Veralto Reports Third Quarter 2026 Results

Higher earnings guidance accompanies a decline in quarterly GAAP operating profit and increased operating cash flow.

Rhea-AI Summary

Veralto (VLTO) reported third-quarter sales of $1,509 million, with growth across both segments, and raised its full-year earnings outlook. Sales rose 7.5% year over year, including 5.1% non-GAAP core growth. Net earnings increased to $253 million, or $1.03 per diluted share, from $239 million, or $0.95. Operating profit fell to $298 million from $326 million; adjusted operating margin rose to 25.6% from 23.9%.

Operating cash flow reached $323 million, versus $270 million. Veralto now expects 2026 adjusted diluted earnings of $4.49–$4.52 per share, up from $4.35–$4.43, and core sales growth of 4.2%–4.5%. Through October 28, it deployed $1.1 billion on four acquisitions and repurchased $550 million of shares. Expected 2026 cost-program savings are now $10–$15 million; third-quarter restructuring costs were $22 million pretax.

21 points · 1 major

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0 major · 7 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted diluted earnings guidance rose to $4.49–$4.52 from $4.35–$4.43.
• Moderate pointThird-quarter sales increased 7.5% year over year to $1,509 million, including 5.1% non-GAAP core growth.
• Moderate pointThird-quarter net earnings rose to $253 million from $239 million; diluted earnings increased to $1.03 from $0.95.
• Moderate pointThird-quarter adjusted net earnings reached $290 million versus $247 million; adjusted diluted earnings rose to $1.18 from $0.99.
• Moderate pointThird-quarter adjusted operating margin expanded 170 basis points to 25.6% year over year.
• Moderate pointThird-quarter operating cash flow increased to $323 million from $270 million.
• Moderate pointThird-quarter non-GAAP free cash flow was $304 million.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year non-GAAP core sales growth guidance increased to 4.2%–4.5% from 4.0%–4.5%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year adjusted operating margin expansion is now expected at approximately 50 basis points, versus 25–50 previously.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Full-year free cash flow conversion guidance increased to greater than 105% of GAAP net earnings, from greater than 100%.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter non-GAAP core sales growth is expected at 5.5%–6.5% year over year.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter adjusted diluted earnings are expected at $1.13–$1.16 per share.
• Moderate pointFour completed acquisitions represented $1.1 billion deployed through October 28, 2026. 4.3% of market cap
• Moderate pointShare repurchases totaled $550 million through October 28, representing 2.4% of shares outstanding on February 13, 2026. 2.2% of market cap

7 minor points

• Minor point. Forward-looking: it has not happened yet and may not happen.Fourth-quarter adjusted operating margin is expected at approximately 24.5%, broadly in line with the prior-year period.
• Minor point. Forward-looking: it has not happened yet and may not happen.Cost Optimization Program savings for full-year 2026 are now expected at $10–$15 million.
• Minor pointWater Quality third-quarter sales grew 9.8% year over year, including 6.4% non-GAAP core growth.
• Minor pointProduct Quality and Innovation third-quarter sales grew 3.9% year over year, including 3.2% non-GAAP core growth.
• Minor pointWater treatment solutions delivered double-digit core sales growth in the third quarter.
• Minor pointNine-month sales increased to $4,405 million from $4,107 million in the comparable 2025 period.
• Minor pointNine-month net earnings increased to $748 million from $686 million; diluted earnings rose to $3.03 from $2.74.

Negative

• Moderate pointThird-quarter operating profit fell to $298 million from $326 million; GAAP margin declined to 19.7% from 23.2%.
• Minor pointThird-quarter Cost Optimization Program restructuring costs totaled $22 million pretax.
• Minor pointThird-quarter strategic initiative costs increased to $10 million pretax from $1 million.
• Minor pointThird-quarter acquisition-related intangible amortization increased to $17 million pretax from $9 million.
• Minor pointTax indemnification asset reduction was $39 million pretax, accompanied by a corresponding $39 million tax-liability reduction.

