Fortive Corporation

Fortive Corporation (FTV) Market Cap

Fortive Corporation has a market capitalization of .

No quote data available.

CEO: Olumide O. Soroye

Sector: Industrials

Industry: Industrial - Machinery

IPO Date: 2016-07-05

Website: https://www.fortive.com

Fortive Corporation (FTV) - Company Information

Market Cap: -|Sector: Industrials

Company Profile

Fortive Corporation designs, develops, manufactures, markets, and services professional and engineered products, software, and services worldwide. Its Intelligent Operating Solutions segment offers connected reliability tools; environment, health, safety, and quality enterprise software products; facility and asset lifecycle software; pre-construction planning and construction procurement solutions; ruggedized professional test tools; electric, pressure, and temperature calibration tools; and portable gas detection tools for a range of vertical end markets including manufacturing, process industries, healthcare, utilities and power, communications and electronics, and others. It markets its products and services under the ACCRUENT, FLUKE, GORDIAN, INDUSTRIAL SCIENTIFIC, INTELEX, PRUFTECHNIK, and SERVICECHANNEL brands. The company's Precision Technologies segment provides electrical test and measurement instruments and services; energetic material devices; and sensor and control system solutions for power and energy, medical equipment, food and beverage, aerospace and defense, off-highway vehicles, electronics, semiconductors, and other general industrial markets. This segment markets its products under the ANDERSON-NEGELE, GEMS, SETRA, HENGSTLER-DYNAPAR, QUALITROL, PACIFIC SCIENTIFIC, KEITHLEY, and TEKTRONIX brands. Its Advanced Healthcare Solutions segment offers hardware and software products and services, including instrument and device reprocessing, instrument tracking, biomedical test tools, radiation safety monitoring, and asset management services; subscription-based surgical inventory management systems to facilitate inventory management and regulatory compliance, as well as technical, analytical, and compliance services to determine radiation exposure services under the ASP, CENSIS, CENSITRAC, EVOTECH, FLUKE BIOMEDICAL, INVETECH, LANDAUER, RAYSAFE, and STERRAD brands. Fortive Corporation was incorporated in 2015 and is headquartered in Everett, Washington.

Analyst Sentiment

54%
Hold

From 17 Active Polls

1Y Forecast: $62.00

▲ +0.0% Potential Upside

Consensus Target Metrics

Low Bound

$51

Median

$62

High Bound

$70

Average

$62

Price & Moving Averages

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🎯 Wall Street Analyst Intelligence Report

1-Year structural target targets, chart projections, and sentiment maps.

Average 1Y Target
$62.00
▲ +1.17% Upside
Low Target
$51.00
-17% Risk
Median Target
$62.00
1% Mid
High Target
$70.00
14% Max

Consensus Trend Projection

Trailing closures vs. 12-month metrics map.

Analyst Vote Distribution

Aggregate institutional coverage sentiment weights.

Sentiment volume allocation data unavailable.

Historical valuation matrix unavailable.

📘 Full Research Report

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AI-Generated Research: This report is for informational purposes only.

📘 FORTIVE CORP (FTV) — Investment Overview

🧩 Business Model Overview

Fortive operates a diversified set of industrial technology businesses that sell mission-critical equipment and lifecycle services into customers with high uptime requirements. The core “how it works” is a loop of (1) deploying instruments and automation systems into industrial and technical environments, (2) supporting those assets through calibration, maintenance, field service, and replacement parts, and (3) expanding footprint through upgrades and connected solutions that fit within an existing installed base.

This model tends to blend project-like product sales with service-oriented, recurring activities—creating a revenue profile that is supported by an installed base rather than relying purely on one-time, new equipment cycles.

💰 Revenue Streams & Monetisation Model

Fortive’s monetisation typically comes from three buckets:

  • Product revenue (instruments, automation components, measurement systems), which is more cyclical with industrial capex and OEM/industrial demand.
  • Recurring service revenue (maintenance, calibration, service agreements, software-enabled support), which is structurally supported by installed equipment and customer compliance needs.
  • Consumables and aftermarket parts, tied to ongoing operations and fleet usage.

Margin drivers tend to favor businesses where service mix is higher and where customers require regular calibration/verification, spare parts, and uptime-focused field support. Where Fortive can attach service to deployed assets, it monetizes the “installed base value” rather than competing only on initial purchase price.

🧠 Competitive Advantages & Market Positioning

Fortive’s primary moat is switching costs driven by installed base and workflow integration. Many of its offerings are embedded into industrial processes (measurement, testing, monitoring, automation support). Once assets are qualified and integrated into standard operating procedures, customers face costs in requalification, downtime, training, and validation to change vendors.

