"Fortive's Q3 revenue of $1.03 billion grew just 2.3% while net income plummeted from $222 million to $55 million. Operating margin compressed 390 basis points to 15.5%. Management blamed operational challenges, but the numbers tell a story of lost pricing power in automation and sensing businesses. Full-year 2025 EPS of $1.86 represents a 38% decline from 2024's $2.99."
"Dayforce posted Q3 revenue of $481.6 million, up 9.5%, but reported a net loss of $196.8 million against analyst expectations of a $0.21 profit. That's not a miss. That's a detonation. Operating margin sat at negative 25.8%. The company went from beating estimates in seven consecutive quarters to posting the worst quarterly result in its history. Full-year 2025 turned negative at -$0.04 per share after reaching $1.98 in 2024."
"Fortive operates in industrial automation, sensing, and software for manufacturing and healthcare. Its Intelligent Operating Solutions segment should benefit from factory digitization trends, but margin compression suggests competitive pressure or weak demand. The company generates positive cash flow and maintains a 0.55% dividend, but its elevated 20.75x P/E ratio leaves no room for continued earnings deterioration. Dayforce sells cloud-based HCM software for payroll, workforce management, and talent acquisition."
Fortive reported modest 2.3% Q3 revenue growth to $1.03 billion while net income plunged from $222 million to $55 million and operating margin compressed 390 basis points to 15.5%, driving full-year EPS down 38% to $1.86. Dayforce grew revenue 9.5% to $481.6 million but posted a $196.8 million net loss and a negative 25.8% operating margin, reversing prior profitability and turning full-year EPS negative at -$0.04. Fortive still generates positive cash flow and pays a 0.55% dividend but trades at a 20.75x P/E. Dayforce appears to be burning cash to acquire customers, creating severe sustainability concerns.
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