Fortive Corporation FTV is scheduled to report first-quarter 2026 results on April 30.
The Zacks Consensus Estimate for revenues is pegged at $1.03 billion, which implies a decrease of 29.9% from the year-ago reported number. The consensus mark for earnings is pegged at 64 cents per share, indicating a year-over-year decrease of 24.7%.
FTV’s earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters, while missing in one and matching in another, with the average surprise being 5.59%.
Fortive’s shares have gained 20.7% compared with the Electronics - Testing Equipment industry’s growth of 36.2% in the past year.
Image Source: Zacks Investment Research
Factors to Note Ahead of FTV’s Q1 Results
Fortive is benefiting from a diversified portfolio of professional products, software and services serving high-growth end markets like communications, sensing, traffic management, industrial and automotive. Its focus on long-term megatrends such as automation, digitization and electrification supports growth and reduces business cyclicality.
In the last reported quarter, management highlighted that it remains sharply focused on executing the three pillars of its Fortive Accelerated strategy: profitable organic growth through Fortive Business System (FBS Amplified), disciplined capital deployment and a continued commitment to building investor trust. The company remained focused on delivering the 2026-2027 longer-term financial framework. This might have benefited the first-quarter performance.
Apart from this, the company is gaining from solid growth across both of its segments, Intelligent Operating Solutions (IOS) and Advanced Healthcare Solutions (AHS). In the last reported quarter, revenues from the IOS and AHS segments increased 5.3% and 3.2% year over year, respectively. For first-quarter 2026, the Zacks Consensus Estimate for revenues from the IOS and AHS segments is pegged at $729 million and $313 million, respectively, implying a rise from $671 million and $302 million reported in the year-ago period.
Fortive’s margin expansion efforts are showing results. In the last reported quarter, adjusted gross profit increased 2.3% on a year-over-year basis. Adjusted operating margin was 30.2%, which expanded 80 basis points on a year-over-year basis. The company has also been taking restructuring actions, which will help the company lower its cost structure and enable it to generate strong margins. These efforts might have benefited in the first-quarter performance. Also, strong buybacks further reflect its focus on enhancing shareholder value.
Fortive Corporation Price and EPS Surprise
Fortive Corporation price-eps-surprise | Fortive Corporation Quote
However, the company faces pressure from an uncertain macro environment and tariffs. Product mix headwinds, trade policy challenges and cautious healthcare spending might have negatively impacted the company’s first-quarter performance. Stiff competition and a leveraged balance sheet are additional concerns.
What Does Our Model Unveil for FTV?
Our proven model predicts an earnings beat for Fortive this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is just the case here.
Fortive has an Earnings ESP of +0.31% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks With the Favorable Combination
Here are three other stocks you may want to consider, as our model shows that these too have the right elements to post an earnings beat in this reporting cycle.
Sandisk Corporation SNDK currently has an Earnings ESP of +4.96% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Sandisk is scheduled to report quarterly earnings on April 30. The Zacks Consensus Estimate for SNDK’s to-be-reported quarter’s earnings and revenues is pegged at $13.92 per share and $4.55 billion, respectively. Shares of SNDK have skyrocketed 3,149% in the past year.
Western Digital Corporation WDC has an Earnings ESP of +2.53% and a Zacks Rank #3 at present. WDC is scheduled to report quarterly figures on April 30. The Zacks Consensus Estimate for WDC’s to-be-reported quarter’s earnings and revenues is pegged at $2.41 per share and $3.24 billion, respectively. Shares of WDC are up 890.6% in the past year.
Monolithic Power Systems MPWR has an Earnings ESP of +0.78% and a Zacks Rank #2 at present. MPWR is scheduled to report quarterly figures on April 30. The Zacks Consensus Estimate for MPWR’s to-be-reported quarter’s earnings and revenues is pegged at $4.89 per share and $781.1 million, respectively. Shares of MPWR are up 172.6% in the past year.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners UpWant 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
Western Digital Corporation (WDC): Free Stock Analysis Report
Sandisk Corporation (SNDK): Free Stock Analysis Report
Monolithic Power Systems, Inc. (MPWR): Free Stock Analysis Report
Fortive Corporation (FTV): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).