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Sep 29, 2023

Fortive Q3 2023 Earnings Report

Fortive's Q3 2023 earnings reflected portfolio durability, with core growth in all segments and substantial margin, earnings, and free cash flow improvements.

Key Takeaways

Fortive reported strong third-quarter results with revenue growth of 2.6% and core revenue growth of 2.5%. The company saw improvements in operating margin and adjusted operating margin. GAAP diluted EPS increased by 15%, and adjusted diluted EPS increased by 8%. Fortive reaffirmed its full-year outlook.

Q3 revenue growth of 2.6%, 2.5% core, reflecting growth in all segments

Software businesses demonstrating resilience with annual recurring revenue growth of 9%

Operating margin up 220 basis points to 20%; adjusted operating margin up 150 basis points to 26% driven by strong gross margin expansion and productivity initiatives

Q3 GAAP Diluted EPS of $0.61, up 15%; Adjusted Diluted EPS of $0.85, up 8%

Total Revenue
$1.5B
Previous year: $1.46B
+2.7%
EPS
$0.85
Previous year: $0.79
+7.6%
Core Revenue Growth
2.5%
Previous year: 12%
-79.2%
Gross Profit
$893M
Previous year: $845M
+5.6%
Cash and Equivalents
$714M
Previous year: $705M
+1.2%
Free Cash Flow
$384M
Previous year: $307M
+24.8%
Total Assets
$15.7B
Previous year: $15.9B
-1.4%

Fortive

Fortive

Forward Guidance

For the fourth quarter of 2023, Fortive anticipates revenue of approximately $1.6 billion, diluted net earnings per share of $0.61 to $0.64 and adjusted diluted net earnings per share of $0.92 to $0.95. For the full year 2023, Fortive anticipates revenue of approximately $6.0 billion to $6.1 billion, diluted net earnings per share of $2.30 to $2.33, and adjusted diluted net earnings per share of $3.37 to $3.40.