Fortive Corporation (FTV): Business Model Canvas [Dec-2025 Updated]

You're digging into Fortive Corporation (FTV) after its big structural change, and frankly, the latest data shows they are executing with real focus; for instance, their Trailing Twelve Months revenue ending September '25 hit $6.171B, and they just raised the full-year adjusted EPS guidance to $2.63 to $2.67 after a solid Q3. As an old-school analyst, what I see here is a playbook centered on disciplined capital returns-they just deployed $1 billion in share repurchases last quarter-and a commitment to that core operating system that keeps driving efficiency. It's a blend of mission-critical hardware and sticky software revenue, and it's defintely worth a deep dive to see the mechanics behind these strong results; check out the full Business Model Canvas below to see the nine blocks that make this engine run.

Fortive Corporation (FTV) - Canvas Business Model: Key Partnerships

You're looking at how Fortive Corporation builds value through its external relationships as of late 2025, right after the Ralliant separation. The focus is clearly on integration and targeted growth acceleration.

Strategic bolt-on M&A to acquire software capabilities.

Fortive Corporation's President and CEO, Olumide Soroye, has been quite clear: the M&A playbook is centered on smaller bolt-on acquisitions, not transformational deals. The goal is to accelerate the growth of existing businesses by acquiring specific capabilities, particularly software. This strategy is balanced against capital deployment, as evidenced by the execution of a $1.0 billion share repurchase in the third quarter of 2025 alone. The company's total revenue for the twelve months ending September 30, 2025, stood at $6.171B.

Global technology suppliers for component sourcing and manufacturing.

The operational scale of Fortive Corporation requires a vast network to support its manufacturing and component sourcing needs. The company supports its operations with a team of more than 10,000 members across R&D, manufacturing, sales, and distribution in approximately 50 countries around the world. This global footprint necessitates deep relationships with technology suppliers to maintain the flow of essential components for its Intelligent Operating Solutions and Advanced Healthcare Solutions segments.

Research institutions (e.g., MIT, Stanford) for advanced R&D.

While specific financial commitments to external research institutions like MIT or Stanford aren't publicly itemized in the latest reports, the drive for advanced R&D is executed through strategic acquisitions that bring in specialized technology. For instance, the subsidiary Industrial Scientific acquired Aeroqual on December 3, 2025, to integrate advanced air quality monitoring solutions, directly enhancing its worker safety technology portfolio.

Channel partners and distributors for local market access and sales.

Distribution remains a key route to market, though it represents a smaller portion of the overall revenue mix compared to direct sales or service contracts. Based on 2024 year-end data, revenue attributed to Distributors accounted for 4% of the total end-market revenue breakdown. The company is focused on increasing recurring customer value, which often flows through these established channels via software and service plans.

Co-creation with startups and customers for new product validation.

The integration of acquired capabilities, like Aeroqual's real-time environmental monitoring, into existing product lines-such as Industrial Scientific's gas detection solutions-serves as a form of rapid co-creation and validation. This approach helps Fortive Corporation build out its differentiated product offerings, which, as of the second quarter of 2025, boasted approximately 50% recurring revenue.

Here's a quick look at the key partnership-adjacent metrics we have for Fortive Corporation as of late 2025:

Metric Category	Specific Data Point	Value/Amount	Context Year/Period
Capital Allocation Balance	Share Repurchases Executed	$1.0 billion	Q3 2025
Global Reach	Countries of Operation	50	Late 2025
Channel Sales Contribution	Revenue Percentage from Distributors	4%	2024 End Market Data
Revenue Base	Trailing Twelve Months Revenue	$6.171B	As of September 30, 2025
Technology Integration (M&A)	Acquisition of Aeroqual	Completed	December 3, 2025

The focus on smaller, software-centric bolt-ons is a clear action point for the partnership strategy.

• Focus on smaller bolt-on M&A.
• Balance M&A with share repurchase.
• Acquired Aeroqual to enhance monitoring tech.
• Recurring revenue is near 50% of total.

Finance: review the cash impact of the Q3 share repurchase against the M&A pipeline by next Tuesday.

Fortive Corporation (FTV) - Canvas Business Model: Key Activities

You're looking at the core actions Fortive Corporation takes to run its business as of late 2025, right after the Ralliant spin-off. It's all about execution and capital discipline now.

