filings.toolsItem 1. FINANCIAL STATEMENTS
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Item 1. FINANCIAL STATEMENTS
FORTIVE CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
($ and shares in millions, except per share amounts)
(unaudited)
| As of | |||||||||||
| September 26, 2025 | December 31, 2024 | ||||||||||
| ASSETS | |||||||||||
| Current assets: | |||||||||||
| Cash and equivalents | $ | 430.8 | $ | 813.3 | |||||||
| Accounts receivable less allowance for doubtful accounts of $18.7 and $19.4, respectively | 633.6 | 661.3 | |||||||||
| Inventories: | |||||||||||
| Finished goods | 190.8 | 151.9 | |||||||||
| Work in process | 12.2 | 15.3 | |||||||||
| Raw materials | 107.6 | 102.6 | |||||||||
| Inventories | 310.6 | 269.8 | |||||||||
| Prepaid expenses and other current assets | 303.4 | 233.6 | |||||||||
| Current assets, discontinued operations | 53.2 | 614.3 | |||||||||
| Total current assets | 1,731.6 | 2,592.3 | |||||||||
| Property, plant and equipment, net of accumulated depreciation of $426.5 and $392.2, respectively | 258.7 | 232.9 | |||||||||
| Other assets | 348.6 | 348.4 | |||||||||
| Goodwill | 7,276.2 | 7,216.0 | |||||||||
| Other intangible assets, net | 2,268.4 | 2,530.5 | |||||||||
| Other assets, discontinued operations | 3.2 | 4,096.0 | |||||||||
| Total assets | $ | 11,886.7 | $ | 17,016.1 | |||||||
| LIABILITIES AND EQUITY | |||||||||||
| Current liabilities: | |||||||||||
| Current portion of long-term debt | $ | 1,189.2 | $ | 376.2 | |||||||
| Trade accounts payable | 427.6 | 425.4 | |||||||||
| Accrued expenses and other current liabilities | 852.7 | 868.3 | |||||||||
| Current liabilities, discontinued operations | — | 568.5 | |||||||||
| Total current liabilities | 2,469.5 | 2,238.4 | |||||||||
| Other long-term liabilities | 788.6 | 847.2 | |||||||||
| Long-term debt | 2,117.1 | 3,331.1 | |||||||||
| Long-term liabilities, discontinued operations | — | 403.8 | |||||||||
| Equity: | |||||||||||
| Common stock: $0.01 par value, 2,000 shares authorized; 368.8 and 366.6 issued; 317.6 and 341.2 outstanding, respectively | 3.7 | 3.7 | |||||||||
| Additional paid-in capital | 4,164.3 | 4,035.0 | |||||||||
| Treasury shares, at cost | (2,962.6) | (1,612.3) | |||||||||
| Retained earnings | 5,264.3 | 8,227.6 | |||||||||
| Accumulated other comprehensive income (loss) | 34.2 | (465.4) | |||||||||
| Total Fortive stockholders’ equity | 6,503.9 | 10,188.6 | |||||||||
| Noncontrolling interests | 7.6 | 7.0 | |||||||||
| Total stockholders’ equity | 6,511.5 | 10,195.6 | |||||||||
| Total liabilities and equity | $ | 11,886.7 | $ | 17,016.1 |
See the accompanying Notes to Consolidated Condensed Financial Statements.
FORTIVE CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS
($ and shares in millions, except per share amounts)
(unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2025 | September 27, 2024 | September 26, 2025 | September 27, 2024 | ||||||||||||||||||||
| Sales of products and software | $ | 814.4 | $ | 802.5 | $ | 2,431.6 | $ | 2,420.1 | |||||||||||||||
| Sales of services | 212.7 | 201.2 | 605.0 | 588.0 | |||||||||||||||||||
| Total sales | 1,027.1 | 1,003.7 | 3,036.6 | 3,008.1 | |||||||||||||||||||
| Cost of product and software sales | (270.0) | (260.2) | (809.7) | (792.8) | |||||||||||||||||||
| Cost of service sales | (107.9) | (102.0) | (294.7) | (291.7) | |||||||||||||||||||
| Total cost of sales | (377.9) | (362.2) | (1,104.4) | (1,084.5) | |||||||||||||||||||
| Gross profit | 649.2 | 641.5 | 1,932.2 | 1,923.6 | |||||||||||||||||||
| Operating costs: | |||||||||||||||||||||||
| Selling, general and administrative | (427.6) | (407.5) | (1,244.3) | (1,233.4) | |||||||||||||||||||
| Research and development | (62.0) | (62.0) | (193.2) | (186.1) | |||||||||||||||||||
| Operating profit | 159.6 | 172.0 | 494.7 | 504.1 | |||||||||||||||||||
| Non-operating income (expense), net: | |||||||||||||||||||||||
| Interest expense, net | (25.4) | (37.1) | (89.5) | (119.8) | |||||||||||||||||||
| Other non-operating income (expense), net | 0.8 | (25.8) | 3.1 | (58.2) | |||||||||||||||||||
| Earnings from continuing operations before income taxes | 135.0 | 109.1 | 408.3 | 326.1 | |||||||||||||||||||
| Income taxes | (18.0) | 2.4 | (67.1) | (36.8) | |||||||||||||||||||
| Net earnings from continuing operations | 117.0 | 111.5 | 341.2 | 289.3 | |||||||||||||||||||
| Net earnings (loss) from discontinued operations | (62.0) | 110.1 | 52.3 | 334.8 | |||||||||||||||||||
| Net earnings | $ | 55.0 | $ | 221.6 | $ | 393.5 | $ | 624.1 | |||||||||||||||
| Net earnings per common share from continuing operations: | |||||||||||||||||||||||
| Basic | $ | 0.35 | $ | 0.32 | $ | 1.01 | $ | 0.82 | |||||||||||||||
| Diluted | $ | 0.35 | $ | 0.32 | $ | 1.00 | $ | 0.82 | |||||||||||||||
| Net earnings per common share from discontinued operations: | |||||||||||||||||||||||
| Basic | $ | (0.19) | $ | 0.31 | $ | 0.16 | $ | 0.96 | |||||||||||||||
| Diluted | $ | (0.19) | $ | 0.31 | $ | 0.15 | $ | 0.94 | |||||||||||||||
| Net earnings per share: | |||||||||||||||||||||||
| Basic | $ | 0.17 | $ | 0.63 | $ | 1.17 | $ | 1.78 | |||||||||||||||
| Diluted | $ | 0.16 | $ | 0.63 | $ | 1.16 | $ | 1.76 | |||||||||||||||
| Average common stock and common equivalent shares outstanding: | |||||||||||||||||||||||
| Basic | 330.8 | 349.2 | 337.2 | 350.7 | |||||||||||||||||||
| Diluted | 333.4 | 352.3 | 339.9 | 354.4 | |||||||||||||||||||
| Certain amounts may not sum due to rounding. |
See the accompanying Notes to Consolidated Condensed Financial Statements.
FORTIVE CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)
($ in millions)
(unaudited)
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2025 | September 27, 2024 | September 26, 2025 | September 27, 2024 | ||||||||||||||||||||
| Net earnings | $ | 55.0 | $ | 221.6 | $ | 393.5 | $ | 624.1 | |||||||||||||||
| Other comprehensive income (loss), net of income taxes: | |||||||||||||||||||||||
| Foreign currency translation adjustments | (10.7) | 89.3 | 167.4 | (8.3) | |||||||||||||||||||
| Pension adjustments | (0.1) | 0.1 | (0.1) | 0.2 | |||||||||||||||||||
| Total other comprehensive income (loss), net of income taxes | (10.8) | 89.4 | 167.3 | (8.1) | |||||||||||||||||||
| Comprehensive income (loss) | $ | 44.2 | $ | 311.0 | $ | 560.8 | $ | 616.0 |
See the accompanying Notes to Consolidated Condensed Financial Statements.
