Fortive (FTV) Q4 2025 earnings summary

Executive summary

• Q4 2025 performance exceeded expectations, with core growth just over 3%, Adjusted EBITDA growth of 8%, and Adjusted EPS growth of about 13%, resulting in full-year Adjusted EPS of $2.71, surpassing guidance.

• $1.3 billion in share repurchases were executed in the second half of 2025, reducing diluted shares outstanding by about 8%.

• The company is executing its Accelerated strategy, focusing on innovation, commercial acceleration, and recurring revenue growth.

• FY 2026 Adjusted EPS guidance is set at $2.90 to $3.00, implying 9% year-over-year growth at the midpoint.

• Completed the separation of the Precision Technologies segment (Ralliant) in June 2025, with results reflecting this as a discontinued operation.

Financial highlights

• Q4 2025 revenue was $1,123 million, up 4.6% year-over-year; core growth was 3.3%.

• Full year 2025 revenue totaled $4.16 billion, up 1.9% year-over-year; core revenue up 1.7%.

• Q4 Adjusted EBITDA reached $358 million (up 7.8% YoY), with margin expanding to 31.9%.

• Full year 2025 Adjusted EBITDA was $1,233 million, up 6.1% year-over-year, with a 29.6% margin.

• Free cash flow for 2025 was $931 million, with conversion on adjusted net income over 100%.

Outlook and guidance

• FY 2026 Adjusted EPS guidance is $2.90 to $3.00 per share, assuming similar market dynamics as Q4.

• Reported revenue for 2026 is expected to be nearly $4.3 billion, with core revenue growth of 2%-3%.

• FX is expected to provide a 300 bps tailwind in Q1, easing through the year.

• Mid-teens adjusted effective tax rate planned for the year, with Q1-Q3 in high teens and Q4 in high single to low double digits.

• Net interest expense for 2026 is modeled at just over $120 million; diluted share count is about 315 million.