Fortive Q3 Earnings & Revenues Beat Estimates, Increase Y/Y, Stock Up

Fortive Corporation FTV reported third-quarter 2025 adjusted earnings per share (EPS) of 68 cents from continuing operations, which surpassed the Zacks Consensus Estimate of 58 cents. The bottom line increased 15.3% year over year.Revenues increased 2.3% year over year to $1.03 billion. The top line beat the Zacks Consensus Estimate by 2.1%. Core revenues jumped 1.9%.After the announcement, Fortive’s shares inched up around 2.4% in the trading session yesterday. The stock has lost 29.5% in the past year compared with the Zacks Electronics - Testing Equipment industry's decline of 5.7%.Image Source: Zacks Investment ResearchConsistent with its disciplined capital allocation strategy and its commitment to enhancing shareholder value, the company executed $1 billion in share repurchases during the quarter.The company raised full-year 2025 guidance to reflect the strong third-quarter adjusted EPS performance. Fortive is executing its Fortive Accelerated strategy with focus and urgency, driving profitable growth through FBS Amplified, maintaining disciplined capital deployment and reinforcing investor confidence. The company remains confident in its financial framework and is well-positioned to deliver meaningful long-term value for its shareholders.On June 28, 2025, the company completed the separation of its former Precision Technologies segment. This was accomplished through a pro rata distribution to Fortive shareholders of all issued and outstanding shares of Ralliant Corporation, the entity formed to hold the Precision Technologies businesses. Upon completion of the PT Separation, the criteria for reporting the Ralliant business as discontinued operations were satisfied. All figures and information presented herein relate to continuing operations.Top Line in DetailFortive operates under the following two organized segments:Intelligent Operating Solutions: The segment generated revenues of $698.8 million (contributing 68% to total revenues), which increased 2.6% on a year-over-year basis.Advanced Healthcare Solutions: This segment registered revenues of $328.3 million (32%), up 1.8% year over year.Operating DetailsIn the reported quarter, adjusted gross profit increased 1.4% to $650.6 million on a year-over-year basis.Adjusted operating margin was 28.4%, which expanded 210 basis points (bps) on a year-over-year basis.Segment-wise, the adjusted operating margins of Intelligent Operating Solutions were 32.8%, expanding 110 bps year over year.Adjusted operating margins of Advanced Healthcare Solutions were 26.7%, rising 130 bps.Balance Sheet & Cash FlowAs of Sept. 26, 2025, cash and cash equivalents were $430.8 million compared with $1827.4 million as of June 27, 2025.FTV generated an operating cash flow of $294.7 million for the third quarter compared with $205 million in the previous quarter. Non-GAAP free cash flow was $266.1 million compared with $180 million in the prior quarter.The company repurchased approximately $21 million worth of shares during the reported quarter. Fortive Corporation Price, Consensus and EPS Surprise Fortive Corporation price-consensus-eps-surprise-chart | Fortive Corporation QuoteFortive’s OutlookFortive has raised its full-year adjusted EPS guidance to a range of $2.63 to $2.67 compared with $2.50 to $2.60 projected earlier.  This revised outlook reflects stronger-than-expected third-quarter performance and the effect of additional share repurchases completed during the quarter. It maintains the company’s previous fourth-quarter expectations as outlined on the last earnings call. The guidance also assumes the continuation of market trends observed at the end of the third quarter and factors in current and anticipated tariff rates expected to take effect through year-end, with tariffs net of countermeasures not expected to have a material impact in the quarter.The company expects overall core growth to moderate in the fourth quarter, with AHS core growth remaining roughly in line with the third-quarter levels and IOS delivering modest core growth. For 2025, the company continues to anticipate an adjusted effective tax rate in the mid-teens, with a fourth-quarter tax rate in the single digits due to discrete tax items. It also expects a sequential increase in net interest expense in the fourth quarter.Zacks RankCurrently, Fortive has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Performance of Other FirmsIridium Communications IRDM reported EPS of 35 cents for the third quarter of 2025, beating the Zacks Consensus Estimate by 35%. The bottom line compared favorably with the prior-year quarter's figure of 21 cents. Iridium reported quarterly revenues of $226.9 million, a 7% increase year over year, driven by continued strength in Service revenue and Equipment and Engineering/Support sales. The consensus estimate was $224.05 million.SAP SE SAP reported third-quarter 2025 non-IFRS earnings of €1.59 ($1.86) per share, climbing 29% from the year-ago quarter’s levels. The Zacks Consensus Estimate was pegged at $1.69. Driven by robust cloud growth, disciplined cost control and expanding AI capabilities, SAP reported total revenues on a non-IFRS basis of €9.08 billion ($10.6 billion), representing a 7% year-over-year increase (up 11% at constant currency or cc). The Zacks Consensus Estimate was pegged at $10.56 billion.Sensata Technologies Holding plc ST reported third-quarter 2025 adjusted earnings per share (EPS) of 89 cents, flat year over year. However, the bottom line topped the Zacks Consensus Estimate by 4.7%.Revenues for the quarter reached $932 million, down 5.2% from a year ago. The top-line contraction was attributable to earlier announced divestitures and product lifecycle optimization efforts. However, the figure outperformed management’s expectations ($900-$930 million) and beat the consensus estimate by 1.9%. Zacks' Research Chief Picks Stock Most Likely to "At Least Double"Our experts have revealed their Top 5 recommendations with money-doubling potential – and Director of Research Sheraz Mian believes one is superior to the others. Of course, all our picks aren’t winners but this one could far surpass earlier recommendations like Hims & Hers Health, which shot up +209%.See Our Top Stock to Double (Plus 4 Runners Up) >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report SAP SE (SAP): Free Stock Analysis Report Sensata Technologies Holding N.V. (ST): Free Stock Analysis Report Iridium Communications Inc (IRDM): Free Stock Analysis Report Fortive Corporation (FTV): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks