Fortive CorpFTV
Fortive Corp Revenue Disclosure
NOTE 10. SALES
We derive revenue primarily from the sales of products, including software, and services. Revenue is recognized when control of promised products or services is transferred to customers in an amount that reflects the consideration we expect to be entitled to in exchange for those products, software, or services.
Contract Assets — In certain circumstances, we record contract assets which include unbilled amounts typically resulting from sales under contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not only subject to the passage of time. Contract assets were $151 million as of December 31, 2025 and $116 million as of December 31, 2024. Contract assets are primarily recorded within Prepaid expenses and other current assets and Other assets in our Consolidated Balance Sheets.
Contract Costs — We incur and capitalize incremental costs to obtain certain contracts, typically sales-related commissions where the amortization period is greater than one year, and costs associated with assets used by our customers in certain service arrangements. As of December 31, 2025 and 2024, we had $75 million and $59 million, respectively, in net revenue-related contract cost assets primarily related to certain software contracts. Revenue-related contract costs are recorded within Other assets in our Consolidated Balance Sheets. These assets are amortized over the period of benefit, which it is typically between and five years. For incremental costs to obtain contracts with a duration of one year or less, we apply the practical expedient to expense such costs as incurred.
Contract Liabilities — Our contract liabilities consist of deferred revenue generally related to subscription-based software contracts, PCS, and extended warranty sales, where we generally receive up-front payment and subsequently recognize revenue over the service or support term. We classify deferred revenue as current or noncurrent based on the timing of when we expect to recognize revenue. The current portion of deferred revenue is recorded within Accrued expenses and other current liabilities and the non-current portion of deferred revenue is recorded within Other long-term liabilities in our Consolidated Balance Sheets.
Our contract liabilities as of December 31 consisted of the following ($ in millions):
| 2025 | 2024 | ||||||||||
| Deferred revenue - current | $ | 440.3 | $ | 410.1 | |||||||
| Deferred revenue - noncurrent | 24.1 | 23.1 | |||||||||
| Total contract liabilities | $ | 464.4 | $ | 433.2 | |||||||
In the year ended December 31, 2025, we recognized $390 million of revenue related to our contract liabilities at January 1, 2025. The change in our contract liabilities from December 31, 2024 to December 31, 2025 was primarily due to the timing of billings and recognition of revenue related to subscription-based software contracts, PCS, and extended warranty services.
Remaining Performance Obligations — Our remaining performance obligations represent the transaction price of firm, non-cancelable orders and the average contract value for software contracts, for which work has not been performed. We have excluded performance obligations with an original expected duration of one year or less from the amounts below.
The aggregate remaining performance obligations attributable to each of our segments as of December 31, 2025 is as follows ($ in millions):
| 2025 | |||||
| Intelligent Operating Solutions | $ | 726.3 | |||
| Advanced Healthcare Solutions | 114.4 | ||||
| Total remaining performance obligations | $ | 840.7 | |||
The majority of remaining performance obligations are related to subscription-based software contracts, and service and support contracts, which we expect to fulfill approximately 75 percent within the next two years, approximately 90 percent within the next three years, and substantially all within four years.
Disaggregation of Revenue
We disaggregate revenue from contracts with customers by sales of product and software and services, geographic location, and end market for each of our segments, as we believe it best depicts how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors.
