Fortive (NYSE:FTV) Announces Quarterly Earnings Results

Key Points

• Fortive beat Q1 estimates with EPS of $0.70 (consensus $0.64) and revenue of $2.14B, and reaffirmed FY2026 adjusted EPS guidance of $2.90–$3.00, saying results are tracking toward the upper half of that range.
• Management returned capital aggressively—about $500 million of share repurchases in Q1 and a >10% reduction in diluted shares since the 2025 spin—while Q1 free cash flow was $194 million and leverage sat near 2.8x, leaving capacity for buybacks, M&A and investment.
• Margins faced headwinds from tariffs (consolidated adjusted gross margin down ~100 bps) and GAAP EPS declined year‑over‑year ($0.70 vs. $0.85), which could temper investor confidence despite underlying revenue and software strength.

Fortive (NYSE:FTV - Get Free Report) released its earnings results on Thursday. The technology company reported $0.70 EPS for the quarter, beating the consensus estimate of $0.64 by $0.06, FiscalAI reports. Fortive had a return on equity of 11.98% and a net margin of 12.48%.The firm had revenue of $2.14 billion for the quarter, compared to analysts' expectations of $1.04 billion. During the same quarter in the previous year, the business posted $0.85 EPS. The business's quarterly revenue was up 7.7% compared to the same quarter last year. Fortive updated its FY 2026 guidance to 2.900-3.000 EPS.

Here are the key takeaways from Fortive's conference call:

• Fortive delivered a strong Q1 with core revenue up just over 5%, adjusted EBITDA up ~13% and adjusted EPS up >25%, and the company reaffirmed full‑year adjusted EPS guidance of $2.90–$3.00, saying results are trending toward the upper half of that range.
• Management returned capital aggressively—about $500 million of share repurchases in Q1 and a >10% reduction in diluted shares since the July 2025 spin—underscoring a disciplined capital allocation approach.
• Innovation and AI product momentum (notably CertiFiber Max for data centers and Provation Mira for GI documentation) plus recurring‑revenue initiatives drove strong order trends and outsized software growth across segments.
• Gross margins faced headwinds from tariffs (consolidated adjusted gross margin down ~100 bps; IOS down ~150 bps), and management noted tariffs will weigh through part of Q3; Q1 core growth also received ~150 bps of benefit from additional selling days.
• Cash flow and leverage remain supportive—Q1 free cash flow was $194 million, trailing 12‑month FCF conversion >100%, and leverage at ~2.8x gross debt/adjusted EBITDA after modest commercial paper to fund buybacks, with management saying there is capacity for M&A, buybacks, and growth investment.

Fortive Trading Down 1.0%

Fortive stock traded down $0.59 during trading hours on Friday, hitting $59.20. The stock had a trading volume of 3,258,062 shares, compared to its average volume of 3,713,091. The company has a quick ratio of 0.58, a current ratio of 0.71 and a debt-to-equity ratio of 0.36. The stock has a market cap of $18.23 billion, a price-to-earnings ratio of 34.22, a P/E/G ratio of 3.34 and a beta of 1.09. Fortive has a one year low of $46.34 and a one year high of $74.67. The business's 50 day simple moving average is $57.70 and its 200-day simple moving average is $55.06.

Fortive Announces Dividend

The business also recently announced a quarterly dividend, which was paid on Friday, March 27th. Shareholders of record on Friday, March 13th were paid a dividend of $0.06 per share. This represents a $0.24 dividend on an annualized basis and a dividend yield of 0.4%. The ex-dividend date of this dividend was Friday, March 13th. Fortive's payout ratio is presently 13.87%.

Insider Buying and Selling

In other Fortive news, Director Kate Mitchell sold 7,131 shares of the stock in a transaction dated Wednesday, February 18th. The stock was sold at an average price of $58.34, for a total value of $416,022.54. Following the completion of the transaction, the director directly owned 31,775 shares in the company, valued at approximately $1,853,753.50. This trade represents a 18.33% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Corporate insiders own 0.92% of the company's stock.

