Total Revenue

-35% " " " " " "

Total revenue declined from $1,524.5 million in Q1 2024 to $993.1 million in Q1 2025. This sharp drop reflects widespread weakness across regions and segments, with steep declines in the U.S., China, and other international regions compared to the prior quarter’s stronger performance. " " " " " "

Sales of Products and Software

-38% " " " " " "

Sales of Products and Software fell from $1,299.9 million in Q1 2024 to $804.7 million in Q1 2025. The significant decline indicates reduced pricing and volume in product offerings, contrasting with the previous period where favorable pricing and volume boosts had driven higher sales. " " " " " "

Sales of Services

-16% " " " " " "

Sales of Services dropped from $224.6 million in Q1 2024 to $188.4 million in Q1 2025. Despite a relatively smaller decline compared to products, the reduction reflects lower demand or order reductions compared to the previous quarter’s more robust service performance. " " " " " "

Revenue from Intelligent Operating Solutions

+4% " " " " "

Revenue from Intelligent Operating Solutions increased modestly from $665.7 million in Q1 2024 to $690.9 million in Q1 2025. This improvement is driven by modest price and volume gains and steady operational execution, which contrasts with the decline seen in other segments. " " " " "

Revenue from Advanced Healthcare Solutions

0.8% increase " " " " "

Advanced Healthcare Solutions remained relatively stable, rising slightly from $299.8 million in Q1 2024 to $302.2 million in Q1 2025.** The stability suggests consistent recurring revenue and steady performance despite broader market challenges affecting other areas. " " " " "

U.S. Revenue

-29% " "

U.S. revenue fell from $789.9 million in Q1 2024 to $558.9 million in Q1 2025. This decline indicates significant weakening in the domestic market, potentially due to diminished demand and heightened competitive pressures compared to the previous period. " "

China Revenue

-52% " "

China revenue plunged from $176.3 million in Q1 2024 to $85.0 million in Q1 2025. The drastic decline is likely driven by severe regional market challenges such as economic slowdown or geopolitical headwinds, marking a more pronounced drop than experienced previously. " "

Revenue from Other Regions

-37% " "

Revenue from all other regions decreased from $558.3 million in Q1 2024 to $349.2 million in Q1 2025. Declines here are influenced by widespread international market softening and possible unfavorable currency effects compared to the relatively stronger performance seen in Q1 2024. " "

Operating Profit

-23% " " "

Operating profit decreased from $302.2 million in Q1 2024 to $233.6 million in Q1 2025. This drop follows the overall revenue decline, with reduced sales volumes and adverse market conditions weighing on profitability despite maintained cost discipline relative to the prior period. " " "

Net Earnings

-17% " " "

Net earnings fell from $207.4 million in Q1 2024 to $171.9 million in Q1 2025. The reduction reflects lower operating profit and revenue, partially offset by modest improvements in non-operating areas compared to a more favorable Q1 2024 environment. " " "

Operating Margin

Improved from 20% to 23.5% " " "

Operating margin improved despite lower absolute operating profit, rising from about 20% in Q1 2024 to approximately 23.5% in Q1 2025. Enhanced cost management and efficiency measures helped drive this improvement even as the revenue base contracted sharply compared to the previous period. " " "

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. " "