FORTIVE CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CHANGES IN EQUITY
($ and shares in millions)
(unaudited)
| Common Stock | Additional Paid-In Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||
| Shares Outstanding | Amount | ||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2024 | 341.2 | $ | 3.7 | $ | 4,035.0 | $ | (1,612.3) | $ | 8,227.6 | $ | (465.4) | $ | 7.0 | ||||||||||||||||||||||||||||
| Net earnings for the period | — | — | — | — | 171.9 | — | — | ||||||||||||||||||||||||||||||||||
| Dividends to common stockholders | — | — | — | — | (27.2) | — | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | 70.1 | — | ||||||||||||||||||||||||||||||||||
| Stock based compensation | 1.5 | — | 64.4 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Common stock repurchases | (2.5) | — | — | (203.6) | — | — | — | ||||||||||||||||||||||||||||||||||
| Shares withheld for taxes | (0.3) | — | (27.8) | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Change in noncontrolling interests | — | — | — | — | — | — | (0.1) | ||||||||||||||||||||||||||||||||||
| Balance, March 28, 2025 | 339.9 | $ | 3.7 | $ | 4,071.6 | $ | (1,815.9) | $ | 8,372.3 | $ | (395.3) | $ | 6.9 | ||||||||||||||||||||||||||||
| Net earnings for the period | — | — | — | — | 166.6 | — | — | ||||||||||||||||||||||||||||||||||
| Dividends to common stockholders | — | — | — | — | (27.0) | — | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | 108.0 | — | ||||||||||||||||||||||||||||||||||
| Stock based compensation | 0.2 | — | 36.2 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Common stock repurchases | (1.9) | — | — | (136.3) | — | — | — | ||||||||||||||||||||||||||||||||||
| Shares withheld for taxes | — | — | (1.8) | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Change in noncontrolling interests | — | — | — | — | — | — | 0.2 | ||||||||||||||||||||||||||||||||||
| Balance, June 27, 2025 | 338.2 | $ | 3.7 | $ | 4,106.0 | $ | (1,952.2) | $ | 8,511.9 | $ | (287.3) | $ | 7.1 | ||||||||||||||||||||||||||||
| Net earnings for the period | — | — | — | — | 55.0 | $ | — | $ | — | ||||||||||||||||||||||||||||||||
| Dividends to common stockholders | — | — | — | — | (19.1) | — | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | (10.8) | — | ||||||||||||||||||||||||||||||||||
| Stock based compensation | 0.4 | — | 64.3 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Common stock repurchases | (20.8) | — | — | (1,010.4) | — | — | — | ||||||||||||||||||||||||||||||||||
| Shares withheld for taxes | (0.2) | — | (6.0) | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Change in noncontrolling interests | — | — | — | — | — | — | 0.5 | ||||||||||||||||||||||||||||||||||
| Distribution of Ralliant Corporation | — | — | — | — | (3,283.5) | 332.3 | — | ||||||||||||||||||||||||||||||||||
| Balance, September 26, 2025 | 317.6 | $ | 3.7 | $ | 4,164.3 | $ | (2,962.6) | $ | 5,264.3 | $ | 34.2 | $ | 7.6 |
| Common Stock | Additional Paid-In Capital | Treasury Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interests | ||||||||||||||||||||||||||||||||||||
| Shares Outstanding | Amount | ||||||||||||||||||||||||||||||||||||||||
| Balance, December 31, 2023 | 350.7 | $ | 3.6 | $ | 3,851.3 | $ | (715.8) | $ | 7,505.9 | $ | (326.1) | $ | 6.4 | ||||||||||||||||||||||||||||
| Net earnings for the period | — | — | — | — | 207.4 | — | — | ||||||||||||||||||||||||||||||||||
| Dividends to common stockholders | — | — | — | — | (28.1) | — | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | (76.4) | — | ||||||||||||||||||||||||||||||||||
| Stock based compensation | 1.5 | 0.1 | 73.2 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Shares withheld for taxes | (0.2) | — | (18.4) | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Balance, March 29, 2024 | 352.0 | $ | 3.7 | $ | 3,906.1 | $ | (715.8) | $ | 7,685.2 | $ | (402.5) | $ | 6.4 | ||||||||||||||||||||||||||||
| Net earnings for the period | — | — | — | — | 195.1 | — | — | ||||||||||||||||||||||||||||||||||
| Dividends to common shareholders | — | — | — | — | (28.0) | — | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | (21.1) | — | ||||||||||||||||||||||||||||||||||
| Stock based compensation | 0.3 | — | 35.0 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Common stock repurchases | (2.0) | — | — | (154.6) | — | — | — | ||||||||||||||||||||||||||||||||||
| Shares withheld for taxes | — | — | (3.8) | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Change in noncontrolling interests | — | — | — | — | — | — | 0.1 | ||||||||||||||||||||||||||||||||||
| Balance, June 28, 2024 | 350.3 | $ | 3.7 | $ | 3,937.3 | $ | (870.4) | $ | 7,852.3 | $ | (423.6) | $ | 6.5 | ||||||||||||||||||||||||||||
| Net earnings for the period | — | — | — | — | 221.6 | — | — | ||||||||||||||||||||||||||||||||||
| Dividends to common shareholders | — | — | — | — | (27.8) | — | — | ||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss) | — | — | — | — | — | 89.4 | — | ||||||||||||||||||||||||||||||||||
| Stock based compensation | 0.5 | — | 49.1 | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Common stock repurchases | (3.8) | — | — | (272.4) | — | — | — | ||||||||||||||||||||||||||||||||||
| Shares withheld for taxes | (0.1) | — | (4.3) | — | — | — | — | ||||||||||||||||||||||||||||||||||
| Change in noncontrolling interests | — | — | — | — | — | — | 0.1 | ||||||||||||||||||||||||||||||||||
| Balance, September 27, 2024 | 346.9 | $ | 3.7 | $ | 3,982.1 | $ | (1,142.8) | $ | 8,046.1 | $ | (334.2) | $ | 6.6 |
See the accompanying Notes to Consolidated Condensed Financial Statements.
FORTIVE CORPORATION AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
($ in millions)
(unaudited)
| Nine Months Ended | |||||||||||
| September 26, 2025 | September 27, 2024 | ||||||||||
| Cash flows from operating activities: | |||||||||||
| Net earnings | $ | 393.5 | $ | 624.1 | |||||||
| Less: net earnings (loss) from discontinued operations | (52.3) | (334.8) | |||||||||
| Net earnings from continuing operations | 341.2 | 289.3 | |||||||||
| Adjustments to reconcile net earnings to net cash provided by operating activities: | |||||||||||
| Amortization | 274.3 | 277.1 | |||||||||
| Depreciation | 52.0 | 45.7 | |||||||||
| Stock-based compensation | 96.9 | 67.1 | |||||||||
| Loss from equity investments | — | 39.4 | |||||||||
| Change in certain assets and liabilities: | |||||||||||
| Change in trade accounts receivable, net | 56.2 | 52.1 | |||||||||
| Change in inventories | (40.2) | (9.2) | |||||||||
| Change in trade accounts payable | (4.1) | 5.0 | |||||||||
| Change in prepaid expenses and other assets | (28.0) | (27.1) | |||||||||
| Change in accrued expenses and other liabilities | (56.8) | (38.6) | |||||||||
| Total operating cash provided by continuing operations | 691.5 | 700.8 | |||||||||
| Total operating cash provided by discontinued operations | 25.8 | 323.8 | |||||||||
| Net cash provided by operating activities | 717.3 | 1,024.6 | |||||||||
| Cash flows from investing activities: | |||||||||||
| Purchases of property, plant and equipment | (74.7) | (63.5) | |||||||||
| Proceeds from sale of property | 0.4 | 0.8 | |||||||||
| Cash paid for acquisitions, net of cash received | — | (3.7) | |||||||||
| All other investing activities | 10.8 | (1.6) | |||||||||
| Total investing cash used in continuing operations | (63.5) | (68.0) | |||||||||
| Total investing cash used in discontinued operations | (15.7) | (1,731.8) | |||||||||
| Net cash used in investing activities | (79.2) | (1,799.8) | |||||||||
| Cash flows from financing activities: | |||||||||||
| Net proceeds from (repayments of) commercial paper borrowings | 105.8 | (571.2) | |||||||||
| Repurchase of common shares | (1,345.1) | (423.0) | |||||||||
| Payment of dividends | (73.4) | (83.9) | |||||||||
| Proceeds from borrowings (maturities greater than 90 days), net of issuance costs | — | 1,733.5 | |||||||||
| Repayment of borrowings (maturities greater than 90 days) | (715.7) | (1,000.0) | |||||||||
| Proceeds from Ralliant Dividend | 1,150.0 | — | |||||||||
| All other financing activities | 15.6 | 47.9 | |||||||||
| Total financing cash used in continuing operations | (862.8) | (296.7) | |||||||||
| Total financing cash used in discontinued operations | (160.3) | — | |||||||||
| Net cash used in financing activities | (1,023.1) | (296.7) | |||||||||
| Effect of exchange rate changes on cash and equivalents | 2.5 | (5.6) | |||||||||
| Net change in cash and equivalents | (382.5) | (1,077.5) | |||||||||
| Beginning balance of cash and equivalents | 813.3 | 1,888.8 | |||||||||
| Ending balance of cash and equivalents | $ | 430.8 | $ | 811.3 |
See the accompanying Notes to Consolidated Condensed Financial Statements.