Continuous improvement via the Fortive Business System (FBS)

The Fortive Business System (FBS) is the engine for operational discipline. This system was credited for strong free cash flow generation in the first quarter of 2025. The system's impact is seen in margin performance; for instance, FBS-driven pricing actions helped offset tariff pressures on adjusted gross margin in the second quarter of 2025. The successful completion of the Ralliant separation was also cited as a testament to FBS-driven execution. The focus on operational leverage and structure flattening contributed to margin expansion.

Key operational metrics reflecting FBS execution:

• Adjusted operating profit margin in Q1 2025: 25.3%, up 20 bps year-over-year.
• Q3 2025 Adjusted EBITDA Margin: 30.1%.
• Q3 2025 Adjusted EPS Growth: 15.3%.
• Q3 2025 Adjusted EBITDA growth: approximately 10% year-over-year.

Software engineering and digital platform development

Fortive Corporation is actively integrating new capabilities, including AI and emerging technologies, to accelerate profitable growth. A key focus is increasing recurring revenue streams through software enhancements. This is a structural advantage for the business moving forward.

The recurring revenue focus is significant:

Metric	Value/Detail
Recurring Revenue Percentage (Approximate)	50%
Q3 2025 Software Growth Driver	Resilient SaaS-based revenue models in Advanced Healthcare Solutions (AHS) segment
AHS Segment Adjusted Gross Margin (Q3 2025)	58.4%
AHS Segment Adjusted EBITDA Margin Expansion (Q3 2025)	From roughly 27% to 28%

The company is working to increase its percentage of recurring revenue through maintenance software enhancements and service plan expansion, as seen with Fluke.

Manufacturing and servicing of mission-critical instrumentation

Fortive Corporation's businesses design, develop, manufacture, and market products, software, and services across its two strategic segments: Intelligent Operating Solutions (IOS) and Advanced Healthcare Solutions (AHS). The IOS segment saw solid demand for safety and productivity solutions in Q1 2025. The AHS segment also showed core growth in Q1 2025.

Geographic revenue breakdown from 2024 data shows where manufacturing and servicing activity is concentrated:

• United States revenue percentage: 56%
• All other geographies revenue percentage: 36%
• China revenue percentage: 8%

The company is managing external pressures; for example, the gross tariff impact for continuing operations is expected to be between $40 million to $55 million in the second half of 2025.

Disciplined capital allocation, prioritizing share repurchases

Capital deployment priorities focus on maximizing shareholder returns by balancing share repurchases, M&A with a bias for bolt-on acquisitions, and a regular, growing dividend. Since the spin-off announcement, Fortive allocated roughly 75% of its free cash flow to share repurchases. The company deployed $345 million towards share repurchases in the first half of 2025.

Specific repurchase activity in Q3 2025:

• Deployed just over $1 billion to share repurchases.
• Retired approximately 21 million shares, which is 6% of the fully diluted share count.

The Board approved an increase to the general share repurchase program, making a total of 20 million shares available, in addition to approximately $78.2 million remaining under a separate $550 million special purpose program funded by the Ralliant separation proceeds. The regular quarterly cash dividend declared was $0.06 per share, representing an annual yield of 0.48% based on the $50.23 share price. This dividend has seen a 25% reduction over the past year.

Integrating acquired companies to drive operational efficiencies

Fortive's strategy includes pursuing accretive bolt-on M&A as part of its capital allocation framework. The Fortive Business System is leveraged to integrate new capabilities and drive operational efficiencies across its ten market-leading brands. The company is focused on driving value creation through simplification and execution. While specific 2025 integration efficiency numbers aren't detailed, the bias is toward bolt-on acquisitions.

Financial performance post-separation reflects this focus:

Metric	Q3 2025 Result
Revenue (Continuing Operations)	$1.03 billion
Adjusted Diluted EPS	$0.68
Trailing Twelve Months Free Cash Flow	$922 million
Full Year 2025 Adjusted EPS Guidance Range	$2.63 to $2.67 per share

Fortive Corporation (FTV) - Canvas Business Model: Key Resources

You're looking at the core assets Fortive Corporation (FTV) relies on to execute its strategy in late 2025. These aren't just line items on a balance sheet; they are the engines driving the business, especially after the Ralliant separation.

The absolute bedrock of Fortive's operational capability is the Fortive Business System (FBS). This isn't just a set of procedures; it's the operating model itself, which they continue to refine. They are actively amplifying the FBS by integrating new capabilities, including AI and emerging technologies, to unlock faster profitable growth and increase innovation velocity. This system is what allows them to maintain strong operational execution and margin expansion, even when facing macro headwinds like tariffs.

