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Fortive Corporation is an American industrial technology conglomerate company headquartered in Everett, Washington. The company specializes in providing essential technologies for connected workflow solutions; designing, developing, manufacturing and distributing professional and engineered products, software and services.[2] Their products and services are split into three strategic segments; Intelligent Operating Solutions, Precision Technologies, and Advanced Healthcare Solutions.[3] As of December 2022, Fortive has over 18,000 employees in 60 countries worldwide.[4]

Key Information

Fortive was spun off from Danaher in July 2016.[5] Brothers Steven and Mitchell Rales, Danaher's founders, retained board seats with Fortive after the separation.[6] At the point of its independent incorporation, Fortive immediately became a component of the S&P 500. Later the transportation, automation and franchise distribution businesses would be spun off. In 2018 and 2019, Fortune named Fortive as a Future 50 company.[7] In 2020, Fortune named Fortive one of the world's most admired companies.[8][9]

Acquisitions

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2016

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In September 2016, Fortive subsidiary Fluke, which specializes in electronic test equipment, acquired eMaint, a CMMS IIoT system.[10] In October 2016, another subsidiary Gilbarco Veeder-Root which specializes in industrial sales software, purchased Global Transportation Technologies (GTT), a provider in traffic management.[11][12]

2017

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In July 2017, Fortive acquired Pittsburgh-based Industrial Scientific,[13] which manufactures gas detection products.[14] Fortive established their second quarters in the Industrial Scientific building housing many of their data science and analytics teams.

In September 2017, Fortive purchased Landauer for $770 million.[15] Landauer is a provider of subscription-based technical and analytical services to determine occupational and environmental radiation exposure, as well as a domestic provider of outsourced medical physics services. They are headquartered in Glenwood, Illinois.

Fortive subsidiary Gilbarco Veeder Root acquired Orpak Systems, which delivers technologies to oil companies and commercial fleets.[16]

2018

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In July 2018, Fortive announced it was buying software firm Accruent for about $2 billion.[17] Accruent makes software to track real estate and facilities.[18] Also in July 2018, Fortive announced it would buy construction software company Gordian for $775 million from private equity firm Warburg Pincus. Gordian, based in Greenville, South Carolina, makes software that tracks costs of construction projects, manages facility operations and generally gives building companies more insight into big projects.[19] In December 2018 Tektronix acquired Initial State.[citation needed]

2019

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In June 2018, Fortive made a binding offer to buy Johnson & Johnson's Advanced Sterilization Products (ASP) business.[20] The deal was valued at $2.8 billion, made up of $2.7 billion in cash from Fortive and $0.1 billion of retained net receivables, and closed in April 2019.[21] Furthering their investment in healthcare, in November 2019 Fortive acquired Censis Technologies, a SaaS-based provider of inventory management in the surgical field, headquartered in Franklin, Tenn., from Riverside, a global private equity firm headquartered in Cleveland Ohio. Terms of the deal were not disclosed.[22]

In July 2019, Fluke acquired Germany based Pruftechnik, in precision laser shaft alignment, condition monitoring, and non-destructive testing,[23] to further their reliability business unit.[24]

In addition to previous acquisitions, like Predictive Solutions (Jan 2017)[25] and ActiveBlu (2017),[26] Industrial Scientific has made multiple acquisitions as part of Fortive. In June 2019 Industrial Scientific entered in a definitive agreement to buy Canadian based Intelex, a provider of SaaS-based Environmental, Health, Safety and Quality (EHSQ) management software.[27] The following month (July 2019), Industrial Scientific entered a definitive agreement to acquire SAFER Systems, a provider for the chemical, oil & gas, and transportation industries.[28]

2020

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In November, Intelex Technologies, a subsidiary of Industrial Scientific, announced that it has acquired ehsAI, a compliance automation technology provider.[29]

