Revenue growth has entered a period of sustained contraction, falling to -27.5% in 2026Q1, even as the company maintains a resilient 63.2% gross margin.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Sales/Revenue | 4.74B | 5.14B | 6.23B | 6.07B | 5.83B | 5.25B | 4.63B | 4.56B | 6.45B | 5.76B | 6.22B | 6.18B | 6.34B | 5.96B |
| Revenue Growth % | -23.36% | -17.48% | 2.75% | 4.11% | 10.87% | 13.38% | 1.54% | -29.27% | 12.1% | -7.52% | 0.74% | -2.5% | 6.3% | - |
| Cost of Goods Sold | 1.81B | 2.01B | 2.5B | 2.47B | 2.46B | 2.24B | 2.02B | 2.07B | 3.13B | 2.83B | 3.18B | 3.18B | 3.28B | 3.09B |
| COGS % of Revenue | - | 39.04% | 40.13% | 40.74% | 42.27% | 42.72% | 43.54% | 45.29% | 48.5% | 49.21% | 51.14% | 51.43% | 51.79% | 51.79% |
| Gross Profit | 2.93B | 3.13B | 3.73B | 3.59B | 3.36B | 3.01B | 2.62B | 2.5B | 3.32B | 2.92B | 3.04B | 3B | 3.06B | 2.87B |
| Gross Margin % | 61.83% | 60.96% | 59.87% | 59.26% | 57.73% | 57.28% | 56.46% | 54.71% | 51.5% | 50.79% | 48.86% | 48.57% | 48.21% | 48.21% |
| Gross Profit Growth % | - | -15.98% | 3.81% | 6.86% | 11.74% | 15.03% | 4.79% | -24.86% | 13.68% | -3.86% | 1.32% | -1.76% | 6.29% | - |
| Operating Expenses | 2.09B | 2.23B | 2.55B | 2.46B | 2.36B | 2.18B | 1.97B | 1.97B | 2.14B | 1.76B | 1.77B | 1.71B | 1.78B | 1.7B |
| OpEx % of Revenue | - | 43.28% | 40.99% | 40.57% | 40.48% | 41.46% | 42.43% | 43.11% | 33.13% | 30.61% | 28.48% | 27.63% | 28.11% | 28.56% |
| Selling, General & Admin | 1.79B | 1.88B | 2.14B | 2.06B | 1.96B | 1.82B | 1.65B | 1.65B | 1.72B | 1.39B | 1.39B | 1.33B | 1.39B | 1.32B |
| SG&A % of Revenue | - | 36.63% | 34.34% | 34.01% | 33.59% | 34.7% | 35.51% | 36.1% | 26.71% | 24.19% | 22.3% | 21.52% | 22% | 22.21% |
| Research & Development | 303.7M | 342.3M | 414M | 397.8M | 401.5M | 354.8M | 320.7M | 320.3M | 414.3M | 369.3M | 384.8M | 377.7M | 387.6M | 378.3M |
| R&D % of Revenue | - | 6.66% | 6.64% | 6.56% | 6.89% | 6.75% | 6.92% | 7.02% | 6.42% | 6.42% | 6.18% | 6.11% | 6.12% | 6.35% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 840M | 908.9M | 1.18B | 1.13B | 1.01B | 831.5M | 650.2M | 529.3M | 1.19B | 1.16B | 1.27B | 1.29B | 1.27B | 1.17B |
| Operating Margin % | 17.73% | 17.67% | 18.88% | 18.69% | 17.26% | 15.82% | 14.03% | 11.6% | 18.37% | 20.18% | 20.37% | 20.94% | 20.09% | 19.65% |
| Operating Income Growth % | - | -22.76% | 3.79% | 12.77% | 20.9% | 27.88% | 22.84% | -55.35% | 2.05% | -8.4% | -2% | 1.63% | 8.69% | - |
| EBITDA | 1.14B | 1.23B | 1.72B | 1.59B | 1.47B | 1.23B | 1.03B | 870.8M | 1.45B | 1.32B | 1.44B | 1.47B | 1.45B | 1.33B |
| EBITDA Margin % | 24.15% | 24.01% | 27.61% | 26.22% | 25.25% | 23.35% | 22.32% | 19.08% | 22.41% | 22.93% | 23.21% | 23.81% | 22.9% | 22.33% |
| EBITDA Growth % | -33.2% | -28.23% | 8.18% | 8.13% | 19.88% | 18.64% | 18.76% | -39.79% | 9.57% | -8.63% | -1.79% | 1.35% | 9.02% | - |
| D&A (Non-Cash Add-back) | 304.7M | 326M | 543.9M | 456.8M | 465.6M | 395.5M | 384M | 341.5M | 260.8M | 158.3M | 176.4M | 176.9M | 178M | 159.7M |
