Earnings Performance: Fortive reported adjusted earnings per share (EPS) of $0.85 for Q1 2025, reflecting a 2% increase year-over-year. While revenue declined slightly more than expected, the company achieved adjusted operating profit margins expansion and better-than-expected free cash flow of $222 million.

Segment Performance and Forecasts: Core revenue for Precision Technologies (PT) declined 8.4%, primarily due to delays in customer investments stemming from political and macroeconomic uncertainties. In contrast, Intelligent Operating Solutions (IOS) and Advanced Healthcare Solutions (AHS) segments exhibited growth, with core revenues up 2.2% and 2.5%, respectively. For Q2, PT is expected to show a modest improvement, while IOS and AHS are anticipated to continue steady growth.

Tariff Challenges and Countermeasures: Fortive faces estimated gross tariff impacts between $190 million to $220 million, primarily affecting imports from China. The company has implemented countermeasures, including strategic pricing and localizing manufacturing, aiming to mitigate approximately 80% of the tariff impact by the end of 2025.