2021

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In July Fortive exercised their option on TeamSense, finalizing the acquisition from PSL.[30] Later that month, Fortive entered into a definitive agreement with Bayard Capital and Accel Partners to acquire ServiceChannel, a leading global provider of SaaS-based multi-site facilities maintenance service solutions[buzzword] with an integrated service-provider network. Fortive anticipates that the acquisition will close in the third quarter of 2021. ServiceChannel FY 2021 revenue expected to be approximately $125 million (recurring revenue of approximately $117 million); expected long-term revenue growth rate of mid-teens. This acquisition expected to enhance Fortive's revenue growth profile by approximately 50 basis points; anticipated to reach 10% ROIC target in 5 years. The purchase price for the acquisition is approximately $1.2 billion and is expected to be funded primarily with available cash. Upon closing, ServiceChannel is expected to be an independent operating company within Fortive's Intelligent Operating Solutions segment. ServiceChannel expands Fortive's leading offering of Facility and Asset Lifecycle workflow solutions[buzzword], alongside Accruent and Gordian.[31] It was announced in December Fortive entered into an agreement to buy healthcare software maker Provation from private equity firm Clearlake Capital Group. [32]

2023

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In October 2023, Fortive acquired German manufacturer Elektro-Automatik for $1.45 billion to strengthen Fortive's position in the electronic test and measurement market.[33][34]

Divestitures

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In October 2018, Fortive spun off their automation businesses, namely, Kollmorgen, Thomson, Portescap, Jacobs Vehicle Systems, and associated subsidiaries to Altra Industrial Motion[35] for an estimated $3 billion.[36]

In September 2019, Fortive announced its intention to split into two separate publicly traded companies.[37] In January 2020, the name of the new company was announced as Vontier. Vontier would comprise the transportation and franchises businesses. Specifically, the spin off would include Gilbarco Veeder Root, Matco Tools, Hennessey, GTT, Teletrac Navman, and associated subsidiaries.[38] An IPO was estimated to yield $1 billion, but was postponed in April 2020 due to uncertainty in the market stemming from the COVID pandemic.[39] Instead, Fortive chose to spin the business off to shareholders in October 2020 without first having the IPO.[40][41] Upon separation, Vontier replaced Noble Energy as a member of the S&P 500.[42]

In July 2025, Fortive spun off their precision technologies business into Ralliant Corporation, an independent, publicly traded company.[43]

Innovation

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Historically, growth in Fortive's portfolio companies had primarily come from M&A activity and operational excellence under the vaunted Danaher Business System.[44] Fortive has sought to achieve organic growth through establishing a culture of experimentation and innovation. Early on, this meant working with Innovators DNA to incorporate best practices.[45] Fortive's approach has proved successful. Notable new product introductions have included Tektronix MS05X "Elemental",[46] Fluke's T6,[47] Invetech's Formulate and Fill platform,[48] Anderson-Negele's paperless recorder,[49] and Fluke's ii900.[50] In the middle of the COVID pandemic, when there was a shortage of N-95 masks, ASP quickly innovated on existing technology to allow hospitals to clean masks.[51]

In May 2020, Fortive partnered with Pioneer Square Labs (PSL) to launch tech startups.[52] In June 2020, Fortive, in partnership with PSL, launched TeamSense.[53]

Culture

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Fortive's culture dates back to the Toyota Production System adopted by Danaher. At Fortive it has been branded as the Fortive Business System or FBS for short.[54] FBS has been referenced on multiple earnings calls as a key driver for sustained growth and operational excellence within the various operating companies.[55] Fortive's culture around integrity and compliance has led to several initiatives around Inclusion and Diversity.[56] Fortive has been named among the best places to work for LGBTQ Equality by the Human Rights Campaign several times.[57]

Fortive allows each of its associates a paid day of leave each year to volunteer in their local community.[58] In 2020, Newsweek named Fortive as one of their top 500 most responsible companies.[59]

References

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Fortive

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Fortive Corporation is a diversified industrial technology company headquartered in , that designs, develops, manufactures, and markets professional and engineered products, software, and services focused on essential technologies for safety, productivity, and connected workflows in industrial and healthcare sectors. Founded in 2016 as a spin-off from , Fortive operates as an independent, publicly traded entity on the under the FTV, with a team of approximately 10,000 employees across 50 countries. The company leverages the , a structured approach to continuous improvement, to drive innovation and across its portfolio of 10 market-leading brands, including Fluke and ASP Global. Fortive's core businesses address critical challenges in workplace , built environments, and healthcare sterilization, serving end-markets such as and medical facilities worldwide. Since its inception, the company has pursued growth through strategic , completing 23 transactions valued at $9 billion, while emphasizing and inclusive culture to foster long-term value creation. In 2024, Fortive reported full-year revenues of $6.23 billion, reflecting 3% year-over-year growth, with a of approximately $16.1 billion as of November 2025. In June 2025, Fortive completed the separation of its Precision Technologies segment into Ralliant Corporation, an independent publicly traded company, enhancing focus on its core Intelligent Operating Solutions and Advanced Healthcare Solutions segments to drive specialized growth and shareholder value. Led by President and CEO Olumide Soroye, Fortive continues to prioritize and technological advancement in mission-critical industries.

