Financial Data and Key Metrics Changes - The company delivered adjusted EPS of $0.90 for the final quarter as a consolidated entity, with an 8% growth in trailing twelve months adjusted free cash flow [7][8] - For continuing operations, adjusted EPS was $0.58, reflecting a 4% year-over-year increase, and trailing twelve months free cash flow grew 14% to $939 million [19][20] - Total revenue for Q2 was just over $1 billion, down 0.4% year-over-year, with core revenue declining 0.7% [17][18] Business Line Data and Key Metrics Changes - Intelligent Operating Solutions (IOS) segment saw flat revenue and core revenue growth year-over-year, with adjusted gross profit at $461 million, down slightly from the prior year [21][23] - Advanced Healthcare Solutions (AHS) segment reported total revenue of $320 million, down 1.3% year-over-year, with adjusted gross margins increasing from just under 58% to just over 59% [25][26] Market Data and Key Metrics Changes - North America showed slight positive growth, while Western Europe, China, and Latin America experienced year-over-year declines [18][19] - The company noted that customer demand pressures were influenced by macroeconomic factors, including tariff uncertainty and constrained government spending [7][18] Company Strategy and Development Direction - The company is focused on executing its "Fortive Accelerated" strategy, which aims to drive faster profitable growth and strong shareholder value creation [11][15] - The company is activating its bolt-on M&A engine with a disciplined approach to evaluate deals based on relative returns [15][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and emphasized the importance of their capital allocation strategy [15][34] - The company anticipates a modest gross margin and EPS headwind in Q3 due to ongoing tariff impacts, but expects to mitigate these by Q4 [27][30] Other Important Information - The company received a $1.15 billion dividend from the Rallyant spinoff, which was used to pay down debt and fund share repurchases [28][29] - The company initiated full-year adjusted EPS guidance for New Fortive at $2.5 to $2.6 per share, reflecting current market dynamics [30][32] Q&A Session Summary Question: What is the expected EPS for Q3 and Q4? - Management indicated that Q3 EPS is expected to be in the low to mid-50s range, with a potential increase in Q4 due to tax rate drops and other factors [41][45] Question: How are the main end markets expected to perform? - Management noted that government spending pressures and healthcare reimbursement uncertainties impacted Q2, but they expect improvements in the second half of the year [46][50] Question: What is the approach to guidance and disclosure moving forward? - The company plans to provide annual adjusted EPS guidance updated quarterly, focusing on clarity and simplification in communications with investors [72][73] Question: How is the company handling bolt-on M&A? - The company is ready to pursue bolt-on acquisitions with a heightened level of financial and strategic scrutiny, ensuring that each deal meets high standards [76][78]