What changed in this filing

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Item 1. Financial Statements

2025-10-29 compared with 2025-07-30 · 305 added, 294 removed, 480 unchanged (56% of the section changed)

3 unchanged sentences

($ and shares in millions, except per share amounts)

June 27, 2025 December 31, 2024

September 26, 2025 December 31, 2024

Current assets:

6 unchanged sentences

Prepaid expenses and other current assets

Current assets, discontinued operations 53.2 614.3

Total current assets 1,731.6 2,592.3

3 unchanged sentences

Other intangible assets, net 2,268.4 2,530.5

Other assets, discontinued operations

Total assets $ 11,886.7 $ 17,016.1

4 unchanged sentences

Accrued expenses and other current liabilities 852.7 868.3

Current liabilities, discontinued operations

Total current liabilities 2,469.5 2,238.4

1 unchanged sentence

Long-term debt 2,117.1 3,331.1

Commitments and Contingencies (Note 9)

Long-term liabilities, discontinued operations

Common stock:

5 unchanged sentences

Retained earnings 5,264.3 8,227.6

Accumulated other comprehensive loss ( 287.3 ) ( 465.4 )

Accumulated other comprehensive income (loss)

34.2 ( 465.4 )

Total Fortive stockholders’ equity 6,503.9 10,188.6

6 unchanged sentences

($ and shares in millions, except per share amounts)

Three Months Ended Six Months Ended

June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024

Three Months Ended Nine Months Ended

September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024

Sales of products and software $ 814.4 $ 802.5 $ 2,431.6 $ 2,420.1

10 unchanged sentences

( 62.0 ) ( 62.0 ) ( 193.2 ) ( 186.1 )

Gain on sale of property

Operating profit 159.6 172.0 494.7 504.1

1 unchanged sentence

Interest expense, net ( 25.4 ) ( 37.1 ) ( 89.5 ) ( 119.8 )

Loss from divestiture

— ( 25.6 ) — ( 25.6 )

Other non-operating income (expense), net

0.8 ( 25.8 ) 3.1 ( 58.2 )

Earnings before income taxes 192.0 228.7 393.4 462.7

Earnings from continuing operations before income taxes

135.0 109.1 408.3 326.1

Income taxes ( 18.0 ) 2.4 ( 67.1 ) ( 36.8 )

Net earnings $ 166.6 $ 195.1 $ 338.5 $ 402.5

Net earnings from continuing operations 117.0 111.5 341.2 289.3

Net earnings (loss) from discontinued operations

( 62.0 ) 110.1 52.3 334.8

$ 55.0 $ 221.6 $ 393.5 $ 624.1

Net earnings per common share from continuing operations:

$ 0.35 $ 0.32 $ 1.01 $ 0.82

$ 0.35 $ 0.32 $ 1.00 $ 0.82

Net earnings per common share from discontinued operations:

Basic $ ( 0.19 ) $ 0.31 $ 0.16 $ 0.96

Diluted $ ( 0.19 ) $ 0.31 $ 0.15 $ 0.94

Net earnings per share:

4 unchanged sentences

Diluted 333.4 352.3 339.9 354.4

Certain amounts may not sum due to rounding.

See the accompanying Notes to Consolidated Condensed Financial Statements.

2 unchanged sentences

($ in millions)

Three Months Ended Six Months Ended

June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024

Three Months Ended Nine Months Ended

September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024

Net earnings $ 55.0 $ 221.6 $ 393.5 $ 624.1

3 unchanged sentences

Total other comprehensive income (loss), net of income taxes ( 10.8 ) 89.4 167.3 ( 8.1 )

Comprehensive income $ 274.6 $ 174.0 $ 516.6 $ 305.0

Comprehensive income (loss)

$ 44.2 $ 311.0 $ 560.8 $ 616.0

See the accompanying Notes to Consolidated Condensed Financial Statements.

4 unchanged sentences

Comprehensive

Loss Noncontrolling

Income (Loss)

Noncontrolling

Shares Outstanding Amount

5 unchanged sentences

— — — — — 70.1 —

Common stock-based award activity 1.5 — 64.4 — — — —

Stock based compensation

1.5 — 64.4 — — — —

Common stock repurchases ( 2.5 ) — — ( 203.6 ) — — —

6 unchanged sentences

Other comprehensive income (loss) — — — — — 108.0 —

Common stock-based award activity 0.2 — 36.2 — — — —

Stock based compensation

0.2 — 36.2 — — — —

Common stock repurchases ( 1.9 ) — — ( 136.3 ) — — —

2 unchanged sentences

Balance, June 27, 2025 338.2 $ 3.7 $ 4,106.0 $ ( 1,952.2 ) $ 8,511.9 $ ( 287.3 ) $ 7.1

Net earnings for the period — — — — 55.0 $ — $ —

Dividends to common stockholders

— — — — ( 19.1 ) — —

Other comprehensive income (loss) — — — — — ( 10.8 ) —

Stock based compensation

0.4 — 64.3 — — — —

Common stock repurchases ( 20.8 ) — — ( 1,010.4 ) — — —

Shares withheld for taxes ( 0.2 ) — ( 6.0 ) — — — —

Change in noncontrolling interests — — — — — — 0.5

Distribution of Ralliant Corporation — — — — ( 3,283.5 ) 332.3 —

Balance, September 26, 2025 317.6 $ 3.7 $ 4,164.3 $ ( 2,962.6 ) $ 5,264.3 $ 34.2 $ 7.6

Common Stock Additional Paid-In Capital Treasury

1 unchanged sentence

Comprehensive

Loss Noncontrolling

Income (Loss)

Noncontrolling

Shares Outstanding Amount

4 unchanged sentences

Other comprehensive income (loss) — — — — — ( 76.4 ) —

Common stock-based award activity 1.5 0.1 73.2 — — — —

Stock based compensation

1.5 0.1 73.2 — — — —

Shares withheld for taxes ( 0.2 ) — ( 18.4 ) — — — —

4 unchanged sentences

— — — — — ( 21.1 ) —

Common stock-based award activity 0.3 — 35.0 — — — —

Stock based compensation

0.3 — 35.0 — — — —

Common stock repurchases ( 2.0 ) — — ( 154.6 ) — — —

2 unchanged sentences

Balance, June 28, 2024 350.3 $ 3.7 $ 3,937.3 $ ( 870.4 ) $ 7,852.3 $ ( 423.6 ) $ 6.5

Net earnings for the period — — — — 221.6 — —

Dividends to common shareholders — — — — ( 27.8 ) — —

Other comprehensive income (loss) — — — — — 89.4 —

Stock based compensation

0.5 — 49.1 — — — —

Common stock repurchases ( 3.8 ) — — ( 272.4 ) — — —

Shares withheld for taxes ( 0.1 ) — ( 4.3 ) — — — —

Change in noncontrolling interests — — — — — — 0.1

Balance, September 27, 2024 346.9 $ 3.7 $ 3,982.1 $ ( 1,142.8 ) $ 8,046.1 $ ( 334.2 ) $ 6.6

See the accompanying Notes to Consolidated Condensed Financial Statements.

2 unchanged sentences

($ in millions)

Six Months Ended

June 27, 2025 June 28, 2024

Nine Months Ended

September 26, 2025 September 27, 2024

Cash flows from operating activities:

Net earnings $ 338.5 $ 402.5

$ 393.5 $ 624.1

net earnings (loss) from discontinued operations

( 52.3 ) ( 334.8 )

Net earnings from continuing operations

Adjustments to reconcile net earnings to net cash provided by operating activities:

2 unchanged sentences

Stock-based compensation 96.9 67.1

Gain on sale of property

Loss from divestiture

Loss from equity investments — 39.4

Change in certain assets and liabilities:

4 unchanged sentences

Change in accrued expenses and other liabilities ( 56.8 ) ( 38.6 )

Total operating cash provided by continuing operations 691.5 700.8

Total operating cash provided by discontinued operations 25.8 323.8

Net cash provided by operating activities 717.3 1,024.6

3 unchanged sentences

Cash paid for acquisitions, net of cash received — ( 3.7 )

Cash infusion into divestiture

All other investing activities 10.8 ( 1.6 )

Total investing cash used in continuing operations ( 63.5 ) ( 68.0 )

Total investing cash used in discontinued operations ( 15.7 ) ( 1,731.8 )

Net cash used in investing activities ( 79.2 ) ( 1,799.8 )

5 unchanged sentences

Repayment of borrowings (maturities greater than 90 days) ( 715.7 ) ( 1,000.0 )

Proceeds from Ralliant Dividend 1,150.0 —

All other financing activities 15.6 47.9

Net cash provided by (used in) financing activities

Total financing cash used in continuing operations

( 862.8 ) ( 296.7 )

Total financing cash used in discontinued operations ( 160.3 ) —

Net cash used in financing activities

( 1,023.1 ) ( 296.7 )

Effect of exchange rate changes on cash and equivalents 2.5 ( 5.6 )

6 unchanged sentences

BUSINESS OVERVIEW

Fortive Corporation (“Fortive,” “the Company,” “we,” “us,” or “our”) is a provider of essential technologies for connected workflow solutions across a range of attractive end-markets.

