Want to see VLTO full AI Analyst Report?
Top Page
Veralto Corporation
(NYSE:VLTO)
Select Model
Select Model
Rating:79Outperform
Price Target:
$113.00
▲(22.80% Upside)
Action:Reiterated
Date:07/29/26
VLTO scores well primarily on strong financial performance (high margins and excellent free-cash-flow conversion) and a supportive earnings outlook (raised EPS guidance and expected 2H growth acceleration). Technicals add support with price trading above key moving averages. The main constraints on the score are higher leverage versus earlier periods and a valuation that is not especially cheap (P/E 24.67 with a low dividend yield).
Positive Factors
Recurring Installed-Base Revenue
The installed base creates recurring aftermarket demand and customer switching costs across both segments. This supports revenue visibility, strengthens retention, and can sustain attractive margins as equipment placements expand.
Negative Factors
Higher Leverage
Higher and historically volatile leverage reduces financial flexibility if growth or margins weaken. Debt service and future acquisition funding could constrain capital allocation, particularly after additional borrowing for expansion.
Read all positive and negative factors
Positive Factors
Negative Factors
Recurring Installed-Base Revenue
The installed base creates recurring aftermarket demand and customer switching costs across both segments. This supports revenue visibility, strengthens retention, and can sustain attractive margins as equipment placements expand.
Read all positive factors
Veralto Corporation Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across regions to show where the business is strongest and where it faces regulatory, economic, or logistical risks. Geographic mix is important for Veralto because local disposal capacity, environmental rules, and industrial activity drive revenue and margin differences.
Breaks down revenue across regions to show where the business is strongest and where it faces regulatory, economic, or logistical risks. Geographic mix is important for Veralto because local disposal capacity, environmental rules, and industrial activity drive revenue and margin differences.
Data provided by:
The Fly
The FlyVeralto Corporation (VLTO) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$23.59B
Dividend Yield0.52%
Average Volume (3M)2.12M
Price to Earnings (P/E)24.2
Beta (1Y)0.65
Revenue Growth6.23%
EPS Growth10.77%
CountryUS
Employees17,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Pollution & Treatment Controls
Share Statistics
EPS (TTM)3.99
Shares Outstanding243,793,350
10 Day Avg. Volume1,647,279
30 Day Avg. Volume2,117,853
Financial Highlights & Ratios
PEG Ratio2.11
Price to Book (P/B)7.98
Price to Sales (P/S)4.50
P/FCF Ratio24.43
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$110.62Price Target Upside20.21% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering13
EPS Forecast (FY)4.37
Revenue Forecast (FY)$5.91B
Veralto Corporation Business Overview & Revenue Model
Company Description
Veralto Corporation is a global provider specializing in critical solutions across water quality management, brand protection, and packaging aesthetics. Its operations are structured into two primary divisions: Water Quality (WQ) and Product Quali...
How the Company Makes Money
Veralto makes money by selling equipment, recurring consumables, software, and services across its two segments.
1) Water Quality segment revenue: This segment generates revenue from the sale of water analytics and measurement instrumentation (e....
Veralto Corporation Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call portrayed solid operational and financial momentum: healthy revenue and adjusted EPS growth, strong free cash flow, upgraded EPS guidance, active bolt-on M&A and share repurchases, and expectations for accelerating core growth and margin expansion. Headwinds are mostly limited or one-time (tariff refunds), with region- and segment-specific softness (China water, modest PQI growth), input volatility in ChemTreat, and cost savings weighted to 2027. On balance the positive developments — notably upgraded guidance, cash generation, and commercial momentum from acquisitions — outweigh the lowlights.Positive Updates
Revenue and EPS Growth
Total sales grew 7.6% year-over-year in Q2 and adjusted EPS increased 19.4% year-over-year.
Negative Updates
PQI Growth Lagging
PQI core sales growth was modest at 2% in Q2, lagging Water Quality (5.7%), and PQI margins saw prior pressure from fixed cost absorption and duplicate production lines.
Read all updates
Q2-2026 Updates
Positive
Negative
Revenue and EPS Growth
Total sales grew 7.6% year-over-year in Q2 and adjusted EPS increased 19.4% year-over-year.
