Veralto Reports Q3 2026 Results and Raises Full-Year Earnings Guidance

Executive Summary

Veralto Corporation (NYSE: VLTO) reported financial results for the third quarter ended October 2, 2026, delivering 7.5% year-over-year revenue growth and raising its full-year 2026 financial guidance across revenue, operating margins, adjusted EPS, and free cash flow conversion.

Key Financial Highlights

• Net Sales: $1,509 million, up 7.5% year-over-year compared to $1,404 million in Q3 2025. Non-GAAP core sales grew 5.1%, driven by a 6.4% core sales increase in Water Quality. Strategic acquisitions contributed 2.3% to total sales growth.
• Profitability: GAAP operating profit reached $298 million with a 19.7% margin. Non-GAAP adjusted operating profit margin expanded by 170 basis points year-over-year to 25.6%.
• Earnings Per Share: GAAP diluted EPS was $1.03 (net earnings of $253 million), while non-GAAP adjusted diluted EPS rose 19.2% year-over-year to $1.18 (adjusted net earnings of $290 million).
• Cash Flow: Operating cash flow reached $323 million and non-GAAP free cash flow was $304 million.

Capital Allocation & Strategic Developments

• M&A Execution: Year-to-date through late October 2026, Veralto deployed $1.1 billion across four strategic bolt-on acquisitions: In-Situ, GlobalVision, Alfaa UV, and Cleanwater1 (closed October 5, 2026).
• Share Repurchases: Repurchased $550 million of common shares year-to-date, representing approximately 2.4% of total outstanding shares.
• Cost Optimization Program: Raised full-year 2026 anticipated cost savings to between $10 million and $15 million.

Updated Guidance Outlook

• Q4 2026 Outlook:
  • Non-GAAP core sales growth: 5.5% to 6.5% year-over-year.
  • Adjusted operating profit margin: ~24.5%.
  • Adjusted diluted EPS: $1.13 to $1.16 per share.
• Full-Year 2026 Outlook (Raised):
  • Core sales growth: 4.2% to 4.5% (prior: 4.0% to 4.5%).
  • Adjusted operating profit margin expansion: ~50 bps year-over-year (prior: 25 to 50 bps).
  • Adjusted diluted EPS: $4.49 to $4.52 (prior: $4.35 to $4.43), representing 15% to 16% year-over-year growth.
  • Free cash flow conversion: >105% of GAAP net earnings (prior: >100%).