Veralto Beats Q2 Estimates, Raises Full-Year EPS Guidance to $4.35-$4.43
VLTO sits 22% above its 52-week low of $80.03.
Summary
Veralto reported Q2 2026 results above expectations, raised full-year guidance, and provided strong Q3 outlook, signaling robust demand and operational execution.
Key Events · Earnings and Guidance · VLTO
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Q2 Beat Across the Board
Sales rose 7.6% to $1,474M, adjusted EPS of $1.11 beat consensus, and adjusted operating margin expanded to 24.6%.
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Full-Year Guidance Raised
Adjusted EPS guidance increased to $4.35-$4.43 from $4.20-$4.28, implying 12-14% year-over-year growth; core sales growth now seen at 4.0%-4.5%.
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Q3 Outlook Initiated
Q3 adjusted EPS guidance set at $1.06-$1.09, with core sales growth of 4.0%-5.0% and 25 bps of margin expansion.
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Cash Flow Strength
Free cash flow conversion guidance raised to >100% of GAAP net earnings; Q2 free cash flow was $328M.
Analysis · VLTO · Industrial Applications And Services
Veralto delivered a strong Q2, with sales of $1.47B and adjusted EPS of $1.11, both beating consensus. The beat was driven by 4.2% core sales growth, led by Water Quality at 5.7%. Management raised full-year adjusted EPS guidance to $4.35-$4.43, up from $4.20-$4.28, and now expects free cash flow conversion above 100% of net earnings. The company also provided Q3 adjusted EPS guidance of $1.06-$1.09, a new data point. This earnings report confirms accelerating momentum and disciplined capital allocation, including bolt-on acquisitions and share repurchases.
At the time of this filing, VLTO was trading at $98.00 on NYSE in the Industrial Applications And Services sector, with a market capitalization of approximately $24.2B. The 52-week trading range was $80.03 to $110.11. This filing was assessed with positive market sentiment and an importance score of 8 out of 10.