Fortive Corporation’s Software Revolution & Expanding Revenue Streams: Can AI Integration Transform Its Business Model?

Fortive Corporation’s third-quarter 2025 earnings mark its first set of results following the spin-off of its Precision Technology segment, now Ralliant. The new structure aims to create a more focused company with a strategy centered on driving profitable organic growth, effective capital allocation, and boosting shareholder returns. During the quarter, Fortive executed well, achieving core growth of 2%, adjusted EBITDA growth of 10%, and a 15% increase in adjusted EPS year-over-year. A notable highlight is the company’s decision to increase its full-year adjusted EPS guidance to $2.63 to $2.67 per share, bolstered by overperformance in the third quarter and substantial share repurchases amounting to $1 billion. This buyback retired around 21 million shares, reflecting confidence in the relative return of share repurchases at recent valuation levels. Fortive has realigned its strategic focus, which includes innovation acceleration, commercial expansion into high-growth markets, and enhancing recurring revenue streams.