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Investing.com -- Fortive Corp (NYSE:FTV) stock dropped 1.9% following the completion of its Precision Technologies segment spin-off and a warning about second-quarter revenue pressure.
The company announced it has finalized the 100% spin-off of Ralliant Corporation to shareholders, with Ralliant beginning "regular way" trading on the NYSE under the symbol "RAL." Fortive shareholders received one share of Ralliant common stock for every three shares of Fortive held as of June 16, 2025.
Alongside the separation, Olumide Soroye has assumed the role of President and CEO, succeeding James Lico who has retired from these positions but will continue as a non-executive senior advisor until year-end.
The significant stock decline appears driven by Fortive’s revelation of unexpected headwinds. The company disclosed that "increased pressure on tariff-related pricing and customer demand driven largely by heightened uncertainty in trade, healthcare and government spending policy" created challenges that intensified late in the second quarter.
As a result, Fortive now estimates its second quarter revenue and core revenue as "flat to slightly down" for the newly structured company, while the spun-off Precision Technologies segment declined mid-single digits as anticipated. Despite these challenges, the company expects second quarter consolidated adjusted EPS to be near the mid-point of its previous guidance range.
The separation distributed approximately 113 million shares of Ralliant common stock, completing a strategic restructuring aimed at creating two focused companies. Fortive will continue trading under its existing "FTV" symbol on the NYSE.
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