Disaggregation of revenue for the year ended December 31, 2025 is presented as follows ($ in millions):
| Total | Intelligent Operating Solutions | Advanced Healthcare Solutions | |||||||||||||||
| Sales: | |||||||||||||||||
| Sales of products and software | $ | 3,341.3 | $ | 2,319.4 | $ | 1,021.9 | |||||||||||
| Sales of services | 817.8 | 536.9 | 280.9 | ||||||||||||||
| Total | $ | 4,159.1 | $ | 2,856.3 | $ | 1,302.8 | |||||||||||
| Geographic: | |||||||||||||||||
North America (a) | $ | 2,491.1 | $ | 1,737.0 | $ | 754.1 | |||||||||||
Asia-Pacific | 730.1 | 449.7 | 280.4 | ||||||||||||||
Europe, Middle East, and Africa | 725.8 | 553.8 | 172.0 | ||||||||||||||
Latin America | 212.1 | 115.8 | 96.3 | ||||||||||||||
Total | $ | 4,159.1 | $ | 2,856.3 | $ | 1,302.8 | |||||||||||
End markets: | |||||||||||||||||
| Healthcare | $ | 1,280.5 | $ | 44.9 | $ | 1,235.6 | |||||||||||
| Industrial & Manufacturing | 1,198.7 | 1,181.7 | 17.0 | ||||||||||||||
| Energy & Infrastructure | 687.6 | 687.6 | — | ||||||||||||||
| Government | 350.6 | 314.0 | 36.6 | ||||||||||||||
| Retail | 315.7 | 315.7 | — | ||||||||||||||
| Other | 326.0 | 312.4 | 13.6 | ||||||||||||||
| Total | $ | 4,159.1 | $ | 2,856.3 | $ | 1,302.8 | |||||||||||
(a) North America is comprised of the United States and Canada. Sales attributed to the United States were 56% of total Fortive sales. | |||||||||||||||||
Disaggregation of revenue for the year ended December 31, 2024 is presented as follows ($ in millions):
| Total | Intelligent Operating Solutions | Advanced Healthcare Solutions | |||||||||||||||
| Sales: | |||||||||||||||||
| Sales of products and software | $ | 3,290.9 | $ | 2,278.7 | $ | 1,012.2 | |||||||||||
| Sales of services | 790.0 | 514.5 | 275.5 | ||||||||||||||
| Total | $ | 4,080.9 | $ | 2,793.2 | $ | 1,287.7 | |||||||||||
| Geographic: | |||||||||||||||||
North America (a) | $ | 2,416.8 | $ | 1,674.5 | $ | 742.3 | |||||||||||
Asia-Pacific | 733.3 | 456.5 | 276.8 | ||||||||||||||
Europe, Middle East, and Africa | 721.1 | 553.0 | 168.1 | ||||||||||||||
Latin America | 209.7 | 109.2 | 100.5 | ||||||||||||||
Total | $ | 4,080.9 | $ | 2,793.2 | $ | 1,287.7 | |||||||||||
End markets: | |||||||||||||||||
| Healthcare | $ | 1,264.7 | $ | 47.5 | $ | 1,217.2 | |||||||||||
| Industrial & Manufacturing | 1,172.6 | 1,154.3 | 18.3 | ||||||||||||||
| Energy & Infrastructure | 659.5 | 659.5 | — | ||||||||||||||
| Government | 356.9 | 318.3 | 38.6 | ||||||||||||||
| Retail | 291.2 | 291.2 | — | ||||||||||||||
| Other | 336.0 | 322.4 | 13.6 | ||||||||||||||
| Total | $ | 4,080.9 | $ | 2,793.2 | $ | 1,287.7 | |||||||||||
(a) North America is comprised of the United States and Canada. Sales attributed to the United States were 56% of total Fortive sales. | |||||||||||||||||
Disaggregation of revenue for the year ended December 31, 2023 is presented as follows ($ in millions):
| Total | Intelligent Operating Solutions | Advanced Healthcare Solutions | |||||||||||||||
| Sales: | |||||||||||||||||
| Sales of products and software | $ | 3,157.7 | $ | 2,201.9 | $ | 955.8 | |||||||||||
| Sales of services | 756.2 | 482.6 | 273.6 | ||||||||||||||
| Total | $ | 3,913.9 | $ | 2,684.5 | $ | 1,229.4 | |||||||||||
| Geographic: | |||||||||||||||||
North America (a) | $ | 2,292.4 | $ | 1,592.4 | $ | 700.0 | |||||||||||
Asia-Pacific | 727.2 | 447.8 | 279.4 | ||||||||||||||
Europe, Middle East, and Africa | 697.6 | 541.6 | 156.0 | ||||||||||||||
Latin America | 196.7 | 102.7 | 94.0 | ||||||||||||||
Total | $ | 3,913.9 | $ | 2,684.5 | $ | 1,229.4 | |||||||||||
End markets: | |||||||||||||||||
| Healthcare | $ | 1,210.9 | $ | 48.5 | $ | 1,162.4 | |||||||||||
| Industrial & Manufacturing | 1,139.1 | 1,121.7 | 17.4 | ||||||||||||||
| Energy & Infrastructure | 633.8 | 633.8 | — | ||||||||||||||
| Government | 330.8 | 294.1 | 36.7 | ||||||||||||||
| Retail | 276.7 | 276.7 | — | ||||||||||||||
| Other | 322.6 | 309.7 | 12.9 | ||||||||||||||
| Total | $ | 3,913.9 | $ | 2,684.5 | $ | 1,229.4 | |||||||||||
(a) North America is comprised of the United States and Canada. Sales attributed to the United States were 53% of total Fortive sales. | |||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 25, 2025 | |
| 2023 | Feb 27, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Mar 1, 2022 | |
| 2020 | Feb 26, 2021 | |
| 2019 | Feb 27, 2020 | |
| 2018 | Feb 28, 2019 | |
About Revenue Disclosures
Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.
Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.