Fortive (FTV) JPMorgan Industrials Conference 2026 summary

Strategic and financial outlook

• Accelerated strategy remains on track, with strong execution and no changes to long-term growth targets of 3%-4% core growth, 50-100 bps EBITDA margin expansion, and high single-digit EPS growth for 2026-2027.

• Commercial acceleration, product innovation, and recurring revenue growth are the main levers for organic growth.

• Recurring revenue is about 50% of total, led by software and consumables, and is growing faster than the overall business.

• Capital allocation prioritizes buybacks, with 8% of shares repurchased since the spin-off and continued flexibility for future buybacks.

• Margin expansion is driven by SG&A leverage, cost reductions, reinvestment in sales/marketing and R&D, and operating leverage.

Business segment performance and innovation

• FAL (Facilities and Asset Lifecycle) group includes Accruent, Gordian, and ServiceChannel, each with strong competitive moats and proprietary data.

• ServiceChannel is the fastest-growing FAL business, expanding vertically and geographically; Gordian is stabilizing after state/local spending fluctuations; Accruent is revamping its portfolio and commercial efforts.

• Majority of FAL revenue is now SaaS, with ongoing conversion and focus on recurring revenue over price increases.

• Provation in healthcare is outperforming mid/high single-digit growth rates, benefiting from innovation and market expansion.

• Fluke, the largest business, continues mid-single-digit growth, driven by brand strength, technician demand, and new products like CertiFiber Max for data centers.

Technology, AI, and operational efficiency

• AI is integrated across product development, marketing, customer service, and internal operations, accelerating innovation and reducing costs.

• Gordian's Flash uses AI to automate construction material takeoffs, reducing days of work to minutes.

• Internal productivity gains from AI have led to significant reductions in IR and M&A team sizes and corporate costs.

• R&D investment remains in the mid-single digits as a percentage of sales, with higher allocation to software.

• Growth-oriented culture shift under new leadership, with increased focus on commercial and innovation levers.