FORTIVE CORPORATION AND SUBSIDIARIES
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
NOTE 1. BUSINESS OVERVIEW
Fortive Corporation (“Fortive,” “the Company,” “we,” “us,” or “our”) innovates essential technologies to keep the world safe and productive. Our strategic segments - Intelligent Operating Solutions (“IOS”) and Advanced Healthcare Solutions (“AHS”) - include iconic inventor brands with leading positions in their markets. Our businesses design, develop, manufacture, and market products, software, and services, building upon leading brand names, innovative technologies, and strong market positions. Our research and development, manufacturing, sales, distribution, service, and administrative facilities are located in approximately 50 countries around the world.
We prepared the unaudited consolidated condensed financial statements included herein in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) applicable for interim periods. Certain information and footnote disclosures normally included in financial statements prepared in accordance with GAAP have been omitted pursuant to such rules and regulations; however, we believe the disclosures are adequate to make the information presented not misleading. The unaudited consolidated condensed financial statements included herein should be read in conjunction with the audited annual consolidated financial statements as of and for the year ended December 31, 2024 and the footnotes (“Notes”) thereto included within our 2024 Annual Report on Form 10-K. Certain of our operations have been presented as discontinued operations. We present businesses whose disposal represents a strategic shift that has, or will have, a major effect on our operations and financial results as discontinued operations when the components meet the criteria for held for sale, are sold, or spun-off.
In our opinion, the accompanying financial statements contain all adjustments, which consist of only normal, recurring accruals necessary to fairly present our financial position, results of operations, comprehensive income, stockholders’ equity, and cash flows for the periods presented. The results of operations for the three and nine months ended September 26, 2025, are not necessarily indicative of the results for the full year.
Precision Technologies Separation
On June 28, 2025 (the “Distribution Date”), the Company completed the separation (the “Separation” or the “PT Separation”) of its former Precision Technologies segment by distributing to Fortive shareholders on a pro rata basis all of the issued and outstanding common stock of Ralliant Corporation (“Ralliant”), the entity incorporated to hold the PT businesses. The requirements for reporting the Ralliant business as discontinued operations were met upon completion of the PT Separation. Unless otherwise indicated, all amounts in this quarterly report refer to continuing operations. Refer to Note 2 for additional information.
Accumulated Other Comprehensive Loss
On the Distribution Date, due to certain investments in foreign subsidiaries transferred to Ralliant, the Company de-designated as net investment hedges the outstanding €500 million Euro-denominated senior unsecured notes due 2026, €275 million Euro-denominated term loan, and ¥14.4 billion Yen-denominated term loan. Refer to Note 4 for further detail on the repayments of these debt instruments during the third quarter of 2025. As of September 26, 2025, a portion of the €700 million Euro-denominated senior unsecured notes due 2029 remained designated as a net investment hedge on our investment in applicable foreign operations.
When designated as net investment hedge, the after-tax foreign currency transaction gains and losses on the debt were deferred in the foreign currency translation component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries. Any amounts deferred in AOCI will remain until the hedged investment is sold or substantially liquidated. Concurrent with the Separation, cumulative net foreign currency transaction losses of $120 million were reclassified from AOCI into retained earnings.
We recognized after-tax foreign currency transaction gains of $0.7 million and losses of $159.6 million during the three and nine months ended September 26, 2025, respectively, and losses of $59.7 million and $38.3 million during the three and nine months ended September 27, 2024, respectively, on the debt that was deferred in the foreign currency translation component of Accumulated Other Comprehensive Income (Loss) (“AOCI”) as an offset to the foreign currency translation adjustments on our investments in foreign subsidiaries. We recorded no ineffectiveness from our net investment hedges during the three and nine-month periods ended September 26, 2025 and September 27, 2024. Foreign currency translation adjustments are generally not adjusted for income taxes as they relate to indefinite investments in non-U.S. subsidiaries. During the three and nine months ended September 26, 2025, the foreign currency transaction gains associated with Euro-denominated notes not designated as a net investment hedge were immaterial.
The changes in AOCI by component are summarized below ($ in millions):
| Foreign currency translation adjustments | Pension & post-retirement plan benefit adjustments (a) | Total | |||||||||||||||
| For the Three Months Ended September 26, 2025: | |||||||||||||||||
| Balance, June 27, 2025 | $ | (253.3) | $ | (34.0) | $ | (287.3) | |||||||||||
| Other comprehensive income (loss) before reclassifications, net of income taxes | (10.7) | — | (10.7) | ||||||||||||||
| Amounts reclassified from AOCI into income: | |||||||||||||||||
| Increase (decrease) | — | (0.1) | (b) | (0.1) | |||||||||||||
| Income tax impact | — | — | (d) | — | |||||||||||||
| Amounts reclassified from AOCI into income, net of income taxes | — | (0.1) | (0.1) | ||||||||||||||
| Net current period other comprehensive income (loss), net of income taxes | (10.7) | (0.1) | (10.8) | ||||||||||||||
| PT Separation (c) | 316.1 | 16.2 | 332.3 | ||||||||||||||
| Balance, September 26, 2025 | $ | 52.1 | $ | (17.9) | $ | 34.2 | |||||||||||
| For the Three Months Ended September 27, 2024: | |||||||||||||||||
| Balance, June 28, 2024 | $ | (389.3) | $ | (34.3) | $ | (423.6) | |||||||||||
| Other comprehensive income (loss) before reclassifications, net of income taxes | 89.3 | — | 89.3 | ||||||||||||||
| Amounts reclassified from AOCI into income: | |||||||||||||||||
| Increase (decrease) | — | 0.1 | (b) | 0.1 | |||||||||||||
| Income tax impact | — | — | — | ||||||||||||||
| Amounts reclassified from AOCI into income, net of income taxes | — | 0.1 | 0.1 | ||||||||||||||
| Net current period other comprehensive income (loss), net of income taxes | 89.3 | 0.1 | 89.4 | ||||||||||||||
| Balance, September 27, 2024 | $ | (300.0) | $ | (34.2) | $ | (334.2) | |||||||||||
| (a) Includes balances relating to defined benefit plans, supplemental executive retirement plans, and other postretirement employee benefit plans. | |||||||||||||||||
| (b) This component of AOCI is included in the computation of net periodic pension cost (refer to Note 10 in our 2024 Annual Report on Form 10-K for additional details). | |||||||||||||||||
| (c) Reflects the reclassification of cumulative translation adjustments as a result of the PT Separation. Refer to Note 2 for additional details. | |||||||||||||||||
| (d) Amount was rounded to zero. | |||||||||||||||||
| Foreign currency translation adjustments | Pension & post-retirement plan benefit adjustments (a) | Total | |||||||||||||||
| For the Nine Months Ended September 26, 2025: | |||||||||||||||||
| Balance, December 31, 2024 | $ | (431.4) | $ | (34.0) | $ | (465.4) | |||||||||||
| Other comprehensive income (loss) before reclassifications, net of income taxes | 167.4 | — | 167.4 | ||||||||||||||
| Amounts reclassified from AOCI into income: | |||||||||||||||||
| Increase (decrease) | — | (0.1) | (b) | (0.1) | |||||||||||||
| Income tax impact | — | — | (d) | — | |||||||||||||
| Amounts reclassified from AOCI into income, net of income taxes | — | (0.1) | (0.1) | ||||||||||||||
| Net current period other comprehensive income (loss) | 167.4 | (0.1) | 167.3 | ||||||||||||||
| PT Separation (c) | 316.1 | 16.2 | 332.3 | ||||||||||||||
| Balance, September 26, 2025 | $ | 52.1 | $ | (17.9) | $ | 34.2 | |||||||||||
| For the Nine Months Ended September 27, 2024: | |||||||||||||||||
| Balance, December 31, 2023 | $ | (291.7) | $ | (34.4) | $ | (326.1) | |||||||||||
| Other comprehensive income (loss) before reclassifications, net of income taxes | (15.3) | — | (15.3) | ||||||||||||||
| Amounts reclassified from AOCI into income: | |||||||||||||||||
| Increase (decrease) | 7.0 | 0.3 | (b) | 7.3 | |||||||||||||
| Income tax impact | — | (0.1) | (0.1) | ||||||||||||||
| Amounts reclassified from AOCI into income, net of income taxes | 7.0 | 0.2 | 7.2 | ||||||||||||||
| Net current period other comprehensive income (loss) | (8.3) | 0.2 | (8.1) | ||||||||||||||
| Balance, September 27, 2024 | $ | (300.0) | $ | (34.2) | $ | (334.2) | |||||||||||
| (a) Includes balances relating to defined benefit plans, supplemental executive retirement plans, and other postretirement employee benefit plans. | |||||||||||||||||
| (b) This component of AOCI is included in the computation of net periodic pension cost (refer to Note 10 in our 2024 Annual Report on Form 10-K for additional details). | |||||||||||||||||
| (c) Reflects the reclassification of cumulative translation adjustments as a result of the PT Separation. Refer to Note 2 for additional details. | |||||||||||||||||
| (d) Amount was rounded to zero. |
Allowance for Doubtful Accounts
All trade accounts and unbilled receivables are recorded in the Consolidated Condensed Balance Sheets adjusted for any write-offs and net of allowances for credit losses. The allowances for credit losses represent management’s best estimate of the credit losses expected from our unbilled and trade accounts receivable portfolios over the life of the underlying assets. Additions to the allowances are charged to current period earnings, amounts determined to be uncollectible are charged directly against the allowances, while amounts recovered on previously written-off accounts increase the allowances. During the three and nine months ended September 26, 2025 and September 27, 2024, the activity was immaterial.
