AI Takeaway
Fortive (FTV) delivered solid Q2 2026 revenue growth of 7.7% to $1.07B and improved operating margins, but net income fell 20.7% YoY to $136.4M, likely reflecting non-operating charges, while a significant balance sheet contraction of 32.4% in total assets signals a major corporate restructuring event.
Revenue
$1.07B
++7.68% YoY
EPS (Basic)
$0.44
-12.00% YoY
Gross Margin
63.2%
-1.03% YoY
Operating Income
$191.7M
++15.97% YoY
Filed · Source: SEC EDGAR 10-Q filing
FTV posted Q2 2026 revenue of $1,069.4M, up 7.7% from $993.1M in Q2 2025, indicating healthy demand across its business segments despite a challenging macro environment.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Operating income rose 16.0% YoY to $191.7M, outpacing revenue growth and expanding operating margin by approximately 130 basis points to 17.9%, suggesting effective cost discipline and operational efficiency gains.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Net income fell 20.7% YoY to $136.4M despite stronger operating income, implying significant non-operating headwinds such as higher interest expense, tax charges, or one-time items that weighed on the bottom line.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
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Upgrade to unlockFTV's current ratio stands at 0.71, meaning current liabilities of $2.19B exceed current assets of $1.55B. Combined with a 60.1% decline in cash to $356.1M, the company may face near-term liquidity pressure if operating cash flows weaken or debt maturities accelerate.
Source: Source: 10-Q Balance Sheet (XBRL Financial Data)
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Upgrade to unlockReported EPS of $0.70 versus the $0.65 analyst consensus — a +8.0% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.07B | $993.1M | +7.68% |
Cost of Revenue | $393.9M | $355.6M | +10.77% |
Gross Profit | $675.5M | $637.5M | +5.96% |
Operating Income | $191.7M | $165.3M | +15.97% |
Net Income | $136.4M | $171.9M | -20.65% |
EPS (Basic) | $0.44 | $0.50 | -12.00% |
EPS (Diluted) | $0.44 | $0.50 | -12.00% |
R&D Expense | $66.5M | $64M | +3.91% |
SG&A Expense | $417.3M | $408.2M | +2.23% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $11.58B | $17.14B | -32.40% |
Current Assets | $1.55B | $2.7B | -42.78% |
Current Liabilities | $2.19B | $2.73B | -19.83% |
Stockholders' Equity | $6.08B | $10.24B | -40.57% |
Cash & Equivalents | $356.1M | $892.1M | -60.08% |
Long-Term Debt | $3.49B | $3.86B | -9.68% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $234.8M | $241.7M | -2.85% |
Investing Cash Flow | $-26.7M | $-26.2M | -1.91% |
Financing Cash Flow | $-228.5M | $-141M | -62.06% |
Share Buybacks | $500.2M | $202.6M | +146.89% |
D&A | $113.6M | $108M | +5.19% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 63.2% | 64.2% | -1.03% |
Operating Margin | 17.9% | 16.6% | +1.28% |
Net Margin | 12.8% | — | — |
ROE | 2.2% | — | — |
ROA | 1.2% | — | — |
Current Ratio | $0.708 | — | — |
Other companies in Industrial Machinery & Supplies & Components
Fortive reported Q2 2026 revenue of $1,069.4M (+7.7% YoY) with operating income rising 16.0% to $191.7M, showing strong operational execution. However, net income fell 20.7% to $136.4M, likely due to non-operating charges, and the balance sheet shrank dramatically, suggesting a major divestiture was completed during the period.
FTV's net income declined 20.7% YoY to $136.4M even as operating income grew 16.0%, pointing to significant non-operating headwinds — most likely higher interest expense on its $3.49B long-term debt or one-time restructuring charges. This divergence between operating and net performance is a key area for investors to watch in subsequent quarters.
FTV's total assets fell 32.4% YoY to $11.58B from $17.14B, and stockholders' equity dropped 40.6% to $6.08B, strongly suggesting the company completed a major divestiture or spin-off during the period. Cash also declined 60.1% to $356.1M, consistent with proceeds being distributed to shareholders or used to retire debt.
FTV repurchased $500.2M in shares during Q2 2026, a 146.9% increase from $202.6M in Q2 2025, reflecting management's strong commitment to returning capital to shareholders. This buyback amount significantly exceeded the quarter's operating cash flow of $234.8M, suggesting it was partially funded by proceeds from asset sales or divestitures.
FTV's current ratio of 0.71 — where current liabilities of $2.19B exceed current assets of $1.55B — and a cash balance of only $356.1M raise near-term liquidity questions worth monitoring. However, the company continues to generate solid operating cash flow of $234.8M per quarter and maintains an operating margin of 17.9%, suggesting the core business remains financially healthy.