus Estimate of 71 cents by 4.2%. Revenues rose 7.9% year over year to $1.10 billion and beat the consensus estimate of $1.06 billion by 3.5%. Core revenues increased 6.7%, reflecting price and volume growth in both operating segments. Flex Ltd. FLEX reported first-quarter fiscal 2027 adjusted earnings of $1.00 per share, up 38.9% year over year. The figure beat the Zacks Consensus Estimate of 93 cents by 7.5%. Revenues advanced 20.6% to $7.93 billion and topped the consensus mark of $7.58 billion by 4.6%. Broad-based segment growth, led by a 35% expansion in Cloud and Power Infrastructure, supported the results. SAP SE SAP reported second-quarter 2026 non-IFRS earnings per share of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2. Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SAP SE (SAP) : Free Stock Analysis Report Fujifilm Holdings Corp. (FUJIY) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Fortive Corporation (FTV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Onto Innovation Inc. ONTO reported second-quarter 2026 earnings per share of $1.93, which exceeded the Zacks Consensus Estimate by 15%. The bottom line also compared favorably with the prior-year quarter's $1.25. Management expected non-GAAP EPS between $1.65 and $1.73. Onto Innovation reported second-quarter revenue of $343.1 million, marking a 35.3% year-over-year increase. Revenue also rose nearly 18% sequentially, setting a new record for the company's highest quarterly revenue. The top line surpassed both management’s guidance ($320–$330 million) and the Zacks Consensus Estimate of $325.6 million. Key factors driving this strong performance included record revenue from Advanced Nodes, record sales in Specialty Devices, robust growth in Advanced Packaging solutions and ongoing investments by leading logic and memory chip manufacturers. According to management, customer visibility remains high as semiconductor companies continue investing in multi-year expansion initiatives. One of the most notable highlights was the company's backlog surpassing $1 billion for the first time. The company expects these investments to support solid second-half 2026 revenue, sustained AI infrastructure spending and demand that extends well into 2027. The record backlog offers greater revenue visibility and indicates customer confidence despite broader macroeconomic uncertainties. Following the successful launch of Dragonfly G5, Onto Innovation is seeing record demand across a broader customer base, prompting it to raise its full-year advanced packaging growth outlook to about 80% from 50%. Demand is being driven by HBM manufacturers and OSATs supporting AI-focused heterogeneous packaging. During the quarter, the company secured more than $200 million in Dragonfly orders from a single OSAT customer, with most deliveries scheduled for 2027. Onto Innovation Inc. price-consensus-eps-surprise-chart | Onto Innovation Inc. Quote Advanced Packaging and Specialty Devices accounted for nearly half of second-quarter revenue. Dragonfly inspection revenue rose 30% sequentially, driven by 2.5D and HBM demand. At the same time, other packaging and specialty segments, including power and SDI, declined as expected but are projected to recover to first-quarter levels next quarter. Advanced Nodes revenue increased approximately 50% sequentially to $120 million, reflecting stronger customer spending on next-generation semiconductor technologies required for AI processors and high-performance computing chips. In this category, memory accounted for around 60% of revenue and increased about 60% sequentially, while logic advanced more than 40%. Software and services accounted for the remainder of the second quarter revenue. Non-GAAP gross margin was 57%, up 250 basis points (bps) year over year and 130 bps sequentially, exceeding management's initial target of 200 bps of margin expansion for 2026. Non-GAAP operating income rose to $102.8 million from $65.6 million in the prior-year quarter. Driven by stronger operating leverage, Onto Innovation's operating margin expanded to 30%, up nearly 500 bps from the beginning of the year. Total operating expenses for the quarter were $119.7 million compared with $89.9 million in the previous-year quarter. As of June 30, 2026, the company had $1.9 billion in cash, cash equivalents and marketable securities and $271.6 million of total current liabilities compared with $654.2 million and $214.5 million, respectively, as of March 31. Accounts receivable were $337.4 million. Onto Innovation generated $62 million in cash from operations during the quarter, representing just over 100% of net income. Driven by robust demand and strong execution, Onto Innovation raised its second-half 2026 revenue, margin and EPS outlook. Building on a strong first half, ONTO expects second-half revenue to grow more than 25%, with third-quarter revenue