- **EPS Growth Surpassing Expectations**: Adjusted EPS up 15% to $0.68, driven by EBITDA expansion and share buybacks.
- **Strategic Buybacks**: $1 billion in share repurchases, reducing share count by 6%, signaling confidence in Fortive's value.
- **Accelerated Strategy Momentum**: 2% core growth, 10% EBITDA growth, and 15% EPS growth reflect successful execution of Fortive Accelerated pillars.
- **Tariff Mitigation**: Strong cost discipline offset $0.01 EPS tariff impact, with free cash flow conversion exceeding 100%.

**【CEO Summary Section】**
- Fortive delivered strong Q3 results as a standalone entity, with core revenue growth of 2%, adjusted EBITDA up 10%, and adjusted EPS up 15%.
- Launched Fortive Accelerated strategy focusing on Innovation Acceleration (e.g., AI-powered work order insights), Commercial Acceleration (e.g., North America solar operations), and Recurring Customer Value (e.g., Fluke service plans).
- Repurchased $1 billion in shares, reflecting confidence in stock valuation and capital allocation strategy.

**【CFO Financial Commentary】**
- Total revenue of $1.02 billion, with IOS segment growing 2.5% and AHS segment up 2% year-over-year.
- Adjusted gross margin declined 60bps due to tariffs, but adjusted EBITDA margin expanded 200bps to 30%.
- Generated $266 million in free cash flow, with trailing 12-month free cash flow of $922 million.
- Raised full-year adjusted EPS guidance to $2.63-$2.67, up from prior range, driven by Q3 outperformance and buybacks.

**【Q&A Highlights】**
- **Margins & Tariffs**: CFO noted one-time cost savings ($1 billion buyback) offsetting $0.01 EPS tariff headwind, with Q4 expecting moderate OpEx increase.
- **Fluke Performance**: CEO highlighted North America growth, new product launches (e.g., GFL 1500), and recurring revenue expansion.
- **Healthcare Trends**: AHS segment saw sequential improvement in capital equipment demand, with software growth offsetting policy headwinds.
- **Recurring Revenue**: Recurring revenue outpaced overall growth, with Fluke targeting 15%+ recurring mix via service plans and HaaS.

Fortive Corporation (FTV) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

FTV

FTV fundamentals

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