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Fortive posted Q4 adjusted EPS of $0.90 on $1.12B revenues, beating estimates and lifting shares about 11%.
FTV saw Intelligent Operating Solutions revenues rise 5.3% to $769.7M, with segment margins expanding 50 bps.
Fortive repurchased $1.3B of shares in H2 and guided 2026 adjusted EPS of $2.90-$3.00.
Fortive Corporation (FTV - Free Report) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 90 cents from continuing operations, which surpassed the Zacks Consensus Estimate of 83 cents. The bottom line increased 12.5% year over year.
Revenues increased 4.6% year over year to $1.12 billion. The top line beat the Zacks Consensus Estimate by 2.6%. Core revenues jumped 3.3%.
After the announcement, Fortive’s shares surged around 11% in the trading session yesterday. The stock has gained 1.3% in the past year compared with the Zacks Electronics - Testing Equipment industry's growth of 16%.
Image Source: Zacks Investment Research
The company also remained focused on disciplined, returns-oriented capital allocation, repurchasing an additional $265 million of shares during the quarter and bringing total share buybacks in the second half to approximately $1.3 billion.
Top Line in Detail
Fortive operates under the following two organized segments:
Intelligent Operating Solutions: The segment generated revenues of $769.7 million (contributing 69% to total revenues), which increased 5.3% on a year-over-year basis.
Advanced Healthcare Solutions: This segment registered revenues of $352.8 million (31%), up 3.2% year over year.
Operating Details
In the reported quarter, adjusted gross profit increased 2.3% to $712 million on a year-over-year basis.
Fortive Corporation Price, Consensus and EPS Surprise
Adjusted operating margin was 30.2%, which expanded 80 basis points (bps) on a year-over-year basis.
Segment-wise, the adjusted operating margins of Intelligent Operating Solutions were 35.7%, expanding 50 bps year over year.
Adjusted operating margins of Advanced Healthcare Solutions were 24.6%, down 140 bps.
Balance Sheet & Cash Flow
As of Dec. 31, 2025, cash and cash equivalents were $375.5 million compared with $430.8 million as of Sept. 26, 2025.
FTV generated an operating cash flow of $344 million for the fourth quarter compared with $328 million in the previous quarter. Non-GAAP free cash flow was $314 million compared with $305 million in the prior quarter.
Fortive’s Outlook
For full-year 2026, Fortive expects adjusted earnings per share in the range of $2.90-$3.00. This outlook assumes a continuation of the market conditions observed in the fourth quarter and reflects current tariff rates. Tariffs, net of countermeasures, are not expected to have a meaningful impact on results in 2026.
Based on current foreign exchange rates, the company is assuming reported revenues of approximately $4.3 billion, with core revenue growth in the range of 2-3%. It is also planning for a mid-teens adjusted effective tax rate for the full year, with rates in the high teens for the first quarter through the third quarter and in the high single digits to low double digits in the fourth quarter.
Management highlighted that it remains sharply focused on executing the three pillars of its Fortive Accelerated strategy: accelerating profitable organic growth through FBS Amplified, disciplined capital deployment and a continued commitment to building investor trust. While the company is still in the early stages of this journey, the progress to date reinforces its confidence in achieving its medium-term financial objectives and unlocking meaningful long-term value.
AMETEK, Inc. (AME - Free Report) reported fourth-quarter 2025 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate. AMETEK reported its fourth-quarter non-GAAP earnings of $2.01 per share, beating the Zacks Consensus Estimate by 3.6%. The figure increased 7.5% year over year.
AMETEK’s top line of $2 billion surpassed the Zacks Consensus Estimate by 2.6%. The figure increased 13.4% year over year.
Teradyne (TER - Free Report) reported fourth-quarter 2025 non-GAAP earnings of $1.8 per share, which beat the Zacks Consensus Estimate by 32.22% and surged 89.5% year over year.
Revenues of TER came at $1.08 billion and beat the Zacks Consensus Estimate by 11.82% and increased 43.7% year over year.
KLA Corporation (KLAC - Free Report) reported second-quarter fiscal 2026 non-GAAP earnings of $8.85 per share, beating the Zacks Consensus Estimate by 0.36%. The figure increased 7.9% year over year.
KLAC’s reported revenues increased 7.2% year over year to $3.3 billion, surpassing the Zacks Consensus Estimate by 1.02%.