of $380–$400 million and further growth in the fourth quarter. At the midpoint, revenue guidance implies another sequential increase of roughly 14%, suggesting demand remains exceptionally strong. Despite ongoing cost headwinds, including higher material, fuel and freight expenses, Onto Innovation expects gross margin to expand by another 50 bps in each of third and fourth quarters. The company expects gross margin between 57.3% and 57.8%. Onto expects operating margin to improve by 200 bps to 31.5%-32.5% in the third quarter and exceed 33% by year-end. Per management, Onto Innovation is on track to deliver 350 bps of gross margin expansion and more than 750 bps of operating margin improvement in 2026, with further gains expected in 2027. It further expects non-GAAP EPS between $2.18 and $2.38, GAAP EPS of $1.54 to $1.70 and GAAP operating margin of 21.4% to 22.4%. Onto Innovation currently boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here. Watts Water Technologies, Inc. WTS reported second-quarter 2026 adjusted earnings of $3.66 per share, up 18.4% from $3.09 a year ago. The bottom line beat the Zacks Consensus Estimate of $3.34 by 9.6%. Net sales rose 18.6% year over year to $763.2 million and topped the consensus mark of $726 million by 5.1%. Organic sales advanced 12.2%, driven by favorable pricing, higher volumes and data center growth. Year-to-date data center sales represented 8% of total sales. TELUS Corporation TU reported second-quarter 2026 adjusted earnings per share of C$0.16, down 27% from C$0.22 a year ago. Adjusted net income fell 26% to C$254 million, while operating revenues and other income declined 3% to C$4,929 million, pressured by weaker TELUS Digital results, lower mobile equipment revenues and reduced other income. Fortive Corporation FTV reported second-quarter 2026 adjusted earnings of 74 cents per share, which jumped 28.5% year over year and topped the Zacks Consensus Estimate of 71 cents by 4.2%. Revenues rose 7.9% year over year to $1.10 billion and beat the consensus estimate of $1.06 billion by 3.5%. Core revenues increased 6.7%, reflecting price and volume growth in both operating segments. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Onto Innovation Inc. (ONTO) : Free Stock Analysis Report TELUS Corporation (TU) : Free Stock Analysis Report Watts Water Technologies, Inc. (WTS) : Free Stock Analysis Report Fortive Corporation (FTV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sony Group Corporation SONY reported earnings of ¥57.82 per share for the first quarter of fiscal 2026, up 35% year over year from ¥42.84. Adjusted net income increased 32.1% to ¥342.2 billion. Quarterly net sales advanced 8.2% to ¥2,837.8 billion. Growth was led by Imaging & Sensing Solutions and Music, while gaming profitability strengthened. Game & Network Services sales were nearly flat at ¥937.1 billion. Segment operating income climbed 37% to ¥202 billion, supported by U.S. tariff refunds and favorable forex movements. Higher investment in the next-generation platform and restructuring costs were partial offsets. Sony Corporation price-consensus-eps-surprise-chart | Sony Corporation Quote PlayStation monthly active users reached a June record of 125 million, up 2% year over year, despite a 4% decline in total playtime. Network Services revenues increased to ¥208.6 billion from ¥172.6 billion, while Hardware and Others fell to ¥222.0 billion from ¥248.0 billion. PlayStation 5 shipments declined to 1.6 million units from 2.5 million, but full-game software sales edged up to 66.1 million units from 65.9 million. The digital download ratio slipped to 82% from 83%. Imaging & Sensing Solutions sales jumped 26% to ¥512.7 billion, while operating income surged 125% to ¥122.2 billion. Mobile image sensor results benefited from a better customer and product mix, modest unit growth and favorable foreign exchange rates. Music sales rose 21% to ¥562 billion, and operating income increased 14% to ¥105.9 billion. Higher live-event and merchandising revenues supported Recorded Music. On a U.S. dollar basis, streaming revenues grew 10% in Recorded Music and 8% in Music Publishing. Pictures sales declined 4% to ¥315.1 billion, reflecting fewer television series deliveries and lower theatrical revenues. Operating income rose 33% to ¥24.8 billion as marketing costs for current-year theatrical releases decreased. Crunchyroll continued to add subscribers beyond the more than 21 million reported at the end of March. Entertainment, Technology & Services sales increased 2% to ¥543.9 billion, but operating income was nearly flat at ¥42.6 billion. Forex gains were offset by lower unit sales across businesses, including Displays, and higher memory costs in Imaging and Displays. The imaging market remained stable outside China. Operating income increased 40.2% to ¥476.5 billion, lifting the operating margin