Fortive Corporation is a provider of essential technologies for connected workflow solutions across various attractive end-markets, operating through three strategic segments: Intelligent Operating Solutions (IOS), Precision Technologies (PT), and Advanced Healthcare Solutions (AHS) . The company offers advanced instrumentation, software, and services that enable mission-critical workflows in industries such as manufacturing, healthcare, and utilities . Fortive's global operational footprint is highlighted by deriving approximately 46% of its sales from customers outside the United States .
- Intelligent Operating Solutions (IOS) - Offers advanced instrumentation, software, and services that enable mission-critical workflows, including electrical test and measurement, facility and asset lifecycle software applications, and connected worker safety solutions, serving industries such as manufacturing, healthcare, and utilities .
- Precision Technologies (PT) - Focuses on solving technical challenges with products like electrical test and measurement and sensing technologies, catering to industries such as automotive, aerospace, and energy .
- Advanced Healthcare Solutions (AHS) - Provides critical workflow solutions for healthcare providers, including instrument sterilization, biomedical test tools, and clinical productivity software, ensuring safety and efficiency in healthcare environments .
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Charles E. McLaughlin Executive | Senior Vice President and CFO | None | Charles E. McLaughlin has been the CFO of Fortive since July 2016. He announced his retirement by the end of Q1 2025. | |
Edward R. Simmons Executive | Senior Vice President – Strategy | None | Edward R. Simmons joined Fortive in February 2021. He previously held leadership roles at Vista Equity Partners and Bain & Company. | |
James A. Lico Executive | President and CEO | None | James A. Lico has been the President and CEO of Fortive since July 2016. He announced his retirement effective upon the spin-off of the Precision Technologies segment in Q4 2025. | |
Jonathan L. Schwarz Executive | Senior Vice President of Corporate Development | None | Jonathan L. Schwarz has been with Fortive since July 2016, serving in various corporate development roles. He became SVP of Corporate Development in February 2021. | |
Olumide Soroye Executive | President and CEO of Intelligent Operating Solutions (IOS) | None | Olumide Soroye joined Fortive in August 2021. He previously led the Property Intelligence and Risk Management segment at CoreLogic. | |
Peter C. Underwood Executive | Senior Vice President and General Counsel | None | Peter C. Underwood has been Fortive's General Counsel since May 2016. He has also led sustainability initiatives, with over 60% of Fortive's revenue tied to sustainable outcomes. | |
Stacey A. Walker Executive | Senior Vice President, Human Resources | None | Stacey A. Walker has been with Fortive since July 2016, previously holding HR leadership roles at Danaher. | |
Tamara S. Newcombe Executive | President and CEO of Precision Technologies and Advanced Healthcare Solutions | None | Tamara S. Newcombe joined Fortive in February 2017 and currently leads both the Precision Technologies and Advanced Healthcare Solutions segments. | |
Sharmistha Dubey Board | Chair of the Board of Directors | Director at Naspers Limited, Prosus N.V., and Match Group, Inc. | Sharmistha Dubey joined Fortive's Board in 2020 and became Chair in January 2025. She is the former CEO of Match Group and has extensive experience in technology and product development. |
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Given the rise of cheaper AI-enabled products posing risks of churn and disintermediation, particularly for Accruent and ServiceChannel, what specific strategies are you implementing to protect and enhance your competitive position in the software market?
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With the Precision Technologies segment facing headwinds from customer caution and macro uncertainty leading to OEM and channel weakness, can you elaborate on how you plan to counter these challenges and what gives you confidence in projecting order growth in the second half?
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Your forecast shows a significant sequential margin increase from Q3 to Q4, rising from 27% to over 29%; what are the key drivers behind this expected margin expansion, and how are you mitigating the risks that could prevent you from achieving it?
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Regarding your capital deployment plans, including M&A and share buybacks, how do you intend to reach your five-year accretion targets by 2025, and can you achieve these goals without a significant change in your current capital allocation strategy?
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Considering that increased R&D investments are impacting margins without immediate growth benefits, when do you anticipate these investments will translate into meaningful revenue contributions, and how does this timing align with your overall strategic objectives?
Research analysts who have asked questions during Fortive earnings calls.
Andrew Kaplowitz
Citigroup
7 questions for FTV
Deane Dray
RBC Capital Markets
7 questions for FTV
Joseph Giordano
TD Cowen
7 questions for FTV
Julian Mitchell
Barclays Investment Bank
7 questions for FTV
Scott Davis
Melius Research
7 questions for FTV
Jeffrey Sprague
Vertical Research Partners
6 questions for FTV
Nigel Coe
Wolfe Research, LLC
6 questions for FTV
Jamie Cook
Truist Securities
4 questions for FTV
Steve Tusa
JPMorgan Chase & Co.
