Fortive Corporation (“Fortive,” “the Company,” “we,” “us,” or “our”) innovates essential technologies to keep our 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. Securities and Exchange Commission (the “SEC”) applicable for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations; 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. 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 July 3, 2026, are not necessarily indicative of the results for the full year.

The IOS segment provides advanced instrumentation, software and services to tens of thousands of customers enabling their mission-critical workflows. 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 AHS segment supplies critical workflow solutions enabling healthcare providers to deliver exceptional patient care more efficiently. Our offerings include instrument sterilization solutions, instrument tracking, biomedical test tools, radiation detection and safety monitoring, and end-to-end clinical productivity software and solutions. 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.

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

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 $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.


	Foreign currency translation adjustments		Pension & post-retirement plan benefit adjustments (a)			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	—		—		(c)	—		—
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).

(c) Amount was rounded to zero.


	Foreign currency translation 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:
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, 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:
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	—		—		(c)	—		—
Net current period other comprehensive income, net of income taxes	178.1		—			—		178.1

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).

(c) Amount was rounded to zero.

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 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 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.

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, and can 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.

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.

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.

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. On January 1, 2026, we adopted this standard on a prospective basis; the impact on our consolidated financial statements was immaterial.