History

Spin-off from Danaher

Fortive Corporation was established in 2016 through a tax-free spin-off from , encompassing Danaher's industrial automation, specialty distribution, and industrial technologies businesses. This separation transferred key assets and brands to Fortive, including for precision measurement tools, for test and measurement equipment, and Gilbarco Veeder-Root for fuel dispensing and environmental solutions, along with other entities such as , Qualitrol, and Kollmorgen. These businesses formed Fortive's initial segments: Professional Instrumentation and Industrial Technologies, generating approximately $6.2 billion in revenue for the prior year. The strategic rationale for the spin-off was to create two independent companies with distinct focuses, enabling each to pursue tailored growth strategies and maximize . Danaher retained its emphasis on life sciences, diagnostics, and related high-technology sectors, while Fortive concentrated on industrial growth opportunities in test and measurement, , and specialty distribution. This division allowed both entities to apply the Danaher Business System more effectively to their respective markets, fostering organic and inorganic expansion without competing priorities. Preparations for the spin-off began in 2015, including the assembly of Fortive's management team under President and CEO James A. Lico, who had previously served as Danaher's Executive Vice President overseeing Test & Measurement and Gilbarco Veeder-Root. The transaction was completed on July 2, 2016, with Fortive shares distributed to Danaher shareholders on a one-for-two basis, resulting in approximately 345 million . Fortive's common stock began regular trading on the under the FTV on July 5, 2016, at an initial of approximately $17 billion.

Expansion and restructuring (2016–2024)

Following its spin-off from in July 2016, Fortive operated through two primary business segments: Professional Instrumentation, which focused on advanced and tools, and Industrial Technologies, encompassing sensing, , and solutions. These segments generated initial annual of approximately $6.7 billion in , reflecting the company's emphasis on industrial growth markets. Over the subsequent years, Fortive pursued operational expansion by integrating software and services into its portfolio, exemplified by the 2018 acquisition of Accruent, which bolstered facility software offerings within the Industrial Technologies segment. In 2018, Fortive underwent a significant internal through the split-off of its Automation & Specialty platform businesses (excluding certain retained units like Hengstler and Dynapar) to Corp., completed on October 1. This transaction streamlined the Industrial Technologies segment by divesting non-core automation assets, allowing Fortive to concentrate on high-growth areas such as sensing and precision components, while generating approximately $2.1 billion in proceeds for reinvestment. The reorganization supported growth to $6.7 billion that year, driven by organic expansion and strategic acquisitions. The year 2020 marked further evolution amid global challenges, as Fortive reorganized its remaining operations into three strategic segments following the October spin-off of its Industrial Technologies platform as Corporation: Intelligent Devices Group (later renamed Intelligent Operating Solutions), focusing on software-enabled industrial automation and asset management; Precision Technologies Group, centered on test, measurement, and specialty components; and Advanced Healthcare Solutions Group, emphasizing sterilization and infection prevention technologies. This restructuring reduced revenue to $4.6 billion, partly due to the divestiture, but also reflected impacts from disruptions, including supply chain interruptions and reduced demand in industrial and transportation end-markets. Recovery strategies emphasized digital transformation, with accelerated adoption of software solutions for remote monitoring and predictive maintenance, contributing to sequential quarterly improvements and a return to positive core revenue growth of 0.7% by the fourth quarter. By 2023, Fortive continued through targeted investments, completing a major acquisition worth $1.45 billion to enhance software and recurring streams across its segments, while refining its focus on high-margin, technology-driven solutions in healthcare and industrial applications. These efforts drove core growth of 5% and adjusted expansion to 59.5%, building on post-pandemic recovery that saw annual rebound to $5.8 billion in 2022 and $6.1 billion in 2023. Overall, from 2016 to 2024, Fortive achieved sustained mid-single-digit core growth, with 2024 reaching $6.2 billion, underscoring its shift toward software-centric models and resilient operations.