Restructuring
In the fourth quarter of 2024, we initiated a discrete restructuring plan that was initially expected to be completed by December 31, 2025, and has been extended through the second half of 2026. The nature of the plan is related to the Separation and consisted primarily of targeted workforce reductions to realign cost structures. During the nine months ended September 26, 2025, we incurred charges of $14 million. The restructuring charges incurred during the three months ended September 26, 2025 and the accrued restructuring costs as of September 26, 2025 and December 31, 2024 were immaterial.
Recently Issued Accounting Standard
In December 2023, the Financial Accounting Standards Board (“FASB”) issued ASU 2023-09, Income Taxes (Topic 740)—Improvements to Income Tax Disclosures, which amends certain disclosure requirements related to income taxes on an annual basis. This standard is effective for fiscal year ending December 31, 2025. This standard should be applied on a prospective basis, with retrospective application permitted. We are planning to apply the standard on a prospective basis. Upon adoption, we will update the applicable annual disclosures to align with the new standard but there will be no impact on reported income tax expense or related tax assets or liabilities.
In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40) — Disaggregation of Income Statement Expenses, which amends the disclosure requirements related to certain costs and expenses on an interim and annual basis. This standard is effective for fiscal year ending December 31, 2027, and interim periods within fiscal year ending December 31, 2028, and could be applied either on a prospective or retrospective basis. The adoption of the standard will not impact our consolidated financial statements. Upon adoption, we will update the applicable interim and annual disclosures to align with the new standard.
In July 2025, the FASB issued ASU 2025-05, Financial Instruments - Credit Losses (Topic 326) — Measurement of Credit Losses for Accounts Receivable and Contract Assets, which provides a practical expedient to measure credit losses on current accounts receivable and current contracts assets. The practical expedient allows companies to assume that current conditions as of the balance sheet date do not change for the remaining life of the asset when measuring credit losses. This standard is effective for fiscal year ending December 31, 2026 and interim periods within 2026, with early adoption permitted, and should be applied on a prospective basis. We are not anticipating this standard to have a material impact on our consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) — Targeted Improvements to the Accounting for Internal-Use Software, which clarifies and modernizes the software cost capitalization guidance by removing the previous “development stage” model and introducing a more judgment-based approach. This standard is effective for fiscal year ending December 31, 2028, and interim periods within 2028, with early adoption permitted, and could be applied using a prospective, retrospective or modified transition approach. We are currently in the process of evaluating the effects of this standard on our consolidated financial statements.
NOTE 2. DISCONTINUED OPERATIONS
On the Distribution Date, the Company completed the PT Separation by distributing all of the issued and outstanding shares of Ralliant, the entity that was created to hold the corresponding businesses, to Fortive stockholders on a pro rata basis. To effect the Separation, the Company distributed to its stockholders one share of Ralliant common stock for every three shares of Fortive common stock held on June 16, 2025, the record date for the distribution. Fortive stockholders received cash in lieu of any fractional shares of Ralliant common stock that they would have received after application of this ratio.
In preparation for the Separation, on May 15, 2025, Ralliant entered into a credit agreement with a syndicate of banks and on June 27, 2025, borrowed $1.15 billion to fund the $1.15 billion cash dividend Ralliant made to Fortive prior to the Distribution Date (the “Ralliant Dividend”).
The accounting requirements for reporting Ralliant as a discontinued operation were met when the Separation was completed. Accordingly, the accompanying consolidated condensed financial statements for all periods presented reflect this business as a discontinued operation.
In connection with the Separation, the Company incurred $46 million and $109 million in Separation-related costs during the three and nine months ended September 26, 2025, respectively, which were recorded within net earnings (loss) from discontinued operations in the Consolidated Condensed Statements of Earnings. These costs were primarily related to professional fees associated with finance, tax, legal, banking and information technology services as well as redundant general and administrative costs.
Fortive and Ralliant entered into various agreements to effect the Separation and provide a framework for their relationship after the Separation, including a separation and distribution agreement, a transition services agreement, an employee matters agreement, a tax matters agreement, an intellectual property matters agreement, a Fortive Business System (“FBS”) license agreement and a Fort solutions license agreement. These agreements provide for the allocation between Fortive and Ralliant of assets, employees, liabilities and obligations (including investments, property, employee benefits and tax-related assets and liabilities) attributable to periods prior to, at and after the Separation and govern certain relationships between Fortive and Ralliant after the Separation. The amounts paid and received by Fortive for transition services provided under the above agreements as well as sales and purchases to and from Ralliant were not material to the Company’s results of operations during the three and nine months ended September 26, 2025.
The key components of income from discontinued operations for the three and nine months ended September 26, 2025 and September 27, 2024 were as follows ($ in millions):
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2025 | September 27, 2024 | September 26, 2025 | September 27, 2024 | ||||||||||||||||||||
| Sales | $ | — | $ | 530.8 | $ | 983.5 | $ | 1,603.4 | |||||||||||||||
| Cost of sales | — | (251.0) | (489.9) | (773.2) | |||||||||||||||||||
| Selling, general and administrative expenses | (45.6) | (116.7) | (335.5) | (377.1) | |||||||||||||||||||
| Research and development expenses | — | (39.7) | (83.0) | (120.8) | |||||||||||||||||||
| Gain on sale of property | — | — | — | 63.1 | |||||||||||||||||||
| Loss from divestiture | — | — | — | (25.6) | |||||||||||||||||||
| Other expenses | — | (0.3) | (0.5) | (1.0) | |||||||||||||||||||
| Earnings from discontinued operations before income taxes | (45.6) | 123.1 | 74.6 | 368.8 | |||||||||||||||||||
| Income taxes | (16.4) | (13.0) | (22.3) | (34.0) | |||||||||||||||||||
| Net earnings from discontinued operations | $ | (62.0) | $ | 110.1 | $ | 52.3 | $ | 334.8 |
The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company’s Consolidated Condensed Balance Sheets as of December 31, 2024.
| ($ in millions) | December 31, 2024 | ||||||||||
| ASSETS | |||||||||||
| Accounts receivable, net | $ | 284.1 | |||||||||
| Inventories | 275.0 | ||||||||||
| Prepaid expenses and other current assets | 55.2 | ||||||||||
| Total current assets, discontinued operations | 614.3 | ||||||||||
| Property, plant and equipment, net | 200.2 | ||||||||||
| Other non-current assets | 146.2 | ||||||||||
| Goodwill | 2,940.0 | ||||||||||
| Other intangible assets, net | 809.6 | ||||||||||
| Total other assets, discontinued operations | 4,096.0 | ||||||||||
| Total assets, discontinued operations | $ | 4,710.3 | |||||||||
| LIABILITIES | |||||||||||
| Trade accounts payable | $ | 252.0 | |||||||||
| Accrued expenses and other current liabilities | 316.5 | ||||||||||
| Total current liabilities, discontinued operations | 568.5 | ||||||||||
| Other long-term liabilities | 403.8 | ||||||||||
| Total liabilities, discontinued operations | $ | 972.3 |
The assets from discontinued operations as of September 26, 2025 consisted of receivables from Ralliant related to the tax matters agreement and pass through arrangements. These activities resulted in cash payments from Ralliant to Fortive of
$45 million during the three months ended September 26, 2025, recorded within operating cash provided by discontinued operations in the Consolidated Condensed Statement of Cash Flows.
NOTE 3. FAIR VALUE MEASUREMENTS
Accounting standards define fair value based on an exit price model, establish a framework for measuring fair value for assets and liabilities required to be carried at fair value, and provide for certain disclosures related to the valuation methods used within the valuation hierarchy as established within the accounting standards. This hierarchy prioritizes the inputs into three broad levels as follows:
-
Level 1 inputs are quoted prices (unadjusted) for identical assets or liabilities in active markets.
-
Level 2 inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets in markets that are not active, or other observable characteristics for the asset or liability, including interest rates, yield curves and credit risks, or inputs that are derived principally from, or corroborated by, observable market data through correlation.