| EBIT | 801.1M | 874.4M | 1.12B | 1.11B | 971.8M | 780.7M | 1.66B | 479.3M | 1.18B | 1.16B | 1.25B | 1.27B | 1.28B | 1.14B |
| Net Interest Income | -120.1M | -120.5M | -152.8M | -123.5M | -98.3M | -103.2M | -148.5M | -142.6M | -97M | -88.7M | -49M | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 120.1M | 120.5M | 152.8M | 123.5M | 98.3M | 103.2M | 148.5M | 142.6M | 97M | 88.7M | 49M | 0 | 0 | 0 |
| Other Income/Expense | -155.5M | -155M | -207.1M | -142.9M | -131.8M | -154M | 857.5M | -192.6M | -107M | -88M | -71.1M | -24.3M | 5.9M | -28.3M |
| Pretax Income | 684.5M | 753.9M | 969.6M | 990.8M | 873.5M | 677.5M | 1.51B | 336.7M | 1.08B | 1.07B | 1.2B | 1.27B | 1.28B | 1.14B |
| Pretax Margin % | 14.45% | 14.66% | 15.56% | 16.34% | 14.99% | 12.89% | 32.53% | 7.38% | 16.71% | 18.65% | 19.23% | 20.55% | 20.19% | 19.18% |
| Income Tax | 73M | 112.7M | 136.7M | 125M | 118.3M | 63.3M | 55.5M | 68.6M | 160.1M | 189.3M | 324.7M | 405.9M | 395.8M | 312.3M |
| Effective Tax Rate % | 10.66% | 14.95% | 14.1% | 12.62% | 13.54% | 9.34% | 3.68% | 20.37% | 14.85% | 17.63% | 27.13% | 31.97% | 30.94% | 27.32% |
| Net Income | 543.7M | 579.2M | 832.9M | 865.8M | 755.2M | 608.4M | 1.61B | 738.9M | 2.91B | 1.04B | 872.3M | 863.8M | 883.4M | 830.9M |
| Net Margin % | 11.48% | 11.26% | 13.37% | 14.27% | 12.96% | 11.58% | 34.81% | 16.19% | 45.16% | 18.15% | 14.01% | 13.98% | 13.94% | 13.94% |
| Net Income Growth % | -31.82% | -30.46% | -3.8% | 14.65% | 24.13% | -62.29% | 118.34% | -74.64% | 178.97% | 19.74% | 0.98% | -2.22% | 6.32% | - |
| Net Income (Continuing) | 611.5M | 641.2M | 832.9M | 865.8M | 755.2M | 614.2M | 1.45B | 268.1M | 918.3M | 884.3M | 872.3M | 863.8M | 883.4M | 830.9M |
| Discontinued Operations | -2M | -62M | 0 | 0 | 0 | -5.8M | 161.1M | 470.8M | 2B | 160.2M | 0 | 0 | 0 | 0 |
| Minority Interest | 8.3M | 7.7M | 7M | 6.4M | 5.2M | 4.8M | 8.5M | 13.2M | 17.4M | 17.9M | 3.1M | 3M | 3.2M | 1.7M |
| EPS (Diluted) | 1.74 | 1.74 | 2.36 | 2.43 | 2.09 | 1.63 | 4.30 | 2.17 | 8.31 | 2.96 | 2.51 | 2.50 | 2.56 | 2.41 |
| EPS Growth % | -26.32% | -26.27% | -2.88% | 16.27% | 28.22% | -62.09% | 98.16% | -73.89% | 180.74% | 17.93% | 0.4% | -2.34% | 6.22% | - |
| EPS (Basic) | - | 1.75 | 2.39 | 2.46 | 2.12 | 1.64 | 4.58 | 2.20 | 8.43 | 3.01 | 2.52 | 2.50 | 2.56 | 2.41 |
| Diluted Shares Outstanding | 312.8M | 319.4M | 352.8M | 355.6M | 360.8M | 352.3M | 359M | 340M | 350.7M | 352.6M | 347.3M | 345.2M | 345.2M | 345.2M |
| Basic Shares Outstanding | 309.6M | 316.4M | 349.2M | 352.5M | 356.4M | 349M | 337.4M | 335.8M | 345.5M | 347.5M | 345.7M | 345.2M | 345.2M | 345.2M |
| Dividend Payout Ratio | - | 15.92% | 13.35% | 11.78% | 13.18% | 16.06% | 5.85% | 12.69% | 3.32% | 9.31% | 349.47% | - | - | - |
Persistent organic revenue contraction
As indicated by the most recent quarterly data, Fortive has experienced a significant revenue decline, with growth rates plummeting to -27.5% in 2026Q1, marking a sustained period of contraction that contrasts sharply with the positive growth figures observed throughout the 2024 fiscal year.
