| Metric | Value ($ M) | Q2 FY25 |
|---|---|---|
| Revenue | 1.4K | 6.8% |
| Total Income | 1.4K | 6.8% |
| Expenditure | 1.1K | 7.3% |
| PBT | 321.00 | 11.1% |
| Net Profit | 254.00 | 12.9% |
| OPM | 23.77% | 0.41pp |
| NPM | 17.86% | 0.97pp |
| EPS | 1.03 | 13.2% |
Veralto Reports Second Quarter 2026 Results
29 Jul 2026 · 29 Jul, 2:07 am
Summary
Veralto Corporation announced strong second quarter 2026 results, with sales up 7.6% year-over-year to $1,474 million and non-GAAP core sales growth of 4.2%. The company reported net earnings of $241 million ($0.98 per diluted share) and non-GAAP adjusted net earnings of $274 million ($1.11 per diluted share). Management highlighted robust free cash flow generation and strategic acquisitions, with an optimistic outlook for the second half of the year, expecting core sales growth to accelerate and raising full-year adjusted EPS guidance.
Key Highlights
- 1
Veralto reported second quarter sales increased 7.6% year-over-year to $1,474 million, with non-GAAP core sales growth of 4.2%.
- 2
The company achieved a reported operating profit margin of 21.4% and a non-GAAP adjusted operating profit margin of 24.6% for the second quarter.
- 3
Net earnings for the second quarter were $241 million, or $0.98 per diluted common share, with non-GAAP adjusted net earnings at $274 million, or $1.11 per diluted common share.
- 4
Operating cash flow was $340 million and non-GAAP free cash flow was $328 million for the second quarter.
- 5
Second quarter results included benefits from recoveries of tariffs previously collected under the International Emergency Economic Powers Act (IEEPA) of approximately $0.05 per share.
- 6
The company expects total year-over-year core sales growth to accelerate to approximately 5% to 6% in the second half of the year.
- 7
Full-year adjusted earnings per share guidance was increased to $4.35 to $4.43, representing 12% to 14% year-over-year growth.
Management Comments
Jennifer L. Honeycutt
In the second quarter, total sales grew approximately 8%, adjusted earnings per share increased 19%, and we generated robust free cash flow. We delivered 4.2% core sales growth year-over-year, led by Water Quality at 5.7%, with sequential acceleration in both segments. We continue to advance long-term value creation through strategic bolt-on acquisitions - including In-Situ, GlobalVision and, most recently, Alfaa UV - as well as opportunistic share repurchases. These actions reflect the accelerating growth profile of our portfolio, our VES-driven execution and commitment to disciplined capital allocation. In Water Quality, we continue to benefit from strong demand across industrial water treatment, water reuse initiatives and environmental water monitoring workflows. Demand for water analytics supporting the daily operations of our municipal customers remains steady. In PQI, demand also remains steady for our marking and coding solutions, while our digital workflow solutions in packaging and color continue to deliver strong underlying growth. We expect PQI core sales growth to accelerate meaningfully in the second half, driven by increasing adoption of digital workflow solutions and contributions from recent product launches. Looking ahead, we expect total year-over-year core sales growth to accelerate to approximately 5% to 6% in the second half of the year. Reflecting this momentum and our strong first half performance, we increased our full-year adjusted earnings per share guidance to $4.35 to $4.43, representing 12% to 14% year-over-year growth. Supported by a strong balance sheet and robust cash generation, we remain focused on compounding long-term shareholder value through high-quality growth, VES-driven execution and disciplined capital allocation.
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