247Wallst·2026-01-21 12:18Core Insights - Both Fortive and Dayforce reported disappointing Q3 2025 earnings, revealing significant operational challenges despite some revenue growth [1][2][3] Fortive Summary - Fortive's Q3 revenue reached $1.03 billion, a modest increase of 2.3% year-over-year, but net income fell sharply from $222 million to $55 million, marking a 75% decline [2][4] - The operating margin decreased by 390 basis points to 15.5%, indicating lost pricing power in its automation and sensing businesses [2][5] - Full-year 2025 EPS is projected at $1.86, representing a 38% decline from $2.99 in 2024 [2][4] - The company operates in industrial automation and sensing, facing competitive pressure and weak demand, despite generating positive cash flow and maintaining a 0.55% dividend [5] Dayforce Summary - Dayforce reported Q3 revenue of $481.6 million, up 9.5%, but incurred a net loss of $196.8 million, significantly missing analyst expectations of a $0.21 profit [3][4] - The operating margin was negative at 25.8%, indicating that the company spends $1.26 in operating costs for every dollar of gross profit, which is unsustainable [6] - Full-year 2025 EPS is projected at -$0.04, down from $1.98 in 2024, marking a drastic shift in profitability [3][4] Analyst Sentiment - Analysts show limited optimism for both companies, with 14 of 18 analysts rating Fortive as Hold and a target price of $58.12, suggesting only a 3.4% upside [7] - Dayforce has 15 of 16 analysts at Hold, with a target price of $69.92, indicating a lack of momentum for both stocks [7] Investment Outlook - Current operational issues at Fortive and Dayforce suggest a wait-and-see approach until both companies can demonstrate improved execution and profitability [8]