Financial Data and Key Metrics Changes - In Q4, total revenue reached $1.1 billion, reflecting a year-over-year increase of just over 4.5% on a reported basis and over 3% on a core basis [12] - Adjusted EBITDA for Q4 was $358 million, up about 8% year-over-year, with an adjusted EBITDA margin expanding approximately 100 basis points to nearly 32% [13][14] - Adjusted EPS for Q4 was $0.90, marking a 13% increase year-over-year, contributing to a full-year adjusted EPS of $2.71, which represented over 12% growth [14][19] Business Line Data and Key Metrics Changes - Intelligent Operating Solutions (IOS) segment revenue grew just over 5% on a reported basis, with core revenue growth of about 4%, driven by strong performance in professional instrumentation and gas detection [15] - Advanced Healthcare Solutions (AHS) segment revenue grew approximately 3% year-over-year, with adjusted EBITDA in this segment at $92 million and an adjusted EBITDA margin of 26% [17][18] Market Data and Key Metrics Changes - North America continued to be the strongest growth driver, with encouraging signs of improvement in Europe and Latin America [12][15] - APAC growth remained steady, while Europe showed acceleration from Q3, indicating potential positive trends [12][13] Company Strategy and Development Direction - The company is focused on executing the Fortive Accelerated Strategy, which includes three pillars: accelerating profitable organic growth, disciplined capital allocation, and building investor trust [4][10] - The company is initiating full-year 2026 adjusted EPS guidance of $2.90-$3.00, representing approximately 9% year-over-year growth at the midpoint [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, highlighting strong execution and growth acceleration in the second half of 2025 [5][24] - The company is committed to maintaining a disciplined approach to capital allocation, with a focus on organic growth and targeted M&A opportunities [10][24] Other Important Information - The company executed an additional $265 million in share repurchases in Q4, bringing total repurchases for the second half of the year to $1.3 billion [6][18] - Free cash flow for Q4 was approximately $315 million, with full-year free cash flow at about $930 million, maintaining a conversion rate over 100% [14][19] Q&A Session Summary Question: Insights on Fluke's performance and demand - Management noted strong performance in Fluke, with North America as the strongest region and encouraging improvements in EMEA and LATAM, indicating solid demand overall [30][32] Question: Price contribution and guidance - Price contributed about 2% to growth in the quarter, with volume contributing roughly 1% [34] Question: First quarter expectations and organic sales growth - Management indicated that they expect reported revenue and adjusted EBITDA to follow historical trends, with a positive outlook for January [40][42] Question: AHS segment margin pressures - Management clarified that margin pressures in AHS were localized in Q4 due to strategic investments, with expectations for margin improvement moving forward [43][44] Question: IOS organic growth sources - The strong performance in IOS was attributed to effective execution of the Fortive Business System strategy, with all elements contributing positively [71][72] Question: AI enhancements in software businesses - Management highlighted that AI is seen as a meaningful accelerator for their software offerings, with strong customer demand for AI-enabled enhancements [52][53] Question: Future growth expectations for gas detection - Management expressed confidence in the gas detection business, anticipating strong performance in 2026 due to effective execution and market demand [94]