Our strategic segments - Intelligent Operating Solutions (“IOS”), Precision Technologies (“PT”), and Advanced Healthcare Solutions (“AHS”) - include well-known brands with leading positions in their markets.

Our businesses design, develop, manufacture, and service professional and engineered products, software, and services, building upon leading brand names, innovative technologies, and significant market positions.

Our research and development, manufacturing, sales, distribution, service, and administrative facilities are located in more than 50 countries around the world.

Fortive Corporation (“Fortive,” “the Company,” “we,” “us,” or “our”) innovates essential technologies to keep the world safe and productive.

Our strategic segments - Intelligent Operating Solutions (“IOS”) and Advanced Healthcare Solutions (“AHS”) - include iconic inventor brands with leading positions in their markets.

Our businesses design, develop, manufacture, and market products, software, and services, building upon leading brand names, innovative technologies, and strong market positions.

Our research and development, manufacturing, sales, distribution, service, and administrative facilities are located in approximately 50 countries around the world.

We prepared the unaudited consolidated condensed financial statements included herein in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the U.S.

3 unchanged sentences

The unaudited consolidated condensed financial statements included herein should be read in conjunction with the audited annual consolidated financial statements as of and for the year ended December 31, 2024 and the footnotes (“Notes”) thereto included within our 2024 Annual Report on Form 10-K.

Reclassification of certain prior year amounts in the changes in Accumulated Other Comprehensive Income (Loss) by component table below have been made to conform to current year presentation.

Certain of our operations have been presented as discontinued operations.

We present businesses whose disposal represents a strategic shift that has, or will have, a major effect on our operations and financial results as discontinued operations when the components meet the criteria for held for sale, are sold, or spun-off.

In our opinion, the accompanying financial statements contain all adjustments, which consist of only normal, recurring accruals necessary to fairly present our financial position, results of operations, comprehensive income, stockholders’ equity, and cash flows for the periods presented.

The results of operations for the three and six months ended June 27, 2025, are not necessarily indicative of the results for the full year.

The results of operations for the three and nine months ended September 26, 2025, are not necessarily indicative of the results for the full year.

Precision Technologies Separation

On June 28, 2025 (the “Distribution Date”), the Company completed the separation (the “Separation” or the “PT Separation”) of its former Precision Technologies segment by distributing to Fortive shareholders on a pro rata basis all of the issued and outstanding common stock of Ralliant Corporation (“Ralliant”), the entity incorporated to hold the PT businesses.

The requirements for reporting the Ralliant business as discontinued operations were met upon completion of the PT Separation.

Unless otherwise indicated, all amounts in this quarterly report refer to continuing operations.

Refer to Note 2 for additional information.

Segment Realignment and Divestiture

In June 2024, we divested and transferred ownership of Invetech, excluding the Motion Solution Business, to its management team (the “Invetech Divestiture”).

As a result, in the three and six-months period ended June 28, 2024, we recorded a net realized loss of $ 25.6 million, which is identified as “Loss from divestiture” in the Consolidated Condensed Statements of Earnings.

The Invetech Divestiture did not represent a strategic shift with a major effect on the Company’s operations and financial results, and therefore the divested businesses are not reported as discontinued operations.

Accumulated Other Comprehensive Loss

On the Distribution Date, due to certain investments in foreign subsidiaries transferred to Ralliant, the Company de-designated as net investment hedges the outstanding € 500 million Euro-denominated senior unsecured notes due 2026, € 275 million Euro-denominated term loan, and ¥ 14.4 billion Yen-denominated term loan.

Refer to Note 4 for further detail on the repayments of these debt instruments during the third quarter of 2025.

As of September 26, 2025, a portion of the € 700 million Euro-denominated senior unsecured notes due 2029 remained designated as a net investment hedge on our investment in applicable foreign operations.

When designated as net investment hedge, the after-tax foreign currency transaction gains and losses on the debt were deferred in the foreign currency translation component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries.

Any amounts deferred in AOCI will remain until the hedged investment is sold or substantially liquidated.

Concurrent with the Separation, cumulative net foreign currency transaction losses of $ 120 million were reclassified from AOCI into retained earnings.

We recognized after-tax foreign currency transaction gains of $ 0.7 million and losses of $ 159.6 million during the three and nine months ended September 26, 2025, respectively, and losses of $ 59.7 million and $ 38.3 million during the three and nine months ended September 27, 2024, respectively, on the debt that was deferred in the foreign currency translation component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries.

We recorded no ineffectiveness from our net investment hedges during the three and nine-month periods ended September 26, 2025 and September 27, 2024.

Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S.

subsidiaries.

As of June 27, 2025, our outstanding € 500 million Euro-denominated senior unsecured notes due 2026, € 700 million Euro-denominated senior unsecured notes due 2029, € 275 million Euro-denominated term loan, and ¥ 14.4 billion Yen-denominated term loan were designated as net investment hedges of our investment in applicable foreign operations.

We recognized after-tax foreign currency transaction losses of $ 103.3 million and gains of $ 13.0 million during the three-month periods ended June 27, 2025 and June 28, 2024, respectively, and losses of $ 160.3 million and gains of $ 21.4 million during the six-month periods ended June 27, 2025 and June 28, 2024, respectively, on the debt that was deferred in the foreign currency translation component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries.

Any amounts deferred in AOCI will remain until the hedged investment is sold or substantially liquidated.

We recorded no ineffectiveness from our net investment hedges during the three and six-month periods ended June 27, 2025 and June 28, 2024.

On the Distribution Date of the Separation, certain investments in foreign subsidiaries were transferred to Ralliant, resulting in a partial de-designation of net investment hedges on the outstanding foreign currency denominated debt instruments noted above.

Foreign exchange gains and losses on any non-designated portion of the debt will be recognized in earnings beginning in Q3 2025.

During the three and nine months ended September 26, 2025, the foreign currency transaction gains associated with Euro-denominated notes not designated as a net investment hedge were immaterial.

The changes in AOCI by component are summarized below ($ in millions):

adjustments Pension & post-retirement plan benefit adjustments (a)

For the Three Months Ended June 27, 2025:

Balance, March 28, 2025 $ ( 361.3 ) $ ( 34.0 ) $ ( 395.3 )

Other comprehensive income (loss) before reclassifications:

Increase (decrease):

120.7 — 120.7

Income tax impact

( 12.7 ) — ( 12.7 )

For the Three Months Ended September 26, 2025:

Balance, June 27, 2025 $ ( 253.3 ) $ ( 34.0 ) $ ( 287.3 )

Other comprehensive income (loss) before reclassifications, net of income taxes ( 10.7 ) — ( 10.7 )

Amounts reclassified from AOCI into income:

Increase (decrease) — (d)

Increase (decrease) — ( 0.1 ) (b)

Income tax impact — — (d)

Amounts reclassified from AOCI into income, net of income taxes

— ( 0.1 ) ( 0.1 )

Net current period other comprehensive income (loss), net of income taxes ( 10.7 ) ( 0.1 ) ( 10.8 )

Balance, June 27, 2025 $ ( 253.3 ) $ ( 34.0 ) $ ( 287.3 )

For the Three Months Ended June 28, 2024:

Balance, March 29, 2024 $ ( 368.2 ) $ ( 34.3 ) $ ( 402.5 )

Other comprehensive income (loss) before reclassifications:

Increase (decrease):

PT Separation (c)

316.1 16.2 332.3

Income tax impact 5.0 — 5.0

Balance, September 26, 2025 $ 52.1 $ ( 17.9 ) $ 34.2

For the Three Months Ended September 27, 2024:

Balance, June 28, 2024 $ ( 389.3 ) $ ( 34.3 ) $ ( 423.6 )

Other comprehensive income (loss) before reclassifications, net of income taxes 89.3 — 89.3

4 unchanged sentences

Net current period other comprehensive income (loss), net of income taxes 89.3 0.1 89.4

Balance, June 28, 2024 $ ( 389.3 ) $ ( 34.3 ) $ ( 423.6 )

Balance, September 27, 2024 $ ( 300.0 ) $ ( 34.2 ) $ ( 334.2 )

(a) Includes balances relating to defined benefit plans, supplemental executive retirement plans, and other postretirement employee benefit plans.

