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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on FTV

Fortive Corporation's recent performance was positively driven by its Q4 2025 earnings and sales surpassing estimates, with double-digit profit growth. The company's buyback initiatives also supported results, as share repurchases reduce outstanding shares, increasing value for shareholders. Institutional investors, such as Eubel Brady & Suttman Asset Management Inc. and Drake & Associates LLC, have increased their holdings, with 7.1% and 40.5% growth, respectively. Additionally, Fortive's Q4 earnings call highlighted key metrics and year-over-year growth.

1.c. Company Highlights

2. Fortive's Q4 Earnings: A Strong Finish to 2025

Fortive Corporation reported revenue growth of 4.5% year-over-year in Q4, with adjusted EBITDA of $358 million and adjusted EPS of 90¢. The company's core growth was 3% in Q4, with adjusted EBITDA growth of 8% and adjusted EPS growth of 13%. The full-year adjusted EPS was $2.71. The company's financial performance was in line with expectations, with a strong balance sheet and a focus on free cash flow conversion, achieving a conversion rate of over 100% in 2025.

Publication Date: Feb -05

📋 Highlights
  • Q4 Growth Metrics:: Core growth of 3%, adjusted EBITDA growth of 8% ($358M), and adjusted EPS growth of 13% (90¢) in Q4 2025.
  • Capital Allocation:: Repurchased $1.3B of shares in the last two quarters, maintaining a strong balance sheet with 2.6x gross debt to adjusted EBITDA.
  • 2026 Guidance:: Full-year adjusted EPS guidance of $2.90–$3.00, 2–3% core revenue growth, and 50–100 bps EBITDA margin expansion.
  • Free Cash Flow:: Achieved over 100% free cash flow conversion in 2025, supporting disciplined capital allocation and shareholder returns.
  • Segment Performance:: Fluke drove iOS growth with double-digit ARR, while AHS faced margin pressure from reinvestments but expects 2026 improvement.

Segment Performance

The Intelligent Operating segment saw a 4% organic growth, driven by excellent execution by the Fluke team and strong demand in areas like data center applications and defense. The Advanced Healthcare Solutions segment saw margin pressure in Q4 due to reinvestments, but this is considered a localized issue and not a multi-year problem.

Guidance and Outlook

Fortive guided for full-year adjusted EPS of $2.90 to $3.00 per share in 2026, with core revenue growth in the range of 2% to 3%. The company expects to see a 300 basis point tailwind from FX in the first quarter. The guidance implies a continued focus on organic growth and targeted bolt-on deals.

Valuation

Using the current P/E Ratio of 32.85 and EV/EBITDA of 19.82, it appears that Fortive's valuation is relatively high. However, the company's strong track record of execution and growth, as well as its commitment to delivering strong performance for shareholders, may justify the premium. Analysts estimate next year's revenue growth at 3.8%, which is slightly higher than the company's guidance.

EPS Performance

The actual EPS of $0.581 in Q4 was lower than estimates of $0.83, which may indicate some pressure on the company's profitability. However, the company's adjusted EPS growth of 13% in Q4 suggests that the underlying business is performing well.

3. NewsRoom

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Fortive Corporation (FTV) Presents at JPMorgan Industrials Conference 2026 Transcript

Mar -17

Source: seekingalpha.com

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Fluke Transforms eMaint into Purpose-Built AI Platform to Accelerate Smarter, Faster Maintenance Work

Mar -16

Source: globenewswire.com

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Dimensional Fund Advisors LP Buys 196,107 Shares of Fortive Corporation $FTV

Mar -11

Source: defenseworld.net

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Banque Cantonale Vaudoise Buys 17,974 Shares of Fortive Corporation $FTV

Mar -10

Source: defenseworld.net

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Elo Mutual Pension Insurance Co Has $1.10 Million Position in Fortive Corporation $FTV

Mar -06

Source: defenseworld.net

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Fortive To Present at 2026 J.P. Morgan Industrials Conference

Mar -03

Source: businesswire.com

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HighTower Advisors LLC Increases Position in Fortive Corporation $FTV

Mar -02

Source: defenseworld.net

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Fortive Corporation (FTV) Presents at Barclays 43rd Annual Industrial Select Conference Transcript

Feb -18

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (3.75%)

6. Segments

Intelligent Operating Solutions

Expected Growth: 3.5%

Fortive's Intelligent Operating Solutions growth of 3.5% is driven by increasing demand for digital transformation, industrial automation, and data-driven decision-making. The segment's software and analytics capabilities, including predictive maintenance and process optimization, are key contributors to this growth, as customers seek to enhance operational efficiency and reduce costs.

