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Veralto Corporation
S&P 500
🏹 Trader: 🎯 Near 52W High View all →
$24.5B
Market Cap
26.5
P/E
2.92
PEG
28.0%
ROCE
36.4%
ROE
0.64
D/E
23.2%
OPM
-9.1%
% from 52W High
54
α RS
🔍 VLTO is showing a high-conviction setup because it matches 8 of 37 tracked screener presets and it's within 9.1% of its 52-week high. Net: Partial signal stack, not a recommendation. ? Conviction 52W High
Sources
Conviction 8/37 · 9.1% from 52W high
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🌏 Global Investor Returns
Currency-adjusted total returns for VLTO including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Veralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color solutions worldwide.

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📈 Growth Pattern
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⭐ Superinvestors Holding VLTO
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Manager Shares Value % of Fund Period
Jim Simons Renaissance Technologies LLC 1.39M $123.1M 0.19% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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3-Statement Financial Model
Bear / Base / Bull projections · DCF fair value · Reverse-DCF
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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$1.474B
+7.6% YoY
Adjusted EPS
$1.11
+19.4% YoY
Operating Margin (GAAP)
21.4%
Not disclosed
Net Earnings
$241M
Not disclosed
What Went Right
  • Total sales grew 7.6% to $1.474B with core sales up 4.2%, led by Water Quality at +5.7%
  • Adjusted EPS rose 19.4% to $1.11 and full-year EPS guidance was raised to $4.35-$4.43
  • Free cash flow of $328M plus ~$480M returned via buybacks (~2% of shares)
What to Watch
  • High-growth markets were roughly flat: Water Quality China lagged and LatAm sales were down on project timing
  • H2 guidance excludes further IEEPA tariff refunds; an additional ~$0.02/share remains uncertain
  • PQI core growth was only 2.0% and margin recovery is still absorbing duplicate production-line and fixed-cost headwinds
Management Guidance
  • Q3 2026: core sales growth +4.0% to +5.0%; adjusted EPS $1.06-$1.09; adjusted operating margin expansion ~25bps YoY
  • FY 2026 (raised): core sales growth +4.0% to +4.5%; adjusted EPS $4.35-$4.43 (12%-14% growth); adjusted operating margin +25-50bps
  • FY 2026 free cash flow conversion now guided at >100% of GAAP net earnings
Investor Lens
Stronger. Veralto raised full-year EPS guidance and expects second-half core sales growth to accelerate to ~5%-6%, driven by volume, digital workflow adoption, industrial water demand and easier comps. Roughly 60% recurring revenue and strong cash generation support durability, though high-growth-market softness and PQI's packaging/color recovery remain execution watch items. A balanced capital deployment approach — buybacks plus bolt-on M&A like Alfaa UV — increases confidence in compounding shareholder value.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Strong quarter: sales +7.6%, adjusted EPS +19.4%, FY guide raised
Revenue
Q2 sales rose 7.6% to $1.474B, with core sales growth of 4.2%. Water Quality core grew 5.7% and PQI grew 2.0%, both accelerating sequentially from Q1.
Profitability
Net earnings were $241M, or $0.98 per share. Adjusted EPS rose 19.4% to $1.11, including a ~$0.05 IEEPA tariff refund benefit.
Margins
GAAP operating margin was 21.4% and adjusted operating margin was 24.6%. IEEPA refunds added ~110bps to adjusted operating margin, and FY adjusted operating margin expansion is guided at 25-50bps.
Balance Sheet
Operating cash flow was $340M and free cash flow was $328M. YTD share repurchases totaled ~$480M (~2% of the company) and the balance sheet remains strong.
Key Risks
High-growth markets were flat, with China Water sales down and LatAm project timing delays. No further IEEPA refunds are assumed in H2 guidance, and PQI continues to absorb fixed-cost and duplicate production-line costs into Q4.
Outlook
Q3 core sales growth is guided at 4.0%-5.0% with adjusted EPS of $1.06-$1.09. Full-year core sales growth was raised to 4.0%-4.5% and adjusted EPS to $4.35-$4.43.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-29
Q2 saw 7.6% sales growth and 19.4% adjusted EPS increase, with strong free cash flow and raised full-year EPS guidance. Water Quality and PQI segments both accelerated, supported by acquisitions and robust industrial demand. Margin expansion and disciplined capital allocation remain key priorities.
Q1 2026 Q1 2026 2026-04-29
Q1 2026 saw 7% sales and 13% adjusted EPS growth, prompting a raised full-year EPS outlook. Strategic M&A, cost optimization, and steady end-market demand support continued momentum, with cost savings expected to ramp in 2027–2028.
Q4 2025 Q4 2025 2026-02-04
Delivered record 2025 results with 6% sales growth, double-digit adjusted EPS growth, and over $1B free cash flow. 2026 guidance targets continued core sales and margin expansion, with strong recurring revenue and new product launches supporting growth.
Q3 2025 Q3 2025 2025-10-29
Q3 delivered 6.9% sales growth, 5.1% core sales growth, and 11% adjusted EPS growth, with strong performance in both Water Quality and PQI segments. Full year guidance was raised for adjusted EPS and free cash flow conversion, supported by robust demand, margin expansion, and a strong balance sheet.
Q2 2025 Q2 2025 2025-07-29
Q2 2025 delivered 4.8% core sales growth and 9.4% adjusted EPS growth, with strong performance in both water quality and PQI segments. Full-year adjusted EPS guidance was raised, supported by robust free cash flow and disciplined capital allocation.
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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Information Sources:
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