2 minor points

• Minor pointThird-quarter net interest expense increased to $25 million from $21 million.
• Minor pointNine-month operating profit declined to $951 million from $961 million in the comparable 2025 period.

News Explained

The release reports that Cleanwater1 closed on October 5, 2026; the platform’s August 19, 2026 record described an agreement to acquire it, so the deal has moved from agreement to completed acquisition.

Sources and calculations

• Veralto Reports Third Quarter 2026 Results (2026-10-29)
• Veralto Signs Agreement to Acquire Cleanwater1 (2026-08-19)

Key Figures

Third-quarter sales: $1,509 million; +7.5% year-over-year Adjusted diluted EPS: $1.18; +19.2% year-over-year Adjusted operating profit margin: 25.6%; expanded 170 basis points +5 more

Third-quarter sales

$1,509 million; +7.5% year-over-year

Third quarter 2026

Adjusted diluted EPS

$1.18; +19.2% year-over-year

Third quarter 2026

Adjusted operating profit margin

25.6%; expanded 170 basis points

Third quarter 2026

Free cash flow

$304 million

Third quarter 2026

Full-year core sales growth guidance

4.2% to 4.5%, raised from 4.0% to 4.5%

Full year 2026

Adjusted diluted EPS guidance

$4.49 to $4.52, raised from $4.35 to $4.43

Full year 2026

Adjusted operating profit margin guidance

Approximately 50 basis points of expansion, raised from 25 to 50 basis points

Full year 2026 year-over-year

Free cash flow conversion guidance

Greater than 105% of GAAP net earnings, raised from greater than 100%

Full year 2026

Previous Earnings Reports

1 past event · Latest: Jul 28

Same Type 1 event

1. Jul 28

   earnings report

   24h Move

   +0.4%

   Q2 results showed 7.6% sales growth and raised FY EPS guidance, which this release raised again.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

non-gaap, free cash flow, basis points

3 terms

non-gaap financial

"Sales increased 7.5% year-over-year to $1,509 million, with non-GAAP core sales growth of 5.1%"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

free cash flow financial

"Operating cash flow was $323 million and non-GAAP free cash flow was $304 million"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

basis points financial

"adjusted operating margin expanded 170 basis points"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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WALTHAM, Mass., Oct. 29, 2026 /PRNewswire/ -- Veralto (NYSE: VLTO) (the "Company"), a global leader in essential water and product quality solutions dedicated to Safeguarding the World's Most Vital Resources™, announced results for the third quarter ended October 2, 2026.

Key Third Quarter 2026 Results:

• Sales increased 7.5% year-over-year to $1,509 million, with non-GAAP core sales growth of 5.1%
• Operating profit margin was 19.7%, and non-GAAP adjusted operating profit margin was 25.6%
• Net earnings were $253 million, or $1.03 per diluted common share
• Non-GAAP, adjusted net earnings were $290 million, or $1.18 per diluted common share
• Operating cash flow was $323 million and non-GAAP free cash flow was $304 million

Key Year-to-Date ⁽¹⁾ 2026 Capital Allocation and Strategic Actions:

• Deployed $1.1 billion on four strategic acquisitions: In-Situ, GlobalVision, Alfaa UV and Cleanwater1 ⁽²⁾ 
• Repurchased $550 million of shares, or 2.4% of outstanding shares ⁽³⁾ 
• Early gains from Cost Optimization Program - expected full year 2026 savings now $10-$15 million 

"We delivered outstanding third-quarter results, with broad-based sales growth and strong operating leverage across the portfolio. Total sales grew 7.5%, adjusted operating margin expanded 170 basis points and adjusted earnings per share increased 19.2% year-over-year. Core sales grew 5.1%, led by Water Quality at 6.4%, while acquisitions contributed 2.3% to total sales growth," said Jennifer L. Honeycutt, President and Chief Executive Officer. "Year-to-date, we have completed four strategic bolt-on acquisitions and repurchased 2.4% of our outstanding shares, reflecting our disciplined approach to capital allocation and advancing our long-term value creation strategy." 