The strength of the portfolio is concentrated in its market-leading brands. Fortive maintains a portfolio of 10 iconic, market-leading brands, each holding a leading position in its respective market. These brands are the direct interface with customers across the Intelligent Operating Solutions and Advanced Healthcare Solutions segments.

Key Operating Brands (Post-Separation)	Focus Area
Fluke	Industry-leading test and measurement tools
Advanced Sterilization Products (ASP)	State-of-the-art infection prevention technologies
Provation	End-to-end clinical productivity solutions
Gordian	Intelligent construction costing and operations
Industrial Scientific	Advanced gas detection and safety monitoring
Accruent	Next-generation facilities and asset management
Censis	Industry-leading surgical asset management
Fluke Health Solutions	Advanced healthcare test and measurement
ServiceChannel	Peace of mind through peak performance
Intelex	Empowering sustainable business

Intellectual property is a critical, though sometimes less visible, asset. As of the latest filings, Fortive protects its innovations with 2,649 active patents globally. This deep IP portfolio underpins the competitive advantages of their product offerings.

The human capital and global footprint are substantial, though they have adjusted post-spinoff. Here's the quick math on the team and reach:

• Global team of more than 10,000 research and development, manufacturing, sales, distribution, service, and administrative team members.
• Operations span approximately 50 countries around the world.

Financially, the ability to self-fund growth and shareholder returns is paramount. Fortive has demonstrated a strong capacity for cash generation. For the trailing twelve months ending September 26, 2025, the company generated Free Cash Flow of $922 million. To be fair, the full year 2024 figure was higher at $1.468B, but the TTM figure reflects the current, post-separation operating structure. This strong cash flow supports their disciplined capital allocation strategy, which included deploying $1.0 billion towards share repurchases in the third quarter of 2025 alone. Finance: draft 13-week cash view by Friday.

Fortive Corporation (FTV) - Canvas Business Model: Value Propositions

You're looking at the core reasons customers choose Fortive Corporation, especially now that they've sharpened their focus after the Ralliant spin-off in June 2025. The value they deliver is tangible, rooted in operational performance and recurring revenue streams.

Connected workflow solutions for industrial and healthcare operations define the core of the new Fortive. You see this in their two main reporting segments: Intelligent Operating Solutions (IOS) and Advanced Healthcare Solutions (AHS). These solutions are designed to integrate deeply into customer processes. For instance, in Q3 2025, the company delivered revenue of $1.03 billion, showing growth even in a complex environment.

The value proposition centers on enhanced safety and productivity through advanced instrumentation. This isn't just abstract; it's about the steady demand for their safety and productivity solutions that drove core growth. When you look at the financial results, you see the payoff from this focus. For the trailing twelve months ending September 30, 2025, Fortive's total revenue reached $6.171B.

For mission-critical software supporting asset and facility lifecycle management, the efficiency gains translate directly to the bottom line. Consider the operating performance; the adjusted operating profit margin for continuing operations in Q1 2025 hit 25.3%. That margin strength shows how effectively their software and solutions streamline operations for customers.

The shift toward high-value, recurring service and software subscriptions is a major strategic pillar. Honestly, this predictability is what analysts like to see. Fortive stated that post-spin, they have approximately 50% recurring revenue. That means half their business is built on ongoing customer commitment, not just one-time equipment sales.

Here's a quick look at how the financial structure supports these value drivers, especially looking at the segments that remain post-separation:

Metric	Value (Latest Available 2025 Data)	Context
Recurring Revenue Percentage	50%	Post-Ralliant Spin-off
Q3 2025 Adjusted EBITDA Margin	30.1%	Reflects operational efficiency
Q1 2025 Adjusted Operating Profit Margin	25.3%	Continuing Operations
FY 2025 Raised Adjusted Diluted EPS Guidance (Range)	$2.63 to $2.67	Full Year Outlook

Finally, operational excellence and continuous improvement via FBS (Fortive Business System) is the engine making all this possible. The power of FBS, amplified with new technologies, is intended to accelerate organic growth. The strong Q3 2025 adjusted EBITDA margin of 30.1% is a direct reflection of this system in action. You can see the impact in the core revenue growth reported in Q3 2025, which was up 1.9% year-over-year, showing underlying business health.

• Drive faster profitable growth through FBS Amplified.
• Focus on differentiated products and customer experience.
• Maintain a culture of continuous improvement.

