Fortive Corp (FTV)
NYSE:FTV
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Fortive
(NYSE:FTV)
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Rating:59Neutral
Price Target:
$58.00
▼(-0.62% Downside)
Action:ReiteratedDate:03/21/26
The score is driven primarily by solid cash generation and profitability, supported by constructive 2026 EPS guidance and ongoing buybacks. These positives are tempered by the 2025 revenue/margin step-down and balance-sheet visibility concerns, plus weak near-term technical momentum and a relatively expensive valuation with a low dividend yield.
Positive Factors
Strong free cash flow conversion
Consistently high free cash flow (historically ~90%+ of net income and >100% on adjusted basis in 2025) gives Fortive durable financial flexibility to fund buybacks, organic reinvestment, and acquisitions, and to weather cyclical industrial downturns without reliance on volatile equity markets.
Negative Factors
2025 revenue and margin deterioration
A material revenue decline and net margin compression in 2025 signal cyclical demand weakness or adverse mix that can persist. This reduces visibility into near-term growth drivers and pressures cash flow and reinvestment capacity until revenue stabilization or structural mix improvement occurs.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong free cash flow conversion
Consistently high free cash flow (historically ~90%+ of net income and >100% on adjusted basis in 2025) gives Fortive durable financial flexibility to fund buybacks, organic reinvestment, and acquisitions, and to weather cyclical industrial downturns without reliance on volatile equity markets.
Read all positive factors
Fortive (FTV) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$17.97B
Dividend Yield0.43%
Average Volume (3M)3.06M
Price to Earnings (P/E)30.2
Beta (1Y)0.97
Revenue Growth-8.96%
EPS Growth-30.29%
CountryUS
Employees10,000
SectorTechnology
Sector Strength88
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)0.90
Shares Outstanding307,859,200
10 Day Avg. Volume1,948,671
30 Day Avg. Volume3,055,535
Financial Highlights & Ratios
PEG Ratio-1.13
Price to Book (P/B)2.71
Price to Sales (P/S)3.40
P/FCF Ratio17.86
Enterprise Value/Market Cap1.19
Enterprise Value/Revenue4.15
Enterprise Value/Gross Profit6.82
Enterprise Value/Ebitda18.28
Forecast
1Y Price Target
$60.88Price Target Upside4.32% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)2.97
Revenue Forecast (FY)$4.32B
Fortive Business Overview & Revenue Model
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,...
How the Company Makes Money
Fortive makes money primarily by selling industrial and professional technology products and by providing recurring software and services tied to those products. Key revenue streams typically include: (1) Product revenue from the sale of instrumen...
Fortive Key Performance Indicators (KPIs)
Fortive Earnings Call Summary
Earnings Call Date:Feb 04, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 30, 2026
Earnings Call Sentiment Positive
The call delivered a generally positive message: Fortive reported accelerating revenue and EPS growth, expanded adjusted EBITDA margins, strong free cash flow conversion (>100%), and aggressive share repurchases that reduced share count. Management initiated constructive 2026 guidance (~9% EPS growth at midpoint) and reiterated a 50–100 bps EBITDA margin expansion framework while highlighting recurring revenue and software/AI momentum (ServiceChannel, Fluke, gas detection HaaS). Key negatives included gross margin pressure driven by product mix and tariff impacts, AHS capital equipment headwinds and reinvestments that compressed AHS margins, and a conservative top-line guide relative to Q4 strength. Overall, the positives (earnings beats, margin expansion, robust cash generation, share buybacks, and software recurring revenue momentum) outweigh the challenges, though the company acknowledges further execution is required.Positive Updates
Revenue and Core Growth
Q4 total revenue of $1.1B, up just over 4.5% year-over-year on a reported basis and up just over 3% on a core basis; full-year reported revenue expected to be nearly $4.3B with 2026 core revenue growth guidance of 2%–3%.
Negative Updates
Gross Margin Pressure
Consolidated adjusted gross margin down ~150 basis points year-over-year in Q4 (about 63%) driven largely by product mix, the net effect of tariffs and countermeasures, and targeted growth investments; iOS gross margin down ~130 bps and AHS gross margin declined to 56% from ~58% prior year.
Read all updates
Q4-2025 Updates
Positive
Negative
Revenue and Core Growth
Q4 total revenue of $1.1B, up just over 4.5% year-over-year on a reported basis and up just over 3% on a core basis; full-year reported revenue expected to be nearly $4.3B with 2026 core revenue growth guidance of 2%–3%.
