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. On a consolidated basis, we delivered core revenue growth of just over 5%, adjusted EBITDA growth of 13%, and adjusted EPS growth of over 25%. Please note that our core revenue growth in the quarter was aided by approximately 150 basis points of tailwind from additional year-over-year selling days in the quarter. Second, we continue our disciplined capital allocation approach with a relentless focus on optimizing shareholder returns over the medium to long term.
Lastly, we are reaffirming our full-year adjusted EPS guidance range of $2.90-$3.00. Starting with the first pillar, delivering faster profitable organic growth, powered by our Fortive Business System amplified. This quarter, we continued to increase our innovation velocity with several notable hardware product milestones and AI-enhanced product launches. On the commercial side, we continue to focus on faster-growing end markets and regions where we've made deliberate, targeted investments to capture growth.
At Fluke, we continue to invest in commercial expertise across high-growth verticals such as data centers, defense, and distributed energy, and we're seeing solid early traction from our focused efforts. We're also advancing ASP's growth strategies in EMEA with the European commercial launch of STERRAD ULTRA GI. On our recurring customer value initiatives, we continued to make progress on driving deeper customer lifecycle engagement and improving revenue durability. In Q1, recurring revenue again grew faster than consolidated revenue in both segments.
| Metric | Period | Current guidance |
|---|---|---|
| Adjusted EPS (full-year) | FY2026 | $2.90-$3.00, trending toward the upper half (Reaffirmed; now expected toward upper half of range) |
| Core revenue growth | FY2026 | Tracking toward the higher end (top half) of 2%-3% (Tracking to high end) |
| Adjusted EBITDA margin expansion | FY2026 and FY2027 (each year) | 50-100 bps per year; less expansion in back half of 2026 than first half (Reaffirmed framework) |
| Metric | YoY | Note |
|---|---|---|
| Consolidated revenue | Up almost 8% reported, just over 5% core | Price and volume growth at both segments plus an approximately 150 bps tailwind from additional selling days; strong software revenue growth. |
| Adjusted EBITDA | Up about 13% to $314 million | Operating leverage, structural cost savings, and favorable FX, partially offset by continued innovation and commercial growth investments. |
| Intelligent Operating Solutions (IOS) revenue | Up about 8% reported, about 5% core | Price and volume growth across professional instrumentation, facility and asset lifecycle solutions, and gas detection; roughly 100 bps benefit from additional selling days. |
| IOS adjusted EBITDA | Up 8% to $255 million | Operating leverage, structural cost savings, and favorable FX, partially offset by targeted growth investments. |
| Advanced Healthcare Solutions (AHS) revenue | Up approximately 8% reported, approximately 6% core, to $326 million | Solid demand for healthcare consumables, services, and software in North America; roughly 300 bps benefit from additional selling days; modest improvement in low temperature sterilization capital demand. |
| AHS adjusted EBITDA | Up approximately 18% to $84 million | Operating leverage, structural cost savings, and favorable FX, partially offset by targeted growth investments; margin expanded about 200 bps to just under 26%. |
| Adjusted EPS | Up over 25% to $0.70 | Growth in adjusted EBITDA and the positive year-over-year impact of share repurchases. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Fortive Accelerated strategy execution | — | Third consecutive quarter of performance ahead of expectations as new Fortive; confidence building across all three pillars. | Rising |
| Data center opportunity at Fluke | CertiFiber Max launched late Q4 | Customer response continues to exceed expectations, pulling through other Fluke products; durable operations and maintenance opportunity ahead. | Rising |
| AI-powered product innovation | — | AI deployed on proprietary data-rich software (ServiceChannel AI, Provation Mira Documentation Assist) driving faster growth; software revenue growing ahead of overall business. | Rising |
| Tariff impact on gross margin | Headwind seen last quarter | Continued net tariff headwind to gross margins, fully countermeasured to the bottom line; expected to dissipate by Q4 as countermeasures lap. | Steady |
| Disciplined capital allocation and bolt-on M&A | ~$1.8B repurchased since spin; M&A engine revamped | Another ~$500M repurchased in Q1; bolt-on team rebuilt, Corbin Walburger joining to lead corporate development, building pipeline. | Rising |
| Hospital capital equipment demand (AHS) | Q2 2025 was toughest quarter on reimbursement pressure | Modest sequential improvement since Q2 2025; hospitals still cautious on discretionary-timing capital, but funnel strong. | Rising |