Total Revenue

-3.3%

Total revenue declined by 3.3% YoY (from $1,524.5M to $1,474.2M) as the decline in Precision Technologies and subdued overall demand offset modest gains in IOS and AHS, indicating broader macroeconomic pressures and shifting customer spending patterns compared to last year. " "

Intelligent Operating Solutions (IOS)

+0.9%

IOS revenue increased modestly from $665.7M to $671.4M, reflecting stable demand for safety and productivity solutions across verticals. This consistent performance contrasts with other segments and helped partially buffer overall revenue declines. " "

Precision Technologies (PT)

-10.5%

PT revenue dropped 10.5% (from $559.0M to $500.6M), attributable to moderated demand, restructuring costs, and the uncertainties surrounding the pending separation of the PT segment—all factors that worsened compared to the prior period as geopolitical and macroeconomic uncertainty continued to delay customer investment decisions. " "

Advanced Healthcare Solutions (AHS)

+0.8%

AHS revenue increased slightly from $299.8M to $302.2M. The modest gain reflects stable recurring SaaS and healthcare workflow solutions demand despite challenges like FX headwinds, keeping performance in line with last year's figures. " "

Geographic Revenue – United States

+2.0%

U.S. revenue grew by 2.0% (from $789.9M to $805.9M) driven by resilient domestic demand, benefiting from favorable pricing and robust performance in segments such as IOS and AHS, mirroring the growth trend observed in the previous period. " "

Geographic Revenue – China

-10.8%

China revenue declined by 10.8% (from $176.3M to $157.3M) due to softer market conditions, headwinds in key segments particularly PT, and broader macroeconomic challenges in the region, reinforcing trends noted in earlier comparisons. " "

Geographic Revenue – All Other

-8.5%

All Other geographic revenue fell 8.5% (from $558.3M to $511.0M). This decline likely reflects weaker market demand and adverse foreign exchange impacts in non-U.S. markets, following the pattern of slower growth seen in previous periods. " "

Cash and Equivalents

+26.6%

Cash and equivalents rose significantly by 26.6% (from $704.6M to $892.1M), driven by moderate operating cash inflows and reduced outflows from acquisitions and financing activities compared to the prior period, including lower acquisition spending and share repurchase outflows in Q1 2025. " "

Long-term Debt

-6.4%

Long-term debt decreased by 6.4% (from $3,941.7M to $2,929.1M), mainly as a result of debt maturities being reclassified as current liabilities and repayments or refinancing activity in Q1 2025 that lowered the overall carrying amount compared to Q1 2024. " "

Adjusted EPS

Q2 2025

$0.83 to $0.86 "

$0.85 to $0.90 "

raised

Core Revenue Growth for New Fortive

Q2 2025

no prior guidance

Expected to grow at a low single-digit rate "

no prior guidance

Core Revenue Growth for Precision Technologies (PT)

Q2 2025

no prior guidance

Expected to be down mid-single digits "

no prior guidance

Margins

Q2 2025

no prior guidance

Expected to be down sequentially "

no prior guidance

Tariff Impact

Q2 2025

no prior guidance

Estimated tariff impact of about $0.06 to $0.07 "

no prior guidance

Tariff Mitigation Strategies

Q4 2024: Discussed China tariffs, countermeasures for 10% tariffs, and embedded guidance with moderate uncertainty. " " Q2 2024: Not mentioned.

Q1 2025: Detailed discussion on mitigation strategies using pricing adjustments, supply chain optimization, phased implementation to offset a $200M impact, and an 80% mitigation goal. " " "

Consistent focus on managing tariff impact. The Q1 2025 call provides more operational detail on mitigation strategies compared to Q4 2024, indicating an evolution toward a proactive and structured response. " " "

Recurring Revenue & High‐Margin Software

Q4 2024: Emphasized double-digit ARR growth, margin expansion (e.g. 800 bp improvement in FAL), and strong performance in Provation, Gordian, and ServiceChannel. " " " " Q2 2024: Highlighted recurring revenue at 42% of revenue with low double-digit growth and steady software performance across FAL, Accruent, and Intelex. " " " "

Q1 2025: Stressed that recurring revenue constitutes about 40% expanding to 50% post-separation with robust wins in Advanced Healthcare Solutions and IOS, and highlighted margin improvements despite some contraction in healthcare investments. " " " "

Strong and consistent bullish sentiment. The recurring revenue and software segments remain a key strength with continuous margin expansion and strategic direction, showing a steady evolution with even higher targets in Q1 2025. " " "

Precision Technologies Performance

Q4 2024: Reported flat core revenue or slight decline (3–4%) with margin contraction (200–220 bps) but positive order growth in certain segments; orders for Tektronix grew driven by defense and compute investments. " " " " Q2 2024: Experienced a 1.5% decline in revenue with a 6.6% core decline, offset partly by acquisitions; order trends were weak but expected to improve in later quarters. " " "

