Veralto (NYSE:VLTO) Issues Earnings Results

Key Points

• Q1 beat and upgraded outlook: Veralto reported adjusted EPS of $1.07 vs. $1.02 consensus and revenue of $1.42B (+6.8% YoY), and raised FY 2026 guidance to $4.20–$4.28 while outlining cost‑savings ($65–$75M) and ~100% FCF conversion targets plus ~$300M YTD buybacks.
• Near‑term caution: Q2 2026 guidance of $0.96–1.00 is slightly below Street (~$1.02), and the stock traded down about 1.8% to $85.58 on the update.
• Shareholder returns and ownership: The company announced a $0.13 quarterly dividend (annualized $0.52, ~0.6% yield) and institutional investors own roughly 91.3% of the shares.

Veralto (NYSE:VLTO - Get Free Report) issued its earnings results on Tuesday. The company reported $1.07 EPS for the quarter, topping analysts' consensus estimates of $1.02 by $0.05, FiscalAI reports. Veralto had a net margin of 17.08% and a return on equity of 35.77%. The firm had revenue of $1.42 billion during the quarter, compared to the consensus estimate of $1.40 billion. During the same quarter in the previous year, the firm posted $0.95 earnings per share. The company's revenue was up 6.8% compared to the same quarter last year. Veralto updated its FY 2026 guidance to 4.200-4.280 EPS and its Q2 2026 guidance to 0.960-1.000 EPS.

Veralto Stock Down 1.8%

Shares of NYSE VLTO traded down $1.57 during midday trading on Tuesday, reaching $85.58. 2,777,774 shares of the company's stock were exchanged, compared to its average volume of 1,951,792. The stock has a market capitalization of $21.02 billion, a PE ratio of 22.82, a price-to-earnings-growth ratio of 2.52 and a beta of 0.98. Veralto has a 52-week low of $84.99 and a 52-week high of $110.11. The company has a debt-to-equity ratio of 0.64, a quick ratio of 1.52 and a current ratio of 1.67. The business's fifty day moving average price is $90.76 and its two-hundred day moving average price is $96.60.

Veralto Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, April 30th. Stockholders of record on Tuesday, March 31st will be paid a dividend of $0.13 per share. The ex-dividend date is Tuesday, March 31st. This represents a $0.52 annualized dividend and a dividend yield of 0.6%. Veralto's dividend payout ratio (DPR) is currently 13.87%.

Veralto News Summary

Here are the key news stories impacting Veralto this week:

• Positive Sentiment: Q1 beat and operating strength — Veralto posted Q1 sales of $1.422B (+6.7% YoY) and adjusted EPS of $1.07 (above consensus), with an adjusted operating profit margin of 25.1%, supporting bullish investor reaction. Read More.
• Positive Sentiment: Raised FY outlook and stronger cash‑flow targets — Management lifted FY 2026 adjusted EPS to $4.20–$4.28 (from $4.10–$4.20) and increased a free‑cash‑flow conversion target to about 100% of GAAP net earnings; they also announced a cost‑optimization program ($65–$75M annual savings by 2028) and ~$300M of YTD buybacks, which together improve forward earnings visibility and capital return. Read More.
• Positive Sentiment: Analyst support — Recent analyst activity and price targets (median ~$107.50; several $100+ targets and a BMO Outperform) provide additional upside context for investors. Read More.
• Neutral Sentiment: Solid profitability metrics — company reported strong ROE and net margin, which underpins valuation but are already reflected in many models. Read More.
• Negative Sentiment: Q2 guide slightly below Street — Veralto gave Q2 2026 EPS guidance of $0.960–1.000 versus a ~1.02 consensus, which could pressure near‑term expectations despite the raised FY range. Read More.
• Negative Sentiment: Insider and institutional selling — Recent insider sales (no insider buys) and large Q4 2025 position reductions by several major funds may weigh on sentiment even as fundamentals improve. Read More.

Institutional Trading of Veralto

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. DV Equities LLC acquired a new stake in Veralto in the fourth quarter valued at $35,000. Headlands Technologies LLC bought a new position in Veralto during the 2nd quarter valued at $44,000. EFG International AG bought a new position in Veralto during the 4th quarter valued at $49,000. Caitong International Asset Management Co. Ltd bought a new position in Veralto during the 3rd quarter valued at $54,000. Finally, WFA of San Diego LLC bought a new position in Veralto during the 2nd quarter valued at $76,000. Institutional investors own 91.28% of the company's stock.

Wall Street Analyst Weigh In

Several analysts recently commented on VLTO shares. Royal Bank Of Canada reduced their price target on shares of Veralto from $111.00 to $102.00 and set a "sector perform" rating for the company in a research report on Thursday, February 5th. Jefferies Financial Group began coverage on Veralto in a report on Tuesday, March 31st. They issued a "buy" rating and a $110.00 target price on the stock. Weiss Ratings cut Veralto from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Wednesday, December 31st. Robert W. Baird set a $108.00 price objective on shares of Veralto in a research report on Thursday, February 5th. Finally, Stifel Nicolaus dropped their price objective on shares of Veralto from $118.00 to $110.00 and set a "buy" rating on the stock in a research note on Tuesday, April 14th. Six analysts have rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, Veralto presently has a consensus rating of "Moderate Buy" and a consensus price target of $107.56.

Veralto Company Profile

Veralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color services worldwide. It operates through two segments, Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment offers precision instrumentation and water treatment technologies to measure, analyze, and treat water in residential, commercial, municipal, industrial, research, and natural resource applications through the Hach, Trojan Technologies, and ChemTreat brands. This segment provides water solutions, including chemical reagents, services, and digital solutions.

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