What changed in this filing

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Item 1. Financial Statements

2026-07-29 compared with 2026-04-30 · 260 added, 94 removed, 459 unchanged (44% of the section changed)

3 unchanged sentences

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

April 3, 2026 December 31, 2025

July 3, 2026 December 31, 2025

ASSETS (unaudited)

38 unchanged sentences

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

Three Months Ended

April 3, 2026 March 28, 2025

Three Months Ended Six Months Ended

July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Products and software

$ 876.8 $ 812.5 $ 1,737.6 $ 1,617.2

220.0 203.9 428.6 392.3

Total sales 1,096.8 1,016.4 2,166.2 2,009.5

14 unchanged sentences

Other non-operating income, net

5.0 1.9 8.5 2.3

Earnings from continuing operations before income taxes

179.5 139.6 343.1 273.3

Income taxes ( 22.2 ) ( 28.0 ) ( 49.4 ) ( 49.1 )

2 unchanged sentences

— 55.0 — 114.3

$ 157.3 $ 166.6 $ 293.7 $ 338.5

Net earnings per common share from continuing operations:

14 unchanged sentences

($ in millions)

Three Months Ended

April 3, 2026 March 28, 2025

Three Months Ended Six Months Ended

July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Net earnings $ 157.3 $ 166.6 $ 293.7 $ 338.5

2 unchanged sentences

Pension and post-retirement plan benefit adjustments

( 0.1 ) — ( 0.2 ) —

Hedge adjustments

Total other comprehensive income, net of income taxes

3.3 108.0 3.7 178.1

Comprehensive income

21 unchanged sentences

Balance, April 3, 2026 305.6 $ 3.7 $ 4,225.7 $ ( 3,734.3 ) $ 5,546.5 $ 41.5 $ 8.3

Net earnings for the period — — — — 157.3 — —

Common stock repurchases ( 3.3 ) — — ( 202.0 ) — — —

Dividends to common stockholders

— — — — ( 18.1 ) — —

Other comprehensive income (loss) — — — — — 3.3 —

Stock based compensation

0.3 — 38.4 — — — —

Shares withheld for taxes — — ( 1.4 ) — — — —

Change in noncontrolling interests — — — — — — 0.5

Balance, July 3, 2026 302.6 $ 3.7 $ 4,262.7 $ ( 3,936.3 ) $ 5,685.7 $ 44.8 $ 8.8

Common Stock Additional Paid-In Capital Treasury

16 unchanged sentences

Balance, March 28, 2025 339.9 $ 3.7 $ 4,071.6 $ ( 1,815.9 ) $ 8,372.3 $ ( 395.3 ) $ 6.9

Net earnings for the period — — — — 166.6 — —

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

Dividends to common stockholders — — — — ( 27.0 ) — —

Other comprehensive income (loss)

— — — — — 108.0 —

Stock based compensation

0.2 — 36.2 — — — —

Shares withheld for taxes — — ( 1.8 ) — — — —

Change in noncontrolling interests — — — — — — 0.2

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

See the accompanying Notes to Consolidated Condensed Financial Statements.

2 unchanged sentences

($ in millions)

Three Months Ended

April 3, 2026 March 28, 2025

Six Months Ended

July 3, 2026 June 27, 2025

Cash flows from operating activities:

17 unchanged sentences

Purchases of property, plant and equipment ( 54.7 ) ( 46.1 )

Cash paid for acquisitions, net of cash received ( 58.1 ) —

All other investing activities 4.7 11.0

4 unchanged sentences

Net proceeds from commercial paper borrowings

433.6 ( 253.2 )

Repurchase of common shares ( 700.3 ) ( 337.6 )

Payment of dividends ( 18.4 ) ( 54.2 )

Proceeds from borrowings (maturities greater than 90 days), net of issuance costs 1,088.5 —

Repayment of borrowings (maturities greater than 90 days) ( 1,192.9 ) —

Proceeds from Ralliant Dividend — 1,150.0

All other financing activities ( 10.7 ) 7.5

Total financing cash used in continuing operations

( 228.5 ) ( 141.0 )

Total financing cash (used in) provided by continuing operations ( 400.2 ) 512.5

Total financing cash used in discontinued operations — ( 3.2 )

