Cash generation remains structurally sound with an OCF/NI ratio of 1.72 in 2026Q1, though management's decision to deploy $500.2 million toward share repurchases during a period of revenue decline warrants caution.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 |
|---|
| Cash from Operations | 1.08B | 1.08B | 1.53B | 1.35B | 1.3B | 961.1M | 1.44B | 1.27B | 1.34B | 1.18B | 1.14B | 1.01B | 946.7M | 1.03B |
| Operating CF Margin % | - | 21.06% | 24.5% | 22.32% | 22.37% | 18.29% | 31% | 27.86% | 20.83% | 20.44% | 18.27% | 16.33% | 14.94% | 17.28% |
| Operating CF Growth % | -93.43% | -29.05% | 12.8% | 3.87% | 35.59% | -33.1% | 13% | -5.43% | 14.28% | 3.47% | 12.68% | 6.58% | -8.11% | - |
| Net Income | 543.7M | 579.2M | 832.9M | 865.8M | 755.2M | 614.2M | 1.45B | 725.4M | 918.3M | 1.04B | 872.3M | 863.8M | 883.4M | 830.9M |
| Depreciation & Amortization | 305M | 437.6M | 543.9M | 456.8M | 465.6M | 395.5M | 384M | 426.2M | 260.8M | 174.1M | 176.4M | 176.9M | 178M | 159.7M |
| Stock-Based Compensation | 90.7M | 116.8M | 109.2M | 113.3M | 93.8M | 77.4M | 62.6M | 61.4M | 50.8M | 48.6M | 45.3M | 35.2M | 30.8M | 28.8M |
| Deferred Taxes | -49.9M | -49.9M | -65M | -104.1M | -62.1M | 15.4M | -97.6M | -13.5M | 7.7M | -78.2M | -10M | 0 | 0 | 0 |
| Other Non-Cash Items | 196.3M | 399.4M | 1.9M | 0 | 71.3M | -29.9M | -567.9M | -40.8M | 136.5M | 57.2M | 14.8M | 12M | -33.9M | 0 |
| Working Capital Changes | 37M | -399.9M | 103.9M | 21.8M | -20.6M | -111.5M | 203.4M | 112.7M | -29.7M | -69.8M | 38.1M | -78.9M | -111.6M | 10.8M |
| Change in Receivables | -57.5M | 8.7M | -4.5M | 9.8M | -52.1M | -84.1M | 82.4M | -166.9M | -105.9M | -65.4M | 24.8M | -51.8M | -74M | 1.7M |
| Change in Inventory | 12.9M | -20M | 8.8M | -1.7M | -40.3M | -53.6M | -7.3M | 118.8M | -73.4M | 14.3M | -28.7M | -27.7M | -22.2M | -5M |
| Change in Payables | 44.1M | 12.4M | 74.3M | -16.8M | 81.3M | 73.4M | 18.1M | 53.7M | 76.2M | 24.9M | 17.2M | 53.6M | 28.8M | -7.9M |
| Cash from Investing | -135.9M | -135.4M | -1.8B | -195.4M | -102.5M | -2.62B | -148.4M | -4.05B | -1.97B | -1.67B | -310.8M | -174.1M | -291.1M | -511.4M |
| Capital Expenditures | -105M | -105.1M | -120.4M | -107.8M | -95.8M | -50M | -75.7M | -112.5M | -112.3M | -136.1M | -129.6M | -120.1M | -102.6M | -81.1M |
| CapEx % of Revenue | 2.22% | 2.04% | 1.93% | 1.78% | 1.64% | 0.95% | 1.63% | 2.46% | 1.74% | 2.36% | 2.08% | 1.94% | 1.62% | 1.36% |
| Acquisitions | -25.7M | -25.7M | -1.72B | -95.8M | -3.2M | -2.57B | -40.4M | -3.94B | -2.82B | -1.56B | -190.1M | -37.1M | -202.3M | -433.8M |
| Investments | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Investing | -5.2M | -4.6M | 46.2M | 8.2M | -3.5M | 4.5M | -32.3M | 1.8M | 960.8M | 23M | 8.9M | -16.9M | 13.8M | 3.5M |
| Cash from Financing | -1.47B | -1.39B | -792.7M | 32.3M | -1.27B | 652M | -696.1M | 2.8B | 879.1M | 599.7M | 3.8M | -834.9M | -655.6M | -518.8M |
| Debt Issued (Net) | -496.7M | -714.8M | 137M | 389.2M | -723.9M | 753.6M | -2.13B | 2.95B | -108.7M | 682.1M | 3.35B | 0 | 0 | 0 |
| Equity Issued (Net) | -1.25B | -1.61B | -889.6M | -272.9M | -442.9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividends Paid | -83.4M | -92.2M | -111.2M | -102M | -99.5M | -132.2M | -163.4M | -162.8M | -131.5M | -97.2M | -3.05B | 0 | 0 | 0 |
| Share Repurchases | -1.25B | -1.61B | -889.6M | -272.9M | -442.9M | 0 | 0 | 0 | 1.48B | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 357.6M | 1.03B | 71.1M | 18M | -6.7M | 30.6M | 1.6B | 13M | 1.12B | 14.8M | -299.7M | -834.9M | -655.6M | -518.8M |
| Net Change in Cash | -536M | -437.8M | -1.08B | 1.18B | -110.1M | -1.01B | 619.6M | 26.8M | 216.3M | 158.9M | 803.2M | 0 | 0 | 0 |
| Free Cash Flow | 971.3M | 978.1M | 1.41B | 1.25B | 1.21B | 911.1M | 1.36B | 1.16B | 1.23B | 1.04B | 1.01B | 888.9M | 844.1M | 949.1M |
