Veralto Q4 Earnings Beat Expectations, 2026 Outlook Cautious
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 5d ago
0mins
Should l Buy VLTO?
Source: seekingalpha
- Earnings Highlights: Veralto reported Q4 non-GAAP EPS of $1.04, beating expectations by $0.06, although revenue of $1.4 billion, up 3.7% year-over-year, missed by $10 million, resulting in a 1% drop in shares.
- Q1 2026 Outlook: The company anticipates flat to low-single-digit year-over-year growth in non-GAAP core sales for Q1 2026, with an adjusted operating profit margin of approximately 24.5% and adjusted diluted EPS expected between $0.97 and $1.01, indicating a cautious outlook for future growth.
- Full Year Projections: Veralto expects low-to-mid-single-digit year-over-year growth in non-GAAP core sales for 2026, with an adjusted operating profit margin expanding by approximately 25 basis points, reflecting a focus on maintaining profitability.
- Cash Flow Management: The company targets adjusted diluted EPS in the range of $4.10 to $4.20, with free cash flow conversion expected to be around 100% of GAAP net earnings, demonstrating strong cash flow management capabilities.
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Analyst Views on VLTO
Wall Street analysts forecast VLTO stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for VLTO is 110.14 USD with a low forecast of 100.00 USD and a high forecast of 121.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
2 Buy
5 Hold
0 Sell
Moderate Buy
Current: 90.790
Low
100.00
Averages
110.14
High
121.00
Current: 90.790
Low
100.00
Averages
110.14
High
121.00
About VLTO
Veralto Corporation provides essential technology solutions that monitor, enhance and protect key resources around the globe. Its segments include Water Quality (WQ) and Product Quality & Innovation (PQI). WQ segment provides portfolios of water analytics and differentiated water treatment solutions that enable the delivery of safe drinking water by public and private utilities. Under its Hach, Trojan Technologies, ChemTreat and other globally recognized WQ brands, it provides precision instrumentation and advanced water treatment technologies that its customers rely on to measure, analyze and treat water in residential, commercial, municipal, industrial, research and natural resource applications. PQI segment provides a set of essential solutions for brand owners and consumer packaged goods companies. Under its Videojet, Linx, Esko, X-Rite, Pantone and other globally recognized PQI brands, it provides marking and coding, and packaging and color instrumentation and related consumables.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
RBC Lowers Veralto Price Target to $102
- Price Target Adjustment: RBC Capital analyst Deane Dray has lowered Veralto's price target from $111 to $102 while maintaining a Sector Perform rating, reflecting a cautious market sentiment towards the stock.
- Performance Beat: Veralto reported a modest 1% operating beat and provided 2026 guidance that captures consensus at the high end, although slightly below the midpoint, indicating the company's resilience in the current market environment.
- Market Environment Impact: Despite being viewed as a high-quality compounder, Veralto's stock has fallen out of favor in the prevailing market conditions, which may affect investor confidence and stock performance.
- Peer Dynamics: Other firms like Baird, Citi, and Barclays have also lowered their price targets for Veralto, indicating widespread concerns about the company's future performance, which could lead investors to reassess their investment strategies.
See More
Veralto Corporation Reports Strong Q4 2025 Earnings and Strategic Growth
- Significant Performance Growth: Veralto Corporation reported nearly $1.4 billion in total sales for Q4 2025, reflecting a 3.8% year-over-year increase, with core sales growing 1.6% primarily driven by a 2.3% rise in prices, showcasing the company's resilience and adaptability in a dynamic market environment.
- Cash Flow and Shareholder Returns: The company generated over $1 billion in free cash flow in 2025 and announced a $750 million share repurchase program along with an 18% dividend increase, indicating strong confidence in future growth and commitment to shareholders.
- Acquisition and Market Expansion: Veralto completed the acquisition of In-Situ at the beginning of 2026, further expanding its Water Analytics portfolio into fast-growing environmental water and hydrology markets, which is expected to provide robust support for future performance.
- Innovative Product Launches: The company introduced new products such as a new ammonia analyzer, single-use Chemkeys, and AI-enabled packaging software solutions, enhancing product line diversity and market competitiveness, reflecting its ongoing investment in technological innovation.
See More
Veralto Q4 Earnings Beat Expectations, 2026 Outlook Cautious
- Earnings Highlights: Veralto reported Q4 non-GAAP EPS of $1.04, beating expectations by $0.06, although revenue of $1.4 billion, up 3.7% year-over-year, missed by $10 million, resulting in a 1% drop in shares.
- Q1 2026 Outlook: The company anticipates flat to low-single-digit year-over-year growth in non-GAAP core sales for Q1 2026, with an adjusted operating profit margin of approximately 24.5% and adjusted diluted EPS expected between $0.97 and $1.01, indicating a cautious outlook for future growth.