to 16.8% from 13%. Total costs and expenses rose 3.7% to ¥2,363.3 billion, well below the pace of sales growth. Cost of sales was ¥1,796.3 billion, while selling, general and administrative expenses increased to ¥568.4 billion. As of June 30, 2026, cash and equivalents were ¥2,170 billion, down from ¥2,208.9 billion at fiscal year-end, while inventories increased by ¥137.7 billion to ¥1,365.1 billion. Long-term debt rose to ¥993.7 billion from ¥824.4 billion. After quarter-end, the Music segment completed an acquisition for approximately ¥260 billion in cash, recognizing about ¥550 billion of music catalog assets, ¥310 billion of long-term debt and ¥65 billion of noncontrolling interests. Cash provided by continuing operations declined to ¥197.4 billion from ¥253.9 billion. Higher inventories, content investment and income tax payments weighed on cash generation. Sony raised its full-year sales forecast to ¥12,500 billion from ¥12,300 billion and operating income guidance to ¥1,720 billion from ¥1,600 billion. The net income forecast increased to ¥1,210 billion from ¥1,160 billion, while the operating cash flow outlook remained ¥1,500 billion. The planned annual dividend is ¥35 per share, up ¥10. Game & Network Services received the largest upgrade, with sales raised by ¥120 billion and operating income by ¥60 billion. Music and Imaging & Sensing Solutions also received higher forecasts. The outlook excludes the financial impact of the July 28 Kumamoto earthquake, which suspended production at the Kumamoto Technology Center while restoration work continues. Sony currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Sonos, Inc. SONO reported third-quarter fiscal 2026 non-GAAP earnings of 27 cents per share, which soared 52% year over year and topped the Zacks Consensus Estimate of 24 cents. The 12.5% surprise reflected higher sales and disciplined spending despite rising memory costs. Revenues increased 9% to $375 million, beating the $367 million consensus by 2.3%. Speaker demand and international expansion supported growth. Sonos’ installed base exceeded 53 million connected devices across more than 17 million homes. Fortive Corporation FTV reported second-quarter 2026 adjusted earnings of 74 cents per share, which jumped 28.5% year over year and topped the Zacks Consensus Estimate of 71 cents by 4.2%. Revenues rose 7.9% year over year to $1.10 billion and beat the consensus estimate of $1.06 billion by 3.5%. Core revenues increased 6.7%, reflecting price and volume growth in both operating segments. Flex Ltd. FLEX reported first-quarter fiscal 2027 adjusted earnings of $1.00 per share, up 38.9% year over year. The figure beat the Zacks Consensus Estimate of 93 cents by 7.5%. Revenues advanced 20.6% to $7.93 billion and topped the consensus mark of $7.58 billion by 4.6%. Broad-based segment growth, led by a 35% expansion in Cloud and Power Infrastructure, supported the results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sony Corporation (SONY) : Free Stock Analysis Report Flex Ltd. (FLEX) : Free Stock Analysis Report Sonos, Inc. (SONO) : Free Stock Analysis Report Fortive Corporation (FTV) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Fortive Corporation? Here are five stocks we like better. 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. Industrial Buybacks: Top Homebuilding Supplier Leads Buyback Increases 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. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Buying the Dip in Fortive Stock is a Strong Move “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. CFO Mark Okerstrom said growth reflected both price and volume gains in Fortive’s two operating segments. 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. → Innovative ETF Strategies That Are Paying Off This Summer 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. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now 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 improved and returned to growth. Soroye said hospital capital budgets remain under pressure but have continued to improve. The company also cited strong provider demand for its gastrointestinal case documentation software. Fortive’s adjusted gross margin was 63%, down about 100 basis points from a year earlier, primarily because of product mix. Okerstrom said certain lower-margin products posted outsized growth, including products serving multi-site retail customers within Intelligent Operating Solutions. In healthcare, margin was affected by resumed growth in ASP capital products and strategic investments tied to larger accounts. Despite gross-margin pressure, consolidated adjusted EBITDA increased to $323 million and adjusted EBITDA margin expanded about 110 basis points to 29.5%. The company credited adjusted gross-profit growth, operating leverage and structural cost savings, partly offset