-
Level 3 inputs are unobservable inputs based on our assumptions. A financial asset or liability’s classification within the hierarchy is determined based on the lowest level input that is significant to the fair value measurement in its entirety.
Below is a summary of financial liabilities that are measured at fair value on a recurring basis ($ in millions):
| Quoted Prices in Active Market (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Total | ||||||||||||||||||||
| September 26, 2025 | |||||||||||||||||||||||
| Deferred compensation liabilities | $ | — | $ | 39.8 | $ | — | $ | 39.8 | |||||||||||||||
| December 31, 2024 | |||||||||||||||||||||||
| Deferred compensation liabilities | — | 39.2 | — | 39.2 |
Certain management employees participate in our nonqualified deferred compensation programs that permit such employees to defer a portion of their compensation, on a pretax basis, until after their termination of employment. All amounts deferred under such plans are unfunded, unsecured obligations and are recorded within Other long-term liabilities in the accompanying Consolidated Condensed Balance Sheets. Participants may choose among alternative earning rates for the amounts they defer, which are primarily based on investment options within our defined contribution plans for the benefit of U.S. employees (except that the earnings rates for amounts contributed unilaterally by the Company are entirely based on changes in the value of Fortive common stock). Changes in the deferred compensation liability under these programs are recognized based on changes in the fair value of the participants’ accounts and are recorded within Selling, general and administrative expenses in the Consolidated Condensed Statements of Earnings.
Non-recurring Fair Value Measurements
Certain non-financial assets, primarily property, plant, and equipment, goodwill, and intangible assets, are not required to be measured at fair value on a recurring basis and are reported at their carrying value. However, these assets are required to be assessed for impairment whenever events or circumstances indicate that their carrying value may not be fully recoverable, and at least annually for goodwill and indefinite-lived intangible assets. We evaluated events or circumstances that may indicate the carrying value of our non-financial assets may not be fully recoverable during the three and nine months ended September 26, 2025, and recorded no impairments.
Fair Value of Financial Instruments
The carrying amount and fair value of financial instruments are as follows ($ in millions):
| September 26, 2025 | December 31, 2024 | ||||||||||||||||||||||
| Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||
| Current portion of long-term debt | $ | 1,189.2 | $ | 1,183.6 | $ | 376.2 | $ | 376.3 | |||||||||||||||
| Long-term debt, net of current maturities | 2,117.1 | 2,059.5 | 3,331.1 | 3,243.8 |
As of September 26, 2025 and December 31, 2024, the current portion of long-term debt and long-term debt, net of current maturities were categorized as Level 1.
The fair value of the long-term borrowings were based on quoted market prices. The difference between the fair value and the carrying amounts of long-term borrowings may be attributable to changes in market interest rates and/or our credit ratings subsequent to the borrowing. The fair value of cash and equivalents, trade accounts receivable, net, trade accounts payable, and commercial paper approximates their carrying amount due to the short-term maturities of these instruments.
NOTE 4. FINANCING
The components of our debt were as follows ($ in millions):
| September 26, 2025 | December 31, 2024 | |||||||||||||
| U.S. dollar-denominated commercial paper | $ | 755.0 | $ | 650.0 | ||||||||||
| 3.7% Euro-denominated senior unsecured notes due 2026 | 290.2 | 517.7 | ||||||||||||
| 3.7% Euro-denominated senior unsecured notes due 2029 | 819.2 | 724.8 | ||||||||||||
| 3.15% senior unsecured notes due 2026 | 900.0 | 900.0 | ||||||||||||
| 4.30% senior unsecured notes due 2046 | 550.0 | 550.0 | ||||||||||||
| Euro Term Loan due 2025 | — | 284.7 | ||||||||||||
| Yen Term Loan due 2025 | — | 91.6 | ||||||||||||
| Long-term debt, principal amounts | 3,314.4 | 3,718.8 | ||||||||||||
| Less: aggregate unamortized debt discounts, premiums, and issuance costs | 8.1 | 11.5 | ||||||||||||
| Long-term debt, carrying value | 3,306.3 | 3,707.3 | ||||||||||||
| Less: current portion of long-term debt, carrying value | 1,189.2 | 376.2 | ||||||||||||
| Long-term debt, net of current maturities | $ | 2,117.1 | $ | 3,331.1 |
Refer to Note 9 of our 2024 Annual Report on Form 10-K for further details of our debt financing.
Commercial Paper Programs
We generally satisfy any short-term liquidity needs that are not met through operating cash flows and available cash primarily through issuances of commercial paper under our U.S. dollar commercial paper programs. Under this program, we may issue unsecured promissory notes with maturities not exceeding 397 days. Proceeds from borrowings under the commercial paper programs are typically available for general corporate purposes, including acquisitions.
Interest expense on commercial paper is paid at maturity and is generally based on our credit ratings at the time of issuance and prevailing short-term interest rates.
The details of our outstanding Commercial Paper Programs as of September 26, 2025 were as follows ($ in millions):
| Carrying value (a) | Annual effective rate | Weighted average maturity (in days) | |||||||||||||||
| U.S. dollar-denominated commercial paper | $ | 754.0 | 4.43 | % | 27 | ||||||||||||
| (a) Net of unamortized debt discount. |
Credit support for the Commercial Paper Programs is provided by a five-year $2.0 billion senior unsecured revolving credit facility that expires on October 18, 2027 (the “Revolving Credit Facility”) which, to the extent not otherwise providing credit support for our commercial paper programs, can also be used for working capital and other general corporate purposes. As of September 26, 2025, no borrowings were outstanding under the Revolving Credit Facility.
We classified our borrowings outstanding under the Commercial Paper Programs as of September 26, 2025 as Long-term debt in the accompanying Consolidated Condensed Balance Sheets as we had the intent and ability, as supported by availability under the Revolving Credit Facility, to refinance these borrowings for at least one year from the balance sheet date.
During the third quarter, Fortive used approximately $302 million of the Ralliant Dividend to redeem €252 million of the outstanding principal of the 3.7% Euro-denominated senior unsecured notes due 2026, and the accrued interest thereon, with €248 million, or approximately $290 million remaining outstanding following such redemption. Fortive also used $324 million and $98 million of the Ralliant Dividend to repay the outstanding principle of the Euro Term Loan and Yen Term Loan, and accrued interest thereon.
NOTE 5. SALES
We derive revenue primarily from the sales of products, including software, and services. Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products, software, or services.
Product sales include revenue from the sale of products and equipment, which includes our software and software as a service (“SaaS”) product offerings and equipment rentals. Service sales include revenues from extended warranties, post-contract customer support (“PCS”), maintenance contracts or services, contract labor to perform ongoing service at a customer location, services related to previously sold products, and software implementation services.
Contract Assets — In certain circumstances, we record contract assets which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not only subject to the passage of time. Contract assets were $150 million as of September 26, 2025 and $116 million as of December 31, 2024. Contract assets are recorded within Prepaid expenses and other current assets in our Consolidated Condensed Balance Sheets.
Contract Costs — We incur and capitalize incremental costs to obtain certain contracts, typically sales-related commissions where the amortization period is greater than one year and costs associated with assets used by our customers in certain service arrangements. As of September 26, 2025 and December 31, 2024, we had $71 million and $59 million, respectively, in net revenue-related contract costs primarily related to certain software contracts. Revenue-related contract costs are recorded within Other assets in our Consolidated Condensed Balance Sheets. These assets have estimated useful lives between three and five years.
Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to subscription-based software contracts, PCS and extended warranty sales, where we generally receive up-front payment and recognize revenue over the service or support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The current portion of deferred revenue is recorded within Accrued expenses and other current liabilities and the noncurrent portion of deferred revenue is recorded within Other long-term liabilities in our Consolidated Condensed Balance Sheets.
Our contract liabilities consisted of the following ($ in millions):
| September 26, 2025 | December 31, 2024 | ||||||||||
| Deferred revenue - current | $ | 415.0 | $ | 410.1 | |||||||
| Deferred revenue - noncurrent | 21.1 | 23.1 | |||||||||
| Total contract liabilities | $ | 436.1 | $ | 433.2 |
During the three and nine months ended September 26, 2025, we recognized revenue related to our contract liabilities at December 31, 2024 of $78 million and $339 million, respectively. The change in our contract liabilities from December 31, 2024 to September 26, 2025 was primarily due to the timing of billings and revenue recognized for subscription-based software contracts, PCS and extended warranty services.
Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, non-cancelable orders and the average contract value for software contracts, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below.
The aggregate remaining performance obligations attributable to each of our segments is as follows ($ in millions):
| September 26, 2025 | |||||
| Intelligent Operating Solutions | $ | 701.2 | |||
| Advanced Healthcare Solutions | 109.4 | ||||
| Total remaining performance obligations | $ | 810.6 |
The majority of remaining performance obligations are related to service and support contracts, which we expect to fulfill approximately 75 percent within the next two years, approximately 90 percent within the next three years, and substantially all within four years.