Q1 2025: Noted an 8.4% core revenue decline, with Test & Measurement experiencing high-teens decline and order delays due to macro uncertainties and tariff effects; some segments (Sensors and Safety Systems) showed modest growth. " " " "

Increasing challenges. While orders remain positive in select areas, the Q1 2025 commentary reveals a worsening revenue decline compared to previous periods, signaling heightened pressure from macro conditions and tariff-related delays. " " "

Macroeconomic & Geopolitical Uncertainty

Q4 2024: Addressed impacts of tariffs and macro uncertainty in China, with a forecasted revenue decline and mixed demand; also noted government exposure benefits in specific segments. " " " " Q2 2024: Detailed discussion on delays in spending, global geopolitical issues affecting customer decisions, and defense budget uncertainties. "

Q1 2025: Emphasized that macro and geopolitical uncertainty contributed to investment delays especially in Precision Technologies, with significant impacts on semiconductor and electronics orders, and reiterated tariff headwinds as a compound challenge. " " " "

Cautious continuity. Uncertainty remains a central theme with consistent concerns across periods. However, Q1 2025 underscores a sharper impact on certain segments, indicating a potential deepening of these headwinds. " " " "

Regional Market Dynamics

Q4 2024: North America showed positive point-of-sale trends; China faced high single-digit declines and export constraints; Europe had mixed performance with weaknesses in automation despite healthy healthcare segments. " " " " " " Q2 2024: North America led with mid-single-digit growth; China experienced weak performance with reduced revenue expectations; Europe showed modest declines with healthcare support. " " " "

Q1 2025: North America remains strong with robust industrial, healthcare, and software performance; China is expected to decline by high single digits due to tariffs and pricing pressures; Western Europe continues to struggle with slowing demand. " " "

Consistent regional differentiation. Across all periods, North America and other high-growth markets are bullish, while China remains a persistent headwind and Europe is mixed. Q1 2025 confirms these trends with refined figures and continued geographic divergence in performance. " " "

Guidance & Order Backlog Trends

Q4 2024: Provided detailed full-year and quarterly guidance with specific revenue, EPS, and margin expectations; noted mixed order trends and seasonality, including some backlogs in sensing technologies. " " " Q2 2024: Forecasted flat to mid-single-digit sequential growth, with stable book-to-bill ratios and expectations for recovery in order trends later in the year. " " " " "

Q1 2025: Guidance was adjusted to factor in moderating demand and tariff impacts with flexible outlook; order backlog was positive in some segments (e.g. Sensors and Systems) but hindered by delays in Test & Measurement and macro uncertainty, with a view to improvement in the later quarters. " " " " "

Evolving guidance with cautious optimism. While the overall framework remains similar, Q1 2025 reflects an increased focus on flexibility and contingency amid persistent macro headwinds, with order trends showing mixed signals that may impact future performance. " " "

Emerging Software Competition from AI

Q4 2024: Mentioned investments in AI capabilities and upcoming AI-based product launches as part of a broader innovation flywheel using FBS, though without framing it as aggressive competition. " " Q2 2024: Addressed AI competition directly, stating no issues with churn or disintermediation, highlighted initiatives like Gordian Cloud and 7 AI-related incubations, reinforcing competitive positioning. "

Q1 2025: No mention of emerging software competition from AI-enabled products.

Attentiveness shifted. AI-related competitive concerns were explicitly discussed in Q2 2024 and to some extent in Q4 2024, but by Q1 2025 the topic is absent, which could indicate either a resolution of concerns or a shift in focus away from competitive threats in this area. " " "

Qualitrol Growth & Production Capacity

Q4 2024: Emphasized consistent double-digit growth and noted that production capacity expansion is underway to meet strong, long-term demand. " " Q2 2024: Mentioned Qualitrol as contributing to revenue improvement within PT, with no detailed mention of capacity expansion. "

Q1 2025: No discussion regarding Qualitrol growth or capacity expansion.

Reduced emphasis. Qualitrol was a highlighted growth driver with capacity investments in Q4 2024 and modestly mentioned in Q2 2024; its absence in Q1 2025 may indicate a temporary de-prioritization or that the topic is no longer at the forefront of management’s commentary. " " "

Net Working Capital Efficiency

Q4 2024: Reported strong efficiency at 6% (or 9% excluding software), positioning Fortive among the elite in NWC performance. " Q2 2024: No discussion.

Q1 2025: Stressed best-in-class net working capital efficiency driven by the Fortive Business System, emphasizing the ability to maintain free cash flow margins despite tariff and supply chain challenges. "

Consistent strength. Both Q4 2024 and Q1 2025 emphasize high NWC efficiency, with Q1 2025 reinforcing the narrative using FBS to deliver stability despite headwinds, demonstrating a stable and positive financial management discipline. " "