by investments in its growth strategy. Fortive generated roughly $270 million of free cash flow during the quarter. Trailing 12-month free cash flow exceeded $1 billion, with conversion on net income “well north of 100%,” Okerstrom said. The company recognized a $4.5 million benefit from refunds tied to IEEPA tariffs in its GAAP earnings. Fortive expects an additional $20 million to $25 million in tariff refunds in coming quarters, but excludes those refunds from adjusted metrics to facilitate comparisons between reporting periods. Fortive repurchased roughly $200 million of shares in the second quarter. Since the launch of “New Fortive” a year earlier, the company has deployed nearly $2 billion toward buybacks, repurchasing approximately 38 million shares, or about 11% of shares outstanding. Fortive also acquired a majority stake in UV Smart, whose UVC high-level disinfection technology expands ASP’s disinfection portfolio for specialized instruments. Management said future bolt-on acquisitions will likely be concentrated in the company’s largest platforms, including Fluke and ASP, while software acquisitions would need to meet strict strategic and financial criteria. The company highlighted artificial intelligence-enabled offerings across its software businesses, including predictive-maintenance tools at ServiceChannel and Accruent, Flash AI at Gordian, and new capabilities in Fluke’s eMaint platform. Soroye said Fortive’s AI investments have been supported by an internal AI Center of Excellence established seven years ago and have not required significant incremental spending. Fortive raised its 2026 adjusted EPS guidance to a range of $2.95 to $3.05. The company now expects full-year reported revenue of approximately $4.35 billion and core revenue growth of about 4%, compared with its prior expectation of 2% to 3% growth. Management expects third-quarter revenue to follow normal seasonal patterns, with adjusted EBITDA margin slightly below second-quarter levels because of lower absolute revenue and modest strategic investments. Fourth-quarter reported revenue will be affected by four fewer selling days than the prior-year period, which Fortive expects will create a $15 million to $20 million revenue headwind and a 150-basis-point headwind to core growth. Okerstrom said Fortive expects to continue operating within its targeted annual adjusted EBITDA margin expansion range of 50 to 100 basis points in 2026 and 2027. Fortive Corporation (NYSE: FTV) is a diversified industrial technology company headquartered in Everett, Washington. The company was created through a spin‑off from Danaher Corporation in 2016 and has since focused on building a portfolio of professional instrumentation and industrial technology businesses. In 2020 Fortive completed a further portfolio separation with the spin‑off of Vontier, concentrating Fortive's activities on higher‑margin instrumentation, software and services. Fortive's operations center on professional test and measurement, sensing and monitoring, software‑enabled solutions, and lifecycle services that support industrial and commercial customers. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Fortive Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

Find winning stocks in any market cycle. Join 7 million investors using Simply Wall St's investing ideas for FREE. Fortive (FTV) has put fresh numbers on the table with its second quarter report, giving investors new detail on how revenue and earnings per share from continuing operations are tracking against last year. See our latest analysis for Fortive. Fortive's latest earnings release appears to have reset expectations, with the share price down 7.10% on the day to US$59.54, yet a 1 year total shareholder return of 20.45% still signals that longer term momentum has been stronger than the recent pullback. If this earnings move has you reassessing opportunities in industrial and automation themes, it could be worth widening your watchlist using the 34 robotics and automation stocks With Fortive now trading at US$59.54 after the earnings drop, and sitting between its intrinsic value estimate and the analyst target of US$64.23, where does a reasonable view of fair value really land? Fortive's most followed valuation narrative places fair value at about $64.36, compared with the latest close at $59.54. This frames the recent pullback as a modest discount that hinges on how durable earnings and margins prove to be. Read the complete narrative. Want to see what sits behind that recurring revenue story and margin path? The narrative ties together future earnings, cash generation, and the valuation multiple in a way the headline numbers alone do not spell out. Result: Fair Value of $64.36 (UNDERVALUED) Have a read of the narrative in full and understand what's behind the forecasts. However, this Fortive story can change