Read all positive updates
Company Guidance
Veralto said core sales growth should accelerate to about 5–6% in the second half (volume‑led, with pricing moderating but still at or slightly above the high end of the range) after Q2 results that showed total sales +7.6% YoY, core sales +4.2% (Water Quality +5.7%, PQI +2%), adjusted EPS +19.4% and free cash flow of $328M; the company raised full‑year adjusted EPS guidance to $4.35–$4.43/share (implying 12–14% YoY growth). Management also guided margin improvement of roughly +25 bps in Q3 and +25–50 bps for the full year (Q4 expected north of +50 bps led by PQI), noted ~$16M of IEEPA tariff refunds ($10M PQI, $6M Water Quality) that drove ~110 bps of adjusted operating margin benefit (no further refunds assumed in guidance; a potential ~$0.02/share benefit is timing‑uncertain), has repurchased >5M shares for ~ $480M (~2% of the company) YTD, and expects only a small near‑term cost‑out benefit (a few million in Q4) with the bulk of savings realized in 2027.Veralto Corporation Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
72
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.70B | 5.50B | 5.19B | 5.02B | 4.87B | 4.70B |
| Gross Profit | 3.43B | 3.30B | 3.10B | 2.90B | 2.77B | 2.71B |
| EBITDA | 1.35B | 1.35B | 1.28B | 1.21B | 1.20B | 1.15B |
| Net Income | 988.00M | 940.00M | 833.00M | 839.00M | 845.00M | 861.00M |
Balance Sheet | ||||||
| Total Assets | 8.56B | 7.69B | 6.41B | 5.69B | 4.83B | 4.84B |
| Cash, Cash Equivalents and Short-Term Investments | 2.12B | 2.03B | 1.10B | 762.00M | 0.00 | 0.00 |
| Total Debt | 3.38B | 2.67B | 2.77B | 2.78B | 123.00M | 135.00M |
| Total Liabilities | 5.46B | 4.59B | 4.36B | 4.30B | 1.58B | 1.64B |
| Stockholders Equity | 3.10B | 3.10B | 2.04B | 1.38B | 3.23B | 3.20B |
Cash Flow | ||||||
| Free Cash Flow | 1.05B | 1.01B | 820.00M | 909.00M | 836.00M | 842.00M |
| Operating Cash Flow | 1.10B | 1.08B | 875.00M | 963.00M | 870.00M | 896.00M |
| Investing Cash Flow | -692.00M | -98.00M | -434.00M | -55.00M | -89.00M | -97.00M |
| Financing Cash Flow | 165.00M | -102.00M | -65.00M | -135.00M | -781.00M | -799.00M |
Veralto Corporation Technical Analysis
Positive
92.02
Price Trends
91.44
Positive
89.33
Positive
93.24
Positive
Market Momentum
1.52
Positive
53.76
Neutral
38.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VLTO, the sentiment is Positive. The current price of 92.02 is below the 20-day moving average (MA) of 95.99, above the 50-day MA of 91.44, and below the 200-day MA of 93.24, indicating a bullish trend. The MACD of 1.52 indicates Positive momentum. The RSI at 53.76 is Neutral, neither overbought nor oversold. The STOCH value of 38.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VLTO.
Veralto Corporation Risk Analysis
Veralto Corporation disclosed 28 risk factors in its most recent earnings report. Veralto Corporation reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Veralto Corporation Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $23.59B | 24.25 | 32.79% | 0.54% | 6.23% | 10.77% | |
79 Outperform | $7.70B | 26.90 | 20.22% | 0.49% | 23.97% | 28.96% | |
78 Outperform | $8.34B | 29.98 | 17.09% | 0.87% | 10.69% | 60.92% | |
71 Outperform | $415.51M | 27.79 | 8.25% | ― | -14.95% | -31.61% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% | |
61 Neutral | $4.17B | 19.44 | 54.68% | 0.41% | 13.05% | 15.73% | |
53 Neutral | $4.93B | -144.64 | 5.54% | ― | 37.64% | -145.85% |
* Industrials Sector Average
VLTO
Veralto Corporation
96.07
-11.46
-10.65%
CECO
Ceco Environmental
76.55
31.82
71.14%
ERII
Energy Recovery
7.88
-6.54
-45.35%
FSS
Federal Signal
121.98
-2.70
-2.16%
ZWS
Zurn Water Solutions
49.21
4.35
9.71%
ATMU
Atmus Filtration Technologies, Inc.
49.89
6.11
13.96%
Veralto Corporation Corporate Events
Private Placements and Financing
Veralto Prices $725 Million Senior Notes Offering
Neutral
Jun 1, 2026
On June 1, 2026, Veralto Corporation issued $725 million of 4.850% senior unsecured notes due January 15, 2032, in an underwritten public offering, with interest payable semi-annually starting January 15, 2027. The notes carry optional redemption ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.