What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2026-07-29 compared with 2026-04-30 · 100 added, 68 removed, 225 unchanged (43% of the section changed)

21 unchanged sentences

projections of revenue, expenses, profit, profit margins, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, our liquidity position or other financial measures;

impact of government actions, including tariffs, other trade policies, government spending and tax laws;

impact of government actions, including tariffs and tariff refunds, other trade policies, government spending and tax laws;

management’s plans and strategies for future operations, including statements relating to anticipated operating performance, capital allocation, financing, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions, divestitures, strategic opportunities, financing, stock repurchases, and dividends;

25 unchanged sentences

• Our growth depends in part on the timely development and commercialization and customer acceptance of new and enhanced products and services based on technological innovation.

• Our ability to successfully manage leadership transitions and attract, develop, and retain senior leaders and other key employees is critical to our success.

• Our ability to attract, develop, and retain senior leaders and other key employees is critical to our success.

• Disruptions in, or breaches in security of, our information technology systems, exfiltration of confidential or sensitive data, and other cyberattacks have adversely affected, and in the future could adversely affect, our business.

40 unchanged sentences

Fortive is a multinational business with global operations, with approximately 44% of our sales derived from customers outside the United States in 2025.

As a company with global operations, our businesses are affected by worldwide, regional, and industry-specific economic, trade policies, fiscal policies, regulatory, and political factors.

As a company with global operations, our businesses are affected by worldwide, regional, and industry-specific economic conditions, trade policies, fiscal policies, regulatory factors, and political factors.

Our geographic and industry diversity, as well as the range of products, software, and services we offer, typically help limit the impact of any one industry or the economy of any single country, except for the United States, on our operating results.

25 unchanged sentences

uncertainties in governmental policies on international trade, regulations, sanctions, and healthcare;

operational challenges from existing, new, increased, or uncertain status of tariffs, including in some cases, subsequent rollbacks, refunds, or suspensions;

operational challenges from existing, new, increased, or the uncertain status of tariffs, including in some cases, subsequent rollbacks, refunds, or suspensions;

foreign exchange rate volatility, including the impact of unhedged foreign currency debts;

5 unchanged sentences

In addition, our financial outlook is subject to the impact of the Supreme Court of the United States ruling invalidating certain tariffs imposed under the International Emergency Economic Powers Act (the “IEEPA Ruling”).

Impacts may include changes to operational and transaction costs;

potential legislative or executive actions to reimpose similar tariffs;

As a result of the IEEPA Ruling, the U.S.

Customs and Border Protection (“CBP”) has established a system to process IEEPA tariff refund claims.

We have submitted claims under this process and expect to continue doing so, as permitted.

As refund claims are accepted by CBP, we recognize the approved amounts within cost of sales.

The ultimate recoverability, timing, and amount of any such refunds remain uncertain and are subject to CBP review, as well as further legal, regulatory, and administrative developments.

In addition, in response to the IEEPA Ruling, the current administration has imposed, and is expected to further impose, new tariffs under other existing authorizations.

Impacts of the IEEPA Ruling and any new responsive tariffs, including our ability to mitigate fully any such new tariffs, are uncertain and may include changes to operational and transaction costs;

pricing or cost responses by customers, suppliers, and other supply chain partners;

and actions by other countries, including changes to counter‑tariffs or related trade agreements.

In addition, there remains uncertainty regarding the amount of, and process for obtaining, refunds of invalidated tariffs from the government and our vendors, as well as the potential for refund requests from our customers.

actions by other countries, including changes to counter‑tariffs or related trade agreements;

and the potential for refund requests from our customers.

We continue to monitor the conditions above and deploy the Fortive Business System (“FBS”), including tools and processes to leverage existing sourcing strategies and optimize production and logistics to actively manage these challenges and utilize pricing, cost and productivity actions and other countermeasures designed to offset the aforementioned dynamics.

RESULTS OF OPERATIONS

The following table summarizes total aggregate year-over-year sales growth and the components thereof for the first quarter as compared to the comparable period of 2025:

% Change Three Months Ended April 3, 2026 vs.

The following table summarizes total aggregate year-over-year sales growth and the components thereof for the second quarter as compared to the comparable period of 2025:

% Change Three Months Ended July 3, 2026 vs.

Comparable 2025 Period

% Change Six Months Ended July 3, 2026 vs.

