Fortive Corporation
FTVBusiness Overview
ticker: FTV step: 01 generated: 2026-05-12 source: quick-research
Fortive Corporation (FTV) — Business Overview
Business Description
Fortive Corporation is an industrial technology company that designs, develops, manufactures, and markets professional and engineered products, software, and services across workflow and productivity solutions and healthcare. Spun off from Danaher in 2016, Fortive has since refocused its portfolio around two core segments — Intelligent Operating Solutions and Advanced Healthcare Solutions — following the July 2025 spin-off of its Precision Technologies segment into Ralliant Corporation. The company serves customers across manufacturing, utilities, healthcare, and transportation sectors worldwide.
Revenue Model
Fortive generates revenue through a mix of recurring and one-time streams. As of 2025, approximately 50% of revenue comes from recurring sources including software subscriptions (SaaS), services, and consumables — a proportion that has grown significantly through strategic portfolio management. The remaining revenue is from product sales and project-based engagements. The Fortive Business System (FBS), an operational excellence methodology, drives margin improvement across the portfolio.
Products & Services
Intelligent Operating Solutions (IOS):
- Fluke — industrial test and measurement tools, calibration, and SaaS-enabled connected tools
- ServiceChannel — facilities management SaaS platform for enterprise customers
- eMaint / Accruent — computerized maintenance management systems (CMMS) and asset management software
- Gordian — construction cost data, estimating software, and job order contracting
Advanced Healthcare Solutions (AHS):
- ASP (Advanced Sterilization Products) — infection prevention instruments and consumables
- Censitrac / Censis Technologies — surgical instrument tracking software
- Invetech — healthcare automation and instrument development services
Customer Base & Go-to-Market
Fortive serves large enterprise and mid-market customers across manufacturing, utilities, municipalities, commercial real estate, and healthcare systems. The company sells through direct sales forces, distribution partners, and increasingly through SaaS platform contracts. Customer concentration is low, with no single customer representing a material portion of revenue. Volume discounts and long-term contractual agreements are standard for large enterprise accounts, creating stickiness.
Competitive Position
Fortive holds #1 or #2 positions in most of its served markets. Fluke is the dominant brand in industrial test and measurement tools globally. ServiceChannel leads in facilities management SaaS. The combination of iconic hardware brands, embedded software, and workflow integration creates high switching costs and durable competitive moats. The Fortive Business System differentiates the company operationally, enabling consistent margin expansion through continuous improvement.
Key Facts
- Founded: 2016 (spun off from Danaher Corporation)
- Headquarters: Everett, Washington
- Employees: ~14,000 (post-Ralliant spin-off)
- Exchange: NYSE
- Sector / Industry: Industrials / Electronic Instruments & Controls
- Market Cap: ~$17B
Financial Snapshot
ticker: FTV step: 04 generated: 2026-05-12 source: quick-research
Fortive Corporation (FTV) — Financial Snapshot
Income Statement Summary
| Metric | FY2022 | FY2023 | FY2024 | YoY |
|---|---|---|---|---|
| Revenue | $5.83B | $6.07B | $6.23B | +2.7% |
| Gross Margin | ~57% | ~58% | ~60% | +200bp |
| Operating Margin | ~16% | ~17% | ~18.4% | +140bp |
| Net Income | ~$750M | ~$866M | ~$833M | -3.8% |
| EPS (diluted) | $2.10 | $2.43 | ~$2.33 | -4.1% |
Note: 2024 net income declined despite revenue growth due to higher interest expense and restructuring costs. Adjusted EPS (excluding amortization and non-cash charges) significantly higher — adjusted EPS guided at ~$3.68–$3.75 for FY2024.
Cash Flow & Balance Sheet (FY2024)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$1.6B |
| Free Cash Flow | ~$1.4B |
| FCF Margin | ~23% |
| Cash & Equivalents | ~$700M |
| Total Debt | ~$5.0B |
Key Ratios (approximate)
- P/E (adjusted): ~20x | EV/EBITDA: ~18x | FCF Yield: ~7%
- Revenue Growth (FY2024): +2.7% | Adjusted FCF Margin: ~23%
- Net Debt / EBITDA: ~3x (manageable; elevated relative to peers)
Growth Profile
Fortive delivered steady revenue growth from $5.83B in FY2022 to $6.23B in FY2024, compounding at ~3.5% annually. The mix shift toward recurring software and services revenue has driven consistent gross margin expansion — gross margins improved from ~57% to ~60% over this period. Free cash flow remains strong at ~$1.4B annually, supporting capital returns and M&A. Post-Ralliant spin-off, the remaining Fortive entity is expected to carry higher margin characteristics and a higher recurring revenue mix (~50%).
Forward Estimates
- FY2025 Revenue guidance: ~$4.2B–$4.3B (post-Ralliant spin-off, continuing operations only)
- FY2025 Adjusted EPS guidance: $2.71 (post-spin; FY2025 actual exceeded guidance)
- Analysts project adjusted EBITDA margins expanding toward 29–30% by FY2027 for the new Fortive
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $FTV.