2025 separation into Fortive and Ralliant

On September 4, 2024, Fortive Corporation announced plans to separate into two independent public companies through a spin-off of its Precision Technologies segment, which would become Ralliant Corporation, with the transaction targeted for completion in the fourth quarter of 2025. The separation was completed on June 28, 2025, following shareholder approval and satisfaction of customary closing conditions. The rationale for the spin-off was to unlock by creating two focused entities: the new Fortive would concentrate on industrial and healthcare solutions with a high proportion of recurring from software and services, while Ralliant would target growth in test and measurement, sensors, and related technologies for , defense, and other sectors. Under the , Fortive retained its Intelligent Operating Solutions and Advanced Healthcare Solutions segments, which together represented approximately 50% recurring and emphasized productivity, safety, and reliability applications. Ralliant received the full Precision Technologies segment, including key brands like and Fluke, positioned to capitalize on secular trends in technology advancements. Leadership transitioned effectively with the completion. Olumide Soroye was appointed President, CEO, and Director of Fortive on June 28, 2025, succeeding James A. Lico, who retired from those roles but remained as a non-executive senior advisor through year-end. For Ralliant, Tami Newcombe assumed the role of President and CEO, also joining the , bringing over 30 years of experience in operational leadership from roles at and other technology firms. The spin-off was structured as a tax-free distribution for U.S. federal purposes, with Fortive shareholders receiving one share of Ralliant for every three shares of Fortive stock held as of the record date of June 16, 2025, resulting in the distribution of approximately 113 million Ralliant shares. Ralliant began trading on the under the ticker "RAL" on June 30, 2025. Initial market reactions were mixed; Fortive's stock declined by 1.9% on June 30, 2025, amid a lowered full-year outlook for the company post-separation, while Ralliant's when-issued shares traded at around $47, implying a of approximately $5.3 billion. financial statements for both entities, including unaudited combined condensed balance sheets as of March 28, 2025, and statements of earnings for the twelve months ended December 31, 2024, were filed with the SEC to reflect the separation's impact, showing Fortive's post-spin focus on adjusted EBITDA growth and generation.

Corporate affairs

Headquarters and leadership

Fortive Corporation's headquarters has been located in , since its spin-off from in 2016, with the primary address at 6920 Seaway Boulevard. The company maintains additional key offices in , supporting operational and strategic functions, alongside global facilities that enable its international presence across research, development, manufacturing, and sales. As of 2025, Fortive's consists of ten members, including a majority of independent directors with expertise in industrials, , , and healthcare. Sharmistha “Shar” Dubey serves as Chair, bringing experience from her role as CEO of , while other key independents include Eric Branderiz, with a background in investments at , and Gregory L. Moore, MD, PhD, appointed in February 2025 for his leadership in healthcare innovation at . The board emphasizes strategic oversight in industrial technologies, with members like Rejji P. Hayes contributing financial acumen from his executive roles at . Olumide Soroye was appointed President and CEO of Fortive on June 28, 2025, coinciding with the completion of the separation into Fortive and Ralliant, succeeding James A. Lico who retired after leading the company since 2016. Soroye, who joined Fortive in 2021 as President and CEO of the Intelligent Operating Solutions segment, brings over 30 years of experience in software, data, analytics, and AI strategies, including prior roles at advising technology firms and as at QuinStreet, Inc. He holds a in Metallurgical and Materials Engineering from , a Master's in from the University of Wisconsin-Madison, and an MBA from . In 2024, as segment leader, Soroye's total compensation was approximately $8.06 million, comprising 9.5% base salary and 90.5% in equity and incentives. The executive leadership team includes Mark D. Okerstrom as Senior Vice President and , appointed effective March 24, 2025, with prior experience as CEO of and a base salary of $800,000 plus incentives. Other key roles feature Stacey Walker as Senior Vice President and Chief People Officer, overseeing human resources and diversity initiatives, and Peter Underwood as Senior Vice President and Chief Legal Officer, managing governance and compliance. Group presidents such as Arul Elumalai lead major business areas, with executive tenures averaging under two years post-separation and compensation structures emphasizing performance-based equity awards aligned with long-term . Fortive maintains strong practices, including a commitment to ethical standards through its Standards of Conduct, which prohibit and promote integrity in all business interactions. The board's diversity stands at approximately 33% women as of 2025, with ongoing efforts to enhance representation through inclusive and annual certifications on anti-bribery compliance.

