Fortive (FTV) Barclays 43rd Annual Industrial Select Conference summary

Demand environment and recent performance

• Exited 2025 with stronger-than-expected Q4 core growth across both segments, with all business engines contributing positively.

• January 2026 performance was solid and aligned with expectations, supporting a stable outlook for the year.

• Short-cycle businesses, especially in North America, benefited from data center and distributed energy spending, with EMEA showing sequential improvement and APAC remaining steady.

• No significant one-time events impacted Q4; broad-based strength was observed.

• 2026 assumptions are based on stable but not dramatically improving macro conditions, including tariffs, healthcare funding, and government spending.

Growth strategies and innovation

• Focus remains on the Fortive Acceleration strategy to outperform markets.

• Fluke continues to expand through rapid innovation, targeted commercial investments, and growing recurring revenue, with no perceived ceiling to market share.

• Geographic expansion, such as in India, has driven double-digit growth with modest investments.

• Recurring revenue at Fluke now represents 15% of sales and is growing at double digits.

Government and FAL segment trends

• Government-related business stabilized at about 8% of revenue, mainly in state and local sectors, with no major rebound expected in 2026.

• FAL platform remains accretive, with subdued government spending post-ESSER funding but ongoing innovation and commercial expansion.

• ServiceChannel and other FAL brands launched major AI-powered products in 2025, expanding into new verticals and geographies.

• Brands within FAL operate independently but share capabilities like AI and enterprise selling where beneficial.