quickly if U.S. and China trade frictions continue to weigh on margins or if healthcare reimbursement and hospital spending remain weak. Find out about the key risks to this Fortive narrative. The fair value narrative for Fortive centers on a discounted cash flow style approach that points to upside, yet the market is currently pricing the stock on a P/E of 32.4x. That is higher than the US Machinery industry at 28.5x and above a fair ratio of 26.8x, which points to valuation risk if sentiment cools. For investors who prefer to anchor on simple earnings multiples rather than cash flow models, those gaps matter. A P/E above both industry and fair ratio suggests less room for error if earnings or margins disappoint. It is worth asking which signal you trust more: the cash flow upside or the richer earnings multiple. See what the numbers say about this price — find out in our valuation breakdown. Given the mix of potential risks and rewards around Fortive that this article highlights, it makes sense to weigh the trade offs yourself and move quickly while the information is fresh. To help frame that view, take a closer look at the 3 key rewards and 1 important warning sign Consider broadening your view beyond a single decision on Fortive to a wider set of opportunities for comparison. A few focused stock lists can quickly sharpen your next move. Target potential mispricings by scanning companies that screen well on quality and valuation through the 49 high quality undervalued stocks. Strengthen your income plan by reviewing companies with robust payouts using the 9 dividend fortresses. Cut through noise and focus on financially resilient opportunities by checking the 85 resilient stocks with low risk scores. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FTV. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Fortive Corporation has released its second‑quarter and first‑half 2026 results, reporting revenue of US$1,096.8 million for the quarter and US$2,166.2 million for the half year, with basic earnings per share from continuing operations of US$0.52 and US$0.96 respectively. Alongside earnings, Fortive completed a substantial share repurchase program totaling 55,544,938 shares for US$3.42 billions since 2022, which may meaningfully affect its capital structure and per‑share metrics going forward. Next, we’ll examine how Fortive’s raised full‑year adjusted EPS outlook reshapes its investment narrative and longer‑term earnings expectations. Invest in the nuclear renaissance through our list of 90 elite nuclear energy infrastructure plays powering the global AI revolution. To own Fortive, you need to believe in its pivot toward higher quality, recurring software and services revenue, supported by the Fortive Accelerated strategy and disciplined capital deployment. The latest quarter reinforces that story through revenue growth and a higher full year adjusted EPS outlook, but also underscores execution risk around margin improvement and integration of newer platforms. For now, the raised guidance appears to support, rather than materially change, the near term earnings catalyst, while trade and healthcare policy remain key risks. The completed share repurchase of 55,544,938 shares for US$3,421.56 million since 2022 is particularly relevant here, because it is already influencing per share metrics at the same time management is lifting its adjusted EPS target to about US$3. Combined with ongoing free cash flow generation, that capital return amplifies both the upside and the exposure if growth in recurring software and healthcare stalls or if tariff and reimbursement pressures intensify. Yet beneath the raised EPS outlook, investors should be aware of how Fortive’s higher debt load could interact with... Read the full narrative on Fortive (it's free!) Fortive's narrative projects $4.7 billion revenue and $773.3 million earnings by 2029. Uncover how Fortive's forecasts yield a $64.36 fair value, a 8% upside to its current price. Some of the lowest ranked analysts paint a far more cautious picture for Fortive, assuming only about US$4.7 billion of revenue and US$741 million of earnings by 2029, and warning that integration and innovation challenges could compress the P/E even if EPS rises, which is a useful contrast to the more optimistic focus on recurring revenue and AI enabled growth that this quarter’s higher guidance seems to support. Explore 5 other fair value estimates on Fortive - why the stock might be worth as much as 63% more than the current price! Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts. A great starting point for your Fortive research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision. Our free Fortive research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Fortive's overall financial health at a glance. Right now could be the best entry point. These picks are fresh from our daily scans. Don't delay: The best AI stocks today may lie beyond giants like Nvidia and Microsoft. Find the next big opportunity with these 16 smaller AI-focused companies with strong growth potential through early-stage innovation in machine learning, automation, and data intelligence that could fund your retirement. Capitalize on the AI infrastructure supercycle with our selection of the 56 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. AI is about to change healthcare. These 41 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include FTV. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Delivered 6.7% core revenue growth driven by the 'Fortive Accelerated' strategy, focusing on innovation velocity and recurring customer value. Innovation funnel expansion at Fluke is specifically targeting high-growth verticals including data centers, defense, and early-in-career technicians. The Gordian Flash AI solution has moved into production across strategic accounts, significantly reducing construction cost estimating time from days to minutes. Healthcare segment performance was bolstered by ASP receiving FDA clearance for a 50-pound expanded load capacity, enhancing positioning in robotic-assisted surgery. Recurring revenue growth remained strong across both segments, supported by AI-enabled predictive maintenance tools and software-as-a-service offerings. Gross margin of 63% reflected a 100-basis-point year-over-year decline primarily due to product mix dynamics from outsized growth in lower-margin products. Geographic performance saw North America as the strongest region, while EMEA faced modest declines due to macroeconomic uncertainty and geopolitical tensions. Raised full-year 2026 adjusted EPS guidance to $2.95 to $3.05, reflecting first-half momentum and confidence in the business trajectory. Full-year core growth expectations increased to approximately 4%, up from the previous range of 2% to 3%. Q4 reported revenue faces a $15 million to $20 million headwind due to having four fewer selling days compared to the prior year. Management maintains a medium-term financial framework targeting 50 to 100 basis points of annual EBITDA margin expansion. Capital allocation remains focused on organic investment, opportunistic bolt-on M&A, and returning capital through share repurchases. Executed approximately $200 million in share repurchases during Q2, totaling 11% of shares retired since the launch of 'New Fortive' one year ago. Acquired a majority stake in UV Smart to expand ASP's portfolio into UVC high-level disinfection for specialized medical instruments. Recognized a $4.5 million IEEPA tariff refund in GAAP earnings, with an additional $20 million to $25 million expected in coming quarters. The M&A strategy is shifting to prioritize differentiated hardware businesses over software, focusing on brands where Fortive has the strongest market presence. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management confirmed NPIs are a primary driver of the 6.7% core growth, with deeper and richer funnels across all 10 brands. Specific success was noted in AI-enabled work order detection at ServiceChannel and the CertiFiber Max launch at Fluke. M&A will likely skew toward strongest hardware brands like Fluke and ASP to leverage existing installed bases. Software acquisitions face a 'narrow path' requiring specific attributes like proprietary data, regulatory lock-in, or two-sided networks. Fluke is leveraging its existing toolset to pivot toward data center commissioning and maintenance, which is seeing demand 'way above plan.' New products like CertiFiber Max are acting as a pull-through for the broader portfolio of power quality and battery testing lines. ASP capital equipment returned to growth as hospitals prioritize operating room efficiency despite ongoing budget pressures. The new 50-pound load FDA clearance expands the addressable market for robotic surgery sterilization applications.

Fortive Corporation FTV reported second-quarter 2026 adjusted earnings of 74 cents per share, which jumped 28.5% year over year and topped the Zacks Consensus Estimate of 71 cents by 4.2%. Revenues rose 7.9% year over year to $1.10 billion and beat the consensus estimate of $1.06 billion by 3.5%. Core revenues increased 6.7%, reflecting price and volume growth in both operating segments. However, Fortive’s shares are slightly down around 1.5% in the pre-market trading session today. The stock has gained 21.6% in the past six months compared with the Zacks Electronics - Testing Equipment industry's growth of 16%. Image Source: Zacks Investment Research Currency translation and portfolio changes added 1.2 percentage points to reported revenue growth. The remaining increase came from core operations, showing that the quarter's expansion was primarily organic. Management linked the performance to strong execution