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what it is
Fortive sells the tools and software companies use to test equipment, spot problems, and keep critical workflows from breaking.
how it gets paid
Last year Fortive made $4.2B in revenue.
why it's growing
Revenue grew 270.5% last year. Revenue was $1.1B, up 5% vs. prior year, while EPS in the latest quarter was listed at $0.58 in the quarterly history.
what just happened
Fortive reported EPS of $0.90 versus a $0.36 estimate, a 150.0% surprise.
At a glance
B++ balance sheet — above average — nothing keeping you up at night
55/100 earnings predictability — expect surprises
32.2x trailing p/e — you're paying up for this one
0.4% dividend yield — cash in your pocket every quarter
12.5% return on capital — nothing to write home about
xvary composite: 60/100 — average
What they do
Fortive sells the tools and software companies use to test equipment, spot problems, and keep critical workflows from breaking.
Fortive sells into jobs where one bad reading can shut a line down or fail an inspection. You do not swap that vendor casually. Its 63.2% gross margin (money left after direct costs, so what: pricing power is real) says customers pay up for accuracy and uptime.
How they make money
$4.2B
annual revenue · their business grew +270.5% last year
total revenue
$4.2B
+270.5%
The products that matter
precision measurement tools
Professional Instrumentation
$2.5B · 60% of the split shown here
This $2.5B segment grew 8% and covers healthcare and industrial workflows where precision is mission-critical. It is the larger of the two reported businesses on this page.
core workflow spend
connected workflow software and automation
Intelligent Automation
$1.7B · +10% growth
This $1.7B segment grew 10%, faster than both company revenue growth and Professional Instrumentation. If Fortive is going to earn its premium multiple, this side needs to keep pulling harder.
faster growth
Key numbers
32.2x
trailing p/e
P/E → price-to-earnings → what you pay for each dollar of profit, so what: this is expensive for a business with -0.5% projected sales growth.
20.0%
operating margin
Operating margin → profit after running the business → so what: Fortive keeps $0.20 from every sales dollar before interest and taxes.
$2.1B
long-term debt
Long-term debt → money owed over many years → so what: at 11% of capital, leverage looks contained rather than scary.
150.0%
earnings surprise
Earnings surprise → how far actual profit beat estimates → so what: Fortive just cleared a very low bar by a very wide margin.
Financial health
B++
strength
- balance sheet grade B++ — above average financial health
- risk rank 3 — safer than 50% of stocks
- price stability 85 / 100
- long-term debt $2.1B (11% of capital)
- net profit margin 22.5% — keeps 22 cents of every dollar in revenue
- return on equity 16% — $0.16 profit for every $1 investors have put in
B++ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in FTV 3 years ago → it's now worth $11,000.
The index would have given you $14,770.
source: institutional data · total return
What just happened
beat estimates
Fortive reported EPS of $0.90 versus a $0.36 estimate, a 150.0% surprise.
Revenue was $1.1B, up 5% vs. prior year, while EPS in the latest quarter was listed at $0.58 in the quarterly history. The bigger point is simple: the company beat expectations by a mile, but the stock already trades like good news is routine.
$1.1B
revenue
$0.58
eps
63.2%
gross margin
the number that mattered
150.0% is the number that matters because a beat that large resets expectations, and premium stocks get punished fast when the next quarter looks ordinary.
source: company earnings report, 2026
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What could go wrong
the #1 risk is post-spin growth failing to accelerate enough to justify 32.2x earnings.
med
a cleaner portfolio does not automatically mean faster growth
Revenue grew 3.5% last year. That is fine. It is not the kind of growth rate that usually earns a 32.2x multiple on its own.
If growth stays closer to 3.5% than the guided 9% EPS path, the valuation becomes the problem.
med
bolt-on acquisitions add complexity instead of lift
Management highlighted bolt-on deals after the spin-off. That can help, but only if integration shows up in margins, cash flow, and cleaner earnings delivery.
With a 0.4% dividend yield, you are relying on execution for your return, not income.
med
the stock already trades like the improvement happened
Fortive trades at 32.2x earnings, a 78% premium to the industrial sector average, while return on capital sits at 12.5%.
That gap is the risk. If investors stop paying up for the story, the business can stay fine and the stock can still disappoint you.
At 32.2x earnings, a 0.4% yield, and a 3-year return below the index, this stock needs better growth and cleaner execution — not just cleaner slide decks.
source: institutional data · regulatory filings · risk analysis
Pay attention to
growth gap
watch whether 3.5% revenue growth can really support a 9% EPS story
That spread is the entire valuation debate. If the earnings acceleration shows up, the premium multiple looks less reckless.
capital efficiency
12.5% return on capital needs to move, not just hold
A premium multiple is easier to defend when capital returns look premium too. Right now they look okay.
ownership
net institutional selling has lasted 3 straight quarters
284 buyers versus 423 sellers in 3Q2025 is not panic. It is still a vote you should notice.
next proof point
the next earnings report has to defend the $2.90–$3.00 guide
That guidance is carrying a lot of narrative weight. If it slips, the stock loses one of its cleaner arguments.
Analyst rankings
earnings predictability
55 / 100
Earnings are harder to model than the stock's calm trading pattern suggests. in human-speak, analysts do not see this as a perfectly steady operator.
risk rank
3
Risk rank 3 means the stock sits around the middle of the pack on safety — safer than about 50% of stocks, riskier than the other half.
price stability
85 / 100
The share price has been relatively stable. That tells you the market is calm. It does not tell you the stock is cheap.
source: institutional data
Institutional activity
institutions have been net selling for 3 consecutive quarters — 284 buyers vs. 423 sellers in 3q2025. total institutional holdings: 0.3B shares. net selling for 3 quarters.
source: institutional data
Price targets
3-5 year target range
$42
$83
$55
current price
$63
target midpoint · +15% from current · 3-5yr high: $105 (+90% · 18% ann'l return)
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