(b) This amount relates to the cumulative translation adjustment recognized in earnings upon the Invetech Divestiture.

(b) This component of AOCI is included in the computation of net periodic pension cost (refer to Note 10 in our 2024 Annual Report on Form 10-K for additional details).

Refer to Note 2 for additional details.

(c) This component of AOCI is included in the computation of net periodic pension cost (refer to Note 10 in our 2024 Annual Report on Form 10-K for additional details).

(d) Amount was rounded to zero.

adjustments Pension & post-retirement plan benefit adjustments (a)

For the Six Months Ended June 27, 2025:

For the Nine Months Ended September 26, 2025:

Balance, December 31, 2024 $ ( 431.4 ) $ ( 34.0 ) $ ( 465.4 )

Other comprehensive income (loss) before reclassifications:

Increase (decrease):

198.7 — 198.7

Income tax impact

( 20.6 ) — ( 20.6 )

Other comprehensive income (loss) before reclassifications, net of income taxes 167.4 — 167.4

178.1 — 178.1

Amounts reclassified from AOCI into income:

Increase (decrease) — (d)

Increase (decrease) — ( 0.1 ) (b)

Income tax impact — — (d)

1 unchanged sentence

Net current period other comprehensive income (loss) 167.4 ( 0.1 ) 167.3

Balance, June 27, 2025 $ ( 253.3 ) $ ( 34.0 ) $ ( 287.3 )

For the Six Months Ended June 28, 2024:

Balance, December 31, 2023 $ ( 291.7 ) $ ( 34.4 ) $ ( 326.1 )

Other comprehensive income (loss) before reclassifications:

Increase (decrease):

PT Separation (c)

316.1 16.2 332.3

Income tax impact 8.6 — 8.6

Balance, September 26, 2025 $ 52.1 $ ( 17.9 ) $ 34.2

For the Nine Months Ended September 27, 2024:

Balance, December 31, 2023 $ ( 291.7 ) $ ( 34.4 ) $ ( 326.1 )

Other comprehensive income (loss) before reclassifications, net of income taxes ( 15.3 ) — ( 15.3 )

4 unchanged sentences

Net current period other comprehensive income (loss) ( 8.3 ) 0.2 ( 8.1 )

Balance, June 28, 2024 $ ( 389.3 ) $ ( 34.3 ) $ ( 423.6 )

Balance, September 27, 2024 $ ( 300.0 ) $ ( 34.2 ) $ ( 334.2 )

(a) Includes balances relating to defined benefit plans, supplemental executive retirement plans, and other postretirement employee benefit plans.

(b) This amount relates to the cumulative translation adjustment recognized in earnings upon the Invetech Divestiture.

(b) This component of AOCI is included in the computation of net periodic pension cost (refer to Note 10 in our 2024 Annual Report on Form 10-K for additional details).

Refer to Note 2 for additional details.

(c) This component of AOCI is included in the computation of net periodic pension cost (refer to Note 10 in our 2024 Annual Report on Form 10-K for additional details).

(d) Amount was rounded to zero.

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Additions to the allowances are charged to current period earnings, amounts determined to be uncollectible are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances.

During the three and six-month periods ending June 27, 2025 and June 28, 2024, the activity was immaterial.

Property Sale

On March 14, 2024, we sold land and certain office buildings in our PT segment for $ 90 million, for which we received $ 20 million in cash proceeds and a $ 70 million promissory note secured by a letter of credit, with principal received in August and November 2024.

The promissory note was recorded within Prepaid expenses and other current assets.

During the six-month period ended June 28, 2024, we recorded a gain on sale of property of $ 63.1 million in the Consolidated Condensed Statements of Earnings.

Concurrently, using a portion of the proceeds from the property sale, we pledged a charitable contribution of $ 20 million to the Fortive Foundation (the “Foundation”), which had no donor imposed conditions or restrictions.

The Foundation, a not-for-profit entity established to expand our philanthropic efforts, is a related party due to certain Fortive executives serving as members of the entity’s board of directors.

The charitable contribution was recorded within the “Other non-operating expense, net” line in the Consolidated Condensed Statements of Earnings.

During the three and nine months ended September 26, 2025 and September 27, 2024, the activity was immaterial.

Restructuring

In the fourth quarter of 2024, we initiated a discrete restructuring plan that is expected to be completed by December 31, 2025.

The nature of the plan initiated in 2024 was related to the Separation and consisted primarily of targeted workforce reductions to realign cost structures.

During the three and six-month periods ended June 27, 2025, we incurred charges of $ 8 million and $ 12 million, respectively.

Accrued restructuring costs were $ 8 million as of June 27, 2025 and were $ 13 million as of December 31, 2024, and are recorded within Accrued expenses and other current liabilities in the Consolidated Condensed Balance Sheets.

In the fourth quarter of 2024, we initiated a discrete restructuring plan that was initially expected to be completed by December 31, 2025, and has been extended through the second half of 2026.

The nature of the plan is related to the Separation and consisted primarily of targeted workforce reductions to realign cost structures.

During the nine months ended September 26, 2025, we incurred charges of $ 14 million.

The restructuring charges incurred during the three months ended September 26, 2025 and the accrued restructuring costs as of September 26, 2025 and December 31, 2024 were immaterial .

Recently Issued Accounting Standard

2 unchanged sentences

This standard should be applied on a prospective basis, with retrospective application permitted.

The adoption of the standard will not impact our consolidated financial statements;

however, we are currently evaluating the impact of the new disclosure requirements on the notes to the financial statements.

We will update the applicable annual disclosures to align with the new standard.

We are planning to apply the standard on a prospective basis.

Upon adoption, we will update the applicable annual disclosures to align with the new standard but there will be no impact on reported income tax expense or related tax assets or liabilities.

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) — Disaggregation of Income Statement Expenses , which amends the disclosure requirements related to certain costs and expenses on an interim and annual basis.

This standard is effective for fiscal year ending December 31, 2027, and interim periods within fiscal year ending December 31, 2028.

This standard should be applied either on a prospective basis or retrospective basis.

The adoption of the standard will not impact our combined financial statements;

however, we are currently evaluating the impact of the new disclosure requirements on the notes to the financial statements.

This standard is effective for fiscal year ending December 31, 2027, and interim periods within fiscal year ending December 31, 2028, and could be applied either on a prospective or retrospective basis.

The adoption of the standard will not impact our consolidated financial statements.

Upon adoption, we will update the applicable interim and annual disclosures to align with the new standard.

ACQUISITIONS AND DIVESTITURES

We continually evaluate potential mergers and acquisitions that align with our business portfolio strategy.

We have completed a number of acquisitions that have been accounted for as purchases of businesses and resulted in the recognition of goodwill in our financial statements.

This goodwill arises when the purchase price for an acquired business exceeds its identifiable assets, net of liabilities.

The purchase price for acquired businesses reflect a number of factors, including the future earnings and cash flow potential of the business, the strategic fit and resulting synergies from the complementary portfolio of the acquired business to our existing operations, industry expertise, and market access.

On January 3, 2024, we acquired EA Elektro-Automatik Holding GmbH (“EA”), a leading supplier of high-power electronic test solutions for energy storage, mobility, hydrogen, and renewable energy applications, with EA operating within the PT segment following the acquisition.

The total consideration paid was approximately $ 1.72 billion, net of acquired cash.

