VLTO changes
Pick any two versions below to diff them.
- Price
- $118.77
- Discount category
- Pricey
- Next earnings
- Feb 2, 2027
- Next earnings is estimate
- Yes
- Company name
- added: Veralto
- Sector
- added: Water technology and product identification
- About
- added: Veralto Corporation (Veralto) is based in Waltham, Massachusetts. It has two segments. Water Quality sells products and services that improve the quality and reliability of water, under brands such as Hach, Trojan Technologies and ChemTreat. Product Quality & Innovation (PQI) sells marking, coding, packaging and color tools that help customers earn trust in their products, under brands such as Videojet, Linx, Esko, X-Rite and Pantone. Sales were $1,509 million in Q3 2026, of which Water Quality was $939 million and PQI was $570 million. Recurring sales were about 62% of total sales in nine months of 2026. Jennifer Honeycutt is President and Chief Executive Officer. Veralto has about 17,000 associates. The shares trade on the NYSE in US dollars. Veralto files 10-K and 10-Q reports.
- Thesis
- added: The price of Veralto depends on whether steady core growth, rising margin and bolt-on acquisitions lift earnings faster than the market expects from a business with recurring sales. In Q3 2026, core sales grew 5.1%, adjusted operating margin rose 170 basis points to 25.6%, and adjusted earnings per share rose 19.2% to $1.18. Water Quality core sales grew 6.4%, and sales of water treatment solutions grew by double digits on industrial demand, digital infrastructure investment and water reuse. The core growth of PQI rose from the Q2 rate. Veralto raised its 2026 outlook for adjusted earnings per share to $4.49 to $4.52. For the price to hold or rise, four things must be true. Core sales growth must reach the 5.5% to 6.5% that Veralto expects for Q4. Margin must keep rising as the 2026 cost program saves money. The four acquisitions of 2026, which cost about $1.1 billion, must earn their cost. Industrial and packaging demand must not weaken under tariffs. The Q4 2026 report in February 2027 with the 2027 outlook is the next test. If these hold, the gap can close over the next year. If core growth falls back to the 1.9% of Q1 2026, the gap can last longer.
- Risks
- added: Tariffs and trade rules can raise costs and cut demand. The 10-Q says that the US government has imposed and may keep imposing large tariffs, and it names the conflict in the Middle East as a risk to the economy. Acquisitions can disappoint. Veralto spent about $1.1 billion on four acquisitions in 2026. Total debt rose to $2,920 million at October 2, 2026, from $2,673 million at December 31, 2025, before the $465 million for Cleanwater1. PQI grows slowly. Its Q3 2026 sales rose 3.9%, of which acquisitions gave 1.1 points. Marking, coding and packaging depend on the output of consumer goods makers. Industrial demand can weaken. Water treatment grew by double digits in Q3 2026 on industrial trends in North America, and these trends can reverse. The cost program can cost more than it saves. Veralto expects savings of $10 million to $15 million in 2026, and the program runs to the end of 2028.
- Balance sheet
- added: Cash: $1.8B Debt: $2.9B Net debt: $1.1B Debt due within 12 months: $249M At October 2, 2026, Veralto had total debt of $2,920 million and cash and cash equivalents of $1,785 million. Of the debt, $249 million is commercial paper that falls due within 12 months. About $1,165 million of the cash is outside the United States. After the quarter, Veralto paid $465 million for Cleanwater1 with commercial paper and cash. Operating cash flow was $323 million and free cash flow was $304 million in Q3 2026. Veralto repurchased $550 million of shares in 2026 up to October 28. Stockholders' equity was $3,232 million. As of Oct 2, 2026.
- Checkpoints
- added: Feb 2, 2027 (estimate): Q4 2026 results and 2027 outlook. Pending. Watch: Core sales growth reaches the guided 5.5% to 6.5% in Q4 and the 2027 outlook shows higher adjusted earnings per share, and this passes; slower growth or a lower outlook fails. Apr 2027 (estimate): Q1 2027 results: Cleanwater1 and margin. Pending. Watch: Adjusted operating margin rises against Q1 2026 and Cleanwater1 adds to earnings, and this passes; a flat margin fails.
- Recent events
- added: Oct 29, 2026: Veralto reported Q3 2026 results. Sales rose 7.5% to $1,509 million, and core sales rose 5.1%. Adjusted earnings per share rose 19.2% to $1.18. Free cash flow was $304 million. Veralto raised its 2026 outlook for adjusted earnings per share to $4.49 to $4.52. Oct 5, 2026: Veralto bought Cleanwater1 for $465 million, paid with commercial paper and cash. Cleanwater1 sells on-site hypochlorite disinfection, solids management and odor control technologies, and it has an installed base of about 25,000 units. Jul 28, 2026: Veralto reported Q2 2026 results. Sales rose 7.6% to $1,474 million, and core sales rose 4.2%. Adjusted earnings per share was $1.11. Apr 28, 2026: Veralto reported Q1 2026 results. Sales rose 6.7% to $1,422 million, and core sales rose 1.9%. Adjusted earnings per share was $1.07. In April, Veralto announced the 2026 Cost Optimization Program, and it bought GlobalVision for about $195 million. Jan 22, 2026: Veralto bought In-Situ, a maker of water quality sondes and sensors, for cash of about $426 million, net of cash acquired. In-Situ is part of the Water Quality segment.