Fortive 2025 Q3 Earnings Beats Expectations with Raised Guidance and 75.2% Net Income Drop

Fortive (FTV) reported fiscal 2025 Q3 earnings on Oct 29, 2025, with revenue of $1.03 billion—exceeding estimates—and raised full-year adjusted EPS guidance to $2.63–$2.67. Despite a 75.2% decline in net income to $55 million, the company highlighted core revenue growth, disciplined capital allocation, and strategic share repurchases as key drivers of long-term value.

Revenue

The total revenue of Fortive increased by 2.3% to $1.03 billion in 2025 Q3, up from $1 billion in 2024 Q3. The Intelligent Operating Solutions segment, which includes high-demand products such as specialized instruments and gas detection equipment, saw a revenue increase of 2.6% to $699 million. Meanwhile, the Advanced Healthcare Solutions segment reported $328.3 million in revenue, reflecting a 1.8% year-over-year increase. These results underscore the company’s ability to leverage its diversified industrial technology portfolio across mission-critical markets.

Earnings/Net Income

Fortive's EPS declined 73.0% to $0.17 in 2025 Q3 from $0.63 in 2024 Q3. Meanwhile, the company's net income declined to $55 million in 2025 Q3, down 75.2% from $221.60 million reported in 2024 Q3. The Company has sustained profitability for 10 years over the corresponding fiscal quarter, reflecting stable business performance. Despite the sharp decline in net income, the adjusted EPS guidance increase signals confidence in future operational improvements.

Price Action

The stock price of Fortive has tumbled 8.34% during the latest trading day, has edged up 2.57% during the most recent full trading week, and has edged up 2.92% month-to-date.

Post-Earnings Price Action Review

Following the earnings report, Fortive’s stock price fell 8.34% in the latest trading day but recovered with a 2.57% gain for the week and a 2.92% rise month-to-date. The mixed reaction reflects both the earnings results and broader economic factors, including investor sentiment around industrial technology stocks and macroeconomic uncertainties.

CEO Commentary

Olumide Soroye, President and CEO, highlighted Fortive’s Q3 2025 performance, noting “solid results” with core revenue growth, adjusted EBITDA growth, and adjusted EPS growth exceeding expectations. He attributed this to the strength of operating brands and the Fortive Business System. Soroye emphasized disciplined capital allocation, including $1 billion in share repurchases (21 million shares, ~6% of diluted shares outstanding), and stated the company is “executing our Fortive Accelerated strategy with urgency.” He expressed confidence in the medium-term financial framework and the ability to create “meaningful shareholder value” through profitable growth, capital allocation, and investor trust-building.

Guidance

Fortive raised full-year 2025 adjusted diluted EPS guidance to $2.63–$2.67 (from $2.50–$2.60), reflecting Q3’s adjusted EPS performance. Soroye emphasized executing the Fortive Accelerated strategy via “profitable growth acceleration powered by FBS Amplified,” disciplined capital allocation, and maintaining the financial framework. The company remains “poised to create meaningful shareholder value” but did not quantify specific revenue or margin targets. Forward-looking statements include confidence in the financial model and strategic execution, with risks outlined in the 8-K’s forward-looking disclaimer.

Additional News

Recent developments highlight Fortive’s strategic focus on shareholder value and operational resilience. The company executed $1 billion in share repurchases during Q3, reducing diluted shares outstanding by ~6%, a move underscoring its commitment to capital allocation. CEO Olumide Soroye reiterated confidence in the Fortive Accelerated strategy, emphasizing “urgent execution” of growth initiatives and operational efficiency. Additionally, Fortive’s Intelligent Operating Solutions segment, which includes software platforms like Accruent and ServiceChannel, reported robust demand for industrial automation tools, reinforcing its position in mission-critical markets. These actions align with the company’s broader goal of enhancing profitability and long-term investor trust.