Fortive Corp (FTV)

Price—Loading quote

AI: Fair-priced

Price checkAt $61.62, Fortive looks fairly priced, with solid growth already reflected.

Using 302.6 million shares outstanding, the price implies an $18.6 billion market value. It equals about 20.5 times management’s $3.00 midpoint for 2026 adjusted earnings and 17.9 times trailing free cash flow—cash left after running and investing in the business—of $1.04 billion. Those are reasonable, not bargain, valuations for 6.7% recent core growth. They assume several years of moderate growth and stable margins. Because adjusted earnings exclude acquisition-related amortization and other costs, the cash valuation deserves greater weight.

Big pictureCash generation has stayed durable, but the separation makes old comparisons noisy.

SEC-derived history shows operating cash flow of $1.30 billion, $1.35 billion, $1.53 billion, and $1.08 billion during 2022-2025, while annual capital spending stayed below $106 million. Trailing free cash flow reached $1.04 billion in Q2 2026, up 11% year over year. Reported 2025 net income fell 30% to $579 million, but the Ralliant separation and acquisition-related amortization complicate comparisons. More encouragingly, first-half 2026 earnings from continuing operations rose 31% to $294 million.

Business strengthRecurring revenue and strong margins help, while debt keeps the balance sheet merely adequate.

About half of post-separation revenue is recurring, reducing—but not removing—exposure to customer spending cycles. Q2 gross margin was 63.4%, while core sales rose 7.4% in operating solutions and 5.3% in healthcare. At July 3, cash was $374 million against $3.51 billion of debt, leaving $3.14 billion of net debt and a $2 billion unused credit facility. Buybacks cut outstanding shares from 350.7 million in 2023 to 302.6 million, outweighing stock-based pay, but $700 million of first-half repurchases coincided with commercial paper rising to $1.08 billion.

What could change the storySustained growth would justify the price; weaker healthcare margins or cash would not.

Bull case: core revenue stays above 5%, annual free cash flow exceeds $1.05 billion, and net debt falls; growth plus fewer shares could then lift per-share value. Bear case: healthcare’s adjusted margin fell 0.8 percentage point in Q2 despite 5.3% core growth, while overall European demand declined. If core growth falls below management’s 3%-4% framework, or free cash flow slips below $900 million while net debt remains above $3 billion, today’s roughly 18-times cash valuation would provide little downside cushion. These are observable thresholds, not forecasts.

$61.62 price considered

AI: News

Strong quarter, sharp dropSales and cash beat last year, while a higher profit forecast failed to reassure investors.

On July 29, 2026, Fortive reported Q2 revenue of $1.097 billion, 6.7% core growth, adjusted earnings of $0.74 per share, and $271 million of free cash flow. It raised its 2026 adjusted earnings forecast to $2.95-$3.05 from $2.90-$3.00. Shares nevertheless closed 7.1% lower at $59.54. Timing shows association, not proven causation. Investors may have wanted a larger forecast increase or focused on healthcare’s 0.8-point adjusted-margin decline; that explanation is an inference.

Debt refinanced at higher ratesFortive extended debt maturities, but refinancing locked in higher borrowing costs.

On May 12, 2026, Fortive priced $600 million of 4.75% notes due 2031 and $500 million of 5.25% notes due 2036. Proceeds refinanced debt including 3.15% notes due in June 2026. By Q2, quarterly net interest expense had increased to $35.4 million from $32.1 million; Fortive cited higher average borrowing rates. Longer maturities reduce near-term refinancing risk, but the higher coupons divert cash from debt reduction, acquisitions, or shareholder returns. No reliable one-day market reaction was identified.

Buyback capacity expandedA larger buyback plan supports each remaining share, while consuming balance-sheet flexibility.

On May 4, 2026, the board restored the general repurchase authorization to 20 million available shares, alongside $66.7 million remaining under a separation-funded program. Fortive later reported approximately $2 billion of purchases over four quarters, retiring about 38 million shares, or 11% of the prior count. At $61.62, the 20-million-share authorization equals roughly 6.6% of July’s outstanding shares. The program is discretionary, and with net debt above $3 billion, the price paid for further repurchases materially affects whether they create value.

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Financial statements

	2025	2024	2023	2022	2021	2020	2019	2018	2017	2016	2015	2014
Revenue	$4.16B	$4.08B	$3.91B	$5.83B	$5.25B	$4.63B	$4.56B	$3.80B	$5.76B	$5.38B	$6.18B	$6.34B
Gross profit	$2.64B	$2.62B	$2.48B	$3.36B	$3.01B	$2.61B	$2.48B	$2.19B	$2.92B	$2.69B	$3.00B	$3.05B
Research & development	$259.2M	$251.3M	$237.0M	$401.5M	$354.8M	$320.7M	$320.3M	$278.1M	$369.3M	$351.0M	$377.7M	$387.6M
Operating income	$720.2M	$716.3M	$574.0M	$987.4M	$812.8M	$539.4M	$443.9M	$645.3M	$1.14B	$1.06B	$1.27B	$1.25B
EBITDAderived	$1.16B	$1.15B	$1.00B	$1.45B	$1.21B	$923.4M	$785.4M	$819.5M	$1.30B	$1.22B	$1.45B	$1.42B
Net income	$579.2M	$832.9M	$865.8M	$755.2M	$608.4M	$1.61B	$738.9M	$2.91B	$1.04B	$872.3M	$863.8M	$883.4M
Basic EPSper diluted share	$1.74	$2.39	$2.46	$2.12	$1.64	$4.58	$1.99	$8.33	$3.01	$2.52	$2.50	$2.56
Diluted EPSper diluted share	$1.73	$2.36	$2.43	$2.10	$1.63	$4.49	$1.97	$8.21	$2.96	$2.51	$2.50	$2.56

Review source filings at SEC.gov ↗

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys1$1.00M disclosed value

Sells (SEC code S)16$54.01M disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
May 4, 2026Form 4	Underwood Peter CSVP - Chief Legal Officer	SellCommon Stock	47.6K	$60.81	$2.89M	87.8K
Feb 18, 2026Form 4	MITCHELL KATEDirector	SellCommon Stock	7.1K	$58.34	$416.0K	31.8K
Nov 10, 2025Form 4	Underwood Peter CSVP - Chief Legal Officer	SellCommon Stock	58.1K	$51.28	$2.98M	80.1K
Oct 31, 2025Form 4	Walker Stacey A.SVP - Chief People Officer	SellCommon Stock	2.2K	$50.35	$110.4K	59.5K
Aug 1, 2025Form 4	Okerstrom Mark DChief Financial Officer	BuyCommon Stock	21.3K	$47.03	$1.00M	94.6K

Review ownership filings at SEC.gov ↗

Fortive Corp (FTV)

Financial charts

Financial statements

Insider buys & sells