An additional advantage is aftermarket stickiness—service, calibration, and compliance support often create long-tail demand. This is reinforced by Fortive’s operational capabilities in service delivery and technical support, which are difficult to replicate quickly at scale.

Intangible advantages also matter: in technical instruments and regulated-use contexts, customer trust, application expertise, and reference performance can be durable, particularly when customers require documented accuracy and consistent verification.

  • Danaher (DHR) — strong in instruments and lifecycle services with a focus on life sciences, and also significant exposure to industrial instrumentation. Fortive competes by emphasizing industrial uptime, test/measurement breadth, and service attachment across mixed end-markets.
  • Emerson (EMR) — a major automation and instrumentation platform provider, with strong process control positioning. Fortive’s industry focus is more diversified across technical instruments and service-oriented solutions, where installed base servicing can be a differentiator.
  • Rockwell Automation (ROK) and Siemens — automation ecosystems with software and control integration. Fortive competes more directly on measurement, test, and lifecycle support around specific technical workflows, rather than only on broad control-system platforms.

Overall, the switching-cost and aftermarket model makes Fortive less dependent on winning every new project and more dependent on retaining and expanding relationships through service and upgrades.

🚀 Multi-Year Growth Drivers

  • Industrial automation and modernization: upgrades to instrumentation, monitoring, and process support systems as plants seek higher throughput and tighter quality control.
  • Predictive maintenance and condition monitoring: increased adoption of connected monitoring and service-enabled maintenance strategies, which typically rely on an installed base and ongoing support capabilities.
  • Uptime and compliance economics: customers continue to invest in calibration, verification, and lifecycle servicing to reduce downtime risk and maintain process reliability.
  • Electrification and energy infrastructure build-out: growth in industrial sites that require testing, measurement, and dependable field service for safety and reliability.
  • Service-led expansion: long-term structural opportunity to increase service penetration and attach rates where deployed assets create recurring demand.

Across a 5–10 year horizon, the investment case is less about a single end-market cycle and more about structural demand for technical verification, reliable operations, and lifecycle support—where Fortive’s installed-base approach can convert secular capex into recurring cash flow streams.

⚠ Risk Factors to Monitor

  • Industrial end-market cyclicality: product demand can fluctuate with industrial capex and manufacturing activity, affecting near-term growth.
  • Competitive pricing pressure: competitors may bid aggressively for new equipment and service contracts, compressing margins if service mix does not offset.
  • Technology and standards shifts: rapid evolution in connectivity, measurement standards, and software interfaces can require ongoing investment in product roadmap and compatibility.
  • Execution risk in portfolio management: acquisitions, divestitures, and internal transitions can introduce integration challenges and temporary operational disruption.
  • Regulatory and quality exposure: for medical/regulated-use elements within the portfolio, compliance requirements elevate quality systems and documentation burdens.
  • Supply chain and component availability: industrial technology businesses can be affected by lead times, component constraints, and logistics disruptions.

📊 Valuation & Market View

Industrial technology companies like Fortive are often valued on EV/EBITDA and free-cash-flow yield frameworks, with incremental credit given to durability of earnings when service and aftermarket revenue are prominent. The market typically places more weight on:

  • Recurring revenue visibility (service mix and long-tail aftermarket dynamics).
  • Operating margin resilience through product-service mix and disciplined cost management.
  • Cash conversion, including working capital discipline and service cash flow stability.
  • Organic growth quality, particularly in applications tied to maintenance, verification, and uptime.

Multiple expansion is most likely when investors see sustained service-led growth, margin stability, and dependable cash generation through industrial cycles. Multiple contraction risk rises when growth quality deteriorates or when competition pressures service economics.

🔍 Investment Takeaway

Fortive’s long-term appeal rests on an installed-base business model that supports switching costs and aftermarket stickiness. By pairing technical equipment with lifecycle services, Fortive can monetize ongoing operational needs rather than relying solely on new equipment cycles. The competitive landscape includes large automation and instrumentation peers, but Fortive’s service attachment and workflow integration can help sustain customer retention and incremental expansion—supporting an evergreen industrial technology thesis centered on durable cash flow characteristics.


⚠ AI-generated — informational only. Validate using filings before investing.