Comparable 2025 Period

Total revenue growth (GAAP) 7.9 % 7.8 %

Excluding impact of:

Acquisitions and divestitures (a)

Acquisitions and divestitures (0.3) % (0.1) %

Currency exchange rates (0.9) % (1.6) %

Core revenue growth (Non-GAAP)

(a) Amount rounded to zero.

Sales in the three months ended April 3, 2026 (the “quarter” or the “first quarter”) were driven by favorable pricing of 2.2%, volume growth of 3.1%, in part driven by additional year-over-year selling days in the quarter, and favorable foreign currency translation.

Geographically, in the first quarter, core revenue growth was driven primarily by strong demand in North America and Western Europe.

Sales growth in the three months ended July 3, 2026 (the “quarter” or the “second quarter”) and the six months ended July 3, 2026 (the “year-to-date period”) was driven by favorable pricing of 2.4% and 2.3%, respectively, volume growth of 4.3% and 3.8%, respectively, and favorable foreign currency translation.

Geographically, core revenue growth in both the second quarter and the year-to-date period was driven primarily by strong demand in North America as well as solid growth in Latin America and Asia-Pacific, slightly offset by a decline in Europe, Middle East, and Africa (“EMEA”).

Refer to the IOS and AHS segment sections for further detail.

Operating Profit Margins

In the first quarter, operating profit margin was 17.9%, compared to 16.6% in the comparable period of 2025, resulting in an increase of 130 basis points due to:

• The year-over-year favorable impacts from pricing, higher volume, reductions of excess cost through organizational streamlining, the favorable impact of foreign currency exchange rates and increased productivity measures through our FBS initiatives, partially offset by higher employee compensation and the unfavorable net impact of tariffs and related countermeasures — favorable 125 basis points

• The year-over-year effect of all other items in the first quarter including +50 basis points from amortization expense for existing businesses, partially offset by -20 basis points from unfavorable acquisition and divestiture-related impacts, and -25 basis points from discrete restructuring plans — favorable 5 basis points

In the second quarter, operating profit margin was 19.1% compared to 16.7% in the comparable period of 2025, resulting in an increase of 240 basis points due to:

• The year-over-year favorable impacts from pricing, higher volume, and increased productivity measures through our FBS initiatives, and reductions of cost through organizational streamlining, partially offset by higher employee costs, product mix, and growth investments — favorable 80 basis points

• The year-over-year effect of all other items in the second quarter including +70 basis points from amortization expense for existing businesses, + 55 basis points from reduced discrete restructuring spending versus the comparable period , and + 40 basis points from tariff refunds, partially offset by -5 basis points from unfavorable acquisition and divestiture-related impacts — favorable 160 basis points

In the year-to-date period, operating profit margin was 18.5% compared to 16.7% in the comparable period of 2025, resulting in an increase of 180 basis points due to:

• The year-over-year favorable impacts from pricing, higher volume, reductions of cost through organizational streamlining, increased productivity measures through our FBS initiatives, and foreign currency translation, partially offset by higher employee costs, product mix, and growth investments — favorable 100 basis points

• The year-over-year effect of all other items in the year-to-date period including + 60 basis points from amortization expense for existing businesses, + 20 basis points from tariff refunds, and + 15 basis points from reduced discrete restructuring spending , partially offset by -15 basis points from unfavorable acquisition and divestiture-related impacts — favorable 80 basis points

INTELLIGENT OPERATING SOLUTIONS (IOS)

Selected Financial Data

Three Months Ended

($ in millions) April 3, 2026 March 28, 2025

Three Months Ended Six Months Ended

($ in millions) July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Sales $ 758.2 $ 696.9 $ 1,501.4 $ 1,387.8

6 unchanged sentences

Components of Sales Growth

% Change Three Months Ended April 3, 2026 vs.

% Change Three Months Ended July 3, 2026 vs.

Comparable 2025 Period

% Change Six Months Ended July 3, 2026 vs.

Comparable 2025 Period

Total revenue growth (GAAP) 8.8 % 8.2 %

1 unchanged sentence

Acquisitions and divestitures

(0.4) % (0.2) %

Currency exchange rates (1.0) % (1.7) %

Core revenue growth (Non-GAAP)

Sales growth in the first quarter was driven by favorable pricing of 2.1% across the segment, volume growth of 3.1%, primarily driven by facilities and asset lifecycle software and gas detection products, and favorable currency translation.