Net cash used in financing activities

( 228.5 ) ( 141.0 )

Net cash (used in) provided by financing activities ( 400.2 ) 509.3

Effect of exchange rate changes on cash and equivalents 4.1 8.0

Net change in cash and equivalents ( 19.4 ) 78.8

Beginning balance of cash and equivalents 375.5 813.3

Ending balance of cash and equivalents $ 356.1 $ 892.1

Net change in cash, cash equivalents, and restricted cash 16.8 1,019.4

Beginning balance of cash, cash equivalents, and restricted cash 375.5 813.3

Ending balance of cash, cash equivalents, and restricted cash (a)

$ 392.3 $ 1,832.7

(a) Balance as of July 3, 2026 includes $ 18.1 million of restricted cash recorded within Prepaid expenses and other current assets in the Consolidated Condensed Balance Sheets, which relates to cash held in escrow for dividend payments which were made to shareholders on July 6, 2026.

See the accompanying Notes to Consolidated Condensed Financial Statements.

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however, we believe the disclosures are adequate to make the information presented not misleading.

Reclassifications of certain prior year amounts in the Consolidated Statements of Cash Flows have been made to conform to current year presentation.

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, 2025 and the footnotes (“Notes”) thereto included within our 2025 Annual Report on Form 10-K.

2 unchanged sentences

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 months ended April 3, 2026, are not necessarily indicative of the results for the full year.

The results of operations for the three and six months ended July 3, 2026, are not necessarily indicative of the results for the full year.

Segment Presentation

12 unchanged sentences

Refer to Note 2 for additional information.

During the three months ended July 3, 2026, we made a bolt-on acquisition in our AHS segment that is intended to accelerate our strategy and strengthen our product portfolio.

We paid aggregate cash consideration of € 51 million (approximately $ 58 million), net of acquired cash, to acquire a majority ownership interest.

In early 2029, we will acquire the remaining ownership interest for contingent consideration of up to € 20 million.

We recorded approximately $ 52 million of goodwill, which is not tax deductible, and $ 20 million of intangible assets consisting of customer relationships, technology, and trade names.

All other acquired assets and assumed liabilities are immaterial.

The revenues and operating results in the three months ended July 3, 2026 were also immaterial.

The purchase price allocation is preliminary and is based on estimates and assumptions used in determining the fair value of the net assets acquired.

Accordingly, the allocation may be adjusted as additional information becomes available regarding the fair value of assets acquired and liabilities assumed.

Adjustments are recorded as soon as practicable within the measurement period, but in no event later than one year from the acquisition date.

Accumulated Other Comprehensive Loss

We designate the 3.7 % Euro-denominated senior unsecured notes due 2029 as a net investment hedge on our investment in applicable foreign operations.

We designate a portion of the 3.7 % Euro-denominated senior unsecured notes due 2029 as a net investment hedge on our investment in applicable foreign operations.

As such, 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.

We recognized after-tax foreign currency transaction gains of $ 12.1 million and losses of $ 57.0 million during the three-month periods ended April 3, 2026 and March 28, 2025, respectively, on the debt that was deferred in the foreign currency translation component of 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-month periods ended April 3, 2026 and March 28, 2025.

During the three-month periods ended April 3, 2026 and March 28, 2025, the foreign currency transaction impacts associated with Euro-denominated notes not designated as a net investment hedge were immaterial .

We recognized after-tax foreign currency transaction gains of $ 3.8 million and $ 15.9 million during the three and six-month periods ended July 3, 2026, respectively, and losses of $ 103.3 million and $ 160.3 million during the three and six-month periods ended June 27, 2025, respectively, on the debt that was deferred in the foreign currency translation component of 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 six-month periods ended July 3, 2026 and June 27, 2025.

During the three and six-month periods ended July 3, 2026 and June 27, 2025, the foreign currency transaction impacts associated with Euro-denominated notes not designated as a net investment hedge were immaterial .

We recognized gains on our treasury lock contract designated as a cash flow hedge of $ 1.1 million and $ 4.6 million in the three and six-month periods ended July 3, 2026, respectively, which are recorded within the hedge adjustments component of AOCI.

The treasury lock contract was settled in the three months ended July 3, 2026.