Honeycutt continued, "Demand remains healthy across both segments. In Water Quality, core sales of our water treatment solutions grew double-digits in the third quarter driven by favorable industrial trends in North America including digital infrastructure investments, higher industrial production and increasing need for water reuse solutions. We also continue to see steady demand for our water analytics products and services which support the daily operations of municipal, environmental and industrial customers. As expected, PQI's core sales growth rate increased sequentially, supported by steady demand in marking and coding and an acceleration in the year-over-year core sales growth rate in packaging and color."

"In the fourth quarter, we expect our core sales growth rate to further accelerate to between 5.5% to 6.5% year-over-year. Reflecting this growth outlook, early gains from our cost optimization program and our strong third-quarter performance, we raised our full year 2026 adjusted earnings per share guidance to $4.49 to $4.52, representing 15% to 16% growth over the prior year. Our rigorous VES-driven execution and strategic investments in 2026 provide a strong foundation for sustained momentum into 2027. We have ample financial flexibility to continue to deploy capital and further enhance our growth profile, optimize our cost position and compound long-term shareholder value," concluded Honeycutt.

(1)	Year-to-date 2026 capital allocation and strategic actions are as of October 28, 2026
(2)	The acquisition of Cleanwater1 closed on October 5, 2026
(3)	Year-to-date share repurchases as of October 28, 2026.  2.4% is calculated off the Company's outstanding shares as of February 13, 2026

2026 Guidance

The Company provides forecasted sales guidance on a non-GAAP basis because of the difficulty in estimating the other components of GAAP sales, such as currency translation, acquisitions, and divestitures. 

For the fourth quarter of 2026, the Company anticipates non-GAAP core sales growth in the range of 5.5% to 6.5% year-over-year.  Adjusted operating profit margin is expected to be approximately 24.5%, broadly in line with the prior year period, net of growth investments and the impact from acquisitions.  The Company's fourth quarter adjusted diluted earnings per share guidance is in the range of $1.13 to $1.16 per share.

For the full year 2026, the Company raised its non-GAAP core sales growth to a range of 4.2% to 4.5% year-over-year, up from the prior guidance range of 4.0% to 4.5%.  Adjusted operating profit margin is now expected to expand approximately 50 basis points year-over-year, up from the prior guidance range of 25-50 basis points.  The Company raised its guidance for adjusted diluted earnings to a range of $4.49 to $4.52 per share, up from the prior guidance range of $4.35 to $4.43 per share.  The Company also raised its free cash flow conversion guidance to greater than 105% of GAAP net earnings, up from the prior guidance of greater than 100% conversion.

Conference Call and Webcast Information

Veralto will webcast its third quarter 2026 earnings conference call tomorrow starting at 7:30 a.m. (ET).  Access to the webcast, slide presentation and prepared remarks will be available on the "Investors" section of Veralto's website, www.veralto.com, under the subheading "News & Events" and additional materials will be posted to the same section of Veralto's website.  A replay of the webcast will be available in the same section of Veralto's website shortly after the conclusion of the call and will remain available until the next quarterly earnings call.

The conference call can be accessed by dialing +1 (800) 445-7795 (U.S.) or +1 (785) 424-1699 (INTL) (Conference ID:  VLTO3Q26).  A replay of the conference call will be available shortly after the conclusion of the call and until November 7, 2026.  You can access the replay dial-in information on the "Investors" section of Veralto's website under the subheading "News & Events."

ABOUT VERALTO

With annual sales of approximately $5.5 billion, Veralto is a global leader in essential technology solutions with a proven track record of solving some of the most complex challenges we face as a society.  Our industry-leading companies with globally recognized brands help billions of people around the world access clean water, safe food and trusted essential goods.  Headquartered in Waltham, Massachusetts, our global team of approximately 17,000 associates is committed to making an enduring positive impact on our world and united by a powerful purpose: Safeguarding the World's Most Vital Resources™.