Geographically, in the first quarter, core revenue growth was driven primarily by strong demand in North America and Western Europe.

In the first quarter, operating profit margin decreased 20 basis points, as compared to the comparable period of 2025, due to:

• The year-over-year effect of favorable pricing, higher volume, organizational streamlining, favorable impact from foreign currency exchange rates and increased productivity measures through our FBS initiatives, more than offset by higher employee compensation, the unfavorable net impact of tariffs and related countermeasures, and unfavorable mix — unfavorable 15 basis points

• The year-over-year effect of all other items in the first quarter, including + 35 basis points from amortization expense for existing businesses, more than offset by -10 basis points in unfavorable acquisition and divestiture-related impacts, and -30 basis points from discrete restructuring plans — unfavorable 5 basis points

Sales growth in the second quarter and the year-to-date period was driven by favorable pricing across the segment of 2.7% and 2.4%, respectively, volume growth of 4.8% and 3.9%, respectively, primarily driven by professional instrumentation, facilities and asset lifecycle software, and gas detection, and favorable foreign currency translation.

Geographically, core revenue growth in both the second quarter and the year-to-date period was driven primarily by strong demand in North America, as well as solid growth in Latin America and Asia-Pacific, slightly offset by a decline in EMEA.

In the second quarter, operating profit margin increased 230 basis points as compared to the comparable period of 2025 due to:

• The year-over-year favorable effects of pricing, higher volume, and increased productivity measures through our FBS initiatives, offset by product mix and higher employee costs — favorable 70 basis points

• The year-over-year effect of all other items, including +80 basis points from reductions in discrete restructuring spending, + 45 basis points from amortization expense for existing businesses, and +45 basis points from tariff refunds, slightly offset by -10 basis points in unfavorable acquisition and divestiture-related impacts — favorable 160 basis points

In the year-to-date period, operating profit margin increased 110 basis points, as compared to the comparable period of 2025 due to:

• The year-over-year favorable effects of pricing, higher volume, increased productivity measures through our FBS initiatives, organizational streamlining, and foreign currency translation, offset by higher employee costs and product mix — favorable 30 basis points

• The year-over-year effect of all other items, including +40 basis points from amortization expense for existing businesses, +25 basis points from reductions in discrete restructuring spending, and +25 basis points from tariff refunds, slightly offset by -10 basis points in unfavorable acquisition and divestiture-related impacts — favorable 80 basis points

ADVANCED HEALTHCARE SOLUTIONS (AHS)

Selected Financial Data

Three Months Ended

($ in millions) April 3, 2026 March 28, 2025

Three Months Ended Six Months Ended

($ in millions) July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Sales $ 338.6 $ 319.5 $ 664.8 $ 621.7

6 unchanged sentences

Components of Sales Growth

% Change Three Months Ended April 3, 2026 vs.

% Change Three Months Ended July 3, 2026 vs.

Comparable 2025 period

% Change Six Months Ended July 3, 2026 vs.

Comparable 2025 Period

Total revenue growth (GAAP) 6.0 % 6.9 %

3 unchanged sentences

Core revenue growth (Non-GAAP)

Sales growth in the first quarter was driven by favorable pricing of 2.3% across the segment and volume growth of 3.5% which was driven by increased demand for sterilization products and dosimetry services, as well as favorable currency translation.

Geographically, in the first quarter, core revenue growth was primarily driven by strong growth in North America.

In the first quarter, operating profit margin increased 280 basis points as compared to the comparable period of 2025, due to:

• Year-over-year favorable impact from pricing, volume, organizational streamlining, foreign currency exchange rates, and productivity measures through our FBS initiatives, partially offset by higher employee compensation — favorable 215 basis points

• The year-over-year effect of all other items in the first quarter, including + 80 basis points from amortization expense for existing businesses, offset by -5 basis points from net effects of acquired and divested businesses, and -10 basis points from discrete restructuring plans — favorable 65 basis points

Sales growth in the second quarter and year-to-date period was driven by volume growth of 3.4% primarily driven by increased demand for sterilization products, favorable pricing across the segment of 1.9% and 2.1%, respectively, and favorable foreign currency translation.

Geographically, core revenue growth was primarily driven by strong growth in North America and Latin America in both the second quarter and the year-to-date period.