We funded this transaction with financing activities and available cash.

We recorded approximately $ 1.18 billion of goodwill within our PT segment related to the EA acquisition, which is not tax deductible.

For the three and six-month periods ended June 28, 2024, we incurred approximately $ 0.2 million and $ 27.4 million of pretax transaction-related costs related to the EA acquisition, which were primarily for banking fees, legal fees, and amounts paid to other third-party advisers.

These costs were recorded within Selling, general, and administrative expenses in the Consolidated Condensed Statement of Earnings.

Subsequent to the end of the second quarter, on June 28, 2025, the Company completed the PT Separation by distributing to its stockholders one share of Ralliant common stock for every three shares of the Company’s common stock outstanding held on June 16, 2025, the record date for the distribution.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326) — Measurement of Credit Losses for Accounts Receivable and Contract Assets , which provides a practical expedient to measure credit losses on current accounts receivable and current contracts assets.

The practical expedient allows companies to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when measuring credit losses.

This standard is effective for fiscal year ending December 31, 2026 and interim periods within 2026, with early adoption permitted, and should be applied on a prospective basis.

We are not anticipating this standard to have a material impact on our consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) — Targeted Improvements to the Accounting for Internal-Use Software , which clarifies and modernizes the software cost capitalization guidance by removing the previous “development stage” model and introducing a more judgment-based approach.

This standard is effective for fiscal year ending December 31, 2028, and interim periods within 2028, with early adoption permitted, and could be applied using a prospective, retrospective or modified transition approach.

We are currently in the process of evaluating the effects of this standard on our consolidated financial statements.

DISCONTINUED OPERATIONS

On the Distribution Date, the Company completed the PT Separation by distributing all of the issued and outstanding shares of Ralliant, the entity that was created to hold the corresponding businesses, to Fortive stockholders on a pro rata basis.

To effect the Separation, the Company distributed to its stockholders one share of Ralliant common stock for every three shares of Fortive common stock held on June 16, 2025, the record date for the distribution.

Fortive stockholders received cash in lieu of any fractional shares of Ralliant common stock that they would have received after application of this ratio.

Beginning with the third quarter of 2025, the Company will classify Ralliant as a discontinued operation in its financial statements, as a result of the Separation.

Refer to Note 11 for PT’s operating results.

In connection with the Separation, the Company incurred $ 41 million and $ 64 million in Separation-related costs during the three and six months ended June 27, 2025, respectively.

These costs were primarily related to professional fees associated with finance, tax, legal, banking and information technology services as well as redundant general and administrative costs, and were recorded within Selling, general and administrative expenses in the Consolidated Condensed Statements of Earnings.

In preparation for the Separation, on May 15, 2025, Ralliant entered into a credit agreement with a syndicate of banks and on June 27, 2025, borrowed $ 1.15 billion to fund the $ 1.15 billion cash dividend Ralliant made to Fortive prior to the Distribution Date (the “Ralliant Dividend”).

The accounting requirements for reporting Ralliant as a discontinued operation were met when the Separation was completed.

Accordingly, the accompanying consolidated condensed financial statements for all periods presented reflect this business as a discontinued operation.

In connection with the Separation, the Company incurred $ 46 million and $ 109 million in Separation-related costs during the three and nine months ended September 26, 2025, respectively, which were recorded within net earnings (loss) from discontinued operations in the Consolidated Condensed Statements of Earnings.

These costs were primarily related to professional fees associated with finance, tax, legal, banking and information technology services as well as redundant general and administrative costs.

Fortive and Ralliant entered into various agreements to effect the Separation and provide a framework for their relationship after the Separation, including a separation and distribution agreement, a transition services agreement, an employee matters agreement, a tax matters agreement, an intellectual property matters agreement, a Fortive Business System (“FBS”) license agreement and a Fort solutions license agreement.

These agreements provide for the allocation between Fortive and Ralliant of assets, employees, liabilities and obligations (including investments, property, employee benefits and tax-related assets and liabilities) attributable to periods prior to, at and after the Separation and govern certain relationships between Fortive and Ralliant after the Separation.

The following is a roll forward of our carrying value of goodwill by segment ($ in millions):

Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions Total Goodwill

Balance, December 31, 2024 $ 4,121.7 $ 2,940.0 $ 3,094.3 $ 10,156.0

Foreign currency translation and other

The amounts paid and received by Fortive for transition services provided under the above agreements as well as sales and purchases to and from Ralliant were not material to the Company’s results of operations during the three and nine months ended September 26, 2025.

The key components of income from discontinued operations for the three and nine months ended September 26, 2025 and September 27, 2024 were as follows ($ in millions):

Three Months Ended Nine Months Ended

September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024

Sales $ — $ 530.8 $ 983.5 $ 1,603.4

Cost of sales — ( 251.0 ) ( 489.9 ) ( 773.2 )

Selling, general and administrative expenses ( 45.6 ) ( 116.7 ) ( 335.5 ) ( 377.1 )

Research and development expenses — ( 39.7 ) ( 83.0 ) ( 120.8 )

Gain on sale of property

Loss from divestiture

— — — ( 25.6 )

Balance, June 27, 2025 $ 4,168.9 $ 3,119.1 $ 3,115.7 $ 10,403.7

Other expenses

— ( 0.3 ) ( 0.5 ) ( 1.0 )

Earnings from discontinued operations before income taxes

( 45.6 ) 123.1 74.6 368.8

Income taxes ( 16.4 ) ( 13.0 ) ( 22.3 ) ( 34.0 )

Net earnings from discontinued operations $ ( 62.0 ) $ 110.1 $ 52.3 $ 334.8

The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company’s Consolidated Condensed Balance Sheets as of December 31, 2024.

($ in millions)

December 31, 2024

Accounts receivable, net $ 284.1

Inventories 275.0

Prepaid expenses and other current assets

Total current assets, discontinued operations 614.3

Property, plant and equipment, net 200.2

Other non-current assets 146.2

Goodwill 2,940.0

Other intangible assets, net 809.6

Total other assets, discontinued operations 4,096.0

Total assets, discontinued operations $ 4,710.3

Trade accounts payable $ 252.0

Accrued expenses and other current liabilities 316.5

Total current liabilities, discontinued operations 568.5

Other long-term liabilities 403.8

Total liabilities, discontinued operations $ 972.3

The assets from discontinued operations as of September 26, 2025 consisted of receivables from Ralliant related to the tax matters agreement and pass through arrangements.

These activities resulted in cash payments from Ralliant to Fortive of

$ 45 million during the three months ended September 26, 2025, recorded within operating cash provided by discontinued operations in the Consolidated Condensed Statement of Cash Flows.

FAIR VALUE MEASUREMENTS

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(Level 3) Total

June 27, 2025

September 26, 2025

Deferred compensation liabilities $ — $ 39.8 $ — $ 39.8

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However, these assets are required to be assessed for impairment whenever events or circumstances indicate that their carrying value may not be fully recoverable, and at least annually for goodwill and indefinite-lived intangible assets.

We evaluated events or circumstances that may indicate the carrying value of our non-financial assets may not be fully recoverable during the three and six-month period ended June 27, 2025, and recorded no impairments.

We evaluated events or circumstances that may indicate the carrying value of our non-financial assets may not be fully recoverable during the three and nine months ended September 26, 2025, and recorded no impairments.

Fair Value of Financial Instruments

The carrying amount and fair value of financial instruments are as follows ($ in millions):

June 27, 2025 December 31, 2024

September 26, 2025 December 31, 2024

Carrying Amount Fair Value Carrying Amount Fair Value

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2,117.1 2,059.5 3,331.1 3,243.8

As of June 27, 2025 and December 31, 2024, the current portion of long-term debt and long-term debt, net of current maturities were categorized as Level 1.

As of September 26, 2025 and December 31, 2024, the current portion of long-term debt and long-term debt, net of current maturities were categorized as Level 1.

The fair value of the long-term borrowings were based on quoted market prices.