4 questions for FTV
Andrew Buscaglia
BNP Paribas
3 questions for FTV
Andrew Obin
Bank of America
3 questions for FTV
Christopher Snyder
Morgan Stanley
3 questions for FTV
Chris Snyder
Morgan Stanley
2 questions for FTV
C. Stephen Tusa
JPMorgan Chase & Co.
2 questions for FTV
Joseph O'Dea
Wells Fargo & Company
2 questions for FTV
Joseph O'Dea
Wells Fargo
2 questions for FTV
Bradley Hewitt
Wolfe Research
1 question for FTV
Jeff Sprague
Vertical Research Partners
1 question for FTV
Robert Mason
Robert W. Baird & Co.
1 question for FTV
Scott Graham
Seaport Research Partners
1 question for FTV
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
EA Elektro-Automatik Holding GmbH | 2024 | Completed on January 3, 2024, this acquisition for approximately $1.72 billion (with $1.17 billion in goodwill and $681.2 million in other intangibles) enhanced the portfolio with high-power electronic test solutions for energy storage, mobility, and renewable applications, supporting global energy transition efforts. |
Intelligent Operating Solutions Acquisitions | 2023 | Three acquisitions in this segment were completed, with an aggregate cash consideration of $59 million, recording approximately $36.2 million in goodwill and $19.9 million in intangible assets, aimed at accelerating segment strategy and strengthening the product portfolio. |
Provation Software, Inc. | 2021 | The acquisition from Clearlake Capital Group, L.P. was executed as part of strategic initiatives using proceeds from borrowings, including related fees and expenses. |
ServiceChannel Holdings, Inc. | 2021 | Completed on August 24, 2021, this deal, valued at around $1.2 billion (including a $36 million deferred component), enhanced Fortive’s SaaS-based facilities maintenance solutions with significant goodwill ($897 million) and integration investments, driving strategic expansion into recurring revenue streams. |
Recent press releases and 8-K filings for FTV.
- Revenue for Q3 2025 was $529 million, flat year-over-year and up 5% sequentially.
- Net earnings came in at $40 million (EPS $0.35), with adjusted EBITDA of $108 million (20.4% margin) and adjusted EPS of $0.60.
- In Q3, the Sensors & Safety Systems segment delivered $326 million in revenue (up 11% yoy, +5% seq), while Test & Measurement revenue was $203 million (down 14% yoy, +6% seq).
- The company generated $139 million in operating cash flow and $127 million in free cash flow; ended the quarter with $264 million in cash, $1.15 billion in long-term debt, declared a $0.05/share Q4 dividend, and authorized $200 million for share repurchases.
- Q4 2025 guidance: revenue of $535–550 million, adjusted EBITDA margin of 20–21%, and adjusted EPS of $0.62–0.68.
- Fortive delivered $1 billion in Q3 revenue, up ~2% on both reported and core basis; adjusted EBITDA rose 10% to $309 million with a 30% margin (+200 bps); adjusted EPS increased 15% to $0.68.
- The company raised its full-year adjusted EPS guidance to $2.63–$2.67, reflecting Q3 outperformance and incremental share buybacks.
- In Q3, Fortive repurchased $1 billion of shares, retiring ~21 million shares (approximately 6% of fully diluted share count) to optimize capital allocation.
- Q3 marked Fortive’s first quarter post-Rallian spin-off, with the Fortive Accelerated strategy driving profitable organic growth, innovation acceleration, and enhanced recurring revenue focus.
- Intelligent Operating Solutions segment grew 2.5% (core 2%), led by software and instrumentation resilience, while AHS showed sequential improvement in capital equipment demand and healthcare software strength.
- Fortive delivered $1.0 billion in Q3 revenue, up 2% year-over-year, with adjusted EBITDA of $309 million (+10% yoy) and adjusted EPS of $0.68 (+15%).
- Adjusted EBITDA margin expanded 200 bps to 30% driven by operating leverage and cost discipline.
- Deployed $1 billion to share repurchases, retiring 21 million shares (~6% of diluted share count) in Q3.
- Raised FY25 adjusted EPS guidance to $2.63–$2.67 per share.
- Post-Rallian spin-off, Fortive is simplifying operations and executing its “Accelerated” strategy focused on organic growth, disciplined capital allocation, and recurring revenue expansion.
