What Veralto (VLTO) said on its Q3 earnings call. Veralto (NYSE:VLTO) reported third-quarter 2026 results marked by sales growth, higher adjusted earnings and continued free-cash-flow generation, while raising its full-year adjusted EPS outlook. President and Chief Executive Officer Jennifer Honeycutt said total sales increased 7.5% year over year in the quarter, while adjusted EPS rose 19.2%. The company generated $304 million of free cash flow. Core sales grew 5.1%, led by 6.4% growth in the Water Quality segment and 3.2% growth in Product Quality & Innovation, or PQI. Honeycutt said both segments accelerated their core-sales growth sequentially from the second quarter, with demand remaining healthy across the portfolio. For the fourth quarter, Veralto expects core sales growth of 5.5% to 6.5%, plus approximately 5% growth from acquisitions, implying total sales growth of about 10% to 11%. The company raised its full-year adjusted EPS guidance to $4.49 to $4.52, representing growth of 15% to 16% from the prior year. Honeycutt attributed the outlook in part to third-quarter performance, the fourth-quarter forecast and early contributions from the company's Cost Optimization Program. Water Quality demand supported by recurring revenue and new products. Honeycutt said Water Quality has a balanced mix of municipal and industrial customers, with industrial applications representing about 50% of segment sales. She noted that about 60% of Water Quality revenue is recurring, supported by consumables and services that are essential to customers' operations. While portions of the business involve equipment sales, Honeycutt said those purchases generally relate to operational capital expenditures, such as facility upgrades and optimization, rather than infrastructure projects that are more sensitive to federal-funding changes. Management cited water scarcity, recycling and reclamation needs, and severe weather events as secular drivers for demand. Honeycutt also highlighted momentum in municipal markets, where Hach has introduced a flagship spectrophotometer as well as new ammonia and phosphate analyzers. She said commercial execution, product-development activity and Veralto's operating discipline have supported growth in the municipal business. Chief Financial Officer Sameer Ralhan said the company is seeing inflation in certain inputs, including oil-derived materials, transportation and memory products used in instrumentation. However, he said procurement and business teams have helped offset those pressures through the company's Veralto Enterprise System, or VES, execution framework. Regionally, Honeycutt said China's municipal spending remains subdued, and Veralto is not expecting a significant change in that market. China accounts for about 6% of company sales, she said. In Latin America, Water Quality sales were down modestly from the prior year but improved sequentially, with some project timing affected by election-related uncertainty in Brazil. Data centers and treatment acquisitions expand water exposure. Veralto said its current data-center revenue base remains small, although data-center sales doubled in the third quarter. Honeycutt said demand spans both water treatment and analytics, with ChemTreat participating early in data-center projects through consultation on water-treatment design and balancing water and power efficiency. Ralhan characterized the treatment opportunity as largely an annuity-style business once data centers are operating. Honeycutt said Veralto has opportunities in utility-water applications and increasingly in liquid direct-to-chip cooling, where the company provides chemical solutions and services. Ralhan also referenced a partnership with Dow related to glycol. The company has deployed more than $1.65 billion year to date across four bolt-on acquisitions and share repurchases. That activity includes the acquisition of Cleanwater1, which Veralto said expands its water-treatment capabilities. The company also acquired In-Situ, AQUAFIDES and Alfaa UV. Ralhan said In-Situ has had a strong start and that commercial synergies are running ahead of the assumptions used to underwrite the transaction. AQUAFIDES is also contributing solidly, he said, while Alfaa UV and Cleanwater1 are in the early stages of integration. Honeycutt described the acquired water-treatment assets as high-single-digit to low-double-digit growers positioned in higher-value portions of the treatment process. PQI expected to accelerate in fourth quarter. PQI growth is expected to move toward the high end of Veralto's fourth-quarter core-sales guidance range, according to Ralhan. Management cited continued demand in digital workflow solutions, steady marking-and-coding demand and a recovery in color-measurement instruments. Honeycutt said digital workflow demand is being supported by the integration of the TraceGains and GlobalVision acquisitions into Esko's digital backbone. Because revenue from software-as-a-service contracts is recognized over time, Ralhan