The consistent negative growth trajectory suggests that the company is struggling to offset the impact of portfolio divestitures or a broader cyclical downturn in its core industrial markets. Investors should monitor whether this trend reflects a structural shift in demand for legacy hardware or merely a temporary transition period as the firm pivots toward higher-margin software solutions.
Despite the sharp decline in top-line performance, Fortive has maintained robust gross margins, which reached 63.2% in 2026Q1, demonstrating, according to reported financial statements, a structural pricing power that remains largely insulated from the volatility currently impacting the company's overall revenue volume.
The ability to expand gross margins during a period of significant revenue contraction suggests that the company's product mix is successfully shifting toward higher-value, software-enabled offerings. This resilience implies that the underlying competitive moat of the Fluke and Tektronix brands remains intact, even as the broader business faces cyclical headwinds.
Based on the provided income statement data, operating margins have faced notable volatility, compressing to 17.9% in 2026Q1, which highlights the difficulty of maintaining operational efficiency when fixed costs are spread across a rapidly shrinking revenue base compared to the 2024 peak levels.
The lack of consistent operating leverage suggests that the company's cost structure remains heavily weighted toward fixed R&D and SG&A expenses that do not scale down proportionally with revenue. This warrants further investigation into whether management can successfully implement the Fortive Business System to rationalize these costs without compromising long-term innovation capabilities.
As reported in recent filings, net income has exhibited extreme sensitivity to revenue fluctuations, dropping to $136.4 million in 2026Q1, with stock-based compensation expenses adding further noise to the bottom-line performance during periods of significant portfolio restructuring and operational transition.
The wide variance in quarterly net income, including the sharp decline to $55 million in 2025Q3, suggests that reported earnings may be heavily influenced by non-operating items or one-time charges related to M&A activity. Investors should exercise caution when relying on headline EPS as a proxy for sustainable cash-generating capability.
While the company positions itself as a software-enabled compounder, the recent -27.5% revenue growth rate, as shown in the 2026Q1 data, challenges the narrative that the firm can effectively replace cyclical hardware sales with recurring software revenue in the near term.
Short-sellers may focus on the potential for margin compression if the company is forced to increase R&D or marketing spend to defend its market share against more agile, pure-play software competitors. The current reliance on inorganic growth to mask organic declines appears increasingly unsustainable if the M&A funnel does not yield immediate, accretive results.
Quick answers to the most common questions about buying FTV stock.
For fiscal year 2025, Fortive Corporation (FTV) reported total revenue of $5.14B. This represents a 13.7% decline compared to $5.96B in 2013.
Fortive Corporation (FTV) is profitable, generating $579.2M in net income for the fiscal year ending 2025 with a net profit margin of 11.3%.
Fortive Corporation (FTV) reported an operating income of $908.9M, resulting in an operating profit margin of 17.7%. This margin reflects the operational efficiency of the business before interest and taxes.
Fortive Corporation (FTV) generated $3.13B in gross profit for the year, representing a gross profit margin of 61.0%. This demonstrates the company's core pricing power and production efficiency.