In the second quarter, operating profit margin increased 10 basis points, as compared to the comparable period of 2025, due to:

• Year-over-year impact from favorable pricing and higher volume, more than offset by product mix, higher employee costs and growth investments — unfavorable 75 basis points

• The year-over-year effect of all other items in the second quarter, including + 120 basis points from amortization expense for existing businesses and +25 basis points from tariff refunds, slightly offset by -35 basis points from discrete restructuring plans and -25 basis points from net effects of acquired businesses — favorable 85 basis points

In the year-to-date period, operating profit margin increased 150 basis points, as compared to the comparable period of 2025, due to:

• Year-over-year favorable impact from pricing, higher volume, and organizational streamlining, partially offset by higher employee costs, product mix, and growth investments — favorable 70 basis points

• The year-over-year effect of all other items in the year-to-date period, including +100 basis points from amortization expense for existing businesses and +15 basis points from tariff refunds, offset by -20 basis points from discrete restructuring plans and -15 basis points from net effects of acquired businesses — favorable 80 basis points

COST OF SALES AND GROSS PROFIT

Three Months Ended

($ in millions) April 3, 2026 March 28, 2025

Three Months Ended Six Months Ended

($ in millions) July 3, 2026 June 27, 2025 July 3, 2026 June 27, 2025

Sales $ 1,096.8 $ 1,016.4 $ 2,166.2 $ 2,009.5

2 unchanged sentences

Gross profit margin 63.4 % 63.5 % 63.3 % 63.8 %

The year-over-year increase in gross profit was driven by favorable pricing, higher volume, and favorable impact from foreign currency exchange rates, partially offset by higher employee compensation and the net effect of tariffs and related countermeasures.

The year-over-year increase in gross profit during the second quarter and year-to-date period was driven by favorable pricing, higher volume, gains from productivity measures and FBS initiatives, and tariff refunds, partially offset by product mix and higher employee costs.

The increase in the year-to-date period was also driven by favorable impacts from foreign currency exchange rates.

OPERATING EXPENSES

Three Months Ended

Three Months Ended Six Months Ended

($ in millions)

April 3, 2026 March 28, 2025

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

Sales $ 1,096.8 $ 1,016.4 $ 2,166.2 $ 2,009.5

1 unchanged sentence

Research and development (“R&D”) 67.5 67.2 134.0 131.2

Total operating expenses 485.4 475.7 969.2 947.9

SG&A as a % of sales 38.1 % 40.2 % 38.6 % 40.6 %

R&D as a % of sales 6.2 % 6.6 % 6.2 % 6.5 %

The year-over-year increase in SG&A was primarily due to higher employee compensation costs, in part from additional days in the quarter, and targeted growth investments to support innovation and commercial initiatives, partially offset by reductions of excess cost through organizational streamlining and benefits from productivity measures through our FBS initiatives.

R&D, consisting principally of internal and contract engineering personnel costs, increased during the first quarter as compared to the comparable period of 2025 due to ongoing investments in innovation.

The year-over-year increase in SG&A during the second quarter and year-to-date period was primarily due to higher employee costs and targeted growth investments to support innovation and commercial initiatives, partially offset by reductions of cost through organizational streamlining and benefits from productivity measures implemented through our FBS initiatives.

The increase in SG&A in the year-to-date period also reflected unfavorable foreign currency translation.

R&D, consisting principally of internal and contract engineering personnel costs, increased during the second quarter and year-to-date period as compared to the comparable period of 2025 due to ongoing investments in innovation.

NON-OPERATING INCOME (EXPENSE), NET

Interest Expense, net

Net interest expense for the first quarter of $31.6 million was relatively flat as compared to $32.0 million in the comparable period in 2025.

Net interest expense for the second quarter and year-to-date period was $35.4 million and $67.0 million as compared to $32.1 million and $64.1 million in the comparable periods in 2025.

The year-over-year increases are due to a higher weighted average interest rate of the debt portfolio driven by the paydown of lower interest rate foreign currency debt and refinancing U.S.

dollar-denominated senior notes.

For discussion of our outstanding indebtedness, refer to Note 4 to the consolidated condensed financial statements.

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.

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.

COMPREHENSIVE INCOME

Comprehensive income decreased by $105 million during the first quarter as compared to the comparable period in 2025 due to unfavorable changes in foreign currency translation of $72 million, partially offset by a $24 million increase in net earnings from continuing operations and a $3 million increase from hedge adjustments.