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The components of our debt were as follows ($ in millions):

June 27, 2025 December 31, 2024

September 26, 2025 December 31, 2024

dollar-denominated commercial paper $ 755.0 $ 650.0

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3.7 % Euro-denominated senior unsecured notes due 2029

Euro Term Loan due 2025 322.2 284.7

Yen Term Loan due 2025 99.6 91.6

3.15 % senior unsecured notes due 2026

4.30 % senior unsecured notes due 2046

3,673.0 3,718.8

Ralliant debt:

USD Term Loan due 2026

USD Term Loan due 2028

Total Ralliant debt

Euro Term Loan due 2025 — 284.7

Yen Term Loan due 2025 — 91.6

Long-term debt, principal amounts

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We generally satisfy any short-term liquidity needs that are not met through operating cash flows and available cash primarily through issuances of commercial paper under our U.S.

dollar and Euro-denominated commercial paper programs (“Commercial Paper Programs”).

Under these programs, we may issue unsecured promissory notes with maturities not exceeding 397 and 183

days, respectively.

dollar commercial paper programs.

Under this program, we may issue unsecured promissory notes with maturities not exceeding 397 days.

Proceeds from borrowings under the commercial paper programs are typically available for general corporate purposes, including acquisitions.

Interest expense on commercial paper is paid at maturity and is generally based on our credit ratings at the time of issuance and prevailing short-term interest rates.

The details of our outstanding Commercial Paper Programs as of June 27, 2025 were as follows ($ in millions):

The details of our outstanding Commercial Paper Programs as of September 26, 2025 were as follows ($ in millions):

Carrying value (a)

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Credit support for the Commercial Paper Programs is provided by a five-year $ 2.0 billion senior unsecured revolving credit facility that expires on October 18, 2027 (the “Revolving Credit Facility”) which, to the extent not otherwise providing credit support for our commercial paper programs, can also be used for working capital and other general corporate purposes.

As of June 27, 2025, no borrowings were outstanding under the Revolving Credit Facility.

We classified our borrowings outstanding under the Commercial Paper Programs as of June 27, 2025 as Long-term debt in the accompanying Consolidated Condensed Balance Sheets as we had the intent and ability, as supported by availability under the Revolving Credit Facility, to refinance these borrowings for at least one year from the balance sheet date.

Indebtedness Related to the Ralliant Separation

On May 15, 2025, Ralliant entered into a credit agreement with a syndicate of banks, consisting of a three-year , $ 700 million senior unsecured delayed draw term loan facility (the “ Three-Year Term Loans”), an eighteen-month , $ 600 million senior unsecured delayed draw term loan facility (the “ Eighteen-Month Term Loans” and together with the Three-Year Term Loans, the “Term Loans”), and a five-year $ 750 million unsecured revolving credit facility (the “Ralliant Credit Facility”).

Ralliant may draw on the funds under the Term Loans, in up to two advances, which may be made on or prior to December 31, 2025.

On June 27, 2025, in preparation for the Separation, Ralliant borrowed $ 1.15 billion in aggregate principal amount consisting of a USD Term Loan due 2026 and a USD Term Loan due 2028 (the “Ralliant Debt”).

As of June 27, 2025, Ralliant was a wholly-owned, consolidated subsidiary of the Company, and as a result, the Company’s Consolidated Balance Sheet includes the Ralliant Debt.

No amounts were outstanding under the Ralliant Credit Facility at any time prior to the Separation.

As of June 27, 2025, Ralliant was in compliance with all covenants under the Ralliant Debt and the Ralliant Credit Facility.

The proceeds from the Ralliant Debt were used to fund the $ 1.15 billion cash dividend Ralliant made to Fortive prior to the Distribution Date (the “Ralliant Dividend”).

Use of Ralliant Dividend

On June 4, 2025 and June 17, 2025, respectively, we extended the maturity date of the Yen Term Loan due on June 17, 2025 and the Euro Term Loan due on June 23, 2025 to December 31, 2025.

On July 15, 2025, Fortive used approximately $ 302 million of the Ralliant Dividend to redeem € 252 million of the outstanding principal of the 3.7 % Euro-denominated senior unsecured notes due 2026, and the accrued interest thereon, with € 248 million remaining outstanding following such redemption.

On July 24, 2025 and July 25, 2025, respectively, Fortive used $ 324 million and $ 98 million of the Ralliant Dividend to repay the outstanding principle of the Euro Term Loan and Yen Term Loan, and accrued interest thereon.

Fortive also intends to apply the Ralliant Dividend to repurchase certain of its outstanding common stock pursuant to the special purpose share repurchase program authorized on May 27, 2025.

As of September 26, 2025, no borrowings were outstanding under the Revolving Credit Facility.

We classified our borrowings outstanding under the Commercial Paper Programs as of September 26, 2025 as Long-term debt in the accompanying Consolidated Condensed Balance Sheets as we had the intent and ability, as supported by availability under the Revolving Credit Facility, to refinance these borrowings for at least one year from the balance sheet date.

During the third quarter, Fortive used approximately $ 302 million of the Ralliant Dividend to redeem € 252 million of the outstanding principal of the 3.7 % Euro-denominated senior unsecured notes due 2026, and the accrued interest thereon, with € 248 million, or approximately $ 290 million remaining outstanding following such redemption.

Fortive also used $ 324 million and $ 98 million of the Ralliant Dividend to repay the outstanding principle of the Euro Term Loan and Yen Term Loan, and accrued interest thereon.

We derive revenue primarily from the sales of products, including software, and services.

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Product sales include revenue from the sale of products and equipment, which includes our software and software as a service (“SaaS”) product offerings and equipment rentals.

Service sales include revenues from extended warranties, post-contract

customer support (“PCS”), maintenance contracts or services, contract labor to perform ongoing service at a customer location, services related to previously sold products, and software implementation services.

Service sales include revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, contract labor to perform ongoing service at a customer location, services related to previously sold products, and software implementation services.

Contract Assets — In certain circumstances, we record contract assets which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not only subject to the passage of time.

Contract assets were $ 141 million as of June 27, 2025 and $ 118 million as of December 31, 2024.

Contract assets were $ 150 million as of September 26, 2025 and $ 116 million as of December 31, 2024.

Contract assets are recorded within Prepaid expenses and other current assets in our Consolidated Condensed Balance Sheets.

Contract Costs — We incur and capitalize incremental costs to obtain certain contracts, typically sales-related commissions where the amortization period is greater than one year and costs associated with assets used by our customers in certain service arrangements.

As of June 27, 2025 and December 31, 2024, we had $ 69 million and $ 59 million, respectively, in net revenue-related contract costs primarily related to certain software contracts.

As of September 26, 2025 and December 31, 2024, we had $ 71 million and $ 59 million, respectively, in net revenue-related contract costs primarily related to certain software contracts.

Revenue-related contract costs are recorded within Other assets in our Consolidated Condensed Balance Sheets.

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Our contract liabilities consisted of the following ($ in millions):

June 27, 2025 December 31, 2024

September 26, 2025 December 31, 2024

Deferred revenue - current $ 415.0 $ 410.1

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Total contract liabilities $ 436.1 $ 433.2

During the three and six-month period ended June 27, 2025, we recognized revenue related to our contract liabilities at December 31, 2024 of $ 128 million and $ 317 million, respectively.

The change in our contract liabilities from December 31, 2024 to June 27, 2025 was primarily due to the timing of billings and revenue recognized for subscription-based software contracts, PCS and extended warranty services.

During the three and nine months ended September 26, 2025, we recognized revenue related to our contract liabilities at December 31, 2024 of $ 78 million and $ 339 million, respectively.

The change in our contract liabilities from December 31, 2024 to September 26, 2025 was primarily due to the timing of billings and revenue recognized for subscription-based software contracts, PCS and extended warranty services.

Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, non-cancelable orders and the average contract value for software contracts, for which work has not been performed.

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The aggregate remaining performance obligations attributable to each of our segments is as follows ($ in millions):

June 27, 2025

September 26, 2025

Intelligent Operating Solutions $ 701.2

Precision Technologies 61.9

Advanced Healthcare Solutions 109.4

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We disaggregate revenue from contracts with customers by sales of products and software and services, geographic location, and end market for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.

