Research · Sep 3, 2026
[FTV] Fortive Thesis 2026: Spinoff Reset Clears Path for Double-Digit Earnings Recovery
Fortive Corporation FY25 (first full year post-Ralliant spinoff) revenue $5.14B; op income $909M; NI $579M; EPS $1.74; adj EPS $2.71 (exceeded high end of guidance). iOS Q4 reported revenue growth just over 5% / core revenue growth ~4% / adj gross margin just under 67% / Q4 adj EBITDA $288M (+8%) / adj EBITDA margin >37% (+100bp). AHS Q4 revenue $353M (+3% YoY / +1.6% core) / adj gross margin 56% (vs 58% prior) / adj EBITDA $92M / margin 26% (impacted by growth investments). Repurchased ~26M shares (8% of diluted) FY25. 2 small M&A deals closed H2 2025. Fortive Accelerator pillars: organic growth + capital discipline + investor trust. FY26 guide: adj EPS $2.90-$3.00 (+9% midpoint); tariffs net of countermeasures not meaningful; mid-teens effective tax rate; net interest expense just over $120M.