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. In Q4, we delivered Core Growth of just over 3%, Adjusted EBITDA growth of 8%, and Adjusted EPS growth of about 13%. We were pleased to see another quarter of growth acceleration in the business, knowing that we have even more growth upside ahead of us. Second, our strong Q4 earnings performance resulted in full-year Adjusted EPS of $2.71, exceeding the high end of our guidance range of $2.63-$2.67.
Third, we continue to deploy capital in accordance with our disciplined approach, anchored in optimizing shareholder returns over the medium to long term. Finally, as we turn our focus to 2026, we are initiating full-year 2026 Adjusted EPS guidance of $2.90-$3, representing approximately 9% year-over-year growth at the midpoint. Before we turn to our Q4 results, I'd like to highlight the progress we've made on each of the three Fortive accelerated pillars, beginning with our focus on driving faster, profitable organic growth. In terms of innovation acceleration, this quarter, we continued to accelerate new product introduction velocity, including offerings aimed at high-growth verticals.
Industrial Scientific's expanded commercial coverage drove acceleration in EMEA, and our investment in a broader sales team for Fluke and ASP in India directly contributed to strong growth in the region. We also made progress in advancing the recurring elements of our portfolio, enhancing customer engagement, and strengthening the durability of our revenue streams. In Q4, recurring revenue again grew faster than consolidated revenue, driven by continued strength in Fluke's maintenance software and deeply embedded data, as well as AI-enhanced software capabilities across IOS and AHS segments. Moving to the second pillar, disciplined capital allocation is an integral component of our Fortive Acceleration strategy.
| Metric | Period | Current guidance |
|---|---|---|
| Full-year Adjusted EPS | FY2026 | $2.90-$3.00 per share (~9% YoY growth at midpoint) (Initiated) |
| Adjusted EBITDA margin expansion | FY2026 (and 2026-2027 framework) | 50-100 basis points (Reaffirmed framework) |
| FX tailwind to revenue | Q1 2026 | ~300 basis points (New) |
| Diluted shares outstanding | FY2026 plan | ~315 million (New) |
| Metric | YoY | Note |
|---|---|---|
| Total revenue | +4.5% reported / +3% core ($1.1B) | Return of volume growth and solid performance across all regions, with both price (~2%) and volume (~1%). |
| Intelligent Operating Solutions (IOS) revenue | +5% reported / +4% core | Strong FBS-driven execution at Fluke, plus growth in facility and asset lifecycle software and gas detection; results ahead of expectations. |
| IOS Adjusted EBITDA | +8% to $288M | Operating leverage and reduced costs from flattening segment structures, partly offset by targeted growth investments. |
| Advanced Healthcare Solutions (AHS) revenue | +3% reported / +1.6% core ($353M) | Deferral of U.S. hospital capital expenditures, partly offset by improving demand trends and solid software growth. |
| Adjusted EPS | +13% to $0.90 | Growth in Adjusted EBITDA and positive year-over-year impact of share repurchases, partly offset by modestly higher tax expense. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Fortive Accelerated Strategy (three pillars) | Launched as New Fortive in July 2025 | Diligently executing across all three pillars with early signs of working | Rising |
| Recurring revenue and software durability | Discussed in prior quarter (Q3) | Recurring revenue grew faster than consolidated revenue; strong ARR, gross and net dollar retention | Rising |
| AI and Agentic AI in software | Examples cited on Q3 call (Provation) | Seen as a growth accelerator; ServiceChannel Q4 release added AI-enabled enhancements | Rising |
| Disciplined capital allocation / share repurchases | Began in second half 2025 | $1.3B repurchased in H2, ~26M shares (~8% of diluted); continuing into 2026 | Steady |
| Bolt-on M&A | Two small deals closed in H2 2025 | Prioritizing small accretive bolt-ons; higher bar for software assets; not required for success | Steady |
| AHS / hospital capital expenditure pressure | Worst in Q2 2025 | Improved progressively in Q3 and Q4; demand getting better by the week | Declining |