Disaggregation of Revenue
We disaggregate revenue from contracts with customers by sales of products and software and services, geographic location, and end market for each of our segments, as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors.
Disaggregation of revenue for the three months ended September 26, 2025 is presented as follows ($ in millions):
| Total | Intelligent Operating Solutions | Advanced Healthcare Solutions | |||||||||||||||
| Sales: | |||||||||||||||||
| Sales of products and software | $ | 814.4 | $ | 557.4 | $ | 257.0 | |||||||||||
| Sales of services | 212.7 | 141.4 | 71.3 | ||||||||||||||
| Total | $ | 1,027.1 | $ | 698.8 | $ | 328.3 | |||||||||||
| Geographic: | |||||||||||||||||
| North America (a) | $ | 624.7 | $ | 433.2 | $ | 191.5 | |||||||||||
| Asia-Pacific | 181.4 | 111.4 | 70.0 | ||||||||||||||
| Europe, Middle East, and Africa | 167.9 | 126.3 | 41.6 | ||||||||||||||
| Latin America | 53.1 | 27.9 | 25.2 | ||||||||||||||
| Total | $ | 1,027.1 | $ | 698.8 | $ | 328.3 | |||||||||||
| End markets: | |||||||||||||||||
| Healthcare | $ | 322.2 | $ | 10.8 | $ | 311.4 | |||||||||||
| Industrial & Manufacturing | 287.9 | 284.3 | 3.6 | ||||||||||||||
| Energy & Infrastructure | 166.7 | 166.7 | — | ||||||||||||||
| Government | 88.0 | 78.1 | 9.9 | ||||||||||||||
| Retail | 82.7 | 82.7 | — | ||||||||||||||
| Other | 79.6 | 76.2 | 3.4 | ||||||||||||||
| Total | $ | 1,027.1 | $ | 698.8 | $ | 328.3 | |||||||||||
| (a) North America is comprised of the United States and Canada. Sales attributed to the United States were 57% of total Fortive sales. |
Disaggregation of revenue for the three months ended September 27, 2024 is presented as follows ($ in millions):
| Total | Intelligent Operating Solutions | Advanced Healthcare Solutions | |||||||||||||||
| Sales: | |||||||||||||||||
| Sales of products and software | $ | 802.5 | $ | 549.1 | $ | 253.4 | |||||||||||
| Sales of services | 201.2 | 132.2 | 69.0 | ||||||||||||||
| Total | $ | 1,003.7 | $ | 681.3 | $ | 322.4 | |||||||||||
| Geographic: | |||||||||||||||||
| North America (a) | $ | 601.7 | $ | 412.8 | $ | 188.9 | |||||||||||
| Asia-Pacific | 177.8 | 109.1 | 68.7 | ||||||||||||||
| Europe, Middle East, and Africa | 168.1 | 129.5 | 38.6 | ||||||||||||||
| Latin America | 56.1 | 29.9 | 26.2 | ||||||||||||||
| Total | $ | 1,003.7 | $ | 681.3 | $ | 322.4 | |||||||||||
| End markets: | |||||||||||||||||
| Healthcare | $ | 315.5 | $ | 10.6 | $ | 304.9 | |||||||||||
| Industrial & Manufacturing | 282.7 | 278.5 | 4.2 | ||||||||||||||
| Energy & Infrastructure | 157.5 | 157.5 | — | ||||||||||||||
| Government | 93.0 | 82.9 | 10.1 | ||||||||||||||
| Retail | 75.3 | 75.3 | — | ||||||||||||||
| Other | 79.7 | 76.5 | 3.2 | ||||||||||||||
| Total | $ | 1,003.7 | $ | 681.3 | $ | 322.4 | |||||||||||
| (a) North America is comprised of the United States and Canada. Sales attributed to the United States were 57% of total Fortive sales. |
Disaggregation of revenue for the nine months ended September 26, 2025 is presented as follows ($ in millions):
| Total | Intelligent Operating Solutions | Advanced Healthcare Solutions | |||||||||||||||
| Sales: | |||||||||||||||||
| Sales of products and software | $ | 2,431.6 | $ | 1,688.9 | $ | 742.7 | |||||||||||
| Sales of services | 605.0 | 397.7 | 207.3 | ||||||||||||||
| Total | $ | 3,036.6 | $ | 2,086.6 | $ | 950.0 | |||||||||||
| Geographic: | |||||||||||||||||
| North America (a) | $ | 1,827.3 | $ | 1,269.7 | $ | 557.6 | |||||||||||
| Asia-Pacific | 542.3 | 338.4 | 203.9 | ||||||||||||||
| Europe, Middle East, and Africa | 516.4 | 394.8 | 121.6 | ||||||||||||||
| Latin America | 150.6 | 83.7 | 66.9 | ||||||||||||||
| Total | $ | 3,036.6 | $ | 2,086.6 | $ | 950.0 | |||||||||||
| End markets: | |||||||||||||||||
| Healthcare | $ | 931.8 | $ | 32.4 | $ | 899.4 | |||||||||||
| Industrial & Manufacturing | 874.9 | 862.3 | 12.6 | ||||||||||||||
| Energy & Infrastructure | 499.8 | 499.8 | — | ||||||||||||||
| Government | 262.0 | 234.1 | 27.9 | ||||||||||||||
| Retail | 229.5 | 229.5 | — | ||||||||||||||
| Other | 238.6 | 228.5 | 10.1 | ||||||||||||||
| Total | $ | 3,036.6 | $ | 2,086.6 | $ | 950.0 | |||||||||||
| (a) North America is comprised of the United States and Canada. Sales attributed to the United States were 57% of total Fortive sales. |
Disaggregation of revenue for the nine months ended September 27, 2024 is presented as follows ($ in millions):
| Total | Intelligent Operating Solutions | Advanced Healthcare Solutions | |||||||||||||||
| Sales: | |||||||||||||||||
| Sales of products and software | $ | 2,420.1 | $ | 1,679.2 | $ | 740.9 | |||||||||||
| Sales of services | 588.0 | 383.1 | 204.9 | ||||||||||||||
| Total | $ | 3,008.1 | $ | 2,062.3 | $ | 945.8 | |||||||||||
| Geographic: | |||||||||||||||||
| North America (a) | $ | 1,769.4 | $ | 1,224.8 | $ | 544.6 | |||||||||||
| Asia-Pacific | 549.4 | 346.7 | 202.7 | ||||||||||||||
| Europe, Middle East, and Africa | 529.0 | 407.1 | 121.9 | ||||||||||||||
| Latin America | 160.3 | 83.7 | 76.6 | ||||||||||||||
| Total | $ | 3,008.1 | $ | 2,062.3 | $ | 945.8 | |||||||||||
| End markets: | |||||||||||||||||
| Healthcare | $ | 927.4 | $ | 33.5 | $ | 893.9 | |||||||||||
| Industrial & Manufacturing | 871.8 | 858.4 | 13.4 | ||||||||||||||
| Energy & Infrastructure | 484.5 | 484.5 | — | ||||||||||||||
| Government | 263.8 | 235.3 | 28.5 | ||||||||||||||
| Retail | 212.4 | 212.4 | — | ||||||||||||||
| Other | 248.2 | 238.2 | 10.0 | ||||||||||||||
| Total | $ | 3,008.1 | $ | 2,062.3 | $ | 945.8 | |||||||||||
| (a) North America is comprised of the United States and Canada. Sales attributed to the United States were 55% of total Fortive sales. |
NOTE 6. INCOME TAXES
Our effective tax (benefit) rate for the three and nine months ended September 26, 2025 was 13.3% and 16.4%, respectively, as compared to (2.2)% and 11.3%, respectively, for the three and nine months ended September 27, 2024. The increase in the effective tax rate for the three months ended September 26, 2025 as compared to the three months ended September 27, 2024 was primarily related to changes in applicable statutory tax rates, resulting in a discrete benefit in the comparable prior year period. The increase in the effective tax rate for the nine months ended September 26, 2025 as compared to the nine months ended September 27, 2024 was primarily related to changes in applicable statutory tax rates.
Our effective tax rate for the three and nine months ended September 26, 2025, differs from the U.S. federal statutory rate of 21% due primarily to the impact of credits and deductions provided by law, including those associated with state income taxes, and changes in our uncertain tax position reserves.
NOTE 7. STOCK-BASED COMPENSATION
The 2016 Stock Incentive Plan (the “Stock Plan”), provides for the grant of stock appreciation rights, restricted stock units, and performance stock units (collectively, “Stock Awards”), stock options, or any other stock-based award. As of September 26, 2025, approximately 12 million shares of our common stock were available for subsequent issuance under the Stock Plan. For a full description of our Stock Plan, refer to Note 14 of our 2024 Annual Report on Form 10-K.
Stock-based compensation has been recognized as a component of Selling, general and administrative expenses in the Consolidated Condensed Statements of Earnings based on the portion of the awards that are ultimately expected to vest.
The following summarizes the components of our stock-based compensation expense under the Stock Plan ($ in millions):
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2025 | September 27, 2024 | September 26, 2025 | September 27, 2024 | ||||||||||||||||||||
| Stock Awards: | |||||||||||||||||||||||
| Pretax compensation expense | $ | 32.7 | $ | 16.0 | $ | 68.9 | $ | 47.1 | |||||||||||||||
| Income tax benefit | (2.6) | (2.5) | (9.0) | (6.9) | |||||||||||||||||||
| Stock Award expense, net of income taxes | 30.1 | 13.5 | 59.9 | 40.2 | |||||||||||||||||||
| Stock options: | |||||||||||||||||||||||
| Pretax compensation expense | 18.2 | 6.9 | 28.0 | 20.0 | |||||||||||||||||||
| Income tax benefit | (2.6) | (1.0) | (4.0) | (2.8) | |||||||||||||||||||
| Stock option expense, net of income taxes | 15.6 | 5.9 | 24.0 | 17.2 | |||||||||||||||||||
| Total stock-based compensation: | |||||||||||||||||||||||
| Pretax compensation expense | 50.9 | 22.9 | 96.9 | 67.1 | |||||||||||||||||||
| Income tax benefit | (5.2) | (3.5) | (13.0) | (9.7) | |||||||||||||||||||
| Total stock-based compensation expense, net of income taxes | $ | 45.7 | $ | 19.4 | $ | 83.9 | $ | 57.4 |
The following summarizes the unrecognized compensation cost for the Stock Awards and stock options as of September 26, 2025. This compensation cost is expected to be recognized over a weighted average period of approximately two years, representing the remaining service period related to the awards. Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions):
| Stock Awards | $ | 103.5 | |||
| Stock options | 23.6 | ||||
| Total unrecognized compensation cost | $ | 127.1 |
Ralliant Separation
In connection with the Separation and in accordance with the employee matters agreement between Fortive and Ralliant, the number of shares underlying each stock-based award outstanding as of the date of the Separation was multiplied by a factor of 1.3662 and the related exercise price for the stock options was divided by a factor of 1.3662, which was intended to preserve the intrinsic value of the awards immediately prior to the Separation. The adjustment factor was calculated using the Fortive common stock per share price at the close of market on June 27, 2025 relative to the 3-trading day volume weighted average price of Fortive common stock immediately after the Separation. Stock-based awards of Fortive held by employees who transferred to Ralliant in the Separation were converted into stock-based awards of Ralliant issued under Ralliant’s stock plan. Additionally, at the completion of the Separation, we accelerated the recognition of compensation expense related to certain Stock Awards due to executive retirements. In the three and nine months ended September 26, 2025, we recorded $33 million of stock based compensation expense related to these adjustments within Selling, general, and administrative expenses in the Consolidated Condensed Statement of Earnings.
NOTE 8. LEASES
Operating lease costs for each period are presented as follows ($ in millions):
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2025 | September 27, 2024 | September 26, 2025 | September 27, 2024 | ||||||||||||||||||||
| Operating lease costs | $ | 7.6 | $ | 8.1 | $ | 21.5 | $ | 24.9 |
Supplemental balance sheet and cash flow information related to operating leases for each period is presented as follows ($ in millions):
| As of | |||||||||||
| September 26, 2025 | December 31, 2024 | ||||||||||
| Right-of-use (“ROU”) assets (a) | $ | 90.6 | $ | 91.8 | |||||||
| Operating lease liabilities (b) | 95.6 | 97.9 | |||||||||
| (a) ROU assets are recorded in the Consolidated Condensed Balance Sheets within Other assets. | |||||||||||
| (b) Operating lease liabilities are recorded in the Consolidated Condensed Balance Sheets within Accrued expenses and other current liabilities, and Other long-term liabilities. |
| Nine Months Ended | |||||||||||
| September 26, 2025 | September 27, 2024 | ||||||||||
| Cash paid for operating leases | $ | 23.1 | $ | 25.2 | |||||||
| ROU assets obtained in exchange for operating lease obligations | 9.1 | 2.7 |
For additional information about our warranty, leases, and a description of our litigation and contingencies, refer to Note 7, Note 8, and Note 13, respectively, in our 2024 Annual Report on Form 10-K.
NOTE 9. NET EARNINGS PER SHARE
Basic net earnings per share (“EPS”) is calculated by dividing net earnings attributable to common stockholders by the weighted average number of shares of common stock outstanding for the applicable period. Diluted EPS is similarly calculated, except that the calculation includes the dilutive effect of the assumed issuance of shares under stock-based compensation plans under the treasury stock method, except where the inclusion of such shares would have an anti-dilutive impact. Anti-dilutive options excluded from the diluted EPS calculation for the three months ended September 26, 2025 were 4.4 million, and none for the nine months ended September 26, 2025, and were 1.5 million and 1.2 million, respectively, for the three and nine months ended September 27, 2024.
Information related to the calculation of net earnings per share of common stock is summarized as follows ($ and shares in millions, except per share amounts):
| Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
| September 26, 2025 | September 27, 2024 | September 26, 2025 | September 27, 2024 | ||||||||||||||||||||
| Numerator | |||||||||||||||||||||||
| Net earnings from continuing operations | $ | 117.0 | $ | 111.5 | $ | 341.2 | $ | 289.3 | |||||||||||||||
| Denominator | |||||||||||||||||||||||
| Weighted average common shares outstanding used in basic earnings per share | 330.8 | 349.2 | 337.2 | 350.7 | |||||||||||||||||||
| Incremental common shares from: | |||||||||||||||||||||||
| Assumed exercise of dilutive options and vesting of dilutive Stock Awards | 2.6 | 3.1 | 2.7 | 3.7 | |||||||||||||||||||
| Weighted average common shares outstanding used in diluted earnings per share | 333.4 | 352.3 | 339.9 | 354.4 | |||||||||||||||||||
| Net earnings from continuing operations per common share - Basic | $ | 0.35 | $ | 0.32 | $ | 1.01 | $ | 0.82 | |||||||||||||||
| Net earnings from continuing operations per common share - Diluted | $ | 0.35 | $ | 0.32 | $ | 1.00 | $ | 0.82 | |||||||||||||||
In the third quarter of 2025, the quarterly dividend paid on our common stock was $0.06 per share.
Share Repurchase Programs
On February 17, 2022, the Company's Board of Directors approved a share repurchase program authorizing the Company to repurchase up to 20 million shares of the Company's outstanding common stock (the “General Share Repurchase Program”). Under this program, shares may be repurchased from time to time on the open market or in privately negotiated transactions, including under accelerated share repurchase programs or under plans complying with Rule 10b5-1 under the Securities Exchange Act of 1934, as amended (“10b5-1 Plans”). On January 23, 2024 and May 27, 2025, the Company’s Board of Directors increased the number of shares authorized under the share repurchase program by an additional 11 million and 15.6 million shares, respectively. On May 27, 2025, in connection with the Separation, the Company’s Board of Directors adopted a separate and incremental special purpose share repurchase program (the “Special Purpose Share Repurchase Program”) under which Fortive may purchase up to $550 million in Fortive’s common stock exclusively from the proceeds of the Ralliant Dividend, together with any other cash received by Fortive from Ralliant in connection with the Separation (collectively, the “Ralliant Cash Proceeds”). Repurchases of shares of Fortive common stock using the Ralliant Cash Proceeds will only be made through the Special Purpose Share Repurchase Program.
As of September 26, 2025, there were 8.3 million shares and $78.2 million remaining authorized under the General Share Repurchase Program and Special Share Repurchase Program, respectively. There is no expiration date for these repurchase programs, and the timing and amount of repurchases under the programs are determined by the Company's management based on market conditions, tax regulation and other factors. The repurchase programs may be suspended or discontinued at any time by the Board of Directors. Refer to Part II - Item 2 for additional information.
During the three and nine months ended September 26, 2025, the Company purchased 20.8 million and 25.2 million shares of its common stock at an average share price of $47.98 and $52.99, respectively. Prior to the Separation, during the three and nine months ended September 27, 2024, the Company purchased 3.8 million and 5.8 million shares of its common stock at an average share price of $70.87 and $72.78, respectively. Our common stock repurchases in excess of issuances are subject to a 1% excise tax enacted by the Inflation Reduction Act. Any excise tax incurred is recorded as part of the cost basis of the shares acquired within Common stock repurchases in the Consolidated Condensed Statement of Equity. The payment of the excise tax is recorded within Repurchase of common shares in the Consolidated Condensed Statement of Cash Flows.