- Full Year Projections: Veralto expects low-to-mid-single-digit year-over-year growth in non-GAAP core sales for 2026, with an adjusted operating profit margin expanding by approximately 25 basis points, reflecting a focus on maintaining profitability.
- Cash Flow Management: The company targets adjusted diluted EPS in the range of $4.10 to $4.20, with free cash flow conversion expected to be around 100% of GAAP net earnings, demonstrating strong cash flow management capabilities.
See More
Veralto Reports Strong Q4 2025 Results with Strategic Growth Initiatives
- Performance Growth: Veralto achieved mid-single-digit core sales growth of 5% in 2025, with double-digit adjusted earnings per share growth and over $1 billion in free cash flow, demonstrating robust performance in a dynamic macroeconomic environment.
- Acquisition Expansion: The company completed the acquisition of In-Situ in late January, further enhancing its water analytics portfolio and entering the high-growth environmental water and hydrology markets, thereby strengthening its competitive position.
- Shareholder Return Program: In the fourth quarter, Veralto established a $750 million share repurchase program and announced an 18% increase in its dividend, aimed at creating more value for shareholders through disciplined capital allocation and strategic growth.
- 2026 Outlook: The company anticipates low-to-mid-single-digit core sales growth for 2026, targeting adjusted earnings per share in the range of $4.10 to $4.20, reflecting confidence in sustained growth moving forward.
See More
Veralto Scheduled to Announce Q4 Earnings on February 3rd
- Earnings Announcement Date: Veralto (VLTO) is set to announce its Q4 earnings on February 3rd after market close, with a consensus EPS estimate of $0.98, reflecting a 3.2% year-over-year growth, which may bolster investor confidence in the company's profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $1.41 billion, representing a 4.4% year-over-year increase, indicating strong market demand in the water sector, potentially laying a foundation for future expansion.
- Track Record of Beating Estimates: Over the past two years, Veralto has consistently beaten both EPS and revenue estimates 100% of the time, showcasing its stable performance and management capabilities, which enhances market confidence in its future outlook.
- Estimate Revision Trends: In the last three months, EPS estimates have seen three upward revisions and one downward revision, while revenue estimates have experienced six upward revisions and three downward revisions, indicating analysts' optimistic outlook on Veralto's future performance, likely attracting more investor interest.
See More
Veralto Corporation's Water Quality and Product Quality Growth Drives Revenue to $5.5 Billion by 2025
- Water Quality Growth: Veralto's brands Hach, Trojan Technologies, and ChemTreat are driving significant growth in the Water Quality segment through innovative products and services that enhance customer water usage efficiency and promote maximum reuse, thereby strengthening market competitiveness.
- Product Quality & Innovation: Brands like Esko, Videojet, and Pantone are rapidly growing in the Product Quality & Innovation segment by providing packaging design and marking solutions across 140 countries, addressing the global demand for efficient packaging solutions.
- Data Center Strategy: Veralto's strategic focus on data centers is driving sales growth for its AI-powered products, which meet the urgent demand for energy efficiency and reduced water consumption, further solidifying its market position.
- Strong Financial Performance: Veralto has consistently outperformed the Zacks Consensus Estimate in the past four quarters, with projected revenues of $1.40 billion for Q4 2025, reflecting a 4.4% year-over-year increase, indicating robust growth prospects.
See More
RBC Lowers Veralto Price Target to $102
- Price Target Adjustment: RBC Capital analyst Deane Dray has lowered Veralto's price target from $111 to $102 while maintaining a Sector Perform rating, reflecting a cautious market sentiment towards the stock.
- Performance Beat: Veralto reported a modest 1% operating beat and provided 2026 guidance that captures consensus at the high end, although slightly below the midpoint, indicating the company's resilience in the current market environment.
- Market Environment Impact: Despite being viewed as a high-quality compounder, Veralto's stock has fallen out of favor in the prevailing market conditions, which may affect investor confidence and stock performance.
- Peer Dynamics: Other firms like Baird, Citi, and Barclays have also lowered their price targets for Veralto, indicating widespread concerns about the company's future performance, which could lead investors to reassess their investment strategies.
See More
Veralto Corporation Reports Strong Q4 2025 Earnings and Strategic Growth
- Significant Performance Growth: Veralto Corporation reported nearly $1.4 billion in total sales for Q4 2025, reflecting a 3.8% year-over-year increase, with core sales growing 1.6% primarily driven by a 2.3% rise in prices, showcasing the company's resilience and adaptability in a dynamic market environment.