NON-GAAP MEASURES AND SUPPLEMENTAL MATERIALS

In addition to the financial measures prepared in accordance with generally accepted accounting principles (GAAP), this earnings release also contains non-GAAP financial measures.  Calculations of these measures, the reasons why we believe these measures provide useful information to investors, a reconciliation of these measures to the most directly comparable GAAP measures, as applicable, and other information relating to these non-GAAP measures are included in the supplemental reconciliation schedule attached.

In addition, this earnings release, the slide presentation accompanying the related earnings call, non-GAAP reconciliations and a note containing details of historical and anticipated, future financial performance have been posted to the "Investors" section of Veralto's website (www.veralto.com) under the subheading "Quarterly Earnings."

FORWARD-LOOKING STATEMENTS

Certain statements in this release, including the statement regarding the Company's anticipated fourth quarter and full year 2026 financial performance, the Company's differentiation and positioning to continue delivering sustainable, long-term shareholder value and any other statements regarding events or developments that we believe or anticipate will or may occur in the future are "forward-looking" statements within the meaning of the federal securities laws.  All statements other than historical factual information are forward-looking statements, including, without limitation, statements regarding: projections of revenue, expenses, profit, profit margins, asset values, pricing, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, Veralto's liquidity position or other projected financial measures; Veralto's management's plans and strategies for future operations, including statements relating to anticipated operating performance, customer demand, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions and the integration thereof, divestitures, spin-offs, split-offs, initial public offerings, other securities offerings or other distributions, strategic opportunities, stock repurchases, dividends and executive compensation; growth, declines and other trends in markets Veralto sells into, the impact of global trade policies, tariffs, restrictions on imports, related countermeasures and reciprocal tariffs; future new or modified laws, regulations, accounting pronouncements or public policy changes; regulatory approvals and the timing and conditionality thereof; outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities; future foreign currency exchange rates and fluctuations in those rates; results of operations and/or financial condition; general economic and capital markets conditions; the anticipated timing of any of the foregoing; assumptions underlying any of the foregoing; and any other statements that address events or developments that Veralto intends or believes will or may occur in the future. Additional information regarding the factors that may cause actual results to differ materially from these forward-looking statements is available in our SEC filings.  These forward-looking statements speak only as of the date of this release and except to the extent required by applicable law, the Company does not assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events and developments or otherwise.

VERALTO CORPORATION CONSOLIDATED CONDENSED STATEMENTS OF EARNINGS ($ and shares in millions, except per share amounts) (unaudited)
	Three-Month Period Ended				Nine-Month Period Ended
	October 2, 2026		October 3, 2025		October 2, 2026		October 3, 2025
Sales	$          1,509		$          1,404		$          4,405		$          4,107
Cost of sales	(601)		(560)		(1,741)		(1,636)
Gross profit	908		844		2,664		2,471
Operating costs:
Selling, general and administrative expenses	(541)		(451)		(1,503)		(1,312)
Research and development expenses	(69)		(67)		(210)		(198)
Operating profit	298		326		951		961
Nonoperating income (expense):
Other income (expense), net	—		1		8		(5)
Interest expense, net	(25)		(21)		(76)		(76)
Earnings before income taxes	273		306		883		880
Income taxes	(20)		(67)		(135)		(194)
Net earnings	$            253		$            239		$            748		$            686
Net earnings per common share:
Basic	$           1.04		$           0.96		$           3.05		$           2.76
Diluted	$           1.03		$           0.95		$           3.03		$           2.74
Average common stock and common equivalent shares outstanding:
Basic	243.8		248.5		245.6		248.2
Diluted	245.3		250.6		246.8		250.2
This information is presented for reference only.