Disaggregation of revenue for the three-month period ended June 27, 2025 is presented as follows ($ in millions):

Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions

Disaggregation of revenue for the three months ended September 26, 2025 is presented as follows ($ in millions):

Total Intelligent Operating Solutions Advanced Healthcare Solutions

Sales of products and software $ 814.4 $ 557.4 $ 257.0

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Total $ 1,027.1 $ 698.8 $ 328.3

United States $ 825.2 $ 379.9 $ 264.5 $ 180.8

China 159.7 49.5 85.6 24.6

North America (a)

$ 624.7 $ 433.2 $ 191.5

Total $ 1,518.8 $ 675.7 $ 523.6 $ 319.5

Direct sales:

181.4 111.4 70.0

Europe, Middle East, and Africa

167.9 126.3 41.6

Latin America

53.1 27.9 25.2

$ 1,027.1 $ 698.8 $ 328.3

Healthcare $ 322.2 $ 10.8 $ 311.4

Industrial & Manufacturing 287.9 284.3 3.6

Energy & Infrastructure 166.7 166.7 —

Government 88.0 78.1 9.9

Utilities & Power 114.9 48.4 66.5 —

Communications, Electronics & Semiconductor 84.3 28.5 55.8 —

Aerospace & Defense 79.0 0.1 78.9 —

Retail & Consumer 95.0 70.5 24.5 —

Oil & Gas 73.4 71.2 2.2 —

Retail 82.7 82.7 —

Other 79.6 76.2 3.4

Total direct sales 1,435.3 640.4 478.8 316.1

Distributors 83.5 35.3 44.8 3.4

Total $ 1,027.1 $ 698.8 $ 328.3

(a) Direct sales by end market include sales made through third-party distributors where we have visibility to the end customer.

Disaggregation of revenue for the three-month period ended June 28, 2024 is presented as follows ($ in millions):

Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions

(a) North America is comprised of the United States and Canada.

Sales attributed to the United States were 57 % of total Fortive sales.

Disaggregation of revenue for the three months ended September 27, 2024 is presented as follows ($ in millions):

Total Intelligent Operating Solutions Advanced Healthcare Solutions

Sales of products and software $ 802.5 $ 549.1 $ 253.4

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Total $ 1,003.7 $ 681.3 $ 322.4

United States $ 840.3 $ 380.8 $ 281.0 $ 178.5

China 165.1 53.2 86.6 25.3

North America (a)

$ 601.7 $ 412.8 $ 188.9

Total $ 1,552.4 $ 677.0 $ 551.8 $ 323.6

Direct sales:

Healthcare $ 368.9 $ 11.1 $ 51.5 $ 306.3

177.8 109.1 68.7

Europe, Middle East, and Africa

168.1 129.5 38.6

Latin America

56.1 29.9 26.2

$ 1,003.7 $ 681.3 $ 322.4

$ 315.5 $ 10.6 $ 304.9

Industrial & Manufacturing

282.7 278.5 4.2

Energy & Infrastructure 157.5 157.5 —

Government 93.0 82.9 10.1

Utilities & Power 104.1 48.8 55.3 —

Communications, Electronics & Semiconductor 94.5 25.5 69.0 —

Aerospace & Defense 83.4 0.1 83.3 —

Retail & Consumer 80.6 65.5 15.1 —

Oil & Gas 72.1 69.3 2.8 —

Retail 75.3 75.3 —

Other 79.7 76.5 3.2

Total direct sales 1,451.4 636.6 494.6 320.2

Distributors 101.0 40.4 57.2 3.4

Total $ 1,003.7 $ 681.3 $ 322.4

(a) Direct sales by end market include sales made through third-party distributors where we have visibility to the end customer.

Disaggregation of revenue for the six-month period ended June 27, 2025 is presented as follows ($ in millions):

Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions

(a) North America is comprised of the United States and Canada.

Sales attributed to the United States were 57 % of total Fortive sales.

Disaggregation of revenue for the nine months ended September 26, 2025 is presented as follows ($ in millions):

Total Intelligent Operating Solutions Advanced Healthcare Solutions

Sales of products and software $ 2,431.6 $ 1,688.9 $ 742.7

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Total $ 3,036.6 $ 2,086.6 $ 950.0

United States $ 1,631.1 $ 756.6 $ 518.8 $ 355.7

China 317.0 109.3 158.4 49.3

North America (a)

$ 1,827.3 $ 1,269.7 $ 557.6

Total $ 2,993.0 $ 1,347.1 $ 1,024.2 $ 621.7

Direct sales:

542.3 338.4 203.9

Europe, Middle East, and Africa

516.4 394.8 121.6

Latin America

150.6 83.7 66.9

$ 3,036.6 $ 2,086.6 $ 950.0

Healthcare $ 931.8 $ 32.4 $ 899.4

Industrial & Manufacturing 874.9 862.3 12.6

Energy & Infrastructure 499.8 499.8 —

Government 262.0 234.1 27.9

Utilities & Power 223.5 98.0 125.5 —

Communications, Electronics & Semiconductor 164.8 57.7 107.1 —

Aerospace & Defense 153.2 0.2 153.0 —

Retail & Consumer 180.1 137.9 42.2 —

Oil & Gas 145.5 141.6 3.9 —

Retail 229.5 229.5 —

Other 238.6 228.5 10.1

Total direct sales

2,822.2 1,275.1 932.1 615.0

Distributors 170.8 72.0 92.1 6.7

Total $ 3,036.6 $ 2,086.6 $ 950.0

(a) Direct sales by end market include sales made through third-party distributors where we have visibility to the end customer.

Disaggregation of revenue for the six-month period ended June 28, 2024 is presented as follows ($ in millions):

Total Intelligent Operating Solutions Precision Technologies Advanced Healthcare Solutions

(a) North America is comprised of the United States and Canada.

Sales attributed to the United States were 57 % of total Fortive sales.

Disaggregation of revenue for the nine months ended September 27, 2024 is presented as follows ($ in millions):

Total Intelligent Operating Solutions Advanced Healthcare Solutions

Sales of products and software $ 2,420.1 $ 1,679.2 $ 740.9

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Total $ 3,008.1 $ 2,062.3 $ 945.8

United States $ 1,630.2 $ 730.3 $ 555.1 $ 344.8

China 341.4 120.3 169.5 51.6

North America (a)

$ 1,769.4 $ 1,224.8 $ 544.6

Total $ 3,076.9 $ 1,342.7 $ 1,110.8 $ 623.4

Direct sales:

549.4 346.7 202.7

Europe, Middle East, and Africa

529.0 407.1 121.9

Latin America

160.3 83.7 76.6

$ 3,008.1 $ 2,062.3 $ 945.8

Healthcare $ 927.4 $ 33.5 $ 893.9

Industrial & Manufacturing 871.8 858.4 13.4

Energy & Infrastructure 484.5 484.5 —

Government 263.8 235.3 28.5

Utilities & Power 206.0 98.0 108.0 —

Communications, Electronics & Semiconductor 184.9 53.4 131.5 —

Aerospace & Defense 166.8 0.2 166.6 —

Retail & Consumer 157.4 127.2 30.2 —

Oil & Gas 144.8 138.8 6.0 —

Retail 212.4 212.4 —

Other 248.2 238.2 10.0

Total direct sales

2,878.5 1,263.9 998.0 616.6

Distributors 198.4 78.8 112.8 6.8

Total $ 3,008.1 $ 2,062.3 $ 945.8

(a) Direct sales by end market include sales made through third-party distributors where we have visibility to the end customer.

Our effective tax rate for the three and six-month period ended June 27, 2025 was 13.2 % and 14.0 %, respectively, as compared to 14.7 % and 13.0 %, respectively, for the three and six-month period ended June 28, 2024.

The decrease in the effective tax rate for the three-month period ended June 27, 2025 as compared to the three-month period ended June 28, 2024 was primarily related to a change in mix of earnings in the comparable prior year period.

The increase in the effective tax rate for the six-month period ended June 27, 2025 as compared to the six-month period ended June 28, 2024 was primarily related to a discrete tax credit in the comparable prior year period from cash repatriation.

Our effective tax rate for the three and six-month period ended June 27, 2025 , differs from the U.S.

(a) North America is comprised of the United States and Canada.

Sales attributed to the United States were 55 % of total Fortive sales.

Our effective tax (benefit) rate for the three and nine months ended September 26, 2025 was 13.3 % and 16.4 %, respectively, as compared to ( 2.2 )% and 11.3 %, respectively, for the three and nine months ended September 27, 2024.