📊 AI Financial Analysis

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Earnings Data: Q Ending 2026-04-03

"FTV (Q1’26 ended 2026-04-03) reported revenue of $1.069B and net income of $136.4M, or EPS of $0.44. On a YoY basis, revenue declined 27.5% ($1.474B in Q1’25) while net income dropped 20.6% ($171.9M in Q1’25). Sequentially (QoQ), revenue fell 4.7% versus Q4’25 ($1.122B), and net income declined 26.6% versus Q4’25 ($185.7M). Profitability was broadly solid but softened sequentially: gross margin was ~63.2% in Q1’26 versus 63.2% in Q4’25, while operating margin decreased to 17.9% from 20.1% and net margin to 12.8% from 16.5%. Despite lower earnings, operating cash flow remained healthy at $220.4M and free cash flow was $193.8M for the quarter. Shareholder returns were strong on the market side: the stock was up 23.6% over the last 12 months (capital appreciation tailwind). Cash returns included dividends of $18.4M and a large buyback of $500.2M in Q1’26, supporting total shareholder yield. Balance sheet resilience appears stable for a capital-return model: total assets were $11.58B and equity was $6.08B; net debt was $3.13B, with liquidity (cash) at $356M."

Revenue Growth

Neutral

YoY revenue decreased 27.5% (Q1’26 $1.069B vs Q1’25 $1.474B). QoQ revenue also declined 4.7% (vs Q4’25 $1.122B), indicating a contracting top line.

Profitability

Neutral

Margins softened sequentially: operating margin fell to 17.9% from 20.1% and net margin to 12.8% from 16.5%. However, gross margin stayed ~63.2% vs Q4’25, suggesting cost pressure mainly moved through operating costs.

Cash Flow Quality

Positive

Cash generation remained positive: operating cash flow was $220.4M and free cash flow $193.8M. Cash returns included $18.4M dividends and $500.2M buybacks, indicating capacity to return capital despite lower earnings.

Leverage & Balance Sheet

Neutral

Balance sheet held up: total assets $11.58B and equity $6.08B. Net debt was $3.13B; liquidity (cash $356M) is moderate. Not a banking-style profile, but overall leverage looks manageable.

Shareholder Returns

Strong

Total shareholder tailwind was strong. Stock gained 23.6% over the past 12 months, exceeding the >20% momentum threshold. Additionally, buybacks were substantial in Q1’26 ($500.2M) plus dividends ($18.4M).

Analyst Sentiment & Valuation

Neutral

Valuation appears demanding based on provided multiples (e.g., P/E ~31.8x, P/S ~16.2x), but consensus targets imply some upside/limited downside (target consensus ~$60.67 vs current ~$60.52).

Disclaimer:This analysis is AI-generated for informational purposes only. Accuracy is not guaranteed and this does not constitute financial advice.

Fundamentals Overview

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FTV delivered a strong Q1 2026 start with core revenue growth just over 5% and adjusted EPS of $0.70, up over 25% YoY, driven by operating leverage plus share repurchases. However, gross margin softened: adjusted gross margin down about 100 bps YoY to just over 63%, primarily from tariff impacts. Management repeatedly quantified the mechanical selling-day tailwind: ~150 bps at the consolidated level (about 100 bps in IOS and ~300 bps in AHS). Despite this, the business showed durability—orders grew faster than revenue, and short-cycle indicators at Fluke (POS trends, book-to-bill over 1) looked healthy, with normalizing channel inventories. Full-year adjusted EPS guidance ($2.90–$3.00) was reaffirmed, with management expecting results to trend toward the upper half. For margins, they guided to 50–100 bps EBITDA expansion per year in the medium-term framework, while stating tariffs should fully countermeasure by Q4.

AI IconGrowth Catalysts

  • Fluke CertiFiber Max data center testing solution launched in late Q4; management cites fastest throughput in industry and strong customer pull-through into power quality, battery testing, imaging, and calibration
  • Provation Mirror Documentation Assist: real-time AI-powered voice documentation embedded into GI procedure workflows to reduce post-procedure reconstruction
  • Increased innovation velocity and AI-enhanced product launches across Fortive Accelerator
  • Recurring revenue acceleration: double-digit services growth at Fluke and strong hardware-as-a-service share gains at Industrial Scientific

Business Development

  • Hyperscaler standard maintenance tool-set engagement for Fluke data centers (management: working to get specced into standard maintenance tool sets)
  • ServiceChannel AI use cases referenced as showing up in FAL (Facilities and Asset Lifecycle) performance; ServiceChannel leading FAL growth in Q1
  • Mentioned future M&A leadership: Corbin Wahlberger to join Monday to run corporate development globally (bolt-on M&A execution focus)

