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Research Alert: Fortive: Q1 Earnings Beat As Cost Restructuring Pushes Margins Higher

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

FTV delivered Q1 operating EPS of $0.70 (+25.4% Y/Y), above expectations, with underlying core growth of ~5% supported by the IOS (+5.2%) and AHS (+5.8%) segments, which benefited from the ~150 bps tailwind from additional selling days. Adjusted EBITDA margins expanded 140 bps to 29.3%, reflecting post-separation benefits from simplified operating structure, with IOS maintaining healthy 34.3% margins (+10 bps) and AHS showing meaningful improvement to 25.7% (+210 bps) on structural cost savings. Capital allocation remained aggressive with $500M in share repurchases (~3% of diluted shares), bringing total buybacks since separation to ~$1.8B. FTV reaffirmed 2026 guidance of $2.90-$3.00 operating EPS while noting it is trending toward the upper half of the provided range. We see strong free cash flow generation of $194M (+13.5%) providing continued flexibility in capital allocation strategy. We also see a raise to guidance being on the table as the year progresses, with upside if tariff impacts begin to subside.

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