The increase in the effective tax rate for the three months ended September 26, 2025 as compared to the three months ended September 27, 2024 was primarily related to changes in applicable statutory tax rates, resulting in a discrete benefit in the comparable prior year period.

The increase in the effective tax rate for the nine months ended September 26, 2025 as compared to the nine months ended September 27, 2024 was primarily related to changes in applicable statutory tax rates.

Our effective tax rate for the three and nine months ended September 26, 2025, differs from the U.S.

federal statutory rate of 21% due primarily to the impact of credits and deductions provided by law, including those associated with state income taxes, and changes in our uncertain tax position reserves.

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The 2016 Stock Incentive Plan (the “Stock Plan”), provides for the grant of stock appreciation rights, restricted stock units, and performance stock units (collectively, “Stock Awards”), stock options, or any other stock-based award.

As of June 27, 2025, approximately 10 million shares of our common stock were available for subsequent issuance under the Stock Plan.

As of September 26, 2025, approximately 12 million shares of our common stock were available for subsequent issuance under the Stock Plan.

For a full description of our Stock Plan, refer to Note 14 of our 2024 Annual Report on Form 10-K.

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The following summarizes the components of our stock-based compensation expense under the Stock Plan ($ in millions):

Three Months Ended Six Months Ended

June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024

Three Months Ended Nine Months Ended

September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024

Stock Awards:

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Total stock-based compensation expense, net of income taxes $ 45.7 $ 19.4 $ 83.9 $ 57.4

The following summarizes the unrecognized compensation cost for the Stock Awards and stock options as of June 27, 2025.

The following summarizes the unrecognized compensation cost for the Stock Awards and stock options as of September 26, 2025.

This compensation cost is expected to be recognized over a weighted average period of approximately two years , representing the remaining service period related to the awards.

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Ralliant Separation

Subsequent to quarter-end, in connection with the Separation and in accordance with the employee matters agreement between Fortive and Ralliant, the Company has made certain adjustments to the exercise price and the number of stock-based awards with the intention of preserving the intrinsic value of the awards immediately prior to the Separation.

In connection with the Separation and in accordance with the employee matters agreement between Fortive and Ralliant, the number of shares underlying each stock-based award outstanding as of the date of the Separation was multiplied by a factor of 1.3662 and the related exercise price for the stock options was divided by a factor of 1.3662 , which was intended to preserve the intrinsic value of the awards immediately prior to the Separation.

The adjustment factor was calculated using the Fortive common stock per share price at the close of market on June 27, 2025 relative to the 3 -trading day volume weighted average price of Fortive common stock immediately after the Separation.

Stock-based awards of Fortive held by employees who transferred to Ralliant in the Separation were converted into stock-based awards of Ralliant issued under Ralliant’s stock plan.

COMMITMENTS AND CONTINGENCIES

For a description of our litigation and contingencies and additional information about our leases, refer to Note 13 and Note 8, respectively, in our 2024 Annual Report on Form 10-K.

We generally accrue estimated warranty costs at the time of sale.

In general, manufactured products are warranted against defects in material and workmanship when properly used for their intended purpose, installed correctly, and appropriately maintained.

Warranty period terms depend on the nature of the product and range from 90 days up to the life of the product.

The amount of the accrued warranty liability is determined based on historical information such as past experience, product failure rates or number of units repaired, estimated cost of material and labor, and, in certain instances, estimated property damage.

The accrued warranty liability is reviewed on a quarterly basis and may be adjusted as additional information regarding expected warranty costs becomes known.

During the three and six-month periods ended June 27, 2025 and June 28, 2024, warranty related activity was immaterial.

Additionally, at the completion of the Separation, we accelerated the recognition of compensation expense related to certain Stock Awards due to executive retirements.

In the three and nine months ended September 26, 2025, we recorded $ 33 million of stock based compensation expense related to these adjustments within Selling, general, and administrative expenses in the Consolidated Condensed Statement of Earnings.

Operating lease costs for each period are presented as follows ($ in millions):

Three Months Ended Six Months Ended

June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024

Three Months Ended Nine Months Ended

September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024

Operating lease costs

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Supplemental balance sheet and cash flow information related to operating leases for each period is presented as follows ($ in millions):

June 27, 2025 December 31, 2024

September 26, 2025 December 31, 2024

Right-of-use (“ROU”) assets (a)

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(b) Operating lease liabilities are recorded in the Consolidated Condensed Balance Sheets within Accrued expenses and other current liabilities, and Other long-term liabilities.

Six Months Ended

June 27, 2025 June 28, 2024

Nine Months Ended

September 26, 2025 September 27, 2024

Cash paid for operating leases

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ROU assets obtained in exchange for operating lease obligations

For additional information about our warranty, leases, and a description of our litigation and contingencies, refer to Note 7, Note 8, and Note 13, respectively, in our 2024 Annual Report on Form 10-K.

NET EARNINGS PER SHARE

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Diluted EPS is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans under the treasury stock method, except where the inclusion of such shares would have an anti-dilutive impact.

Anti-dilutive options excluded from the diluted EPS calculation for the three and six-month periods ended June 27, 2025 were 2.2 million and 1.9 million, respectively, and were 1.3 million and 1.2 million, respectively, for the three and six-month periods ended June 28, 2024.

Anti-dilutive options excluded from the diluted EPS calculation for the three months ended September 26, 2025 were 4.4 million, and none for the nine months ended September 26, 2025, and were 1.5 million and 1.2 million, respectively, for the three and nine months ended September 27, 2024.

Information related to the calculation of net earnings per share of common stock is summarized as follows ($ and shares in millions, except per share amounts):

Three Months Ended Six Months Ended

June 27, 2025 June 28, 2024 June 27, 2025 June 28, 2024

Net earnings $ 166.6 $ 195.1 $ 338.5 $ 402.5

Three Months Ended Nine Months Ended

September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024

Net earnings from continuing operations

$ 117.0 $ 111.5 $ 341.2 $ 289.3

Weighted average common shares outstanding used in basic earnings per share 330.8 349.2 337.2 350.7

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Weighted average common shares outstanding used in diluted earnings per share 333.4 352.3 339.9 354.4

Net earnings per common share - Basic $ 0.49 $ 0.56 $ 0.99 $ 1.15

Net earnings per common share - Diluted $ 0.49 $ 0.55 $ 0.99 $ 1.13

General Share Repurchase Program

On February 17, 2022, the Company's Board of Directors approved a share repurchase program authorizing the Company to repurchase up to 20 million shares of the Company's outstanding common stock from time to time on the open market or in privately negotiated transactions.

Net earnings from continuing operations per common share - Basic

$ 0.35 $ 0.32 $ 1.01 $ 0.82

Net earnings from continuing operations per common share - Diluted

$ 0.35 $ 0.32 $ 1.00 $ 0.82

In the third quarter of 2025, the quarterly dividend paid on our common stock was $ 0.06 per share.

Share Repurchase Programs

Under this program, shares may be repurchased from time to time on the open market or in privately negotiated transactions, including under accelerated share repurchase programs or under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (“10b5-1 Plans”).

On January 23, 2024 and May 27, 2025, the Company’s Board of Directors increased the number of shares authorized under the share repurchase program by an additional 11 million and 15.6 million shares, respectively.

As of June 27, 2025, there were 19.2 million shares remaining authorized under the share repurchase program.

There is no expiration date for the repurchase program, and the timing and amount of repurchases under the program are determined by the Company's management based on market conditions and other factors.

The repurchase program may be suspended or discontinued at any time by the Board of Directors.

During the three and six-month period ended June 27, 2025, the Company purchased 1.9 million and 4.4 million shares of its common stock at an average share price of $ 71.15 and $ 76.76 , respectively.

During the three and six-month periods ended June 28, 2024, the Company purchased 2 million shares of its common stock at an average share price of $ 76.43 .

On May 27, 2025, in connection with the Separation, the Company’s Board of Directors adopted a separate and incremental special purpose share repurchase program (the “Special Purpose Share Repurchase Program”) under which Fortive may purchase up to $ 550 million in Fortive’s common stock exclusively from the proceeds of the Ralliant Dividend, together with any other cash received by Fortive from Ralliant in connection with the Separation (collectively, the “Ralliant Cash Proceeds”).