 

VERALTO CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Reconciliation of GAAP to Non-GAAP Financial Measures
($ in millions)
	Three-Month Period Ended October 2, 2026
	Sales		Operating profit		Operating profit margin		Net earnings for calculation of diluted net earnings per common share		Diluted net earnings per common share
Reported (GAAP)	$     1,509		$       298		19.7 %		$             253		$        1.03
Amortization of acquisition-related intangible assets A	—		17		1.1		17		0.07
Restructuring B	—		22		1.5		22		0.09
Other items C	—		10		0.7		10		0.04
Reduction of tax indemnification D	—		39		2.6		39		0.16
Tax effect of the above adjustments E	—		—		—		(13)		(0.05)
Discrete tax adjustments F	—		—		—		(38)		(0.15)
Rounding	—		—				—		(0.01)
Adjusted (Non-GAAP)	$     1,509		$       386		25.6 %		$             290		$        1.18
	Three-Month Period Ended October 3, 2025
	Sales		Operating profit		Operating profit margin		Net earnings for calculation of diluted net earnings per common share		Diluted net earnings per common share
Reported (GAAP)	$     1,404		$       326		23.2 %		$             239		$        0.95
Amortization of acquisition-related intangible assets A	—		9		0.6		9		0.04
Other items C	—		1		0.1		1		—
Tax effect of the above adjustments E	—		—		—		(2)		(0.01)
Rounding	—		—		—		—		0.01
Adjusted (Non-GAAP)	$     1,404		$       336		23.9 %		$             247		$        0.99

 

VERALTO CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Notes to Reconciliation of GAAP to Non-GAAP Financial Measures
($ in millions)
A	Amortization of acquisition-related intangible assets in the following historical periods (only the pretax amounts set forth below are reflected in the amortization line item above):

	Three-Month Period Ended
	October 2, 2026		October 3, 2025
Pretax	$              17		$               9
After-tax	14		7

B	Costs incurred during the three-month period ended October 2, 2026 related to the 2026 Cost Optimization Program ($22 million pretax as reported in this line item, $17 million after-tax).
C	Costs incurred during the three-month periods ended October 2, 2026 and October 3, 2025 related to certain strategic initiatives ($10 million and $1 million pretax as reported in this line item, $7 million and $1 million, respectively).
D	During the separation from Danaher, indemnification agreements were established to protect the Company against certain pre-separation tax exposures. As a result of the settlement of a tax audit pertaining to pre-separation periods, a reduction to the related indemnification asset was recorded during three-month period ended October 2, 2026 ($39 million pretax as reported in this line item, $37 million after-tax).  A corresponding reduction to the related tax liability of $39 million was recorded during the three and nine-month periods ended October 2, 2026, which is reflected as a discrete tax adjustment (refer to Note F).
E	This line item reflects the aggregate tax effect of all nontax adjustments reflected in the preceding line items of the table.  In addition, the footnotes above indicate the after-tax amount of each individual adjustment item.  Veralto estimates the tax effect of each adjustment item by applying Veralto's overall estimated effective tax rate to the pretax amount, unless the nature of the item and/or the tax jurisdiction in which the item has been recorded requires application of a specific tax rate or tax treatment, in which case the tax effect of such item is estimated by applying such specific tax rate or tax treatment.
F	Discrete tax matters relate to changes in estimates associated with prior period uncertain tax positions, reduction of tax liabilities in connection with the reduction of the tax indemnification related to the separation from Danaher, audit settlements and excess tax benefits from stock-based compensation.

 

VERALTO CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Sales Growth by Segment, Core Sales Growth by Segment
	% Change Three-Month Period Ended October 2, 2026 vs. Comparable 2025 Period
			Segments
	Total Company		Water Quality		Product Quality and Innovation
Total sales growth (GAAP)	7.5 %		9.8 %		3.9 %
Impact of:
Acquisitions/divestitures	(2.3) %		(3.0) %		(1.1) %
Currency exchange rates	(0.1) %		(0.4) %		0.4 %
Core sales growth (non-GAAP)	5.1 %		6.4 %		3.2 %

 