Precision Technologies

Expected Growth: 4.5%

Precision Technologies' growth of 4.5% is driven by increasing demand for high-precision measurement and inspection solutions in industries such as aerospace, automotive, and healthcare. Additionally, Fortive's strategic investments in digital transformation and innovative product offerings have enhanced the segment's competitiveness and expanded its market share.

Advanced Healthcare Solutions

Expected Growth: 3.0%

Advanced Healthcare Solutions' 3.0 growth is driven by increasing demand for medical technologies, expanding product portfolio, and strategic acquisitions. Fortive Corporation's focus on innovation, regulatory compliance, and customer needs also fuels growth. Additionally, the segment benefits from a growing aging population and rising healthcare expenditure, driving adoption of advanced medical solutions.

7. Detailed Products

Professional Instrumentation

Provides a range of professional instrumentation products, including electrical safety testers, circuit testers, and wire tracers.

Industrial Scientific

Offers a range of industrial scientific products, including thermal imaging cameras, gas detection instruments, and portable analytical instruments.

Transportation Technology

Provides a range of transportation technology products, including fleet management systems, route optimization software, and vehicle safety systems.

Franchise Distribution

Distributes a range of products, including electrical and industrial supplies, to customers in various industries.

Telemetry Products

Offers a range of telemetry products, including remote monitoring systems, data loggers, and sensors.

Environmental and Health and Safety

Provides a range of environmental and health and safety products, including air and water quality monitoring systems, and personal protective equipment.

8. Fortive Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Fortive Corporation's products and services have some substitutes, but they are not easily replaceable due to their unique features and quality.

Bargaining Power Of Customers

Fortive Corporation's customers have limited bargaining power due to the company's strong brand reputation and diversified product offerings.

Bargaining Power Of Suppliers

Fortive Corporation's suppliers have some bargaining power due to the company's dependence on them for raw materials and components, but the company's size and scale mitigate this power.

Threat Of New Entrants

The threat of new entrants is low for Fortive Corporation due to the high barriers to entry in the industries it operates in, including significant capital requirements and regulatory hurdles.

Intensity Of Rivalry

The intensity of rivalry is high in Fortive Corporation's industries, with many established players competing for market share and customers.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 26.31%
Debt Cost 3.95%
Equity Weight 73.69%
Equity Cost 9.93%
WACC 8.36%
Leverage 35.70%

11. Quality Control: Fortive Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Amphenol

A-Score: 5.6/10

Value: 1.0

Growth: 7.6

Quality: 7.2

Yield: 1.0

Momentum: 10.0

Volatility: 7.0

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Intuit

A-Score: 5.6/10

Value: 1.0

Growth: 8.1

Quality: 8.6

Yield: 1.0

Momentum: 7.0

Volatility: 8.0

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Corning

A-Score: 4.8/10

Value: 0.9

Growth: 2.6

Quality: 5.2

Yield: 4.0

Momentum: 9.5

Volatility: 6.7

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Keysight Technologies

A-Score: 4.7/10

Value: 1.5

Growth: 5.1

Quality: 7.7

Yield: 0.0

Momentum: 7.0

Volatility: 7.0

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Dell Technologies

A-Score: 4.6/10

Value: 6.6

Growth: 4.0

Quality: 4.6

Yield: 4.0

Momentum: 5.0

Volatility: 3.7

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Fortive

A-Score: 4.6/10

Value: 3.4

Growth: 4.6

Quality: 6.7

Yield: 0.0

Momentum: 4.0

Volatility: 9.0

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

54.84$

Current Price

54.84$

Potential

-0.00%

Expected Cash-Flows