NOTE 10. SEGMENT INFORMATION
We report our results in two separate business segments consisting of Intelligent Operating Solutions and Advanced Healthcare Solutions. We determine our business segments based on the identification of segment managers and similarities in products, end markets, economic characteristics, technologies, and services, as well as the financial data utilized by the Company's chief executive officer. The Company's chief operating decision maker ("CODM") is the chief executive officer.
The CODM uses gross profit and operating profit at the segment level to assess performance and allocate resources, including merger and acquisition targets. The CODM also compares the actual results to expectations in assessing the performance of the segments. Gross profit represents total revenue less total cost of sales. Operating expenses generally include selling, general and administrative expenses, and research and development expenses. Depreciation expense is allocated between Cost of sales and Selling, general, and administrative expenses. Amortization expense is recorded within Selling, general, and administrative expenses. Operating profit represents gross profit less operating expenses. The identifiable assets by segment are those used in each segment’s operations. Inter-segment amounts are not significant and are eliminated in the combined totals. Unallocated costs and other costs are not considered part of our evaluation of reportable segment operating performance.
The IOS segment provides advanced instrumentation, software and services to tens of thousands of customers enabling their mission-critical workflows. These offerings include professional instruments used in applications including maintenance, repair, measurement and condition monitoring, facility and asset lifecycle software applications, connected worker safety and compliance solutions across a range of vertical end markets, including manufacturing, process industries, healthcare, utilities and power, communications and electronics, among others. Typical users of these safety, productivity and sustainability solutions include electrical engineers, electricians, electronic technicians, EHS professionals, network technicians, facility managers, first-responders, and maintenance professionals.
The AHS segment supplies critical workflow solutions enabling healthcare providers to deliver exceptional patient care more efficiently. Our offerings include instrument sterilization solutions, instrument tracking, biomedical test tools, radiation detection and safety monitoring, and end-to-end clinical productivity software and solutions. Our healthcare offerings help ensure critical safety standards are met, instruments and operating rooms are working at peak performance, and complex procedures are followed accurately in these mission-critical healthcare environments.
Segment results for the three months ended September 26, 2025 are shown below ($ in millions):
| Total | Intelligent Operating Solutions | Advanced Healthcare Solutions | Unallocated Corporate Costs and Other | ||||||||||||||||||||
| Sales | $ | 1,027.1 | $ | 698.8 | $ | 328.3 | $ | — | |||||||||||||||
| Cost of sales | (377.9) | (241.3) | (136.6) | — | |||||||||||||||||||
| Gross profit | 649.2 | 457.5 | 191.7 | — | |||||||||||||||||||
| Operating expenses | (489.6) | (276.8) | (149.2) | (63.6) | |||||||||||||||||||
| Operating profit (loss) | 159.6 | 180.7 | 42.5 | (63.6) | |||||||||||||||||||
| Non-operating income (expense), net | |||||||||||||||||||||||
| Interest expense, net | (25.4) | — | — | (25.4) | |||||||||||||||||||
| Other non-operating income (expense), net | 0.8 | — | — | 0.8 | |||||||||||||||||||
| Earnings from continuing operations before income taxes | $ | 135.0 | $ | 180.7 | $ | 42.5 | $ | (88.2) | |||||||||||||||
| Depreciation and amortization expenses | $ | (109.1) | $ | (59.1) | $ | (49.6) | $ | (0.4) | |||||||||||||||
| Capital expenditure | $ | (28.6) | $ | (22.7) | $ | (5.9) | $ | — | |||||||||||||||
Segment results for the three-month period ended September 27, 2024 are shown below ($ in millions):
| Total | Intelligent Operating Solutions | Advanced Healthcare Solutions | Unallocated Corporate Costs and Other | ||||||||||||||||||||
| Sales | $ | 1,003.7 | $ | 681.3 | $ | 322.4 | $ | — | |||||||||||||||
| Cost of sales | (362.2) | (227.6) | (134.6) | — | |||||||||||||||||||
| Gross profit | 641.5 | 453.7 | 187.8 | — | |||||||||||||||||||
| Operating expenses | (469.5) | (284.7) | (151.1) | (33.7) | |||||||||||||||||||
| Operating profit (loss) | 172.0 | 169.0 | 36.7 | (33.7) | |||||||||||||||||||
| Non-operating income (expense), net | |||||||||||||||||||||||
| Interest expense, net | (37.1) | — | — | (37.1) | |||||||||||||||||||
| Other non-operating income (expense), net | (25.8) | — | — | (25.8) | |||||||||||||||||||
| Earnings from continuing operations before income taxes | $ | 109.1 | $ | 169.0 | $ | 36.7 | $ | (96.6) | |||||||||||||||
| Depreciation and amortization expenses | $ | (107.8) | $ | (57.6) | $ | (49.9) | $ | (0.3) | |||||||||||||||
| Capital expenditure | $ | (21.6) | $ | (17.3) | $ | (4.0) | $ | (0.3) | |||||||||||||||
Segment results for the nine-month period ended September 26, 2025 are shown below ($ in millions):
| Total | Intelligent Operating Solutions | Advanced Healthcare Solutions | Unallocated Corporate Costs and Other | ||||||||||||||||||||
| Sales | $ | 3,036.6 | $ | 2,086.6 | $ | 950.0 | $ | — | |||||||||||||||
| Cost of sales | (1,104.4) | (713.7) | (390.7) | — | |||||||||||||||||||
| Gross profit | 1,932.2 | 1,372.9 | 559.3 | — | |||||||||||||||||||
| Operating expenses | (1,437.5) | (846.8) | (459.3) | (131.4) | |||||||||||||||||||
| Operating profit (loss) | 494.7 | 526.1 | 100.0 | (131.4) | |||||||||||||||||||
| Non-operating income (expense), net | |||||||||||||||||||||||
| Interest expense, net | (89.5) | — | — | (89.5) | |||||||||||||||||||
| Other non-operating income (expense), net | 3.1 | — | — | 3.1 | |||||||||||||||||||
| Earnings from continuing operations before income taxes | $ | 408.3 | $ | 526.1 | $ | 100.0 | $ | (217.8) | |||||||||||||||
| Depreciation and amortization expenses | $ | (326.3) | $ | (175.9) | $ | (149.4) | $ | (1.0) | |||||||||||||||
| Capital expenditure | $ | (74.7) | $ | (59.8) | $ | (14.8) | $ | (0.1) | |||||||||||||||
Segment results for the nine-month period ended September 27, 2024 are shown below ($ in millions):
| Total | Intelligent Operating Solutions | Advanced Healthcare Solutions | Unallocated Corporate Costs and Other | ||||||||||||||||||||
| Sales | $ | 3,008.1 | $ | 2,062.3 | $ | 945.8 | $ | — | |||||||||||||||
| Cost of sales | (1,084.5) | (688.6) | (395.9) | — | |||||||||||||||||||
| Gross profit | 1,923.6 | 1,373.7 | 549.9 | — | |||||||||||||||||||
| Operating expenses | (1,419.5) | (866.5) | (454.1) | (98.9) | |||||||||||||||||||
| Operating profit (loss) | 504.1 | 507.2 | 95.8 | (98.9) | |||||||||||||||||||
| Non-operating income (expense), net | |||||||||||||||||||||||
| Interest expense, net | (119.8) | — | — | (119.8) | |||||||||||||||||||
| Other non-operating income (expense), net | (58.2) | — | — | (58.2) | |||||||||||||||||||
| Earnings from continuing operations before income taxes | $ | 326.1 | $ | 507.2 | $ | 95.8 | $ | (276.9) | |||||||||||||||
| Depreciation and amortization expenses | $ | (322.8) | $ | (172.0) | $ | (150.4) | $ | (0.4) | |||||||||||||||
| Capital expenditure | $ | (63.5) | $ | (50.9) | $ | (9.8) | $ | (2.8) | |||||||||||||||
Segment Assets:
| As of | |||||||||||||||||
| ($ in millions) | September 26, 2025 | December 31, 2024 | |||||||||||||||
| Intelligent Operating Solutions | $ | 6,315.4 | $ | 6,324.1 | |||||||||||||
| Advanced Healthcare Solutions | 4,907.1 | 5,008.6 | |||||||||||||||
| Total segment assets | 11,222.5 | 11,332.7 | |||||||||||||||
| Other (a) | 607.8 | 967.9 | |||||||||||||||
| Assets of Discontinued Operations | 56.4 | 4,715.5 | |||||||||||||||
| Total assets | $ | 11,886.7 | $ | 17,016.1 | |||||||||||||
| (a) Other represents corporate assets which consist primarily of cash, property, plant, and equipment, and net deferred income tax assets. |
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