Fortive delivered fourth-quarter revenue of $1.12 billion, surpassing the consensus forecast of $1.09 billion and marking 4.6% year-over-year growth. Core revenue, which excludes acquisitions and divestitures, rose 3.3% compared with the year-ago quarter. Adjusted earnings per share reached $0.90, outpacing the $0.84 consensus estimate and representing a 12.5% increase over Q4 2024 adjusted EPS of $0.80.

Both strategic segments contributed to top-line gains. Intelligent Operating Solutions generated $770 million in revenue, up 5.3% year-over-year, while Advanced Healthcare Solutions produced $353 million, a 3.2% increase. Adjusted EBITDA climbed 7.8% to $358 million, boosting the margin by 90 basis points to 31.9%. In Intelligent Operating Solutions, adjusted EBITDA margin expanded by 80 basis points to 37.4%; Advanced Healthcare Solutions offset a slight margin contraction to 26.0%.

Fortive converted earnings into robust cash flow, delivering GAAP operating cash flow of $344 million and free cash flow of $314 million in the quarter. The company executed $265 million of share repurchases during Q4, bringing second-half buybacks to approximately $1.3 billion. This disciplined allocation underscores management’s focus on returning capital to shareholders while funding strategic initiatives.

For fiscal 2026, Fortive projected adjusted EPS in the range of $2.90 to $3.00, topping the Street’s $2.84 estimate. Management cited strong end-market demand and margin expansion opportunities through continued Fortive Business System deployment. The outlook reflects expectations for mid-single-digit core revenue growth and incremental margin gains driven by operational leverage and productivity improvements.