Read all positive updates
Company Guidance
Fortive initiated full-year 2026 adjusted EPS guidance of $2.90–$3.00 per share (about 9% year‑over‑year growth at the midpoint), based on continuation of Q4 market dynamics and current tariff rates; they expect core revenue growth of 2%–3% with reported revenue of nearly $4.3 billion at current FX and model a diluted share count of ~315 million. The outlook assumes a mid‑teens adjusted effective tax rate (Q1–Q3: high‑teens; Q4: high‑single to low‑double digits), full‑year net interest expense just over $120 million, an approximate 300‑basis‑point FX tailwind in Q1 that moderates through the year, and management continues to target 50–100 basis points of adjusted EBITDA margin expansion under the 2026–2027 framework.Fortive Financial Statement Overview
Summary
Income Statement
64
Positive
Balance Sheet
56
Neutral
Cash Flow
70
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 5.14B | 6.23B | 6.07B | 5.83B | 5.25B |
| Gross Profit | 3.13B | 3.73B | 3.59B | 3.36B | 3.01B |
| EBITDA | 1.20B | 1.67B | 1.57B | 1.44B | 1.18B |
| Net Income | 579.20M | 832.90M | 865.80M | 755.20M | 608.40M |
Balance Sheet | |||||
| Total Assets | 11.74B | 17.02B | 16.91B | 15.89B | 16.47B |
| Cash, Cash Equivalents and Short-Term Investments | 375.50M | 813.30M | 1.89B | 709.20M | 819.30M |
| Total Debt | 3.21B | 3.88B | 3.81B | 3.42B | 4.14B |
| Total Liabilities | 5.28B | 6.82B | 6.59B | 6.20B | 6.95B |
| Stockholders Equity | 6.45B | 10.19B | 10.32B | 9.68B | 9.51B |
Cash Flow | |||||
| Free Cash Flow | 978.10M | 1.41B | 1.25B | 1.21B | 911.10M |
| Operating Cash Flow | 1.08B | 1.53B | 1.35B | 1.30B | 961.10M |
| Investing Cash Flow | -135.40M | -1.80B | -195.40M | -102.50M | -2.62B |
| Financing Cash Flow | -1.39B | -792.70M | 32.30M | -1.27B | 652.00M |
Fortive Technical Analysis
Positive
58.36
Price Trends
56.67
Positive
55.35
Positive
52.43
Positive
Market Momentum
0.48
Negative
69.06
Neutral
94.86
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FTV, the sentiment is Positive. The current price of 58.36 is above the 20-day moving average (MA) of 55.61, above the 50-day MA of 56.67, and above the 200-day MA of 52.43, indicating a bullish trend. The MACD of 0.48 indicates Negative momentum. The RSI at 69.06 is Neutral, neither overbought nor oversold. The STOCH value of 94.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FTV.
Fortive Risk Analysis
Fortive disclosed 35 risk factors in its most recent earnings report. Fortive reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Fortive Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $29.91B | 27.35 | 8.65% | ― | 7.41% | -12.85% | |
74 Outperform | $28.22B | 23.76 | 16.83% | ― | 0.77% | 0.51% | |
66 Neutral | $8.07B | 42.40 | 9.86% | ― | 7.40% | 13.79% | |
63 Neutral | $57.65B | 48.81 | 3.58% | ― | 20.80% | ― | |
63 Neutral | $15.30B | 43.86 | 7.46% | ― | -0.86% | -75.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | $17.97B | 30.16 | 6.90% | 0.43% | -8.96% | -30.29% |
* Technology Sector Average
FTV
Fortive
58.36
9.63
19.76%
FLEX
Flex
76.74
47.15
159.34%
COHR
Coherent Corp
307.50
252.30
457.07%
SANM
Sanmina-Sci
147.76
71.81
94.55%
TDY
Teledyne Technologies
645.74
180.94
38.93%
TRMB
Trimble
64.77
6.55
11.25%
Fortive Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Fortive Expands Liquidity with New $2 Billion Credit Facility
Positive
Mar 20, 2026
On March 17, 2026, Fortive Corporation entered into a third amended and restated credit agreement that establishes a five-year, unsecured revolving credit facility of up to $2.0 billion, with a multicurrency borrowing feature and no initial drawdo...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.