said the business provides good visibility over the near term. The company also cited an improved order book and stronger service growth exiting the third quarter in its color-measurement business, though Ralhan noted that easier comparisons are supporting fourth-quarter growth in that area. In Western Europe, Honeycutt said PQI posted low-single-digit growth, with marking and coding flat as consumables growth was offset by modestly lower equipment sales tied to customer-spending timing. Cost program and capital allocation. Veralto expects its Cost Optimization Program to generate $10 million to $15 million of savings in 2026. Ralhan said the program remains on track to deliver roughly half of its savings by the end of 2027 and reach its full run rate in 2028. The initiative focuses on simplifying business processes, optimizing functional costs and investing in technology and process improvements. For the fourth quarter, Ralhan said Veralto expects 30% to 35% incremental fall-through, or roughly 30 basis points of year-over-year margin expansion. Cost-program benefits are expected to add about 40 basis points, though those gains are largely offset by the Cleanwater1 acquisition and investments intended to support 2027 initiatives. Veralto has repurchased $550 million of stock under its $750 million authorization when including October activity, Ralhan said. He said the company will remain opportunistic with buybacks while maintaining a balanced capital-allocation strategy that includes acquisitions. Management described M&A pipelines in both business segments as active, encompassing smaller bolt-ons, larger assets, technology opportunities and geographic expansion possibilities. About Veralto (NYSE:VLTO). Veralto Corporation (NYSE: VLTO) is a global provider of technology, products and services that help customers manage water quality and improve the quality, safety and efficiency of packaged goods. The company serves municipal, industrial, commercial and consumer-facing markets through a portfolio of operating businesses. Veralto's Water Quality segment provides instruments, software and services used to test, monitor and treat water and wastewater. Its brands include Hach, Trojan Technologies and ChemTreat, which support applications such as laboratory and field testing, disinfection, water treatment and industrial water management. The company's Product Quality & Innovation segment supplies technologies used in product identification, packaging design, color management and quality inspection.

Veralto Corporation $VLTO shares purchased by Grandfield & Dodd LLC. Posted by ABMN Staff on Nov 1st, 2026 Grandfield & Dodd LLC boosted its holdings in shares of Veralto Corporation (NYSE:VLTO - Free Report) by 726.9% during the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The fund owned 20,392 shares of the company's stock after acquiring an additional 17,926 shares during the quarter. Grandfield & Dodd LLC's holdings in Veralto were worth $1,923,000 at the end of the most recent quarter. Other institutional investors and hedge funds have also recently added to or reduced their stakes in the company. MGO One Seven LLC raised its stake in shares of Veralto by 3.2% during the third quarter. MGO One Seven LLC now owns 3,477 shares of the company's stock valued at $328,000 after acquiring an additional 107 shares during the last quarter. Valeo Financial Advisors LLC lifted its holdings in shares of Veralto by 5.0% during the second quarter. Valeo Financial Advisors LLC now owns 2,751 shares of the company's stock worth $244,000 after purchasing an additional 131 shares during the period. Quadrant Capital Group LLC grew its stake in shares of Veralto by 1.2% in the third quarter. Quadrant Capital Group LLC now owns 12,100 shares of the company's stock worth $1,198,000 after purchasing an additional 141 shares during the last quarter. Nolet Wealth Management LLC grew its stake in shares of Veralto by 1.0% in the second quarter. Nolet Wealth Management LLC now owns 15,277 shares of the company's stock worth $1,355,000 after purchasing an additional 146 shares during the last quarter. Finally, North Dakota State Investment Board grew its stake in shares of Veralto by 2.0% in the third quarter. North Dakota State Investment Board now owns 7,517 shares of the company's stock worth $709,000 after purchasing an additional 150 shares during the last quarter. 