Fortive's Q2 Earnings Miss Estimates, Revenues Beat, Stock Down

Fortive Corporation FTV reported second-quarter 2025 adjusted earnings per share (EPS) of 58 cents from continuing operations, which missed the Zacks Consensus Estimate of 60 cents. The bottom line increased 3.6% year over year.

Revenues declined 0.4% year over year to $1.02 billion. The top line beat the Zacks Consensus Estimate by 0.8%. Core revenues decreased 0.7% year over year.

The revenue growth was negatively impacted late in the second quarter as customer demand responded to macroeconomic pressures and uncertainty.

After the announcement, Fortive’s shares declined around 2.5% in the trading session yesterday. The stock has lost 29.5% in the past year against the Zacks Electronics - Testing Equipment industry's growth of 2.9%.

The company completed the spin-off of Ralliant and embarked on a new chapter at Fortive, guided by a well-defined value creation plan aimed at accelerating profitable growth and maximizing shareholder returns. While second-quarter demand was affected by uncertainties around trade, healthcare and government spending policies, Fortive still delivered strong earnings and robust free cash flow, demonstrating the resilience of its leading operating brands and the effectiveness of the Fortive Business System.

On June 28, 2025, Fortive completed the spin-off of its former Precision Technologies segment by distributing all issued and outstanding shares of Ralliant Corporation, the newly formed entity. Each Fortive shareholder received one share of Ralliant common stock for every three shares of FTV common stock held as of the record date, June 16, 2025.

Starting in the third quarter of 2025, Fortive will report Ralliant as a discontinued operation in its financial statements following the separation. The financial results of the Precision Technologies (PT) segment are included in Fortive’s consolidated results for the second quarter. However, Fortive has treated the PT segment as a discontinued operation.

Fortive Corporation Price, Consensus and EPS Surprise

Fortive Corporation price-consensus-eps-surprise-chart | Fortive Corporation Quote

Top Line in Detail

Fortive operates under the following three organized segments:

Intelligent Operating Solutions: The segment generated revenues of $696.9 million (contributing 68.6% to total revenues), almost flat on a year-over-year basis.

Advanced Healthcare Solutions: This segment registered revenues of $319.5 million (31.4%), down 1.3% year over year.

Operating Details

In the reported quarter, adjusted gross profit decreased 0.5% to $650 million on a year-over-year basis.

Adjusted operating margin was 26.7%, which contracted 40 basis points (bps) on a year-over-year basis.

Segment-wise, the adjusted operating margins of Intelligent Operating Solutions were 32.1%, expanding 20 bps year over year.

Adjusted operating margins of Advanced Healthcare Solutions were 25.3%, rising 30 bps.

Balance Sheet & Cash Flow

As of June 27, 2025, cash and cash equivalents were $1827.4 million compared with $892.1 million as of March 28, 2025.

FTV generated an operating cash flow of $205 million for the second quarter compared with $191.8 million in the previous quarter. Non-GAAP free cash flow was $180 million compared with $170.7 million in the prior quarter.

The company repurchased approximately $140 million worth of shares during the reported quarter.

From the spin-off announcement in September 2024 through its completion in June 2025, Fortive has allocated more than 75% of its total free cash flow to share buybacks, fully aligned with its previously stated capital deployment strategy for that period.

Fortive’s Outlook

The company anticipates the third-quarter reported revenues to be roughly in line with the second quarter, aided slightly by favorable foreign exchange. For the second half, Fortive is projecting core revenue growth to be generally consistent with the first half.

Within AHS, the company anticipates core growth in the second half to mirror second-quarter levels, although in the third quarter, the company faces a tougher year-over-year comparison. In terms of adjusted EBITDA, FTV expects normal seasonality, with third-quarter adjusted EBITDA coming in lower than the second quarter in absolute dollars.

With reduced debt levels, interest expense will also decline in the second half. The company continues to project a full-year adjusted effective tax rate in the mid-teens.
The company anticipates fourth-quarter adjusted EPS to be significantly higher than the third quarter. Meanwhile, third-quarter adjusted EPS is projected to be slightly below second-quarter levels on a per-share basis.

For 2025, Fortive expects adjusted earnings per share from continuing operations to be in the range of $2.50 to $2.60.

Zacks Rank

Currently, Fortive has a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Performance of Other Companies in Tech Space

Cognex Corporation CGNX came out with quarterly earnings of 25 cents per share, beating the Zacks Consensus Estimate of 23 cents per share. This compares to earnings of 23 cents per share a year ago.

Cognex posted revenues of $249 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 4.96%. This compares to year-ago revenues of $239 million.

In the past six months, shares of CGNX have lost 13.4%.

Simulations Plus, Inc. SLP reported third-quarter fiscal 2025 adjusted earnings of 45 cents per share, which expanded 66.7% year over year. The figure also surpassed the Zacks Consensus Estimate of 26 cents per share.

Quarterly revenues jumped 10% year over year to $20.4 million, driven by continued momentum across its software and services business segments, along with a $2.4 million boost from the Pro-ficiency acquisition.

In the past, shares of SLP have declined 67%

SAP SE SAP reported second-quarter 2025 non-IFRS earnings of €1.50 ($1.70) per share, climbing 37% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.63.

Driven by robust cloud growth, disciplined cost control, and expanding AI capabilities, SAP reported total revenues on a non-IFRS basis of €9.03 billion ($10.24 billion), representing a 9% year-over-year increase (up 12% at constant currency or cc). The Zacks Consensus estimate was pegged at $10.37 billion.

Shares of SAP have surged 35.9% in the past year.

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