The Mitchelton Scott rider, second overall in the 2016 Giro, attacked several times from a group of breakaway riders in the final climb to snatch a solo win, the third of his career on the Corsa Rosa.
Italian Andrea Vendrame was second and Portugal's Amaro Antunes took third place.
Ecuador's Richard Carapaz retained the overall leader's pink jersey after easily containing his main rivals in the finale.
Saturday's penultimate stage is a brutal mountain trek in the Dolomites before the final individual time trial in Verona on Sunday.
(Writing by Julien Pretot; editing by Tony Lawerence)
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