- Cash Flow and Shareholder Returns: The company generated over $1 billion in free cash flow in 2025 and announced a $750 million share repurchase program along with an 18% dividend increase, indicating strong confidence in future growth and commitment to shareholders.
- Acquisition and Market Expansion: Veralto completed the acquisition of In-Situ at the beginning of 2026, further expanding its Water Analytics portfolio into fast-growing environmental water and hydrology markets, which is expected to provide robust support for future performance.
- Innovative Product Launches: The company introduced new products such as a new ammonia analyzer, single-use Chemkeys, and AI-enabled packaging software solutions, enhancing product line diversity and market competitiveness, reflecting its ongoing investment in technological innovation.
See More
Veralto Q4 Earnings Beat Expectations, 2026 Outlook Cautious
- Earnings Highlights: Veralto reported Q4 non-GAAP EPS of $1.04, beating expectations by $0.06, although revenue of $1.4 billion, up 3.7% year-over-year, missed by $10 million, resulting in a 1% drop in shares.
- Q1 2026 Outlook: The company anticipates flat to low-single-digit year-over-year growth in non-GAAP core sales for Q1 2026, with an adjusted operating profit margin of approximately 24.5% and adjusted diluted EPS expected between $0.97 and $1.01, indicating a cautious outlook for future growth.
- Full Year Projections: Veralto expects low-to-mid-single-digit year-over-year growth in non-GAAP core sales for 2026, with an adjusted operating profit margin expanding by approximately 25 basis points, reflecting a focus on maintaining profitability.
- Cash Flow Management: The company targets adjusted diluted EPS in the range of $4.10 to $4.20, with free cash flow conversion expected to be around 100% of GAAP net earnings, demonstrating strong cash flow management capabilities.
See More
Veralto Reports Strong Q4 2025 Results with Strategic Growth Initiatives
- Performance Growth: Veralto achieved mid-single-digit core sales growth of 5% in 2025, with double-digit adjusted earnings per share growth and over $1 billion in free cash flow, demonstrating robust performance in a dynamic macroeconomic environment.
- Acquisition Expansion: The company completed the acquisition of In-Situ in late January, further enhancing its water analytics portfolio and entering the high-growth environmental water and hydrology markets, thereby strengthening its competitive position.
- Shareholder Return Program: In the fourth quarter, Veralto established a $750 million share repurchase program and announced an 18% increase in its dividend, aimed at creating more value for shareholders through disciplined capital allocation and strategic growth.
- 2026 Outlook: The company anticipates low-to-mid-single-digit core sales growth for 2026, targeting adjusted earnings per share in the range of $4.10 to $4.20, reflecting confidence in sustained growth moving forward.
See More
Veralto Scheduled to Announce Q4 Earnings on February 3rd
- Earnings Announcement Date: Veralto (VLTO) is set to announce its Q4 earnings on February 3rd after market close, with a consensus EPS estimate of $0.98, reflecting a 3.2% year-over-year growth, which may bolster investor confidence in the company's profitability.
- Revenue Expectations: The anticipated revenue for Q4 is $1.41 billion, representing a 4.4% year-over-year increase, indicating strong market demand in the water sector, potentially laying a foundation for future expansion.
- Track Record of Beating Estimates: Over the past two years, Veralto has consistently beaten both EPS and revenue estimates 100% of the time, showcasing its stable performance and management capabilities, which enhances market confidence in its future outlook.
- Estimate Revision Trends: In the last three months, EPS estimates have seen three upward revisions and one downward revision, while revenue estimates have experienced six upward revisions and three downward revisions, indicating analysts' optimistic outlook on Veralto's future performance, likely attracting more investor interest.
See More
Veralto Corporation's Water Quality and Product Quality Growth Drives Revenue to $5.5 Billion by 2025
- Water Quality Growth: Veralto's brands Hach, Trojan Technologies, and ChemTreat are driving significant growth in the Water Quality segment through innovative products and services that enhance customer water usage efficiency and promote maximum reuse, thereby strengthening market competitiveness.
- Product Quality & Innovation: Brands like Esko, Videojet, and Pantone are rapidly growing in the Product Quality & Innovation segment by providing packaging design and marking solutions across 140 countries, addressing the global demand for efficient packaging solutions.
- Data Center Strategy: Veralto's strategic focus on data centers is driving sales growth for its AI-powered products, which meet the urgent demand for energy efficiency and reduced water consumption, further solidifying its market position.
- Strong Financial Performance: Veralto has consistently outperformed the Zacks Consensus Estimate in the past four quarters, with projected revenues of $1.40 billion for Q4 2025, reflecting a 4.4% year-over-year increase, indicating robust growth prospects.
See More
