A maker of test tools, software, and services that keep factories, hospitals, and utilities running safely—under brands like FLUKE multimeters and INDUSTRIAL SCIENTIFIC gas detectors, plus hospital sterilization systems under ASP. Fortive was born in 2016 when Danaher spun off its industrial arm, with a name from the Latin "fort," meaning "strong." Its best-known brand's founder, John Fluke, started the company in the basement of his Connecticut home in 1948.
Fortive Q2 2026 revenue rose 7.7% to $1,069.4M with operating margin at 17.9%
growth held above 5% for a second quarter after the split. rose 7.7% to $1,069.4M and was 17.9%, up 1.3 points from a year earlier, as the retained segments grew and separation costs cleared, while slipped 1.0 point to 63.2% on compensation and tariffs. The post-separation portfolio is growing, but margin pressure from costs remains.
Key takeaways
rose 7.7% to $1,069.4M and fell 4.7% sequentially, with up 6.7% in Q2 per the MD&A on 2.4% pricing and 4.3% volume gains.
was 17.9%, up 1.3 points from Q2 2025, as productivity and $40 million in tariff refunds helped lift Q2 margin 240 to 19.1% per management.
was 63.2%, down 1.0 point , as higher employee compensation and tariff effects outweighed pricing and volume.
Section summaries
Management's Discussion and Analysis
Q2 2026 core revenue grew 6.7% driven by pricing and volume; operating margin expanded 240 bps on productivity and tariff refunds.
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Total Q2 rose 7.9% to $1,096.8M, with growth of 6.7% from 2.4% pricing and 4.3% volume gains.
increased 240 to 19.1%, helped by productivity measures, lower restructuring costs, and $40 bps from tariff refunds.
sales rose 7.6% to $743.2M in Q1 and core grew 7.4% in Q2 on instrumentation and software demand; sales rose 7.9% to $326.2M in Q1 with 5.3% Q2 core growth on sterilization volume.
was $136.4M, down 20.7% , and was $0.44, down 12.0%, with the prior-year quarter including Precision Technologies before its separation.
was $234.8M, down 2.9% , and the company repaid $900M of 2026 notes using new 2031 and 2036 issuance while rose $434M.
was $2,589.3M, up 12.3% sequentially after the issuance, against $2,306.5M at 2025 year-end.
What changed
AHS margin trajectory: Q1 2026 AHS rose 280 to 10.0%; Q2 margin was flat (+10 ) as pricing and volume met mix and investment, leaving the expansion partial.
trend: flagged at 63.2% in Q1 with tariff and compensation pressure; Q2 held at 63.2% but still down 1.0 point , so cost pressure persists.
after Q1 $592M issuance to $2,589.3M; Q2 added $434M more via commercial paper and a $900M note refinancing, debt up 12.3% sequentially from Q1.
sustainability: after 5.3% Q1 core growth, Q2 core rose 6.7%, showing the retained portfolio growth held above 5% post-.
separation: completed June 28 2025; this Q2 is the second full quarter of the retained Fortive with no PT results, and separation stock compensation no longer weighs on margin as it did in 2025.
What to watch
AHS next quarter after the flat Q2 reading to see if the Q1 280-basis-point gain holds or fades.
against 63.2% as tariff and compensation costs develop through H2 2026.
and net against $2,589.3M as the $434M and new notes settle.
of the retained portfolio after two quarters above 5% — whether the 6.7% Q2 rate sustains.
IOS grew 7.4% on strong professional instrumentation, facilities software, and gas detection demand; margin rose 230 .
AHS grew 5.3% led by sterilization product volume; margin was flat (+10 ) as pricing and volume were offset by mix and investments.
Year-to-date from continuing ops rose $122M to $519M; financing activities used $400M including $700M in share repurchases.
The company repaid $900M of 3.15% notes due 2026 using proceeds from new 2031 and 2036 notes, and net borrowings increased $434M.
Quantitative and Qualitative Disclosures About Market Risk
Our concentrations of credit risk arising from trade receivables are limited due to the diversity of our customers. Our businesses perform credit evaluations of their customers’ financial conditions as appropriate and also obtain collateral or other security when appropriate. Ad…
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Our concentrations of credit risk arising from trade receivables are limited due to the diversity of our customers. Our businesses perform credit evaluations of their customers’ financial conditions as appropriate and also obtain collateral or other security when appropriate.
Additional quantitative and qualitative disclosures about market risk appear in “Management’s Discussion and Analysis of Financial Condition and Results of Operations — Financial Instruments and Risk Management,” in our 2025 Annual Report on Form 10-K. There were no material changes during the three and six-month period ended July 3, 2026 to the information reported in our 2025 Annual Report on Form 10-K relating to our evaluation of interest rate, foreign currency exchange, and commodity price risk. Refer to Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations for discussion around the impact of these items in the second quarter and year-to-date period.
Information regarding risk factors appears in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Information Relating to Forward-Looking Statements,” in Part I - Item 2 of this Form 10-Q and in the “Risk Factors” section of our 2025 Annual R…
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Information regarding risk factors appears in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Information Relating to Forward-Looking Statements,” in Part I - Item 2 of this Form 10-Q and in the “Risk Factors” section of our 2025 Annual Report on Form 10-K. There were no material changes during the quarter ended July 3, 2026 to the risk factors reported in the “Risk Factors” section of our 2025 Annual Report on Form 10-K.