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Fortive Q4 Earnings & Sales Surpass Estimates, Increase Y/Y, Stock Up
Key Takeaways
Fortive Corporation (FTV - Free Report) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 90 cents from continuing operations, which surpassed the Zacks Consensus Estimate of 83 cents. The bottom line increased 12.5% year over year.
Revenues increased 4.6% year over year to $1.12 billion. The top line beat the Zacks Consensus Estimate by 2.6%. Core revenues jumped 3.3%.
After the announcement, Fortive’s shares surged around 11% in the trading session yesterday. The stock has gained 1.3% in the past year compared with the Zacks Electronics - Testing Equipment industry's growth of 16%.
Image Source: Zacks Investment Research
The company also remained focused on disciplined, returns-oriented capital allocation, repurchasing an additional $265 million of shares during the quarter and bringing total share buybacks in the second half to approximately $1.3 billion.
Top Line in Detail
Fortive operates under the following two organized segments:
Intelligent Operating Solutions: The segment generated revenues of $769.7 million (contributing 69% to total revenues), which increased 5.3% on a year-over-year basis.
Advanced Healthcare Solutions: This segment registered revenues of $352.8 million (31%), up 3.2% year over year.
Operating Details
In the reported quarter, adjusted gross profit increased 2.3% to $712 million on a year-over-year basis.
Fortive Corporation Price, Consensus and EPS Surprise
Fortive Corporation price-consensus-eps-surprise-chart | Fortive Corporation Quote
Adjusted operating margin was 30.2%, which expanded 80 basis points (bps) on a year-over-year basis.
Segment-wise, the adjusted operating margins of Intelligent Operating Solutions were 35.7%, expanding 50 bps year over year.
Adjusted operating margins of Advanced Healthcare Solutions were 24.6%, down 140 bps.
Balance Sheet & Cash Flow
As of Dec. 31, 2025, cash and cash equivalents were $375.5 million compared with $430.8 million as of Sept. 26, 2025.
FTV generated an operating cash flow of $344 million for the fourth quarter compared with $328 million in the previous quarter. Non-GAAP free cash flow was $314 million compared with $305 million in the prior quarter.
Fortive’s Outlook
For full-year 2026, Fortive expects adjusted earnings per share in the range of $2.90-$3.00. This outlook assumes a continuation of the market conditions observed in the fourth quarter and reflects current tariff rates. Tariffs, net of countermeasures, are not expected to have a meaningful impact on results in 2026.
Based on current foreign exchange rates, the company is assuming reported revenues of approximately $4.3 billion, with core revenue growth in the range of 2-3%. It is also planning for a mid-teens adjusted effective tax rate for the full year, with rates in the high teens for the first quarter through the third quarter and in the high single digits to low double digits in the fourth quarter.
Management highlighted that it remains sharply focused on executing the three pillars of its Fortive Accelerated strategy: accelerating profitable organic growth through FBS Amplified, disciplined capital deployment and a continued commitment to building investor trust. While the company is still in the early stages of this journey, the progress to date reinforces its confidence in achieving its medium-term financial objectives and unlocking meaningful long-term value.
Zacks Rank
Currently, Fortive has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Firms
AMETEK, Inc. (AME - Free Report) reported fourth-quarter 2025 results, wherein both the top and bottom lines surpassed the Zacks Consensus Estimate.
AMETEK reported its fourth-quarter non-GAAP earnings of $2.01 per share, beating the Zacks Consensus Estimate by 3.6%. The figure increased 7.5% year over year.
AMETEK’s top line of $2 billion surpassed the Zacks Consensus Estimate by 2.6%. The figure increased 13.4% year over year.
Teradyne (TER - Free Report) reported fourth-quarter 2025 non-GAAP earnings of $1.8 per share, which beat the Zacks Consensus Estimate by 32.22% and surged 89.5% year over year.
Revenues of TER came at $1.08 billion and beat the Zacks Consensus Estimate by 11.82% and increased 43.7% year over year.
KLA Corporation (KLAC - Free Report) reported second-quarter fiscal 2026 non-GAAP earnings of $8.85 per share, beating the Zacks Consensus Estimate by 0.36%. The figure increased 7.9% year over year.
KLAC’s reported revenues increased 7.2% year over year to $3.3 billion, surpassing the Zacks Consensus Estimate by 1.02%.