Hedge Funds Weigh In On Fortive

Several large investors have recently bought and sold shares of the company. Dodge & Cox grew its holdings in Fortive by 3.7% during the 4th quarter. Dodge & Cox now owns 44,157,822 shares of the technology company's stock worth $2,437,953,000 after acquiring an additional 1,562,028 shares during the last quarter. Viking Global Investors LP grew its holdings in Fortive by 28.7% during the 3rd quarter. Viking Global Investors LP now owns 20,483,680 shares of the technology company's stock worth $1,003,495,000 after acquiring an additional 4,571,056 shares during the last quarter. Price T Rowe Associates Inc. MD grew its holdings in Fortive by 29.2% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 20,046,352 shares of the technology company's stock worth $1,106,760,000 after acquiring an additional 4,532,031 shares during the last quarter. Invesco Ltd. grew its holdings in Fortive by 7.1% during the 3rd quarter. Invesco Ltd. now owns 7,507,930 shares of the technology company's stock worth $367,814,000 after acquiring an additional 497,714 shares during the last quarter. Finally, The Manufacturers Life Insurance Company grew its holdings in Fortive by 70.0% during the 4th quarter. The Manufacturers Life Insurance Company now owns 5,626,871 shares of the technology company's stock worth $310,809,000 after acquiring an additional 2,316,202 shares during the last quarter. 94.94% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several equities analysts recently weighed in on FTV shares. Mizuho reissued an "underperform" rating and issued a $51.00 target price (down from $54.00) on shares of Fortive in a research note on Monday, January 5th. Robert W. Baird set a $65.00 price objective on Fortive in a report on Thursday, February 5th. Royal Bank Of Canada boosted their price objective on shares of Fortive from $59.00 to $63.00 and gave the company a "sector perform" rating in a report on Friday. Citigroup raised their price target on Fortive from $64.00 to $65.00 and gave the stock a "neutral" rating in a research report on Friday. Finally, Barclays upped their price target on shares of Fortive from $56.00 to $63.00 and gave the stock an "equal weight" rating in a report on Monday, February 9th. Two equities research analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average target price of $59.92.

Key Stories Impacting Fortive

Here are the key news stories impacting Fortive this week:

• Positive Sentiment: Q1 results: Fortive reported stronger-than-expected Q1 results — core revenue growth (~5%), adjusted EBITDA up ~13%, and adjusted EPS growth of ~25% with reported revenue of $2.14B and EPS of $0.70, topping consensus estimates. This beat is cited as the primary near-term fundamental upside. Fortive Reports First Quarter 2026 Results
• Positive Sentiment: Analyst reaction: Royal Bank of Canada raised its price target from $59 to $63 (sector perform), signaling some analyst confidence in the beat and the company’s strategy execution. The raise provides modest upside support. RBC raises Fortive price target to $63
• Neutral Sentiment: Earnings coverage & detail: Multiple transcripts and call highlights (earnings call transcript and slide deck) provide detail on demand strength and execution of the “Fortive Accelera” strategy; useful for judgment but not new catalyst. Fortive Corporation (FTV) Q1 2026 Earnings Call Transcript
• Neutral Sentiment: Industry note: Zacks’ industry outlook singled out AMETEK and Fortive among peers — a thematic mention that can influence relative-sector flows but is not a company-specific catalyst. Zacks Industry Outlook Highlights AMETEK and Fortive
• Negative Sentiment: Guidance and YoY EPS comparisons: Fortive set FY2026 adjusted EPS guidance of $2.90–$3.00 vs. consensus ~2.96 — roughly in line but slightly light at the midpoint — and GAAP EPS this quarter fell vs. the prior year (Q1 2026 $0.70 vs. Q1 2025 $0.85), which is keeping some investors cautious about growth durability. Fortive NYSE: FTV Beats Q1 CY2026 Sales Expectations

About Fortive

Fortive Corporation NYSE: FTV is a diversified industrial technology company headquartered in Everett, Washington. The company was created through a spin‑off from Danaher Corporation in 2016 and has since focused on building a portfolio of professional instrumentation and industrial technology businesses. In 2020 Fortive completed a further portfolio separation with the spin‑off of Vontier, concentrating Fortive's activities on higher‑margin instrumentation, software and services.

Fortive's operations center on professional test and measurement, sensing and monitoring, software‑enabled solutions, and lifecycle services that support industrial and commercial customers.

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