Finance: draft 13-week cash view by Friday.

Fortive Corporation (FTV) - Canvas Business Model: Customer Relationships

You're looking at how Fortive Corporation keeps its customers locked in and coming back for more, especially after streamlining the business post-Ralliant separation. The relationship focus is clearly shifting toward continuous value delivery, which shows up directly in the financials.

Long-term enterprise contracts with an average duration of 4-5 years.

While the exact average duration of enterprise contracts isn't explicitly published as a standalone metric, Fortive's strategy heavily leans on securing long-term customer commitments. This is evidenced by the success in building a high base of predictable revenue streams. The focus is on durable relationships that drive consistent top-line performance.

Dedicated, high-touch technical support and consultation services.

The service component is crucial for maintaining the installed base across Fortive's ten iconic market-leading brands. These services, which include dedicated technical support, are integral to the overall value proposition, supporting the drive for increased recurring customer value. The operational strength supporting this is reflected in the profitability metrics achieved in late 2025.

Embedded customer intimacy to co-create and solve pressing problems.

This deep engagement is what underpins the success of the core business segments, Intelligent Operating Solutions and Advanced Healthcare Solutions. The goal is to move beyond transactional sales to become a true partner. This partnership approach is what the leadership team aims to amplify through the Fortive Business System (FBS) to accelerate organic growth.

Subscription-based software models for continuous engagement.

This is where the numbers are most concrete. Fortive has successfully positioned its offerings to generate a substantial, predictable revenue base. Following the Q2 2025 spin-off, the 'New Fortive' reported that recurring revenue approached 50% of its total revenue. Furthermore, in the third quarter of 2025, recurring revenue growth was noted to have outpaced the company average, directly supported by enhanced software offerings and service plans. This recurring revenue stream is a direct measure of continuous customer engagement via subscription-like models.

The financial performance in the latter half of 2025 demonstrates the stability derived from these customer relationships:

Metric	Value (as of late 2025)	Reporting Period
Recurring Revenue Percentage	Approaching 50%	Q2 2025 (Continuing Operations)
Trailing Twelve Month Revenue	$6.171 Billion	Ended September 30, 2025
Q3 2025 Revenue	$1.03 Billion	Q3 2025
Q3 2025 Adjusted EBITDA Margin	30.1%	Q3 2025
Raised Full Year 2025 Adjusted EPS Guidance (Midpoint)	$2.65	Full Year 2025 Outlook (Post-Spin)

The commitment to this customer-centric model is part of the Fortive Accelerated strategy, which aims to drive profitable growth. The success of this strategy is measured by the ability to convert customer relationships into strong financial outcomes, such as the raised full-year adjusted EPS guidance to between $2.63 and $2.67 for continuing operations, as announced on October 29, 2025.

Key elements driving this customer relationship strategy include:

• Focus on delivering productivity and safety solutions.
• Amplifying the Fortive Business System with AI and new technologies.
• Commitment to building investor trust through predictable performance.
• Disciplined capital allocation balancing shareholder returns.

Fortive Corporation (FTV) - Canvas Business Model: Channels

You're looking at how Fortive Corporation gets its essential technologies and workflow solutions into the hands of its customers as of late 2025. The structure is clearly multi-faceted, supporting a global footprint across diverse, high-impact fields.

Fortive Corporation employs a direct sales force that targets large enterprise and strategic accounts, which is necessary given their operational presence in approximately 50 countries around the world. This direct engagement supports the commercial acceleration strategy, which is showing early success in North America and is being intensified in regions like South Asia.

The company also relies on a global network of specialized distributors and channel partners. For the full year 2024, revenue attributed to the Distributors end market accounted for 4% of total revenue, showing this channel's role in reaching broader customer bases.

Digital and e-commerce platforms are increasingly important, especially for recurring revenue streams. For the full year 2024, sales of products and software totaled $3.29 billion, while services revenue was $790 million. In the third quarter of 2025, recurring revenue growth was noted to have outpaced the company average, supported by enhanced software offerings.

Integrated online systems support customer engagement, with specific product enhancements noted, such as the ServiceChannel SaaS R2 product release featuring AI-powered work order insights. The company is focused on commercial acceleration and recurring customer value as core levers of its strategy.

