Fortive (FTV) FY2025 10-K Annual Report

Filed: Feb 25, 2026
Health Care
Industrial Instruments For Measurement, Display, and ControlSEC EDGAR

Fortive (FTV) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 25, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.

Fortive FY2025 10-K Analysis

Business Overview

  • Spun off Precision Technologies segment as Ralliant Corporation on June 28, 2025, tax-free spin-off, narrowing Fortive to two segments: Intelligent Operating Solutions and Advanced Healthcare Solutions
  • Core model: design, develop, manufacture, and market instrumentation, software, and services for industrial safety/productivity and healthcare workflow optimization
  • Post-separation workforce of 10,000+ across ~50 countries, reflecting materially smaller footprint than pre-spin Fortive
  • FBS operating system explicitly upgraded with AI and machine learning capabilities to accelerate innovation and commercial growth
  • "Fortive Accelerated" strategy formally named as guiding framework, emphasizing profitable organic growth, disciplined capital allocation, and investor trust as three distinct pillars

Management Discussion & Analysis

  • Revenue $4.16B, up 1.9% YoY; core revenue growth 1.7%, driven by 2.2% pricing offset by 0.6% volume decline
  • Operating margin 17.3% vs 17.6% in 2024; gross margin 63.5% vs 64.2%; -100bps from Separation-related stock comp, -55bps restructuring
  • Best segment IOS: sales $2.86B (+2.3% YoY), operating margin 25.8% vs 25.3%; AHS weakest: sales $1.30B (+1.2%), margin 10.6% vs 10.8%
  • Operating cash flow $1.04B; capex $105M; buybacks $1.61B (30M shares); dividends $92M; received $1.15B Ralliant dividend from PT Separation
  • Key risks: IEEPA tariff ruling uncertainty, OBBBA-driven US government spending cuts, FX volatility, Pillar Two tax rules; FX could boost 2026 sales ~0.8%

Risk Factors

  • IEEPA Ruling by Supreme Court invalidates prior tariffs; uncertainty over reimposition affects ~44% of sales derived outside the US
  • Long-term debt ~$3.2B as of Dec 31, 2025; covenant includes debt-to-EBITDA ratio with acceleration risk on default
  • Goodwill and intangible assets ~$9.5B on balance sheet; impairment risk from market declines or integration failures
  • Triple leadership transition in 2025–2026: CEO, CFO, and Chief People Officer all replaced amid post-Ralliant separation
  • US federal government sales ~$417M in 2025; contracts subject to termination at government convenience and FCA liability

Fortive FY2025 Key Financial Metrics
XBRL

Revenue

$4.2B

-33.3% YoY

Net Income

$579M

-30.5% YoY

Gross Margin

63.5%

+363bp YoY

Operating Margin

17.3%

-205bp YoY

Net Margin

13.9%

+56bp YoY

ROE

9.0%

+80bp YoY

Total Assets

$11.7B

-31.0% YoY

EPS (Diluted)

$1.73

-26.7% YoY

Operating Cash Flow

$1.1B

-29.1% YoY

Source: XBRL data from Fortive FY2025 10-K filing on SEC EDGAR. All figures in USD.

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