AI IconFinancial Highlights

  • Consolidated Q1 core revenue growth: just over 5%; total revenue nearly $1.1B (+~8% reported, +~5% core)
  • Tailwind from additional year-over-year selling days: ~150 bps to Q1 consolidated revenue (IOS: ~100 bps; AHS: ~300 bps)
  • Adjusted EBITDA: $314M (+~13% YoY); adjusted EBITDA margin expanded ~140 bps YoY to just over 29%
  • Adjusted gross margin: just over 63% (down ~100 bps YoY), driven mostly by net impact of tariffs introduced last year
  • Adjusted EPS: $0.70 (+over 25% YoY), third consecutive quarter of double-digit adjusted EPS growth
  • Q1 segment margin impacts: IOS adjusted gross margin just over 65% (down ~150 bps YoY, tariffs/product mix); AHS adjusted gross margin ~59% (in line YoY, modest operating leverage offset by tariffs)
  • Full-year guidance reiterated: adjusted EPS $2.90 to $3.00; management expects trending toward upper half
  • Reported revenue full-year modeling: ~ $4.3B; core growth expected 2% to 3% with belief trending to upper end

AI IconCapital Funding

  • Share repurchases: approximately $500M completed in Q1; total since spin: ~$1.8B deployed representing ~35M shares or just over 10% of diluted shares outstanding
  • Balance sheet leverage: 2.8x gross debt to adjusted EBITDA (commercial paper modestly increased to fund repurchases)
  • Free cash flow: $194M in Q1; trailing twelve-month FCF conversion north of 100%

AI IconStrategy & Ops

  • Fortive Business System (FBS) operating cadence: cost efficiencies and value engineering; operating leverage cited as coming from structural cost savings plus reinvestment in growth initiatives
  • Flattened segment structures and removed stranded cost/corporate costs (referenced as margin-trajectory drivers)
  • Bolt-on M&A engine and team revamped; two small bolt-on acquisitions completed in Q4 (integration/value-creation plans tracking on schedule)
  • Investment dollars shifting toward growth initiatives in Fluke (orders growth outpacing revenue growth) and gas detection hardware-as-a-service

AI IconMarket Outlook

  • Full-year adjusted EPS guidance reaffirmed: $2.90 to $3.00; trending toward upper half based on Q1 and trends to date
  • Q2 and Q3 adjusted EPS: expected broadly similar to Q1 (accounting for selling-day mechanics and FX/M&A tailwind)
  • Q4 selling days: four fewer year-over-year selling days; $15M to $20M revenue headwind in Q4
  • FX and M&A combined: ~150 bps tailwind to reported revenue in Q2, moderating to ~50 to 100 bps throughout the second half
  • Modeling effective tax rate: Q2 mid-teens; Q3 high-teens; Q4 high single-digit to low double-digit
  • Full-year net interest expense: just over $135M

AI IconRisks & Headwinds

  • Tariff impact: adjusted gross margin down ~100 bps YoY in Q1 largely due to net impact of tariffs introduced last year; tariffs persist through partway into Q3 before fully countermeasured by Q4
  • Hospital capital equipment spending remains cautious in U.S.; low temperature sterilization capex improved modestly but hospitals cautious on discretionary timing
  • Healthcare reimbursement/policy pressure persists as a 2025 dynamic; management expects lapping effect starting Q2 2026
  • Near-term quarter phasing risk: selling-day mechanics and comp dynamics can affect quarter-to-quarter EPS comparison despite medium-term framework

Q&A: Analyst Interest

  • Q2 EPS cadence vs selling-day effects: Management confirmed Q2 won’t have the benefit of additional selling days from Q1; they flagged an easier comp plus FX and M&A tailwind of about 150 bps, with IOS modestly ahead of AHS, expecting continuation through full year.
  • AI and FAL/ServiceChannel performance detail: Management argued AI is additive rather than negative, describing AI layered atop mission-critical, data-rich software to deliver new customer value. They cited FAL growing faster than IOS core (~5%), ServiceChannel leading in North America, and improvements in ARR/GDDR/MDR.
  • Tariff and margin trajectory/operating leverage: Management reiterated a medium-term framework calling for 50–100 bps EBITDA margin expansion each year. They emphasized cost actions (value engineering, flattening structures, corporate cost removal, stranded cost reduction), noting tariff gross-margin headwinds persist through partway Q3.

Sentiment: POSITIVE

Note: This summary was synthesized by AI from the FTV Q1 2026 earnings transcript. Financial data is complex; please verify all metrics against official SEC filings before making investment decisions.

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© 2026 Stock Market Info — Fortive Corporation (FTV) Financial Profile