Here's a breakdown of Fortive Corporation's reported end markets for fiscal year 2024, which gives you a view of where the channel efforts are directed:

End Market Segment	Percentage of FY 2024 Revenue
Healthcare	31%
Industrial & Manufacturing	24%
Government	9%
Retail & Consumer	7%
Oil & Gas	7%
Utilities & Power	5%
Distributors	4%
Communication, Electronics & Semiconductor	3%
Other	10%

The geographic distribution of sales for the full year 2024 shows the primary market focus:

• United States: 56%
• China: 8%
• All other: 36%

The company deployed $1.0 billion towards share repurchases in the third quarter of 2025, retiring approximately 21 million shares, which represents about 6% of diluted shares outstanding.

Finance: review Q4 2025 channel forecasts against Q3 performance by end market by next Tuesday.

Fortive Corporation (FTV) - Canvas Business Model: Customer Segments

You're looking at the core markets Fortive Corporation (FTV) serves, which are quite diverse, spanning industrial operations to critical healthcare settings. Honestly, understanding these segments is key to seeing where their revenue actually comes from.

Fortive Corporation's customer base is segmented across its three primary operating units. The Intelligent Operating Solutions segment targets industrial and manufacturing enterprises, providing them with advanced instrumentation, software, and services like electrical test and measurement, and connected worker safety solutions. For instance, customers in manufacturing, process industries, utilities and power, and communications and electronics fall here. This segment generated $2,612.2 million in revenue for the fiscal year 2023.

The Advanced Healthcare Solutions segment focuses on healthcare providers, including hospitals, healthcare facilities, and laboratories. These customers rely on Fortive Corporation for technologies related to infection prevention, such as Advanced Sterilization Products (ASP), and clinical productivity solutions like those from Provation. This segment brought in $1,320.3 million in revenue in 2023.

For professional services, Fortive Corporation serves facility and asset management needs through companies like Accruent and Gordian. These customers use the software applications for facility and asset lifecycle management, as well as intelligent construction costing and operations. The Precision Technologies segment, which includes these types of solutions, recorded $2,132.8 million in revenue in 2023.

Geographically, Fortive Corporation serves a global customer base, but the United States remains the dominant market, accounting for 54.2% of 2023 revenue. [cite: The prompt requirement]. The company operates in over 50 countries worldwide, employing approximately 18,000 team members as of 2024.

Here's a quick look at the revenue split by segment for the full year 2023 in millions of US dollars:

Business Segment	FY 2023 Revenue (Millions USD)
Intelligent Operating Solutions	$2,612.2
Precision Technologies	$2,132.8
Advanced Healthcare Solutions	$1,320.3
Total Annual Revenue	$6,065.3

The overall revenue trend shows growth, with annual revenue reaching $6.232 billion in 2024, and trailing twelve months revenue as of September 30, 2025, reported at $6.171 billion.

You can break down the specific customer types served by the Intelligent Operating Solutions segment into these key areas:

• Industrial and manufacturing enterprises.
• Process industries.
• Utilities and power operators.
• Communications and electronics firms.
• Customers needing electrical test and measurement tools.

The healthcare customer base is focused on efficiency and safety, specifically:

• Hospitals requiring infection prevention technology.
• Healthcare facilities needing asset management.
• Laboratories using advanced test and measurement gear.

Finance: draft 13-week cash view by Friday.

Fortive Corporation (FTV) - Canvas Business Model: Cost Structure

You're looking at the major outflows for Fortive Corporation as of late 2025, post-Ralliant separation. The cost structure is heavily weighted toward innovation and supporting a global manufacturing footprint.

Research & Development (R&D) remains a significant fixed cost driver, reflecting the focus on essential technologies for connected workflow solutions. For the full year 2024, Fortive's reported R&D expenses were $414 million. For the twelve months ending September 30, 2025, R&D expenses increased to $0.423 billion, showing continued investment in innovation.

The Costs of Goods Sold (COGS) are directly tied to the scale of their physical operations. Fortive Corporation supports its manufacturing through a global network that includes 16 operating companies, with manufacturing, sales, and administrative operations in more than 50 countries worldwide. This physical presence dictates the variable costs associated with production.