Financial overview

Fortive reported full-year 2024 revenue of $6.23 billion, representing a 3% increase year-over-year, driven by core revenue growth of 1%. Net earnings for the year totaled $833 million, with adjusted net earnings of $1.37 billion. In the first quarter of 2025, revenue was $1.47 billion, reflecting a 3% decline year-over-year and a 2% core revenue decline. In the third quarter of 2025 (ended September 26, 2025), revenue was $1.03 billion, up 2.3% year-over-year with 1.9% core growth, and adjusted diluted net earnings per share of $0.74. Fortive's common stock trades on the under the FTV since its spin-off from Danaher in 2016. As of November 2025, the company's stood at approximately $16 billion. Fortive initiated a quarterly in 2017, with payments consistently made thereafter, including $0.08 per share in each quarter of 2024. In 2024, Fortive executed share repurchases totaling $889.6 million as part of its capital allocation strategy. Post-separation in June 2025, long-term levels decreased to $2.12 billion, contributing to a net position of around $2.0 billion and supporting an investment-grade of BBB with a stable outlook from . Fortive has maintained a core growth rate of 3-5% annually over recent economic cycles, with a three-year of about 5%. In , adjusted EBITDA margins reached approximately 25%, reflecting amid moderate expansion. The 2025 separation streamlined the balance sheet by isolating the precision technologies segment into Ralliant, reducing Fortive's overall debt exposure.

Operations

Business segments

Following the completion of the spin-off of its Precision Technologies segment into Ralliant Corporation on June 28, 2025, Fortive restructured into two primary business segments: Intelligent Operating Solutions and Advanced Healthcare Solutions. This separation, which evolved from Fortive's pre-2025 three-segment model, allows for focused strategies in industrial automation and healthcare technologies. The Intelligent Operating Solutions segment, often referred to in the context of industrial technologies, develops and software solutions for , including advanced for electrical and , asset lifecycle software, and tools for workplace and facility compliance. It holds leadership positions in enhancing and ensuring worker across industrial end markets. Meanwhile, the Advanced Healthcare Solutions segment specializes in essential devices for diagnostics, monitoring, sterilization, instrument tracking, and radiation in hospitals and laboratories, emphasizing reliable technologies critical to healthcare operations. Fortive's operations span globally. The company employs over 10,000 people worldwide following the separation. Strategically, Fortive prioritizes recurring revenue streams, which account for approximately 50% of , derived primarily from software subscriptions, services, and to drive predictable growth and .

Products and services

Fortive's products and services focus on delivering essential technologies that enhance , , and connectivity in industrial and healthcare environments. The company's offerings are organized across its Intelligent Operating Solutions and Advanced Healthcare Solutions segments, providing hardware, software, and support services tailored to mission-critical applications. These solutions serve a diverse customer base, including firms, utilities, and healthcare providers, emphasizing reliable performance and ongoing operational support. In the industrial domain, Fortive provides robust tools and software for testing, , and . Fluke offers industry-leading electrical testing and instruments, such as multimeters and devices, used by technicians for electrical systems and ensuring equipment reliability in and utilities settings. Accruent delivers software, including SaaS-based platforms for asset lifecycle tracking, space optimization, and compliance management, helping organizations streamline operations across commercial and industrial facilities. solutions from Industrial Scientific include portable and fixed gas detection systems for monitoring hazardous environments, preventing workplace incidents in sectors like oil and gas and chemicals. Services complement these products through , preventive , and , often delivered as bundled packages to maintain compliance with standards. Gordian provides cost estimating and tools, supporting development with data-driven insights for budgeting and operations. Fortive's healthcare solutions emphasize precision instrumentation and workflow automation to support patient care and facility operations. Fluke Health Solutions supplies advanced test and measurement tools, including biomedical analyzers and patient simulators, for verifying the performance of medical devices like defibrillators and infusion pumps in hospitals and clinics. Advanced Sterilization Products (ASP) develops infection prevention technologies, such as low-temperature sterilization systems and endoscope processing solutions, enabling safe reprocessing of surgical instruments to reduce hospital-acquired infections. Provation offers software for clinical documentation, endoscopy reporting, and procedure efficiency, integrating with electronic health records to boost productivity for healthcare providers. These offerings include services like equipment validation, maintenance contracts, and SaaS subscriptions for software updates and remote monitoring, with bundled solutions facilitating in patient monitoring and lab environments.