The gain will be amortized to interest expense in the Consolidated Condensed Statements of Earnings ratably over 10 years, aligning to the tenor of the 5.25 % senior unsecured notes due 2036.

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

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

Hedge adjustments (d)

For the Three Months Ended April 3, 2026:

Hedge adjustments Total

For the Three Months Ended July 3, 2026:

Balance, April 3, 2026 $ 56.6 $ ( 17.8 ) $ 2.7 $ 41.5

Other comprehensive income (loss) before reclassifications:

Increase (decrease):

4.7 — 1.1 5.8

Income tax impact

( 2.0 ) — ( 0.3 ) ( 2.3 )

Other comprehensive income before reclassifications, net of income taxes 2.7 — 0.8 3.5

Amounts reclassified from AOCI into income, net of income taxes

— ( 0.1 ) (b)

( 0.1 ) ( 0.2 )

Net current period other comprehensive income (loss), net of income taxes 2.7 ( 0.1 ) 0.7 3.3

Balance, July 3, 2026 $ 59.3 $ ( 17.9 ) $ 3.4 $ 44.8

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 )

Other comprehensive income before reclassifications, net of income taxes 108.0 — — 108.0

Amounts reclassified from AOCI into income, net of income taxes

Net current period other comprehensive income, net of income taxes

108.0 — — 108.0

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

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

(b) This component of AOCI is included in the computation of net periodic pension cost (refer to Note 9 in our 2025 Annual Report on Form 10-K for additional details).

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

Hedge adjustments Total

For the Six Months Ended July 3, 2026:

Balance, December 31, 2025 $ 58.8 $ ( 17.7 ) $ — $ 41.1

Other comprehensive income (loss) before reclassifications, net of income taxes ( 2.2 ) — 2.7 0.5

Other comprehensive income (loss) before reclassifications:

Increase (decrease):

10.6 — 4.6 15.2

Income tax impact

( 10.1 ) — ( 1.1 ) ( 11.2 )

Other comprehensive income before reclassifications, net of income taxes 0.5 — 3.5 4.0

Amounts reclassified from AOCI into income, net of income taxes

— ( 0.2 ) (b)

( 0.1 ) ( 0.3 )

Net current period other comprehensive income (loss), net of income taxes 0.5 ( 0.2 ) 3.4 3.7

Balance, April 3, 2026 $ 56.6 $ ( 17.8 ) $ 2.7 $ 41.5

For the Three Months Ended March 28, 2025:

Balance, July 3, 2026 $ 59.3 $ ( 17.9 ) $ 3.4 $ 44.8

For the Six Months Ended June 27, 2025:

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

Other comprehensive income (loss) before reclassifications, net of income taxes 70.1 — — 70.1

Other comprehensive income (loss) before reclassifications:

Increase (decrease):

198.7 — — 198.7

Income tax impact ( 20.6 ) — — ( 20.6 )

Other comprehensive income before reclassifications, net of income taxes 178.1 — — 178.1

Amounts reclassified from AOCI into income, net of income taxes

1 unchanged sentence

178.1 — — 178.1

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

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

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

1 unchanged sentence

(d) Related to our treasury lock contracts, refer to Note 3 for additional information.

Restructuring

In the fourth quarter of 2024, we initiated a discrete restructuring plan that is expected to be completed by the second half of 2026.

In the fourth quarter of 2024, we initiated a discrete restructuring plan that is expected to be completed by the end 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 three months ended April 3, 2026 and March 28, 2025, we incurred charges of $ 6.3 million and $ 3.5 million, respectively.

During the three months ended July 3, 2026 and June 27, 2025, we incurred charges of $ 2.4 million and $ 7.9 million, respectively.

During the six months ended July 3, 2026 and June 27, 2025, we incurred charges of $ 8.7 million and $ 11.4 million, respectively.

These charges are recorded within Cost of sales and Selling, general, and administrative expenses in the Consolidated Statements of Earnings.

The accrued restructuring costs as of April 3, 2026 and December 31, 2025 were approximately $ 11 million and $ 13 million, respectively, and are recorded within Accrued expenses and other current liabilities in the Consolidated Balance Sheets.

The accrued restructuring costs as of July 3, 2026 and December 31, 2025 were approximately $ 9 million and $ 13 million, respectively, and are recorded within Accrued expenses and other current liabilities in the Consolidated Condensed Balance Sheets.

