Shares of Fortive (FTV) plummeted 5.44% in pre-market trading on Thursday following the company's release of its first-quarter earnings and a downward revision of its full-year profit guidance, citing concerns over potential tariff impacts.

The industrial technology company reported first-quarter adjusted earnings per share of $0.85, meeting analysts' expectations. However, revenue fell short of estimates, coming in at $1.47 billion compared to the expected $1.49 billion, representing a 3.3% year-over-year decline.

The primary driver behind the stock's sharp decline was Fortive's updated full-year 2025 guidance. The company now expects adjusted earnings per share in the range of $3.80 to $4.00, significantly below the Wall Street consensus of $4.02. Management cited potential impacts from tariffs as a key factor in the lowered outlook, highlighting the ongoing challenges faced by industrial companies in navigating global trade tensions.

Adding to investor concerns, Fortive provided a softer-than-expected forecast for the second quarter, projecting adjusted earnings per share between $0.85 and $0.90, compared to analysts' estimates of $0.98. This guidance suggests continued headwinds in the near term, particularly in the company's Precision Technologies segment, which experienced delays in customer investments due to geopolitical and macroeconomic uncertainties.

Despite the challenges, Fortive announced plans to accelerate the spinoff of its Precision Technologies segment, now targeting completion by the end of the second quarter of 2025. This strategic move, aimed at enhancing focus and operational efficiency, may provide a silver lining for investors looking beyond the immediate headwinds.