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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 driven by strong Q3 2025 earnings, with double-digit EPS growth and a beat on estimates. The company's core revenues rose, and margins expanded, leading to an increase in its outlook. Robust demand for its industrial automation software technology also contributed to the positive results. Additionally, Fortive's management expressed confidence in the company's growth prospects, citing the strength of its operating brands. The company raised its annual profit forecast, further indicating a positive trajectory.

1.c. Company Highlights

2. Fortive's Q3 2025 Earnings: A Strong Beat on Multiple Fronts

Fortive Corporation reported a robust third-quarter 2025 performance, with total revenue reaching just over $1 billion, up 2% year over year on both reported and core basis. The company's adjusted EBITDA was $309 million, up 10% year over year, with growth accelerating from Q2 levels. Adjusted EPS was 68¢, up 15% year over year, significantly beating estimates. The company's financial performance was driven by demand for facility and asset lifecycle software, resilient demand for professional instrumentation, and strong growth in gas detection products in the Intelligent Operating Solutions segment.

Publication Date: Oct -30

📋 Highlights
  • Total Revenue Growth: Revenue reached $1.0 billion, up 2% year-over-year on both reported and core bases.
  • Adjusted EBITDA Surge: Adjusted EBITDA rose 10% to $309 million, driven by accelerated growth from Q2 levels.
  • Share Repurchase Impact: $1 billion allocated to buybacks, retiring 21 million shares (6% of diluted shares).
  • EPS Outperformance: Adjusted EPS climbed 15% to 68¢, boosting full-year guidance to $2.63–$2.67/share.
  • Segment Growth Highlights: Intelligent Operating Solutions achieved 7% EBITDA growth to $242 million, while Advanced Healthcare Solutions saw 2% revenue growth.

Segment Performance

The Intelligent Operating Solutions segment saw revenue growth of 2.5% on a reported basis, with core revenue growth of 2%. Adjusted EBITDA grew 7% to $242 million. The Advanced Healthcare Solutions segment reported revenue growth of approximately 2% year over year, driven by solid growth in software products. However, the segment faced challenges in capital equipment demand due to reimbursement and funding policy changes.

Capital Allocation and Share Repurchases

The company deployed $1 billion to share repurchases in the third quarter, retiring approximately 21 million shares or 6% of its fully diluted share count. Fortive prioritizes share repurchases and bolt-on M&A acquisitions that can accelerate growth. The company's capital allocation approach is expected to drive shareholder value creation, with a balance between share repurchase and smaller bolt-on M&A.

Valuation and Growth Prospects

Fortive's current valuation metrics indicate a P/E Ratio of 27.65 and an EV/EBITDA of 14.36. Analysts estimate next year's revenue growth at 3.2%. The company's reaffirmed financial framework for 2026-2027 targets 3-4% organic growth, 50-100 basis points of adjusted EBITDA margin expansion, and high single-digit plus adjusted EPS growth. With a strong track record of delivering benchmark-leading shareholder returns, Fortive is well-positioned for future growth.

Operational Highlights and Outlook

The company expects the benefits of its simplification plan to build momentum, leading to increased investment in growth initiatives. Fortive anticipates recurring revenue to continue growing as a percentage of total revenue, driven by attaching more recurring offerings to its Fluke professional instrumentation business. The company is confident in its ability to drive shareholder value creation through its capital allocation strategy and operational excellence.

3. NewsRoom

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Edgestream Partners L.P. Invests $3.32 Million in Fortive Corporation $FTV

Dec -04

Source: defenseworld.net

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Fortive Corporation $FTV Shares Bought by Bank of Nova Scotia Trust Co.

Nov -28

Source: defenseworld.net

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Creative Planning Has $2.07 Million Position in Fortive Corporation $FTV

Nov -26

Source: defenseworld.net

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Barrow, Hanley, Mewhinney & Strauss Makes Significant Moves with Berkshire Hathaway Inc.

Nov -13

Source: gurufocus.com

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Fortive Corporation (FTV) Presents at Baird 55th Annual Global Industrial Conference Transcript

Nov -12

Source: seekingalpha.com

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Fortive Declares Regular Quarterly Dividend on its Common Stock and Announces Replenishment of its General Share Repurchase Authorization

Nov -05

Source: businesswire.com

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Fluke Introduces CalStudio, Software that Drives Efficiency and Collaboration in Calibration Labs

Nov -03

Source: globenewswire.com

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Fortive Corporation $FTV Shares Bought by Oppenheimer Asset Management Inc.

Nov -02

Source: defenseworld.net

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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Quality: 8.6

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Momentum: 6.5

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Value: 0.8

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Quality: 4.6

Yield: 3.0

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Volatility: 4.0

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Fortive

A-Score: 4.4/10

Value: 3.4

Growth: 4.6

Quality: 6.5

Yield: 0.0

Momentum: 3.0

Volatility: 9.0

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Value: 1.2

Growth: 4.0

Quality: 7.3

Yield: 0.0

Momentum: 6.0

Volatility: 7.3

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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

53.75$

Current Price

53.75$

Potential

-0.00%

Expected Cash-Flows