- Fortive recorded $1.027 B in Q3 2025 revenue, up 2.3% year-over-year (core +1.9%), with sequential improvement in North America partly offset by macro weakness in Europe
- Adjusted EBITDA was $309 M (30.1% margin), up 10.4%, and Adj. EPS was $0.68, up 15.3%
- Generated $266 M of free cash flow in Q3 and $922 M TTM FCF, with conversion over 100%
- Deployed $1 B for share repurchases in Q3, retiring ~21 M shares at ~$48/share
- Raised FY 2025 adjusted EPS guidance to $2.63–$2.67, up $0.10 at midpoint
- Revenue of $1 billion (+2% YoY), core growth 2%, adjusted EBITDA of $309 million (+10%), and adjusted EPS of $0.68 (+15%)
- $1 billion deployed to share repurchases, retiring ~21 million shares (~6% of share count)
- Raised full-year adjusted EPS guidance to $2.63–$2.67 per share
- Segment highlights: Intelligent Operating Solutions revenue +2.5% (core +2%); Advanced Healthcare Solutions revenue $328 million (+2%), driven by software strength amid cautious equipment demand
- Free cash flow of $266 million in Q3; TTM free cash flow of $922 million with conversion >100%
- Revenue of $1.03 B, up 2.3% yoy; core revenue up 1.9%
- GAAP diluted EPS $0.35 and adjusted diluted EPS $0.68, increases of 9.4% and 15.3% yoy
- Adjusted EBITDA $309 M (30.1% margin) and GAAP net income $117 M (11.4% margin)
- Executed $1 B in share repurchases (21 M shares, ~6% of diluted shares)
- Raised full-year 2025 adjusted EPS guidance to $2.63–2.67 from $2.50–2.60
- Fortive is executing its Fortive Acceleration Strategy focusing on innovation, commercial acceleration, and recurring customer value; Q2 is on track and it remains confident in its 2026-2027 financial framework targeting 3%-4% organic growth and 50-100 bps margin expansion.
- The company generates ~$1 billion of free cash flow annually, prioritizing share buybacks and high-return bolt-on M&A, maintains its dividend, and is not pursuing large transformational deals.
- AI is embedded across its 25% software business, leveraging proprietary data and two-sided networks, supported by its AI Center of Excellence established in 2018.
- Q2 faced headwinds from tariff uncertainties, healthcare reimbursement delays, and state/local government spending weakness, which are unwinding as expected with order patterns normalizing.
- Fluke remains durable with 15% recurring revenue and diverse price points driving growth; the AHS segment saw a ~2%-3% organic decline in Q2 due to comp and timing but maintains a robust deal funnel.
- Separation from Fortive completed June 28, 2025; Board authorized up to $200 million share repurchases and approved a $0.05 per share quarterly dividend.
- Q2 revenue of $503 million, down 6% y/y and up 4% sequentially; net earnings of $47.6 million (EPS $0.42) and adjusted EBITDA of $99.4 million (19.8% margin).
- Sensors & Safety Systems revenue of $311 million (+1% y/y, +6% seq.) with operating profit margin of 25.6%; Test & Measurement revenue of $193 million (–15% y/y, +2% seq.) with adjusted EBITDA margin of 9.1%.
- Launched a Test & Measurement cost savings program targeting $9–11 million in annualized savings; Q3 2025 guidance: revenue $513–527 million, adjusted EBITDA margin 18–20%.
- Spin-off of the Precision Technologies segment (Ralliant) completed on June 28, 2025, simplifying Fortive’s portfolio
- Q2 consolidated results included $0.90 adjusted EPS and $300 million adjusted free cash flow (+8% TTM growth); New Fortive continuing ops delivered $0.58 adjusted EPS and 14% TTM free cash flow growth
- Initiated FY25 New Fortive guidance of $2.50–$2.60 adjusted EPS; Q3 revenue and core growth expected in line with Q2, with Q4 EPS meaningfully higher on seasonality, tax, FX, and lower interest expense tailwinds
- Received $1.15 billion spinoff dividend, used $725 million for debt repayment to reach ~2.5× gross leverage; trailing TTM free cash flow of $940 million
- Q2 capital deployment included $140 million of share repurchases (over 75% of consolidated free cash flow since spin announcement); poised to pursue accretive bolt-on M&A
- Fortive completed the separation of its Precision Technologies segment via a 100% spin-off of Ralliant on June 28, 2025; Fortive continues trading under FTV, and Ralliant began trading under RAL, with approximately 113 million shares distributed to Fortive shareholders.
- Olumide Soroye was appointed President, CEO and Director of Fortive, succeeding James Lico who retired and will remain as a non-executive senior advisor through year-end.
- Fortive expects second-quarter revenue and core revenue to be flat to slightly down for new Fortive, with the former Precision Technologies segment (now Ralliant) down mid-single digits.
- Consolidated adjusted EPS for Q2 is estimated to be near the mid-point of the company’s prior guidance range despite tariff and demand headwinds.