Recently Issued Accounting Standards

6 unchanged sentences

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

In May 2026, the FASB issued ASU 2026-02, Environmental Credits and Environmental Credit Obligations (Topic 818) , which establishes accounting and disclosure requirements for environmental credits and related environmental credit obligations.

This standard is effective for fiscal year ending December 31, 2028 and interim periods within 2028, with early adoption permitted, and must be applied on a retrospective basis.

We anticipate that the impact on our consolidated financial statements will be immaterial.

Recently Adopted Accounting Standard

4 unchanged sentences

DISCONTINUED OPERATIONS

In connection with the Separation, the Company incurred $ 22.6 million in Separation-related costs during the three months ended March 28, 2025, which were recorded within net earnings (loss) from discontinued operations in the Consolidated Condensed Statements of Earnings.

As part of the Separation, Ralliant paid a $ 1.15 billion cash dividend to Fortive prior to the Distribution Date (the “Ralliant Dividend”), which is recorded with in the Financing Activities section of the Consolidated Condensed Statements of Cash Flows.

In connection with the Separation, the Company incurred $ 40 million and $ 63 million in Separation-related costs during the three and six months ended June 27, 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.

1 unchanged sentence

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 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 months ended April 3, 2026.

The assets from discontinued operations were $ 4.8 million as of April 3, 2026, which consisted of receivables from Ralliant related to the tax matters agreement, and $ 20.8 million as of December 31, 2025, which consisted of receivables from Ralliant related to the tax matters agreement and pass through arrangements.

During the three months ended April 3, 2026, we received $ 17.4 million of net cash payments from Ralliant as reimbursement for pass through costs paid on Ralliant’s behalf.

This activity is recorded within operating cash provided by discontinued operations in the Consolidated Condensed Statement of Cash Flows.

The assets from discontinued operations were $ 4.9 million as of July 3, 2026, which consisted primarily of receivables from Ralliant related to the tax matters agreement, and $ 20.8 million as of December 31, 2025, which consisted of receivables from Ralliant related to the tax matters agreement and pass-through arrangements.

Net cash payments received from Ralliant as reimbursement for pass-through costs paid on Ralliant’s behalf were immaterial in the three months ended July 3, 2026 and $ 17.4 million in the six months ended July 3, 2026.

This activity is recorded within operating cash provided by discontinued operations in the Consolidated Condensed Statements of Cash Flows.

The key components of income from discontinued operations were as follows ($ in millions):

Three Months Ended

March 28, 2025

Three Months Ended Six Months Ended

June 27, 2025 June 27, 2025

Sales $ 502.4 $ 983.5

19 unchanged sentences

(Level 3) Total

April 3, 2026

Treasury rate lock assets

$ — $ 3.5 $ — $ 3.5

Deferred compensation liabilities — 35.2 — 35.2

December 31, 2025

Deferred compensation liabilities — 39.1 — 39.1

Deferred compensation liabilities, as of July 3, 2026 — 39.9 — 39.9

Deferred compensation liabilities, as of December 31, 2025 — 39.1 — 39.1

Certain management employees participate in our nonqualified deferred compensation programs that permit such employees to defer a portion of their compensation, on a pretax basis, until after their termination of employment.

3 unchanged sentences

Changes in the deferred compensation liability under these programs are recognized based on changes in the fair value of the participants’ accounts and are recorded within Selling, general and administrative expenses in the Consolidated Condensed Statements of Earnings.

In March 2026, the Company entered into a Treasury rate lock contract with a notional amount of $ 125 million, which was designated and qualified as a cash flow hedge to reduce a portion of the risk of interest rate fluctuations for an anticipated future debt issuance.

The Company assessed the effectiveness of the hedging contract at inception and on a quarterly basis thereafter.

The fair value of the hedge is recorded within Prepaid expenses and other current assets on the Consolidated Condensed Balance Sheet.

The changes in fair value of the Treasury rate lock contract was recorded as Other comprehensive income in the Consolidated Condensed Statements of Comprehensive Income.

As of April 3, 2026, the Treasury rate lock contract was valued using reference rates from market-based data derived from publicly observable data and non-public subscription-based data.