Repurchases of shares of Fortive common stock using the Ralliant Cash Proceeds will only be made through the Special Purpose Share Repurchase Program.

As of September 26, 2025, there were 8.3 million shares and $ 78.2 million remaining authorized under the General Share Repurchase Program and Special Share Repurchase Program, respectively.

There is no expiration date for these repurchase programs, and the timing and amount of repurchases under the programs are determined by the Company's management based on market conditions, tax regulation and other factors.

The repurchase programs may be suspended or discontinued at any time by the Board of Directors.

Refer to Part II - Item 2 for additional information.

During the three and nine months ended September 26, 2025, the Company purchased 20.8 million and 25.2 million shares of its common stock at an average share price of $ 47.98 and $ 52.99 , respectively.

Prior to the Separation, during the three and nine months ended September 27, 2024, the Company purchased 3.8 million and 5.8 million shares of its common stock at an average share price of $ 70.87 and $ 72.78 , respectively.

Our common stock repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act.

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The payment of the excise tax is recorded within Repurchase of common shares in the Consolidated Condensed Statement of Cash Flows.

Special Purpose Share Repurchase Program

On May 27, 2025, in connection with the Separation, the Company’s Board of Directors adopted a separate special purpose share repurchase program (the “Special Purpose Share Repurchase Program”) under which Fortive may purchase up to $ 550 million in Fortive’s common stock exclusively from the proceeds of the Ralliant Dividend, together with any other cash received by Fortive from Ralliant in connection with the Separation (collectively, the “Ralliant Cash Proceeds”).

Repurchases of shares of Fortive common stock using the Ralliant Cash Proceeds will only be made through the Special Purpose Share Repurchase Program.

SEGMENT INFORMATION

We report our results in three separate business segments consisting of Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions.

We report our results in two separate business segments consisting of Intelligent Operating Solutions and Advanced Healthcare Solutions.

We determine our business segments based on the identification of segment managers and similarities in products, end markets, economic characteristics, technologies, and services, as well as the financial data utilized by the Company's chief executive officer.

11 unchanged sentences

The IOS segment provides advanced instrumentation, software and services to tens of thousands of customers enabling their mission-critical workflows.

These offerings include professional instrumentation including electrical test & measurement equipment, facility and asset lifecycle software applications, connected worker safety and compliance solutions across a range of vertical end markets, including manufacturing, process industries, healthcare, utilities and power, communications and electronics, among others.

These offerings include professional instruments used in applications including maintenance, repair, measurement and condition monitoring, facility and asset lifecycle software applications, connected worker safety and compliance solutions across a range of vertical end markets, including manufacturing, process industries, healthcare, utilities and power, communications and electronics, among others.

Typical users of these safety, productivity and sustainability solutions include electrical engineers, electricians, electronic technicians, EHS professionals, network technicians, facility managers, first-responders, and maintenance professionals.

The PT segment helps solve tough technical challenges to speed breakthroughs in a wide range of applications, from food and beverage production and manufacturing to next-generation electric vehicles and clean energy, as our customers seek new test solutions to enable the electrification and connectivity of everything.

Our expertise in materials, methods and measurements are reflected in our electrical test & measurement and sensing and material technologies offered to a broad set of customers and vertical end markets, including industrial, power and energy, automotive, medical equipment, food and beverage, aerospace and defense, semiconductor, and other general industries.

Customers for these products and services include design engineers for advanced electronic devices and equipment, process and quality engineers focused on improved process capability and

productivity, facility maintenance managers driving increased uptime, and other customers for whom precise measurement, reliability, and compliance are critical in their applications.

The AHS segment supplies critical workflow solutions enabling healthcare providers to deliver exceptional patient care more efficiently.

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Our healthcare offerings help ensure critical safety standards are met, instruments and operating rooms are working at peak performance, and complex procedures are followed accurately in these mission-critical healthcare environments.

Segment results for the three-month period ended June 27, 2025 are shown below ($ in millions):

Segment results for the three months ended September 26, 2025 are shown below ($ in millions):

Intelligent Operating Solutions

Precision Technologies

Advanced Healthcare Solutions

4 unchanged sentences

649.2 457.5 191.7 —

Operating expenses (a)

Operating expenses

( 489.6 ) ( 276.8 ) ( 149.2 ) ( 63.6 )

4 unchanged sentences

( 25.4 ) — — ( 25.4 )

Other non-operating expense, net

1.9 — — — 1.9

Earnings before income taxes

Other non-operating income (expense), net

Earnings from continuing operations before income taxes

$ 135.0 $ 180.7 $ 42.5 $ ( 88.2 )

3 unchanged sentences

$ ( 28.6 ) $ ( 22.7 ) $ ( 5.9 ) $ —

(a) Unallocated Corporate Costs and Other included $ 41 million of Separation-related costs.

Refer to Note 2 for further detail.

Segment results for the three-month period ended June 28, 2024 are shown below ($ in millions):

Segment results for the three-month period ended September 27, 2024 are shown below ($ in millions):

Intelligent Operating Solutions

Precision Technologies

Advanced Healthcare Solutions

11 unchanged sentences

( 37.1 ) — — ( 37.1 )

Loss from divestiture (a)

( 25.6 ) — — — ( 25.6 )

Other non-operating expense, net

Other non-operating income (expense), net

( 25.8 ) — — ( 25.8 )

Earnings before income taxes

Earnings from continuing operations before income taxes

$ 109.1 $ 169.0 $ 36.7 $ ( 96.6 )

3 unchanged sentences

$ ( 21.6 ) $ ( 17.3 ) $ ( 4.0 ) $ ( 0.3 )

(a) Refer to Note 1 for further detail on Loss from divestiture.

Segment results for the six-month period ended June 27, 2025 are shown below ($ in millions):

Segment results for the nine-month period ended September 26, 2025 are shown below ($ in millions):

Intelligent Operating Solutions

Precision Technologies

Advanced Healthcare Solutions

4 unchanged sentences

1,932.2 1,372.9 559.3 —

Operating expenses (a)

Operating expenses

( 1,437.5 ) ( 846.8 ) ( 459.3 ) ( 131.4 )

4 unchanged sentences

( 89.5 ) — — ( 89.5 )

Other non-operating expense, net

1.7 — — — 1.7

Earnings before income taxes

Other non-operating income (expense), net

Earnings from continuing operations before income taxes

$ 408.3 $ 526.1 $ 100.0 $ ( 217.8 )

3 unchanged sentences

$ ( 74.7 ) $ ( 59.8 ) $ ( 14.8 ) $ ( 0.1 )

(a) Unallocated Corporate Costs and Other included $ 64 million of Separation-related costs.

Refer to Note 2 for further detail.

Segment results for the six-month period ended June 28, 2024 are shown below ($ in millions):

Segment results for the nine-month period ended September 27, 2024 are shown below ($ in millions):

Intelligent Operating Solutions

Precision Technologies

Advanced Healthcare Solutions

6 unchanged sentences

( 1,419.5 ) ( 866.5 ) ( 454.1 ) ( 98.9 )

Gain on sale of property (a)

63.1 — 63.1 — —

Operating profit (loss)

3 unchanged sentences

( 119.8 ) — — ( 119.8 )

Loss from divestiture (a)

( 25.6 ) — — — ( 25.6 )

Other non-operating expense, net

Other non-operating income (expense), net

( 58.2 ) — — ( 58.2 )

Earnings before income taxes

Earnings from continuing operations before income taxes

$ 326.1 $ 507.2 $ 95.8 $ ( 276.9 )

3 unchanged sentences

$ ( 63.5 ) $ ( 50.9 ) $ ( 9.8 ) $ ( 2.8 )

(a) Refer to Note 1 for further detail on Gain on sale of property and Loss from divestiture.

Segment Assets:

($ in millions) June 27, 2025 December 31, 2024

($ in millions) September 26, 2025 December 31, 2024

Intelligent Operating Solutions $ 6,315.4 $ 6,324.1

Precision Technologies 4,947.6 4,691.9

Advanced Healthcare Solutions 4,907.1 5,008.6

Total segment assets 11,222.5 11,332.7

2,006.3 995.5

Assets of Discontinued Operations 56.4 4,715.5

Total assets $ 11,886.7 $ 17,016.1

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements