stockrowWhat it does
Fortive Corporation makes instruments, software and services used to maintain equipment, manage facilities, protect workers and support healthcare procedures. Founded in 2016, it is headquartered in Everett, Washington, and its chief executive is Olumide Soroye.
Its Intelligent Operating Solutions business serves people who maintain and operate buildings, industrial equipment and technology networks. For example, Fluke instruments help technicians measure and diagnose equipment, while facility and asset software helps organizations manage maintenance and the life cycle of their properties. The business also sells worker-safety and compliance products, including gas-detection solutions.
Advanced Healthcare Solutions serves healthcare providers with products and software used around clinical procedures. Its offerings include sterilization equipment, instrument tracking, biomedical testing tools, radiation monitoring and clinical productivity software. These products help providers manage instruments and follow procedures in healthcare settings.
Fortive designs, manufactures and markets its products alongside software and services. Its brands include ServiceChannel, Gordian, Accruent, Industrial Scientific, Advanced Sterilization Products, Censis and Provation. The company operates internationally, with facilities and employees in many countries.
The current business excludes Precision Technologies, which Fortive separated into the independent company Ralliant Corporation in June 2025. Fortive reports the separated business as a discontinued operation.
How it makes money
Fortive earns revenue from products and services across its industrial and healthcare businesses. In FY2025, product revenue was $3.3 billion and services revenue was $817.8 million; total revenue in Q3 2026 was $1.1 billion.
Intelligent Operating Solutions generated $2.9 billion in FY2025 revenue. It sells professional instruments for measurement, maintenance and condition monitoring, as well as facility-management software and worker-safety solutions. Its products include gas detectors and instruments used by electrical and network technicians. ServiceChannel also provides outsourced facility maintenance; in some arrangements, it acts as the merchant of record for the spending, which increases reported revenue and costs.
Advanced Healthcare Solutions generated $1.3 billion in FY2025 revenue. Its sales include sterilization equipment and consumables, radiation monitoring, biomedical testing and clinical software. Fortive is investing to expand the installed base at Advanced Sterilization Products, where it has a model combining equipment with subsequent consumable sales.
Recurring offerings include Industrial Scientific’s iNet subscription for gas-detection programs, eMaint software and Provation software sold as a service. Fortive said both recurring and non-recurring revenue grew in Q3 2026, with non-recurring revenue growing faster.
Pricing also affects results. In 2025, favorable pricing contributed to sales growth, partly offset by a volume decline. In Q3 2026, Fortive reported price and volume growth in both segments.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Product | $3.3 billion | 80.3% | 1.53% |
| Services | $817.8 million | 19.7% | 3.52% |
Customers and how it sells
Fortive serves customers across manufacturing, healthcare, utilities and power, communications, electronics and process industries. Users include electricians, engineers, network technicians, facility managers, maintenance professionals and first responders. Healthcare customers use its products and software for tasks such as sterilizing and tracking instruments, monitoring radiation and documenting procedures.
Fortive said it served 100,000 customers in Q2 2026. The majority of its 2025 revenue came from customers other than government entities, although both segments sell products and services to governments.
North America accounted for 59.9% of FY2025 revenue. Asia-Pacific represented 17.6%; Europe, the Middle East and Africa represented 17.5%; and Latin America represented 5.10%. Fortive also reported sales from customers outside the United States in 2025.
Outside the United States, most sales are made by local subsidiaries. Fortive also sells from the United States through representatives and distributors and, in some cases, directly. In countries with low sales volumes, it generally uses representatives and distributors.
In Q3 2026, Fortive said all major regions contributed to core revenue growth. It said North America saw modest sequential acceleration and that growth had accelerated in Europe, the Middle East and Africa.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| North America | $2.5 billion | 59.9% | 3.07% |
| Asia-Pacific | $730.1 million | 17.6% | −0.44% |
| Europe, Middle East, and Africa | $725.8 million | 17.5% | 0.65% |
| Latin America | $212.1 million | 5.10% | 1.14% |
Suppliers and costs
Fortive buys electronic components, steel, plastics, other petroleum-based products, aluminum and copper for manufacturing. It purchases materials from independent suppliers around the world. No single supplier is material based on the allocation of annual spending, but some components with particular specifications or qualifications depend on one supplier or a limited number of suppliers.
The company uses safety stock, alternative materials and qualification of multiple sources in some cases to address supply disruptions. Tariffs affect the cost of affected materials and components imported into the United States, while oil and gas prices affect freight and utility costs.
In Q3 2026, Fortive said inflation was particularly evident in electrical and electronic components and that freight costs rose more than expected. It said sourcing, productivity measures and pricing more than offset the cost increases.
Product mix also affects margins. Fortive said Q3 2026 adjusted gross margin declined year over year, primarily because of growth in certain lower-margin products. It also invests in research and development, sales and marketing to support growth.
- Revenue$4.2B
- Cost of revenue−$1.5B
- Research and development−$259.2M
- Selling, general and administrative−$1.7B
- Operating income$720.2M
Competitive position
Fortive operates in competitive markets that vary by product and service. Its competitors include larger companies with substantial sales, marketing, research and financial resources, as well as regional businesses specializing in particular markets. It also faces competitors from lower-cost manufacturing locations and consolidation in some markets. Fortive does not name individual competitors in its discussion of these markets.
The factors customers consider vary by business but include price, quality, performance, delivery speed, application expertise, distribution, service, technology and brand recognition. Fortive owns patents, trademarks, copyrights and trade secrets, but does not regard any single intellectual-property right or license as material to a segment or to the company as a whole.
Our reading: Brands and technical expertise provide a meaningful competitive foundation, but their strength differs across product lines and Fortive faces competition on price and performance as well as technology.
Our reading: Software embedded in customer workflows and subscriptions can support continuing relationships, although the available evidence does not establish how difficult these offerings are to replace.
Our reading: Intellectual property contributes to the business collectively, but reliance on a single patent or license is not the basis of its protection.
Growth opportunities
Fortive’s growth strategy combines product development, sales investment, recurring customer offerings and acquisitions. It is directing commercial resources toward data centers, defense, early-career technicians and healthcare providers such as ambulatory surgical centers.
For data centers, Fortive supplies products used in construction, testing, operations and maintenance. It is expanding its specialized sales capacity and developing products for data-center customers. Fortive said the talent and capacity it wanted to build were constrained in Q3 2026.
The company is also adding software capabilities. ServiceChannel introduced AI-powered asset recognition and tools to help route and resolve work orders, while Industrial Scientific launched iNet Insights for managing gas-detection programs. Fortive said eMaint continued moving customers to its next-generation platform in Q3 2026.
Acquisitions include Aeroqual, an environmental-monitoring business, and UV Smart, which added an instrument-disinfection technology to Advanced Sterilization Products. Fortive said these acquisitions were performing in line with its deal cases and expects them to contribute to growth.
In Q3 2026, Fortive reported year-over-year growth in total revenue and core revenue. For full-year 2026, it expects core revenue growth.
- $5.3BFY2021
- $5.8BFY2022
- $3.9BFY2023
- $4.1BFY2024
- $4.2BFY2025
- $4.4BFY2026 guidance
Structural risks
- Economic and customer spending: Weak economic conditions can reduce demand, lengthen sales cycles and increase order cancellations. Fortive said U.S. hospital capital spending was improving in Q3 2026 but remained somewhat constrained.
- Supply and trade: Some specified components depend on one or a limited number of suppliers. Interruptions could disrupt production, while tariffs, trade restrictions and higher material or shipping costs can affect operations.
- Competition and technology: Fortive must identify customer needs, differentiate its offerings and commercialize new technologies. It faces price competition and competitors with substantial resources.
- Regulation: Many healthcare products are medical devices subject to extensive requirements governing design, manufacturing, marketing and distribution. Fortive also faces healthcare, privacy, trade and other rules across jurisdictions.
- Acquisitions and debt: Acquired businesses can underperform, be difficult to integrate or bring unforeseen liabilities. Debt obligations require cash for principal and interest and can reduce funds available for other purposes.
Bottom line
Our reading
Our reading: Fortive combines industrial instruments and healthcare equipment with software, services and consumables that can extend customer relationships beyond an initial sale. Its results depend on demand across several markets, particularly North America, as well as its ability to protect margins against cost and product-mix changes. (item1; item7; call_prepared)
Our reading: New products, recurring offerings and bolt-on acquisitions provide routes to growth, while competitive pressure, regulation and exposure to constrained components remain important operating risks. (item1; item1a; call_prepared)