Non-recurring Fair Value Measurements

1 unchanged sentence

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 months ended April 3, 2026, 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 six months ended July 3, 2026, and recorded no impairments.

Fair Value of Financial Instruments

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

April 3, 2026 December 31, 2025

July 3, 2026 December 31, 2025

Carrying Amount Fair Value Carrying Amount Fair Value

2 unchanged sentences

3,509.3 3,432.8 2,306.5 2,239.2

As of April 3, 2026 and December 31, 2025, the current portion of long-term debt and long-term debt, net of current maturities were categorized as Level 1.

As of July 3, 2026 and December 31, 2025, 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.

2 unchanged sentences

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

April 3, 2026 December 31, 2025

July 3, 2026 December 31, 2025

Commercial paper programs

1 unchanged sentence

4.75 % senior unsecured notes due 2031

5.25 % senior unsecured notes due 2036

4.30 % senior unsecured notes due 2046

3.70 % Euro-denominated senior unsecured notes due 2029

15 unchanged sentences

Credit support for the Commercial Paper Programs is provided by a five -year $ 2.0 billion senior unsecured revolving credit facility that expires on March 17, 2031 (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 April 3, 2026, no borrowings were outstanding under the Revolving Credit Facility.

As of July 3, 2026, no borrowings were outstanding under the Revolving Credit Facility.

Refer to the section below for further discussion on the Revolving Credit Facility.

The details of our outstanding Commercial Paper Programs as of April 3, 2026 were as follows ($ in millions):

The details of our outstanding Commercial Paper Programs as of July 3, 2026 were as follows ($ in millions):

Carrying value (a)

4 unchanged sentences

(a) Net of unamortized debt discount.

We classified our borrowings outstanding under the Commercial Paper Programs as of April 3, 2026 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 first quarter, Fortive repaid the $ 292.9 million of outstanding principal of the 3.7 % Euro-denominated senior unsecured notes due 2026, and the accrued interest thereon, primarily using proceeds from the Commercial Paper Programs.

We classified our borrowings outstanding under the Commercial Paper Programs as of July 3, 2026 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.

Senior Unsecured Notes Due 2031 and 2036

On May 14, 2026, we completed the registered offering of the following senior unsecured notes:

• $ 600 million in aggregate principal amount of our 4.75 % senior unsecured notes due 2031 (the “2031 Notes”) issued at 99.771 % of their principal amount and bearing interest at 4.75 % per annum.

The 2031 Notes mature on May 15, 2031 with interest payable in arrears on May 15 and November 15 of each year, beginning in November 2026.

• $ 500 million in aggregate principal amount of our 5.25 % senior unsecured notes due 2036 (the “2036 Notes”) issued at 99.685 % of their principal amount and bearing interest at 5.25 % per annum.

The 2036 Notes mature on May 15, 2036 with interest payable in arrears on May 15 and November 15 of each year, beginning in November 2026.

The net proceeds from the offering, after underwriting discounts and commissions and offering expenses, were approximately $ 1.1 billion.

We used the net proceeds to repay the $ 900 million of outstanding principal of the 3.15 % senior unsecured notes due 2026, and the accrued interest thereon, and for other general corporate purposes.

We may redeem the 2031 Notes and the 2036 Notes at our option, in whole or in part, at any time and from time to time.

Prior to April 15, 2031 for the 2031 Notes and February 15, 2036 for the 2036 Notes (each, respectively, the “Par Call Date”), we may redeem the 2031 Notes and the 2036 Notes, as applicable, at the corresponding make-whole redemption price as specified in the indentures.

On or after the applicable Par Call Date, the redemption price will equal 100 % of the principal amount of the notes being redeemed plus accrued and unpaid interest up to, but not including, the redemption date.

The 2031 Notes and 2036 Notes contain customary covenants, none of which are considered restrictive to our operations.

If a change of control triggering event occurs, we will, in certain circumstances, be required to make an offer to repurchase the 2031 Notes and 2036 Notes from each holder at a purchase price equal to 101 % of the principal amount thereof being repurchased, plus accrued and unpaid interest to, but not including, the repurchase date.

A change of control triggering event is defined as the occurrence of both a change of control and a rating event, each as defined in the indentures.