under the Fortive Accelerated strategy. The company cited early progress in innovation, commercial execution and recurring customer value, supported by the Fortive Business System. These initiatives are intended to increase new-product velocity and deepen recurring customer relationships. Intelligent Operating Solutions generated revenues of $758.2 million, up 8.8% year over year. Core revenues increased 7.4%, driven by professional instrumentation, Facilities and Asset Lifecycle solutions, and gas detection. Adjusted EBITDA for the segment rose 12.2% to $264.4 million. The adjusted EBITDA margin expanded 110 basis points (bps) to 34.9%, as gross profit growth, operating leverage and structural cost savings more than offset growth investments. Advanced Healthcare Solutions posted revenues of $338.6 million, up 6% from the prior-year quarter. Core growth was 5.3%, supported by demand for healthcare consumables, services and software, along with modest growth in capital equipment. Segment adjusted EBITDA increased 2.7% to $88.4 million. However, the adjusted EBITDA margin contracted 80 bps to 26.1%, as product mix and strategic growth investments weighed on profitability despite operating leverage and cost savings. Adjusted gross profit increased 6.2% to $690.9 million. The adjusted gross margin was 63%, down 100 bps year over year, mainly due to product mix, partly offset by operating leverage. Adjusted EBITDA rose to $323.1 million from $288.4 million, and the margin expanded 110 bps to 29.5%. Adjusted operating profit increased to $300.7 million, with the adjusted operating margin improving 70 bps to 27.4%. GAAP net earnings advanced 40.9% to $157.3 million. Fortive Corporation price-consensus-eps-surprise-chart | Fortive Corporation Quote Operating cash flow from continuing operations reached $298.7 million, up from $205 million a year earlier. Free cash flow increased 50.3% to $270.6 million, representing conversion of 118.4% of adjusted net earnings. Trailing-12-month free cash flow totaled $1.04 billion, with conversion of 108.4%. Fortive ended the quarter with $374.2 million in cash and equivalents, while net debt was $3.15 billion and net leverage was 2.4 times adjusted EBITDA. The cash profile supports continued deployment across the company's stated priorities. Fortive raised its full-year 2026 adjusted earnings guidance to $2.95-$3.05 per share. The revision reflects solid first-half execution and management's confidence in the business trajectory. The company maintained that its medium-term financial framework remains intact. It continues to focus on faster profitable organic growth, disciplined capital allocation and building investor trust through clearer expectations and consistent delivery. The company deployed roughly $200 million toward share repurchases in the second quarter, buying about 3 million shares at an average price of $59.54. Repurchases over the past four quarters totaled approximately $2 billion, covering about 38 million shares, or roughly 11% of shares outstanding as of the second quarter of 2025. Fortive also completed the acquisition of UV Smart, a small bolt-on transaction aligned with its strategic growth priorities. Gross leverage declined to about 2.7 times adjusted EBITDA, preserving flexibility for organic investment, selective acquisitions, repurchases and a modestly growing dividend. Fortive currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. SAP SE SAP reported second-quarter 2026 non-IFRS earnings per share of €1.59 ($1.85), which increased 6% from the year-ago quarter. The Zacks Consensus Estimate was pegged at $2. Despite macroeconomic uncertainty, SAP reported total revenues on a non-IFRS basis of €9.9 billion ($11.5 billion), which increased 9% year over year (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $11.4 billion. America Movil, S.A.B. de C.V. AMX reported net income per ADR of 47 cents for the second quarter of 2026, up from 38 cents in the prior-year quarter. The earnings figure missed the Zacks Consensus Estimate of 52 cents. Total quarterly revenues rose 3.1% to Mex$241,071 million, driven by rapid momentum across the Service and Equipment segments. BlackBerry Limited BB reported first-quarter fiscal 2027 non-GAAP earnings per share of 4 cents. The figure beat the company’s estimate of 2-3 cents. In the year-ago quarter, it reported a non-GAAP EPS of 2 cents. The Zacks Consensus Estimate was pegged at 3 cents per share. BlackBerry generated $152.9 million in fiscal first-quarter revenue, representing 26% year-over-year growth. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report America Movil, S.A.B. de C.V. Unsponsored ADR (AMX) : Free Stock Analysis Report SAP SE (SAP) : Free Stock Analysis Report Fortive Corporation (FTV) : Free Stock Analysis Report BlackBerry Limited (BB) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research