VERALTO CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Forecasted Core Sales Growth, Adjusted Operating Profit Margin, Adjusted Diluted Net Earnings per Share and Free Cash Flow to Net Earnings Conversion Ratio
The Company provides forecasted sales only on a non-GAAP basis because of the difficulty in estimating the other components of GAAP revenue, such as currency translation, acquisitions and divested product lines.  Additionally, we do not reconcile adjusted operating profit margin (or components thereof), adjusted diluted earnings per share or free cash flow to net earnings conversion ratio to the comparable GAAP measures because of the difficulty in estimating the other unknown components such as investment gains and losses, impairments and separation costs, which would be reflected in any forecasted GAAP operating profit, forecasted diluted earnings per share or forecasted net earnings ratio.
	% Change Three-Month Period Ending December 31, 2026 vs. Comparable 2025 Period
Core sales growth (non-GAAP)	+5.5% to 6.5%
	Three-Month Period Ending December 31, 2026
Adjusted Operating Profit Margin (non-GAAP)	~24.5%
Adjusted Diluted Net Earnings per Share (non-GAAP)	$1.13 to $1.16
	% Change Year Ending December 31, 2026 vs. Comparable 2025 Period
Core sales growth (non-GAAP)	+4.2% to 4.5%
	Year Ending December 31, 2026
Adjusted Operating Profit Margin (non-GAAP)	~+50 basis points
Adjusted Diluted Net Earnings per Share (non-GAAP)	$4.49 to $4.52
Free cash flow to net earnings conversion ratio (non-GAAP)	>105%

 

VERALTO CORPORATION RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES
Cash Flow and Free Cash Flow
($ in millions)
	Three-Month Period Ended				Year-over-Year Change
	October 2, 2026		October 3, 2025
Total Cash Flows (GAAP):
Net cash provided by operating activities (GAAP)	$            323		$            270
Total cash used in investing activities (GAAP)	$             (84)		$             (12)
Total cash used in financing activities (GAAP)	$           (565)		$             (36)
Free Cash Flow (non-GAAP):
Total cash provided by operating activities (GAAP)	$            323		$            270		~ 19.5 %
Less: payments for additions to property, plant & equipment (capital expenditures) (GAAP)	(19)		(12)
Free cash flow (non-GAAP)	$            304		$            258		~ 18.0 %

 

Free Cash Flow Margin
($ in millions)
	Three-Month Period Ended
	October 2, 2026		July 3, 2026		April 3, 2026		December 31, 2025
Free Cash Flow Margin (non-GAAP)
Free Cash Flow (non-GAAP)	$          304		$           328		$          170		$              291
Sales (GAAP)	$       1,509		$        1,474		$       1,422		$           1,396
Trailing Twelve Month Free Cash Flow (non- GAAP)	$       1,093
Trailing Twelve Month Sales (GAAP)	$       5,801
Free Cash Flow Margin (non-GAAP)	18.8 %
We define free cash flow as operating cash flows, less payments for additions to property, plant and equipment ("capital expenditures") plus the proceeds from sales of property, plant and equipment ("capital disposals").

Statement Regarding Non-GAAP Measures

Each of the non-GAAP measures set forth above should be considered in addition to, and not as a replacement for or superior to, the comparable GAAP measure, and may not be comparable to similarly titled measures reported by other companies.  Management believes that these measures provide useful information to investors by offering additional ways of viewing Veralto Corporation's ("Veralto" or the "Company") results that, when reconciled to the corresponding GAAP measure, help our investors:

• with respect to the profitability-related non-GAAP measures, understand the long-term profitability trends of our business and compare our profitability to prior and future periods and to our peers;
• with respect to core sales and related sales measures, identify underlying growth trends in our business and compare our sales performance with prior and future periods and to our peers; and
• with respect to free cash flow and related cash flow measures (the "FCF Measure"), understand Veralto's ability to generate cash without external financings, strengthen its balance sheet, invest in its business and grow its business through acquisitions and other strategic opportunities (although a limitation of free cash flow is that it does not take into account the Company's non-discretionary expenditures, and as a result the entire free cash flow amount is not necessarily available for discretionary expenditures).