Except in connection with a change of control triggering event, the 2031 Notes and 2036 Notes do not have any credit rating downgrade triggers that would accelerate the maturity of the notes.

Revolving Credit Facility

6 unchanged sentences

The maximum consolidated net leverage ratio will be increased to 4.25 to 1.00 for the four consecutive full fiscal quarters immediately following the consummation of any acquisition by us in which the purchase price exceeds $ 250 million.

As of April 3, 2026, we were in compliance with all covenants under the Amended and Restated Credit Agreement.

As of July 3, 2026, we were in compliance with all applicable debt covenants.

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

2 unchanged sentences

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 $ 149 million as of April 3, 2026 and $ 151 million as of December 31, 2025.

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

Contract assets were $ 145 million as of July 3, 2026 and $ 151 million as of December 31, 2025.

Contract assets are recorded within Prepaid expenses and other current assets and Other 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 April 3, 2026 and December 31, 2025, we had $ 76 million and $ 75 million, respectively, in net revenue-related contract cost assets primarily related to certain software contracts.

As of July 3, 2026 and December 31, 2025, we had $ 80 million and $ 75 million, respectively, in net revenue-related contract cost assets primarily related to certain software contracts.

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

5 unchanged sentences

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

April 3, 2026 December 31, 2025

July 3, 2026 December 31, 2025

Deferred revenue - current $ 452.0 $ 440.3

1 unchanged sentence

Total contract liabilities $ 476.7 $ 464.4

During the three months ended April 3, 2026, we recognized $ 171 million of revenue related to our contract liabilities at December 31, 2025.

The change in our contract liabilities from December 31, 2025 to April 3, 2026 was primarily due to the timing of billings and recognition of revenue for subscription-based software contracts, PCS, and extended warranty services.

During the three and six months ended July 3, 2026, we recognized revenue of $ 116 million and $ 287 million, respectively, related to our contract liabilities at December 31, 2025.

The change in our contract liabilities from December 31, 2025 to July 3, 2026 was primarily due to the timing of billings and recognition of revenue 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.

We have excluded performance obligations with an original expected duration of one year or less from the amounts below.

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

April 3, 2026

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

Intelligent Operating Solutions $ 714.9

4 unchanged sentences

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 months ended April 3, 2026 and March 28, 2025 is presented as follows ($ in millions):

Disaggregation of revenue is presented as follows ($ in millions):

Three Months Ended

Total Intelligent Operating Solutions Advanced Healthcare Solutions

April 3, 2026 March 28, 2025 April 3, 2026 March 28, 2025 April 3, 2026 March 28, 2025

July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Products and software

18 unchanged sentences

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

Sales attributed to the United States were 55 % and 56 % of total Fortive sales for the three months ended April 3, 2026 and March 28, 2025, respectively.

Our effective tax rate for the three months ended April 3, 2026 was 16.6 %, as compared to 15.8 % for the three months ended March 28, 2025.

The increase in the effective tax rate for the three months ended April 3, 2026 as compared to the three months ended March 28, 2025 was primarily related to the mix of earnings between jurisdictions and the impact of discrete items.

Our effective tax rate for the three months ended April 3, 2026, differs from the U.S.

Sales attributed to the United States were 56 % of total Fortive sales for the three months ended July 3, 2026 and June 27, 2025.

Six Months Ended

Total Intelligent Operating Solutions Advanced Healthcare Solutions

July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Products and software

$ 1,737.6 $ 1,617.2 $ 1,216.7 $ 1,131.5 $ 520.9 $ 485.7

428.6 392.3 284.7 256.3 143.9 136.0

Total $ 2,166.2 $ 2,009.5 $ 1,501.4 $ 1,387.8 $ 664.8 $ 621.7

North America (a)