Additionally, there was a $59 million decrease in net earnings from discontinued operations.

Comprehensive income decreased by $114 million during the second quarter as compared to the comparable period in 2025 due to unfavorable changes in foreign currency translation of $105 million, partially offset by a $46 million increase in net earnings from continuing operations.

Additionally, there was $55 million of net earnings from discontinued operations in the 2025 comparable period.

Comprehensive income decreased by $219 million during the year-to-date period as compared to the comparable period in 2025 due primarily to unfavorable changes in foreign currency translation adjustments of $178 million, partially offset by a $70 million increase in net earnings from continuing operations.

Additionally, there was $114 million of net earnings from discontinued operations in the 2025 comparable period.

LIQUIDITY AND CAPITAL RESOURCES

1 unchanged sentence

We generate substantial cash from operating activities and believe that our operating cash flow and other sources of liquidity, which consist of available cash, our revolving credit facility, and access to commercial paper, bank loans, and capital markets, will be sufficient to allow us to continue funding and investing in our existing businesses, consummate strategic acquisitions, execute strategic separations, repurchase common stock, make interest and principal payments on our outstanding indebtedness, fulfill our contractual obligations, and manage our capital structure on a short- and long-term basis.

As of April 3, 2026, we held approximately $356 million of cash and equivalents that were invested in highly liquid investment-grade instruments with a maturity of 90 days or less, of which approximately 90% was held outside of the United States.

As of July 3, 2026, we held approximately $374 million of cash and equivalents that were invested in highly liquid investment-grade instruments with a maturity of 90 days or less, of which approximately 91% was held outside of the United States.

We generally satisfy any short-term liquidity needs that are not met through operating cash flows and available cash primarily through issuances under our Commercial Paper Programs, which are supported by our $2.0 billion Revolving Credit Facility.

In addition to providing support for our Commercial Paper Programs, the Revolving Credit Facility 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.

We also may from time to time access the capital markets, including to take advantage of favorable interest rate environments or other market conditions.

3 unchanged sentences

In such event, the cost of borrowings under the Revolving Credit Facility could be higher than the historic cost of commercial paper borrowings.

On June 7, 2023, we filed with the SEC an “automatic shelf” registration statement (the “Shelf Registration Statement”).

On July 20, 2026, we filed with the SEC an “automatic shelf” registration statement (the “Shelf Registration Statement”).

Under the Shelf Registration Statement, we may from time to time sell shares of common stock, preferred stock, debt securities, depository shares, purchase contracts, purchase units, warrants and subscription rights in one or more offerings.

2 unchanged sentences

In addition, our access to the capital markets and other financing sources is impacted by any change in our credit rating.

If changes in financial markets or other areas of the economy or downgrade in our credit rating adversely affect our access to the capital markets and other financing sources, we would expect to rely on a combination of available cash and

If changes in financial markets or other areas of the economy or a downgrade in our credit rating adversely affect our access to the capital markets and other financing sources, we would expect to rely on a combination of available cash and

existing available capacity under our credit facilities to provide short-term funding.

As of April 3, 2026, we expect to have sufficient liquidity to satisfy our cash needs for the foreseeable future.

As of July 3, 2026, we expect to have sufficient liquidity to satisfy our cash needs for the foreseeable future.

Refer to Note 4 of the consolidated condensed financial statements for additional information regarding our financing activities and indebtedness.

1 unchanged sentence

Following is an overview of our cash flows and liquidity ($ in millions):

Three Months Ended

April 3, 2026 March 28, 2025

Six Months Ended

July 3, 2026 June 27, 2025

Total operating cash provided by continuing operations $ 519.1 $ 396.8

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

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

Operating Activities

Operating cash flows from continuing operations can fluctuate significantly from period-to-period as working capital needs and the timing of payments for income taxes, interest, pension funding, and other items impact reported cash flows.

Operating cash flows from continuing operations were $220 million during the first quarter, representing an increase of $29 million when compared to the comparable period of 2025.

Operating cash flows from continuing operations were $519 million during the year-to-date period, representing an increase of $122 million when compared to the comparable period of 2025.

The year-over-year change in operating cash flows was primarily attributable to the following factors:

• Year-over-year increase of $27 million in operating cash flows from net earnings, net of non-cash items (Amortization, Depreciation, and Stock-based compensation).

