Fortive Corporation

FTV · NYSE · USD

Analysis

Last 4 earnings calls · through Q2 FY2026

Four quarters into life as a smaller, two-segment company, growth is genuinely speeding up — core sales climbed from about 2% to 6.7% — and profit per share ran far faster, with buybacks carrying much of it.How much of the profit growth came from buybacks versus operations?

  • Profit per share is growing far faster than sales.

    Adjusted EPS grew 28% in Q2 FY2026 while core revenue grew 6.7%, the fourth straight quarter of double-digit earnings gains. Management credits cost cuts, but buying back 11% of the share count carried a large share of it.

  • Organic growth really is accelerating.

    Core growth rose every quarter of the past year and reached 6.7% in Q2 FY2026, and full-year core guidance was raised by about a point. Orders grew faster than revenue, and new data-center products are why they now lead with growth.Which region is driving the acceleration in core growth?

  • The growth arriving is lower-margin growth.

    Gross margin slipped about a point each quarter on product mix and tariffs, because the fastest-growing lines earn less per sale than the average. AHS margin fell in Q2 FY2026 while revenue rose, so spending lands before the payoff.How does gross margin now compare with before the spin-off?

Bullish
  • New products keep pulling the rest of the portfolio along. A hit product drags the whole shelf behind it, so this growth does not depend on raising prices.
  • Recurring revenue keeps growing faster than the company. Software and service contracts renew every year, so each good quarter makes the next one easier to reach.
  • Orders keep coming in faster than revenue. A full order book means much of next quarter's sales is already booked, so the plan needs less guesswork.
Bearish
  • Hospital capital budgets stay cautious. A big slice of the company sells into hospitals, so if equipment orders stall again that segment stops contributing.
  • Mix keeps pulling gross margin down. If the fastest-growing products stay the cheapest, the company can sell more and still keep less of each sale.
  • Reinvestment outruns the growth it is meant to buy. The spending shows up this year while the sales it buys arrive later, so profit looks worse before it looks better.
PoliticiansInstitutionsInsiders
PoliticianTransactionAmountTradedFiled
Donald Trump
Republican · Executive
Sale≥$1KMay 11Jul 1
Donald Trump
Republican · Executive
Purchase≥$15KMar 2May 13
Alan Armstrong
Republican · Senate · OK
Purchase≥$1KMar 27Jul 21
Gilbert Ray Cisneros, Jr.
Democratic · House · CA-31
Sale≥$1KSep 12Oct 10
Gilbert Ray Cisneros, Jr.
Democratic · House · CA-31
Sale≥$1KSep 22Oct 10

Congressional trading data provided by QuiverQuant

See all
Product segmentsGeography
FY2025 · USD

How Fortive turned $4.2B of revenue into $720.2M of operating income.

Revenue
Intelligent Operating Solutions$2.9B▲ 5.22% YoY
Advanced Healthcare Solutions$1.3B▲ 1.17% YoY
Total revenue$4.2B
Gross profit$2.6B63.5%
Operating income$720.2M17.3%
See all