$ 1,295.0 $ 1,202.6 $ 907.1 $ 836.5 $ 387.9 $ 366.1

384.8 360.9 247.6 227.0 137.2 133.9

Europe, Middle East, and Africa

373.1 348.5 286.7 268.5 86.4 80.0

Latin America

113.3 97.5 60.0 55.8 53.3 41.7

Total $ 2,166.2 $ 2,009.5 $ 1,501.4 $ 1,387.8 $ 664.8 $ 621.7

Healthcare $ 652.5 $ 609.6 $ 23.0 $ 21.6 $ 629.5 $ 588.0

Industrial & Manufacturing 630.6 587.0 621.5 578.0 9.1 9.0

Energy & Infrastructure 358.3 333.1 358.3 333.1 — —

Government 177.4 174.0 158.5 156.0 18.9 18.0

Retail 174.9 146.8 174.9 146.8 — —

Other 172.5 159.0 165.2 152.3 7.3 6.7

Total $ 2,166.2 $ 2,009.5 $ 1,501.4 $ 1,387.8 $ 664.8 $ 621.7

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

Sales attributed to the United States were 56 % of total Fortive sales for the six months ended July 3, 2026 and June 27, 2025.

Our effective tax rate for the three and six months ended July 3, 2026 was 12.4 % and 14.4 %, respectively, as compared to 20.1 % and 18.0 %, for the three and six months ended June 27, 2025, respectively.

The decrease in the effective tax rate for the three and six months ended July 3, 2026 as compared to the three and six months ended June 27, 2025 was primarily related to the mix of earnings between jurisdictions and changes in valuation allowances.

Our effective tax rate for the three and six months ended July 3, 2026, 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.

1 unchanged sentence

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 April 3, 2026, approximately 11 million shares of our common stock were available for subsequent issuance under the Stock Plan.

As of July 3, 2026, approximately 11 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 13 of our 2025 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

April 3, 2026 March 28, 2025

Three Months Ended Six Months Ended

July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Stock Awards:

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Total stock-based compensation expense, net of income taxes $ 19.9 $ 18.7 $ 37.8 $ 38.2

The following summarizes the unrecognized compensation cost for the Stock Plan awards and stock options as of April 3, 2026.

The following summarizes the unrecognized compensation cost for the Stock Plan awards and stock options as of July 3, 2026.

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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Total unrecognized compensation cost $ 142.3

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

Three Months Ended Six Months Ended

July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Operating lease costs

$ 7.6 $ 6.3 $ 16.3 $ 13.9

Supplemental information related to operating leases for each period is presented as follows ($ in millions):

April 3, 2026 December 31, 2025

July 3, 2026 December 31, 2025

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.

Three Months Ended

April 3, 2026 March 28, 2025

Operating lease costs

Six Months Ended

July 3, 2026 June 27, 2025

Cash paid for operating leases

2 unchanged sentences

NET EARNINGS PER SHARE

Basic net earnings per share (“EPS”) is calculated by dividing net earnings by the weighted average number of shares of common stock outstanding for the applicable period.

Basic net earnings per share (“EPS”) from continuing operations is calculated by dividing net earnings from continuing operations by the weighted average number of shares of common stock outstanding for the applicable period.

Diluted EPS from continuing operations 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.

For the three months ended April 3, 2026 and March 28, 2025, the anti-dilutive options to purchase shares excluded from the diluted EPS calculation were 1.3 million and 1.5 million, respectively.

For the three months ended July 3, 2026 and June 27, 2025, the anti-dilutive options to purchase shares excluded from the diluted EPS calculation were 1.0 million and 2.2 million, respectively.

For the six months ended July 3, 2026 and June 27, 2025, the anti-dilutive options to purchase shares excluded from the diluted EPS calculation were 1.0 million and 1.9 million, respectively.

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

April 3, 2026 March 28, 2025

Three Months Ended Six Months Ended

July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Net earnings from continuing operations

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Share Repurchase Programs

In February 2022, our Board adopted a share repurchase program (the “General Share Repurchase Program”), under which our Board has made various authorizations for the total repurchase of up to 58.8 million shares of our common stock.

In February 2022, our Board of Directors (the “Board”) adopted a share repurchase program (the “General Share Repurchase Program”), under which our Board has made various authorizations for the repurchase of shares of our common stock.

On May 4, 2026, the Board made a new authorization of 14.4 million shares, for a total cumulative authorization of 73.2 million shares as of July 3, 2026.

In 2025, in connection with the Separation, our Board adopted a separate and incremental special purpose share repurchase program (the “Special Share Repurchase Program”) under which we may repurchase up to $ 550 million of our common stock exclusively from the proceeds we received from Ralliant in connection with the Separation.