Management uses these non-GAAP measures to measure the Company's operating and financial performance.

• The items excluded from the non-GAAP measures set forth above have been excluded for the following reasons:
  • Amortization of Intangible Assets:  We exclude the amortization of acquisition-related intangible assets because the amount and timing of such charges are significantly impacted by the timing, size, number and nature of the acquisitions we consummate.  While we have a history of significant acquisition activity, we do not acquire businesses on a predictable cycle, and the amount of an acquisition's purchase price allocated to intangible assets and related amortization term are unique to each acquisition and can vary significantly from acquisition to acquisition.  Exclusion of this amortization expense facilitates more consistent comparisons of operating results over time between our newly acquired and long-held businesses, and with both acquisitive and non-acquisitive peer companies.  We believe however that it is important for investors to understand that such intangible assets contribute to sales generation and that intangible asset amortization related to past acquisitions will recur in future periods until such intangible assets have been fully amortized. 
  • Restructuring Charges:  We exclude costs incurred pursuant to discrete restructuring plans that are fundamentally different (in terms of the size, strategic nature and planning requirements, as well as the inconsistent frequency, of such plans) from the ongoing productivity improvements that result from application of the Veralto Enterprise System.  Because these restructuring plans are incremental to the core activities that arise in the ordinary course of our business and we believe are not indicative of Veralto's ongoing operating costs in a given period, we exclude these costs to facilitate a more consistent comparison of operating results over time.
  • Other Adjustments:  With respect to the other items excluded from the profitability-related non-GAAP measures, we exclude these items because they are of a nature and/or size that occur with inconsistent frequency, occur for reasons that may be unrelated to Veralto's commercial performance during the period and/or we believe that such items may obscure underlying business trends and make comparisons of long-term performance difficult.
  • With respect to core operating profit margin changes, in addition to the explanation set forth in the bullets above relating to "restructuring charges" and "other adjustments", we exclude the impact of businesses owned for less than one year (or disposed of during such period and not treated as discontinued operations) because the timing, size, number and nature of such transactions can vary significantly from period to period and may obscure underlying business trends and make comparisons of long-term performance difficult.
• With respect to core sales related measures, (1) we exclude the impact of currency translation because it is not under management's control, is subject to volatility and can obscure underlying business trends, and (2) we exclude the effect of acquisitions and divested product lines because the timing, size, number and nature of such transactions can vary significantly from period-to-period and between us and our peers, which we believe may obscure underlying business trends and make comparisons of long-term performance difficult.
• With respect to the FCF Measure, we exclude payments for additions to property, plant and equipment (net of the proceeds from capital disposals) to demonstrate the amount of operating cash flow for the period that remains after accounting for the Company's capital expenditure requirements.

 

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SOURCE Veralto

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Veralto's third-quarter 2026 sales and earnings?

Veralto reported $1,509 million in sales and $253 million in net earnings for the quarter ended October 2, 2026. Sales increased 7.5% year over year. Diluted earnings were $1.03 per share, compared with $0.95 in the comparable 2025 quarter.

What is Veralto's updated full-year 2026 earnings guidance?

Veralto expects adjusted diluted earnings of $4.49 to $4.52 per share for 2026, up from its prior range of $4.35 to $4.43. The company also raised its non-GAAP core sales growth outlook to 4.2%–4.5% year over year.

Which companies did Veralto acquire in 2026?

Veralto completed acquisitions of In-Situ, GlobalVision, Alfaa UV and Cleanwater1 through October 28, 2026. Cleanwater1 closed on October 5, after the October 2 end of the third quarter.

What drove Veralto's water treatment sales growth in the third quarter of 2026?

Veralto attributed its double-digit water treatment core sales growth to favorable North American industrial trends, including digital infrastructure investments, higher industrial production and increasing need for water reuse solutions.