Business development

Acquisitions

Fortive has actively pursued inorganic growth through a series of strategic acquisitions since its spin-off from Danaher in 2016, targeting technologies that complement its core segments in precision technologies, healthcare solutions, and intelligent operating systems. These deals have primarily focused on software-enabled workflows, industrial automation, and healthcare IT, enabling Fortive to expand its market presence and integrate advanced capabilities into its portfolio. By 2023, the company had completed over 10 notable acquisitions, with total consideration exceeding $10 billion for major transactions alone, though many smaller bolt-on deals remain undisclosed in aggregate value. The following table summarizes key acquisitions, highlighting their strategic fit:
YearAcquired CompanyPurchase PriceDescription and Strategic Fit
2017Industrial ScientificUndisclosedPittsburgh-based manufacturer of gas detection and safety monitoring products; enhanced Fortive's sensors and safety systems segment by adding connected worker safety solutions.
2017Landauer$770 millionProvider of and services; bolstered Fortive's healthcare offerings with dose monitoring technology for medical and industrial applications.
2018Gordian$775 millionLeading provider of cost data, , and services; expanded Fortive's intelligent operating solutions into facilities and intelligence, targeting a $1.5 billion market segment.
2018Accruent$2 billionPhysical software provider; advanced Fortive's IoT and digital strategy in for real estate and facilities, creating synergies in connected workflows.
2019Advanced Sterilization Products (ASP)$2.7 billionJohnson & Johnson's sterilization and infection prevention business; significantly strengthened Fortive's healthcare segment with capital equipment for hospitals, marking its largest deal to date.
2019Censis TechnologiesUndisclosed tracking and software; deepened healthcare workflow solutions by improving sterile processing efficiency in hospitals.
2019Intelex Technologies$570 million, and safety software; integrated into Fortive's software portfolio to support compliance and in industrial operations.
2019PrüftechnikUndisclosed monitoring and alignment tools for industrial machinery; enhanced precision measurement capabilities in the products and services segment.
2021ServiceChannel$1.2 billionFacilities platform; expanded field service software offerings, adding for multi-location enterprises in the intelligent operating solutions segment.
2022Provation$1.425 billionHealthcare documentation and workflow software; accelerated growth in advanced healthcare solutions by integrating procedure capture tools for and perioperative care.
2024EA Elektro-Automatik$1.45 billionHigh-power electronic test and measurement solutions provider; reinforced Fortive's precision technologies segment with programmable power supplies for EV, , and data center testing markets.
Acquisition activity peaked between 2017 and 2019, with multiple deals in software and healthcare that drove segment diversification and revenue synergies, before slowing in 2020 due to the and preparations for the 2025 corporate separation. Post-2020, Fortive shifted toward fewer but higher-impact purchases, such as those in 2021 and 2023, aligning with a focus on high-growth areas like healthcare IT and electronic testing amid economic uncertainty. Fortive's integration strategy emphasizes rapid value creation through the Fortive Business System (FBS), a derived from Danaher that standardizes processes for continuous improvement, , and customer focus. Acquired companies are typically onboarded within months, leveraging FBS to achieve operational synergies, such as cost reductions and revenue acceleration, often contributing to double-digit post-acquisition. This approach has enabled seamless incorporation of technologies like ASP's sterilization systems into Fortive's healthcare and Accruent's software into IoT platforms, fostering long-term competitive advantages without detailed public ROI metrics beyond segment-level performance improvements. Following the 2025 separation into Fortive and Ralliant, the company has indicated a continued emphasis on smaller, synergistic acquisitions in healthcare and software to support targeted growth in its streamlined portfolio.