91.28% of the stock is currently owned by institutional investors and hedge funds. Key Veralto news. Here are the key news stories impacting Veralto this week: * Q3 earnings and revenue beat estimates. Veralto reported adjusted earnings of $1.18 per share, above the $1.09 analyst consensus, while revenue rose 7.5% year over year to $1.51 billion, slightly exceeding expectations. EPS increased from $0.99 in the year-ago quarter. * Water analytics and cost management supported performance. Management highlighted continued growth in water analytics and benefits from cost optimization, suggesting improving operating leverage and resilient demand for Veralto's essential-resource solutions. * Data-center-related demand is expanding. Reports indicated that Veralto's data-center business continues to grow, adding to investor enthusiasm about longer-term demand for its water-management and monitoring products. * Fourth-quarter outlook points to acceleration. Veralto expects total sales growth of approximately 10%-11% in the fourth quarter and projects adjusted EPS of $1.13-$1.16. Full-year adjusted EPS is projected at $4.49-$4.52, reinforcing expectations for continued earnings momentum. * The strong reaction raises the importance of Veralto delivering on its accelerated fourth-quarter sales outlook and sustaining margin gains as investors reassess the stock's valuation. Insiders place their bets. In related news, CEO Jennifer Honeycutt sold 7,098 shares of Veralto stock in a transaction on Friday, October 23rd. The shares were sold at an average price of $105.00, for a total transaction of $745,290.00. Following the completion of the transaction, the chief executive officer owned 120,060 shares of the company's stock, valued at $12,606,300. This trade represents a 5.58% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, SVP Surekha Trivedi sold 986 shares of the business's stock in a transaction on Monday, August 17th. The shares were sold at an average price of $97.05, for a total transaction of $95,691.30. Following the completion of the transaction, the senior vice president owned 8,565 shares in the company, valued at approximately $831,233.25. The trade was a 10.32% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 0.43% of the stock is owned by company insiders. Veralto stock up 7.1%. Veralto stock opened at $111.47 on Friday. The company has a debt-to-equity ratio of 0.86, a quick ratio of 1.61 and a current ratio of 1.78. Veralto Corporation has a 52-week low of $80.03 and a 52-week high of $115.17. The firm has a 50 day moving average price of $98.23 and a two-hundred day moving average price of $93.13. The firm has a market cap of $27.18 billion, a price-to-earnings ratio of 27.59, a PEG ratio of 3.15 and a beta of 0.62. Veralto (NYSE:VLTO - Get Free Report) last issued its quarterly earnings results on Thursday, October 29th. The company reported $1.18 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $1.09 by $0.09. Veralto had a net margin of 17.27% and a return on equity of 35.54%. The firm had revenue of $1.51 billion for the quarter, compared to the consensus estimate of $1.50 billion. During the same quarter in the previous year, the company earned $0.99 EPS. The company's revenue for the quarter was up 7.5% on a year-over-year basis. Equities analysts predict that Veralto Corporation will post 4.51 EPS for the current year. Veralto announces dividend. The company also recently announced a quarterly dividend, which was paid on Friday, October 30th. Investors of record on Wednesday, September 30th were paid a dividend of $0.13 per share. This represents a $0.52 dividend on an annualized basis and a yield of 0.5%. The ex-dividend date of this dividend was Wednesday, September 30th. Veralto's dividend payout ratio (DPR) is currently 13.13%. Analyst upgrades and downgrades. A number of analysts recently weighed in on the company. UBS Group increased their price objective on Veralto from $104.00 to $106.00 and gave the company a "neutral" rating in a report on Monday, October 5th. Robert W. Baird set a $111.00 target price on Veralto in a report on Thursday, July 30th. Wall Street Zen lowered Veralto from a "buy" rating to a "hold" rating in a research report on Saturday, October 24th. Citigroup upped their price target on Veralto from $102.00 to $107.00 and gave the company a "neutral" rating in a research report on Thursday, July 30th. Finally, Weiss Ratings raised Veralto from a "hold (c+)" rating to a "buy (b-)" rating in a research note on Monday, October 19th. Seven equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and an average target price of $115.10. About Veralto. Veralto Corporation (NYSE: VLTO) is a global provider of technology, products and services that help customers manage water quality and improve the quality, safety and efficiency of packaged goods. The company serves municipal, industrial, commercial and consumer-facing markets through a portfolio of operating businesses. Veralto's Water Quality segment provides instruments, software and services used to test, monitor and treat water and wastewater. Its brands include Hach, Trojan Technologies and ChemTreat, which support applications such as laboratory and field testing, disinfection, water treatment and industrial water management. The company's Product Quality & Innovation segment supplies technologies used in product identification, packaging design, color management and quality inspection. Receive News & Ratings for Veralto Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Veralto and related companies with MarketBeat.com's FREE daily email newsletter.