| FCF Margin % | 20.5% | 19.02% | 22.57% | 20.54% | 20.73% | 17.34% | 29.37% | 25.39% | 19.09% | 18.07% | 16.18% | 14.39% | 13.32% | 15.92% |
| FCF Growth % | -30.18% | -30.45% | 12.89% | 3.18% | 32.52% | -33.06% | 17.44% | -5.94% | 18.44% | 3.28% | 13.32% | 5.31% | -11.06% | - |
| FCF per Share | 3.11 | 3.06 | 3.99 | 3.50 | 3.35 | 2.59 | 3.79 | 3.41 | 3.51 | 2.95 | 2.90 | 2.58 | 2.45 | 2.75 |
| FCF Conversion (FCF/Net Income) | 1.79x | 1.87x | 1.83x | 1.56x | 1.73x | 1.58x | 0.89x | 1.72x | 0.46x | 1.13x | 1.30x | 1.17x | 1.07x | 1.24x |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Organic revenue contraction pressure
According to reported financial statements, Fortive consistently maintains an OCF/NI ratio above 1.0, with a notable 1.72x conversion in 2026Q1, suggesting that cash generation remains structurally superior to accounting net income despite the ongoing volatility in the company's top-line performance and portfolio restructuring efforts.
The persistent gap between net income and operating cash flow indicates that non-cash charges, primarily depreciation and amortization, continue to provide a significant cushion for cash generation. Investors should monitor whether this conversion efficiency can be sustained as the company shifts further toward software-based revenue models which typically carry different working capital requirements.
As reported in recent filings, FCF margins have fluctuated significantly, ranging from a high of 29.9% in 2025Q4 to 14.6% in 2025Q1, reflecting the inherent difficulty in stabilizing cash flow generation during periods of aggressive portfolio pruning and cyclical downturns in the precision technology segment.
The variability in FCF margins suggests that the company's cash-generating engine is highly sensitive to the timing of divestitures and the cyclicality of its hardware business. While the 2026Q1 margin of 19.5% shows resilience, the lack of a clear upward trajectory warrants caution regarding the predictability of future cash flows.
Based on the provided cash flow data, working capital changes have been highly erratic, swinging from a $195.4 million inflow in 2024Q4 to a $92.6 million outflow in 2025Q1, which highlights the operational challenges of managing inventory and receivables during a period of significant revenue contraction.
These swings suggest that the company may be struggling to align its inventory levels with the current pace of demand, potentially leading to inefficient capital usage. Analysts should investigate whether these fluctuations are purely seasonal or indicative of deeper friction in the supply chain and collection processes.
As evidenced by the $500.2 million in share repurchases during 2026Q1, Fortive continues to prioritize aggressive capital return to shareholders, even as organic revenue growth remains under pressure, which may indicate a management preference for supporting the stock price over reinvesting in internal growth initiatives.
The reliance on share buybacks as a primary capital deployment tool, coupled with a relatively modest cash balance of $375.5 million, suggests that the company may be nearing a limit on its ability to fund both inorganic acquisitions and shareholder returns without accessing external financing. This strategy warrants further investigation into the sustainability of such high payout levels.
Quick answers to the most common questions about buying FTV stock.
Fortive Corporation (FTV) generated $1.08B in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Fortive Corporation (FTV) generated $978.1M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Fortive Corporation (FTV) spent $105.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Fortive Corporation (FTV) returned $92.2M to shareholders via cash dividends and spent $1.61B on share repurchases. This shows the company's commitment to returning capital to its equity investors.