Divestitures and spin-offs

Fortive initiated its divestiture strategy shortly after its 2016 spin-off from to refine its industrial technology portfolio. Two years later, in 2020, Fortive divested its non-core distribution businesses through the spin-off of Corporation, which encompassed brands like and Hennessy Industries, further streamlining operations by separating and mobility-focused assets from its primary technology segments. The most significant transaction occurred in 2025 with the separation of its Precision Technologies and Advanced Healthcare Solutions segments into Ralliant Technologies, Inc., completed on June 28, 2025. This tax-free spin-off distributed shares to Fortive shareholders and included a pre-separation cash dividend of approximately $1.15 billion to Fortive, with proceeds allocated to reduction and up to $550 million in share repurchases. These actions were driven by a strategic rationale to concentrate on high-growth sectors such as healthcare technologies and intelligent devices, where software integration drives recurring revenue and margins. These divestitures have enabled sharper focus on accretive areas while shedding cyclical or commoditized operations. Post-divestiture, the simplified has yielded operational efficiencies through reduced complexity and enhanced across retained segments. This has positioned the streamlined Fortive for accelerated growth in its core markets, with improved adjusted operating margins reported in subsequent quarters.

Innovation

Research and development

Fortive invests significantly in to drive across its business segments. In , the company reported R&D expenses of $414 million, representing 6.6% of total sales of $6.23 billion. This investment supports ongoing product evolution and technological advancements in essential technologies for industrial, healthcare, and other mission-critical applications. The company's R&D activities are centered at its headquarters in , which serves as a key hub for innovation, including The Fort, an incubation center focused on emerging technologies such as and data analytics. Additional facilities, such as the Fortive Innovation Studio co-located with Censis Technologies in , facilitate collaborative development in healthcare-related technologies. Fortive maintains approximately 60 significant global facilities, including manufacturing and R&D sites, with about 35 in the United States and the remainder in 15 other countries, enabling localized innovation and testing. While specific university collaborations are not detailed in public disclosures, the company's workforce of over 18,000 employees, including dedicated R&D personnel, contributes to joint projects that align with academic expertise in engineering and technology. Fortive employs the Fortive Business (FBS), a framework of tools and methodologies, to structure its R&D processes, emphasizing continuous improvement, , and efficient to accelerate product development from ideation to . This integrates cross-functional teams to minimize waste and ensure alignment with market needs, supporting a that includes personnel focused on internal and contract-based R&D efforts. The company has secured numerous patents to protect its innovations, with over 5,600 patents globally as of recent filings, including more than 400 new patents worldwide in 2020 alone, reflecting a robust strategy. Key R&D focus areas include integration for and optimization, particularly within the Intelligent Operating Solutions and Advanced Healthcare Solutions segments. In healthcare, efforts emphasize for medical devices, ensuring adherence to standards such as those from the U.S. through rigorous testing and documentation processes. Emerging explorations in digital twins support industrial simulations for enhanced efficiency and safety, aligning with broader goals in and operations. These priorities tie briefly to Fortive's segments by advancing connected solutions in high-impact markets.

Key technological advancements

Fortive's portfolio underscores its commitment to , encompassing 5,616 patents filed globally, with 3,486 granted and more than 47% remaining active as of the latest available data. These patents are predominantly focused on test and measurement equipment and systems, enabling advancements in precision technologies for industrial, healthcare, and applications. One seminal development is the Fluke Connect platform, introduced in May 2014 as a cloud-based system that connects test tools for real-time data capture, analysis, and sharing across teams without requiring physical presence at the site. This facilitates remote and has been recognized for enhancing in electrical and electronic troubleshooting, with integration into over 40 Fluke tools by the platform's early years. In the software domain, Fortive integrated AI-driven predictive maintenance into Accruent's solutions around 2022, leveraging analytics to monitor equipment performance in real time and forecast potential failures. This capability, supported by investments in AI platforms like Datamaran, allows facility managers to shift from reactive to proactive strategies, optimizing maintenance schedules for large-scale such as and utilities. Fortive has also advanced healthcare technologies through Fluke Health Solutions, introducing connected sensors for remote biomedical equipment monitoring in recent developments, including enhancements in 2024 that enable wireless condition assessment to ensure compliance and reliability in clinical settings. These sensors support remote diagnostics, reducing the need for on-site interventions and improving outcomes. These technological advancements have driven measurable business impact, with new product introductions—measured as new product vitality from launches within the prior three years—forming a core driver of revenue growth across Fortive's segments. For instance, Accruent's predictive tools have enabled customers to achieve up to 16% savings through improved and reduced operational disruptions in case studies involving multi-site facilities. Looking ahead, Fortive is directing investments toward sustainable technologies, including energy-efficient devices like the Fluke ii900 Sonic Industrial Imager, which detects leaks to cut energy waste and support customers' emissions reduction goals. These efforts align with broader commitments to integration and resource conservation, as outlined in annual initiatives.

