Veralto Q3 profit beats slightly estimates on water treatment demand; raises 2026 outlook
Overview
Water and product quality solutions provider's Q3 sales rose 7.5% yr/yr, slightly beating analyst expectations
Q3 adjusted EPS rose 19.2% yr/yr to $1.18, beating analyst expectations
Company completed four acquisitions and repurchased $550 mln of shares in 2026 through Oct. 28
Outlook
Veralto sees Q4 core sales growth of 5.5% to 6.5% year-over-year
Company expects Q4 adjusted EPS of $1.13 to $1.16
Veralto lifts 2026 adjusted EPS forecast to $4.49-$4.52 from $4.35-$4.43
Result Drivers
WATER QUALITY DEMAND - Core sales rose 6.4%, led by double-digit growth in water treatment solutions on favorable industrial trends and demand for water reuse
ACQUISITIONS - Co said recent acquisitions contributed 2.3% to total sales growth
OPERATING LEVERAGE - Adjusted operating margin expanded 170 bps to 25.6%, reflecting broad-based growth and early cost optimization gains
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Slight Beat* | $1.51 bln | $1.50 bln (10 Analysts) |
Q3 Adjusted EPS | Beat | $1.18 | $1.09 (10 Analysts) |
Q3 EPS | $1.03 | ||
Q3 Adjusted Net Income | Beat | $290 mln | $267.47 mln (7 Analysts) |
Q3 Net Income | $253 mln |
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 7 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the environmental services & equipment peer group is "buy"
Wall Street's median 12-month price target for Veralto Corporation is $111.00, about 8% above its October 28 closing price of $102.80
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 20 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)