Q1 2026 Fortive Corp Earnings Call Transcript
Key Points
- Fortive Corp (FTV) delivered strong financial performance in Q1 2026, with core revenue growth of over 5%, adjusted EBITDA growth of 13%, and adjusted EPS growth of over 25%.
- The company completed approximately $500 million in share repurchases, reducing its share count by over 10% since July 2025.
- Fortive Corp (FTV) is seeing positive customer response to new product launches, such as the CertiFiber MAX in the data center segment, which is driving additional sales of related products.
- The company is making progress in its recurring revenue initiatives, with recurring revenue growing faster than consolidated revenue in both segments.
- Fortive Corp (FTV) is maintaining a strong balance sheet, with a gross debt to adjusted EBITDA ratio of 2.8 times, and ample capacity for capital deployment in 2026.
- Adjusted gross margin in Q1 was down about 100 basis points year-over-year, primarily due to the impact of tariffs.
- The company faces ongoing hospital spending pressures, which continue to affect demand for low temperature sterilization capital equipment.
- Fortive Corp (FTV) anticipates a $15 million to $20 million revenue headwind in Q4 due to fewer year-over-year selling days.
- The company is experiencing a headwind from tariffs, which is expected to persist through partway into Q3 2026.
- Despite strong performance, Fortive Corp (FTV) remains cautious about raising its full-year guidance, citing it as too early to adjust expectations significantly.
My name is Shamali, and I will be your conference facilitator this afternoon. At this time, I would like to welcome everyone to Fortive Corporation's first quarter 2026 earnings results conference call. (Operator Instructions)
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.
Thank you, and thank you, everyone, for joining us on today's call. I am joined today by Olumide Soroye, Fortive's President and CEO; and Mark Okerstrom, Fortive's 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
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