Culture

Fortive Business System

The Fortive Business System (FBS) traces its origins to the Danaher Business System (), which emerged in the mid-1980s when Danaher companies studied Japanese principles to counter intensifying global competition. Upon Fortive's spin-off from Danaher in July 2016, FBS was established as an adapted version of , serving as the cornerstone of Fortive's operational model and , with a strong emphasis on , events for waste reduction, and continuous improvement practices to drive efficiency and growth. This framework has been integral to Fortive's identity since its inception, promoting a disciplined approach to problem-solving and value creation across its industrial technology portfolio. Key components of FBS include policy deployment, which aligns organizational goals from executive leadership to frontline teams through structured hoshin planning; visual management tools, such as dashboards and obeya rooms, to monitor performance in real time; and daily routines like standups and standard work protocols to embed accountability and rapid issue resolution at every level. These elements foster a culture of ongoing enhancement, incorporating voice-of-the-customer feedback and bursts to eliminate inefficiencies and boost productivity. FBS implementation encompasses rigorous training programs delivered to Fortive's approximately 10,000 employees globally, equipping them with tools for and integrating the system into daily workflows across all business units. This has resulted in measurable outcomes, such as significant enhancements in on-time delivery rates and inventory management efficiency, underscoring FBS's role in sustaining competitive advantages. Since 2025, FBS has evolved by incorporating digital tools and to support remote events and hybrid work models, enabling virtual collaboration and faster on improvements while amplifying ties to broader processes.

Employee and sustainability initiatives

Fortive invests in workforce development to foster employee growth and retention, particularly emphasizing mobility programs following the 2025 spin-off of its industrial technologies business into Ralliant. The company provides structured through initiatives like the Fortive Leadership Summit, People Leader Experience, and Accelerated Leadership Experience, targeting high-potential employees and senior leaders. Additionally, Fortive's FBS University delivers virtual and hands-on to hundreds of employees annually on continuous methodologies. To support post-separation retention, Fortive has adopted AI-powered talent platforms that facilitate internal job matching and skill-based progression, resulting in enhanced scores of 76% in 2024. In pursuit of diversity and inclusion, Fortive has established aspirational targets for 2025, including 50% gender representation and 37% representation of Black, Indigenous, and People of Color (BIPOC) employees across its workforce. As of 2024, women accounted for 38% of the U.S. employee base, with ongoing efforts to elevate women in leadership roles. The company supports eight Employee and Friends Resource Groups (EFRGs), engaging approximately 1,000 members in over 20 countries to promote belonging, empowerment, and professional networking; notable groups include those focused on women in technology, LGBTQ+ employees, veterans, and neurodiversity. These initiatives contribute to an 84% inclusion and belonging score in employee surveys for 2024. Fortive's sustainability efforts center on , with a commitment to reduce absolute Scope 1 and 2 (GHG) emissions by 50% by 2029 from 2019 levels, aligned with guidelines. The 2024 ESG report details a 31% cumulative reduction in these emissions by year-end, including a 5.1% year-over-year decrease, demonstrating progress toward climate goals. Operating companies implement product programs as part of broader strategies, emphasizing the elimination of waste through and to minimize environmental impact. Community engagement is advanced through the Fortive Foundation, which has facilitated over $10 million in donations since 2016 to nonprofits focused on STEM education, , and environmental causes. In 2024 alone, the Foundation granted $1.3 million, including scholarships to 52 students (20 new and 32 renewals). Employees further support these efforts via the annual Day of Caring, logging more than 24,000 volunteer hours across 170 global communities with 100% participation from operating companies. In 2025, Fortive recorded an additional $20 million charitable contribution to the Foundation.

References

  1. https://fortive.com/meet-fortive
  2. https://investors.fortive.com/company-information
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  4. https://fortive.com/companies
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  7. https://stockanalysis.com/stocks/ftv/market-cap/
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  22. https://dcfmodeling.com/products/ftv-business-model-canvas
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  25. https://investors.ralliant.com/news-events/press-releases/detail/107/ralliant-completes-separation-from-fortive-and-launches-as-independent-publicly-traded-company
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  38. https://diversiq.com/company-profiles/fortive/
  39. https://fortive.com/culture
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  42. https://finance.yahoo.com/quote/FTV/
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