As of April 3, 2026, there were 6.6 million shares and $ 67.5 million remaining authorized under the General Share Repurchase Program and Special Share Repurchase Program, respectively.

As of July 3, 2026, there were 17.7 million shares and $ 66.7 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 our management based on market conditions, tax regulation and other factors.

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

During the three months ended April 3, 2026, the Company purchased 8.9 million shares of its common stock at an average share price of $ 56.21 .

During the three months ended March 28, 2025, the Company purchased 2.5 million shares of its common stock at an average share price of $ 81.01 .

Common stock repurchases, in excess of issuances, are subject to a 1% excise tax in the United States, which is recorded as part of the cost basis of the shares acquired and shown within Common stock repurchases in the Consolidated Condensed Statement of Equity.

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

During the three and six months ended July 3, 2026, the Company purchased 3.4 million and 12.3 million shares of its common stock at an average share price of $ 59.54 and $ 57.13 , respectively.

During the three and six months 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.

The payment of the excise tax is recorded within All other financing activities in the Financing Activities section of the Consolidated Condensed Statements of Cash Flows.

SEGMENT INFORMATION

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Unallocated costs and other costs are not considered part of our evaluation of reportable segment operating performance.

Segment results for the three months ended April 3, 2026 are shown below ($ in millions):

Segment results are presented as follows ($ in millions):

Three Months Ended July 3, 2026

Intelligent Operating Solutions

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$ ( 28.1 ) $ ( 20.0 ) $ ( 8.1 ) $ —

Segment results for the three months ended March 28, 2025 are shown below ($ in millions):

Three Months Ended June 27, 2025

Intelligent Operating Solutions

19 unchanged sentences

$ ( 25.0 ) $ ( 20.1 ) $ ( 4.9 ) $ —

Six Months Ended July 3, 2026

Intelligent Operating Solutions

Advanced Healthcare Solutions

Unallocated Corporate Costs and Other

$ 2,166.2 $ 1,501.4 $ 664.8 $ —

Cost of sales

( 795.4 ) ( 520.1 ) ( 275.3 ) —

1,370.8 981.3 389.5 —

Operating expenses

( 969.2 ) ( 591.6 ) ( 318.5 ) ( 59.1 )

Operating profit (loss)

401.6 389.7 71.0 ( 59.1 )

Non-operating income (expense), net

Interest expense, net

( 67.0 ) — — ( 67.0 )

Other non-operating income (expense), net

Earnings from continuing operations before income taxes

$ 343.1 $ 389.7 $ 71.0 $ ( 117.6 )

Depreciation and amortization expenses

$ ( 227.1 ) $ ( 126.5 ) $ ( 100.0 ) $ ( 0.6 )

Capital expenditures $ ( 54.7 ) $ ( 40.7 ) $ ( 14.0 ) $ —

Six Months Ended June 27, 2025

Intelligent Operating Solutions

Advanced Healthcare Solutions

Unallocated Corporate Costs and Other

$ 2,009.5 $ 1,387.8 $ 621.7 $ —

Cost of sales

( 726.5 ) ( 472.4 ) ( 254.1 ) —

1,283.0 915.4 367.6 —

Operating expenses

( 947.9 ) ( 570.0 ) ( 310.1 ) ( 67.8 )

Operating profit (loss)

335.1 345.4 57.5 ( 67.8 )

Non-operating income (expense), net

Interest expense, net

( 64.1 ) — — ( 64.1 )

Other non-operating income (expense), net

Earnings from continuing operations before income taxes

$ 273.3 $ 345.4 $ 57.5 $ ( 129.6 )

Depreciation and amortization expenses

$ ( 217.2 ) $ ( 116.8 ) $ ( 99.8 ) $ ( 0.6 )

Capital expenditures $ ( 46.1 ) $ ( 37.1 ) $ ( 8.9 ) $ ( 0.1 )

Segment Assets:

($ in millions) April 3, 2026 December 31, 2025

($ in millions) July 3, 2026 December 31, 2025

Intelligent Operating Solutions $ 6,243.7 $ 6,346.0

1 unchanged sentence

Total segment assets 11,076.3 11,207.6

Assets of Discontinued Operations 4.8 20.8

Total assets, discontinued operations 4.9 20.8

Total assets $ 11,615.0 $ 11,737.7

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