Fortive beats Q4 estimates, initiates FY26 guidance
Adjusted EPS of $0.90 tops consensus as CEO cites progress on Fortive Accelerated strategy
Fortive Corporation reported stronger-than-expected fourth quarter earnings on Wednesday, beating analyst estimates and initiating fiscal 2026 guidance that signaled confidence in the company's strategic turnaround.
The diversified industrial technology company posted adjusted earnings per share of $0.90, exceeding the $0.84 consensus estimate from Wall Street analysts. Revenue reached $1.12 billion for the quarter, topping projections of approximately $1.09 billion.
For full year 2025, Fortive delivered adjusted diluted net earnings per share of $2.71, positioning the company for continued growth in the coming year.
Looking ahead, the company initiated adjusted diluted net earnings per share guidance for fiscal 2026 of $2.90 to $3.00, representing growth of 7% to 11% from full year 2025 results. The midpoint of this range implies steady improvement as the company executes against its strategic priorities.
Chief Executive Officer Olumide Soroye highlighted progress on the Fortive Accelerated strategy, noting it is "in execution mode" with the medium-term financial framework "solidly intact." The strategy focuses on three core elements: profitable organic growth powered by an enhanced Fortive Business System, disciplined capital allocation balancing share repurchases and bolt-on acquisitions, and building investor trust.
Capital deployment emerged as a key theme in 2025. The company executed approximately $1.3 billion in share repurchases during the second half of the year, representing roughly 26 million shares or about 8% of diluted shares outstanding. This included $265 million in buybacks during the fourth quarter alone. Earlier in the year, Fortive expanded its share repurchase authorization by approximately 15.63 million shares.
Shares of Fortive traded modestly higher following the announcement, reflecting investor approval of the results and outlook. The stock has gained 1.2% in Wednesday trading, with shares currently changing hands at $54.35. Over the past 52 weeks, Fortive has traded between $45.29 and $62.42.
Analysts maintain a generally positive outlook on the stock, with an average target price of $58.12, according to market data. Of the analysts covering the company, four rate it a buy while 14 recommend hold, suggesting cautious optimism about the turnaround story.
The Fortive Accelerated strategy represents a significant bet on the company's ability to leverage its industrial automation, sensing, and software solutions to drive productivity for global customers. By focusing on profitable growth and shareholder returns through disciplined capital allocation, management aims to restore investor confidence following a period of strategic repositioning.
The FY26 guidance range of $2.90 to $3.00 will serve as a key benchmark for management's execution. The lower end would represent roughly 7% growth from 2025 levels, while achieving the upper target would require nearly 11% improvement—a challenging but achievable goal given the company's diversified portfolio and market position.