• The aggregate cash generated from accounts receivable was entirely offset by cash used in inventories and trade accounts payable during the first quarter.

The aggregate changes in accounts receivable, inventories, and trade accounts payable generated $18 million in the comparable period of 2025.

The amount of cash flow generated from or used in a period depends upon how effectively we manage the cash conversion cycle, which can be impacted by timing of revenue and collection from customers, vendor cash disbursement, and purchases of materials and components for certain businesses.

• The aggregate changes in prepaid expenses and other assets, and accrued expenses and other liabilities used $51 million of cash in the first quarter as compared to using $71 million of cash in the comparable period of 2025.

The year-over-year changes were driven primarily by timing differences related to contract assets, contract liabilities, and payments of interest.

• Year-over-year increase of $79 million in operating cash flows from net earnings from continuing operations, net of non-cash items (Amortization, Depreciation, and Stock-based compensation).

• The aggregate changes in accounts receivable, inventories, and trade accounts payable used $1 million during the year-to-date period as compared to generating $43 million in the comparable period of 2025.

The amount of cash flow generated from or used in a period depends upon the cash conversion cycle, which can be impacted by timing of revenue and collection from customers, vendor cash disbursement, and purchases of materials and components.

• The aggregate changes in prepaid expenses and other assets, and accrued expenses and other liabilities used $46 million of cash in the year-to-date period as compared to using $133 million of cash in the comparable period of 2025.

The year-over-year changes were driven primarily by timing differences related to contract assets, contract liabilities, and payments of interest and taxes.

Investing Activities

Investing cash outflows from continuing operations in the first quarter were $5 million greater than the comparable period of 2025, driven by higher capital expenditures.

Investing cash outflows from continuing operations in the year-to-date period were $73 million greater than the comparable period of 2025, driven by a year-over-year increase in cash used for acquisitions and higher capital expenditures.

Capital expenditures are made primarily for increasing production capacity, replacing aged equipment, supporting product development initiatives for hardware and software offerings, improving information technology systems, and purchasing equipment that is used in revenue arrangements with customers.

1 unchanged sentence

Financing cash flows from continuing operations consist primarily of issuances and repayments of debt and commercial paper, payments of cash dividends to shareholders and share repurchases.

In the first quarter, financing activities from continuing operations used cash of $229 million, reflecting the following transactions:

In the year-to-date period, financing activities from continuing operations used cash of $400 million, reflecting the following transactions:

• We incurred $434 million in net commercial paper borrowings.

• We repurchased 12.3 million shares of our common stock for approximately $700 million.

• We made dividend payments to common shareholders totaling $18 million.

• We made dividend payments to common shareholders totaling $18 million in the first quarter.

Dividends declared in the second quarter of $18 million were not paid to shareholders until July 6, 2026.

• On February 13, 2026, Fortive repaid upon maturity the $293 million of outstanding principal of the 3.70% Euro-denominated senior unsecured notes due 2026 using net proceeds from the commercial paper programs.

In the comparable 2025 period, financing activities from continuing operations used cash of $141 million, reflecting the following transactions:

• We incurred $81 million in net commercial paper borrowings.

• On May 14, 2026, we completed the sale of our registered offering of the 2031 Notes and the 2036 Notes, yielding net proceeds of $1,089 million.

• On June 15, 2026, Fortive repaid upon maturity the $900 million of outstanding principal of the 3.15% senior unsecured notes due 2026 using net proceeds from the 2031 and 2036 Notes.

In the comparable 2025 period, financing activities from continuing operations generated cash of $513 million, reflecting the following transactions:

• We repaid $253 million in net commercial paper borrowings.

• We repurchased 4.4 million shares of our common stock for approximately $338 million.

• We made dividend payments to common shareholders totaling $54 million.

• We received a cash dividend of $1.15 billion from Ralliant in connection with the Separation (the “Ralliant Dividend”).

CRITICAL ACCOUNTING ESTIMATES

There were no material changes during the three-month periods ended April 3, 2026 to the items we disclosed as our critical accounting estimates in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Annual Report on Form 10-K.

There were no material changes during the three and six-month periods ended July 3, 2026 to the items we disclosed as our critical accounting estimates in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our 2025 Annual Report on Form 10-K.

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 2. Management’s Discussion and Analysis