Sales, General, and Administrative (SG&A) expenses cover the global sales force and corporate overhead. For the full year ended December 31, 2024, SG&A expenses totaled $1,233.4 million. This figure included incremental operating costs from recent acquisitions and higher intangible amortization. [cite: 1 from previous step]

Strategic growth is also reflected in Acquisition and Integration Costs. Fortive deployed significant capital into M&A, with acquisitions spending totaling $1.72 billion in 2024. These transactions bring associated integration costs, which are often adjusted out of non-GAAP metrics but are real cash outflows during the period of integration. [cite: 9 from previous step]

Finally, managing the global supply chain involves specific, non-routine costs. Fortive actively mitigates headwinds from tariffs on imported components through sourcing diversification and operational efficiencies. [cite: 10 from previous step] The company's 2025 guidance reflected the anticipated net impact of these tariffs. [cite: 17 from previous step]

Here's a quick look at the major cost components based on available 2024/2025 data:

Cost Category	Financial Metric/Measure	Amount (USD)
Research & Development (R&D)	Annual Expense (FY 2024)	$414 million
Research & Development (R&D)	Trailing Twelve Months Expense (TTM Sep 2025)	$423 million
Sales, General, & Administrative (SG&A)	Annual Expense (FY 2024)	$1,233.4 million
Acquisition Spending	Total Acquisitions Spend (FY 2024)	$1.72 billion
Manufacturing Footprint	Number of Operating Companies	16

The cost structure reflects a company that is:

• Heavily invested in future product development.
• Maintaining a broad, global manufacturing and service base.
• Absorbing costs related to strategic M&A activity.
• Actively managing external pressures like tariffs.

You can see the impact of these costs on the reported operating margins, which were 19.4% for the full year 2024. [cite: 7 from previous step]

Finance: draft 13-week cash view by Friday.

Fortive Corporation (FTV) - Canvas Business Model: Revenue Streams

You're looking at the engine room of Fortive Corporation's financial health, which is its revenue generation. The streams are clearly bifurcating as the company executes its strategic plan to spin off the Precision Technologies segment, focusing the core Fortive on more durable, high-quality revenue.

The overall top-line performance for the full year 2024 landed at $6.23 billion in consolidated revenue, marking a 3% increase year-over-year from the 2023 total of $6.07 billion. Looking ahead, Fortive anticipates 2025 revenues to be in the range of $6.23 billion to $6.35 billion, showing confidence in continued, albeit modest, growth even with the planned separation.

A key driver of the intended future profile for the retained Fortive business is the shift toward predictable income. Management has stated that the core business, comprising Intelligent Operating Solutions and Advanced Healthcare Solutions post-separation, is targeted to have approximately 50% recurring revenue. This recurring component is built from software subscriptions and service contracts, which is a significant strategic pivot.

To give you a concrete look at the components that feed into this, even using the latest fully detailed data from the end of 2023, we see the scale of the product versus the contracted/service backlog:

Revenue/Backlog Component (As of Dec 31, 2023)	Amount ($ in millions)	Notes
Total Revenue (Full Year 2024)	$6,230.00	Consolidated figure.
Sales of Products and Software (Full Year 2023)	$5,137.70	Total across all segments.
Total Contract Liabilities (Deferred Revenue)	$590.40	Primarily subscription-based software contracts and extended warranties.
Total Remaining Performance Obligations (RPOs)	$723.30	Represents transaction price of firm orders, majority from software/service contracts.

The recurring revenue streams are explicitly tied to software and services. For instance, the contract liabilities, which are recognized as revenue over time, stood at $590.4 million at the close of 2023, made up of current ($544.6 million) and noncurrent portions. Furthermore, the total Remaining Performance Obligations (RPOs), which is the backlog for future revenue recognition, was $723.3 million at the end of 2023, with the majority tied to subscription-based software contracts and service/support contracts.

The primary revenue sources, outside of these recurring elements, are the product sales. Here's a look at the product and software sales breakdown by segment from the 2023 annual report, which gives you the scale of the hardware/instrumentation component:

• Sales of products and software (Total 2023): $5,137.7 million
• Intelligent Operating Solutions - Sales of products and software (2023): $2,202.5 million
• Precision Technologies - Sales of products and software (2023): $1,904.8 million
• Advanced Healthcare Solutions - Sales of products and software (2023): $1,030.4 million

Service and maintenance revenue for the installed base is captured within the deferred revenue and RPO figures, as these obligations relate to service and support contracts. For example, the RPOs are expected to be fulfilled with approximately 80 percent within the next two years and substantially all within four years, showing the long-term nature of these service commitments.

The software license and subscription fees are a growing component, evidenced by the 9% Annual Recurring Revenue (ARR) growth reported for the software businesses in Q3 2023. This growth in ARR is a leading indicator for the future 50% recurring revenue target for the core Fortive entity.