Fortive (FTV) risk factors: FY2025 10-K

Item 1A of the 10-K for the period ending 2025-12-31, filed 2026-02-25. 35 risk factor headings as filed. Read Item 1A in full · The whole 10-K · What changed since FY2024

2new since FY2024
7reworded
3removed
26unchanged

Headings mentioning a theme: Tariffs 0 · AI 1 · Cybersecurity 1 · China 0 · Interest rates 1. Compare across the S&P 500.

Risk Related to Our Business Operations

18
  1. Conditions in the global economy, the markets we serve, and the financial markets may adversely affect our business and financial results.
  2. If we cannot adjust our manufacturing capacity, supply chain management or the purchases required for our manufacturing activities to reflect changes in market conditions, international trade policies, customer demand and supply chain disruptions, our profitability may suffer. In addition, our reliance upon sole or limited sources of supply for certain materials, components, and services could cause production interruptions, delays and inefficiencies.reworded
  3. Our financial results are subject to fluctuations in the cost and availability of commodities or components that we use in our operations.
  4. Our growth could suffer if the markets into which we sell our products and services decline, do not grow as anticipated, or experience cyclicality.
  5. We face intense competition and if we are unable to compete effectively, we may experience decreased demand and decreased market share. Even if we compete effectively, we may be required to reduce prices for our products and services.
  6. Our growth depends in part on the timely development, commercialization and customer acceptance of new and enhanced products and services based on technological innovation.reworded
  7. Our ability to successfully manage our leadership transition in connection with the completed Separation and attract, develop, and retain senior leaders and other key employees is critical to our success.new
  8. Disruptions in, or breaches in security of, our information technology systems, exfiltration of confidential or sensitive data, and other cyberattacks have adversely affected, and in the future could adversely affect, our business.rewordedCybersecurity
  9. Defects and unanticipated use or inadequate disclosure with respect to our products (including software) or services could adversely affect our business, reputation, and financial results.
  10. Adverse changes in our relationships with, or the financial condition, performance, purchasing patterns, or inventory levels of, key distributors and other channel partners could adversely affect our financial results.
  11. Work stoppages, works council campaigns, and other labor disputes could adversely impact our productivity and results of operations.
  12. If we suffer loss to our facilities, supply chains, distribution systems, or information technology systems due to catastrophe or other events, our operations could be seriously harmed.
  13. If we do not or cannot adequately protect our intellectual property, or if third parties infringe our intellectual property rights, we may suffer competitive injury or expend significant resources enforcing our rights.
  14. Third parties may claim that we are infringing or misappropriating their intellectual property rights and we could suffer significant litigation expenses, losses, or licensing expenses or be prevented from selling products or services.
  15. Our restructuring activities could have long-term adverse effects on our business.
  16. We are subject to a variety of litigation and other legal and regulatory proceedings in the course of our business that could adversely affect our financial results.
  17. Climate change, or legal or regulatory measures to address climate change, may negatively affect us.
  18. We use artificial intelligence in our business and in certain of our products, and challenges with properly managing its use could result in reputational harm, competitive harm, and legal liability, and adversely affect our results of operations.rewordedAI

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Risk Related to our International Operations

3
  1. International economic, political, legal, compliance, and business factors could negatively affect our financial results.
  2. Trade relations between the United States and other countries have been volatile and could have a material adverse effect on our business and financial results.reworded
  3. Foreign currency exchange rates, including the volatility thereof, may adversely affect our financial results.

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Risk Related to Our Investments and Dispositions

5
  1. Our strategy requires us to execute and deliver disciplined capital allocation.new
  2. Our acquisition of businesses, investments, joint ventures, and other strategic relationships could negatively impact our financial results.
  3. The indemnification provisions of acquisition agreements by which we have acquired companies may not fully protect us and as a result we may face unexpected liabilities.
  4. Divestitures or other dispositions could negatively impact our business, and contingent liabilities from businesses that we have sold could adversely affect our financial results.
  5. Potential indemnification liabilities to Ralliant and Vontier pursuant to the respective separation agreements could materially and adversely affect our businesses, financial condition, results of operations, and cash flows.reworded

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Risk Related to Regulatory and Compliance Matters

4
  1. Changes in industry standards and governmental regulations may reduce demand for our products or services or increase our expenses.
  2. Our reputation, ability to do business, and financial results may be impaired by improper conduct by any of our employees, agents, or business partners.
  3. Our operations, products, and services expose us to the risk of environmental, health, and safety liabilities, costs, and violations that could adversely affect our reputation and financial results.
  4. Our businesses are subject to extensive regulation, including healthcare regulations; failure to comply with those regulations could adversely affect our financial results and our business, including our reputation.

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Risk Related to Our Tax and Accounting Matters

4
  1. Changes in our effective tax rates or exposure to additional tax liabilities or assessments could affect our profitability. In addition, audits by tax authorities could result in additional tax payments for prior periods.
  2. We could incur significant liability if our separation from Danaher, our separation of Vontier or our separation of Ralliant (together, the “Separation Transactions”) are determined to be a taxable transaction.reworded
  3. Changes in U.S. GAAP could adversely affect our reported financial results and may require significant changes to our internal accounting systems and processes.
  4. We may be required to recognize impairment charges for our goodwill and other intangible assets.

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Risk Related to Our Financing Activities

1
  1. We have incurred a significant amount of debt, and our debt obligations, including the cost of such debt, will increase further if we incur additional debt and do not retire existing debt, our credit rating declines, or if the applicable interest rates rise.Interest rates

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No longer in Item 1A

3

Headings in the FY2024 10-K with no match this year.

  1. Our ability to attract, develop, and retain senior leaders and other key employees is critical to our success.
  2. Our plans to separate into two independent, publicly traded companies may not be completed on the currently contemplated timeline or at all and may not achieve the intended benefits, including the anticipated tax treatment.
  3. Any inability to consummate acquisitions at our anticipated rate and at appropriate prices, and to make appropriate investments that support our long-term strategy, could negatively impact our growth rate and stock price.

Headings are the lines of Item 1A set wholly in bold or italics, as the parser reads them, without the introductory paragraph that opens the section. A heading is new when no heading in the prior 10-K matches it after ignoring case and punctuation, and reworded when it shares at least 60 percent of its words with one that went away. Source: the filing on sec.gov.