| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 1.5K | 3.7% | 7.5% |
| Total Income | 1.5K | 3.7% | 7.5% |
| Expenditure | 1.2K | 6.9% | 9.6% |
| PBT | 289.00 | 10.0% | 1.4% |
| Net Profit | 241.00 | 5.1% | 8.6% |
| OPM | 21.37% | 2.40pp | 1.46pp |
| NPM | 16.35% | 1.51pp | 0.16pp |
| EPS | 0.98 | 4.8% | 10.1% |
Veralto Reports Q3 2026 Results: Sales Up 7.5% to $1,509 Million
30 Oct 2026 · 1h ago
Summary
Veralto Corporation announced strong third quarter 2026 results, with total sales increasing 7.5% year-over-year to $1,509 million. The company reported a non-GAAP adjusted operating profit margin of 25.6%, an expansion of 170 basis points, and non-GAAP adjusted earnings per share increased by 19.2% year-over-year. Management highlighted broad-based sales growth and strong operating leverage, with core sales growing 5.1% driven by the Water Quality segment. The company raised its full-year 2026 adjusted earnings per share guidance to $4.49-$4.52, reflecting anticipated acceleration in core sales growth and cost optimization program gains.
Key Highlights
- 1
Veralto reported third quarter sales of $1,509 million, an increase of 7.5% year-over-year.
- 2
Non-GAAP core sales grew by 5.1% year-over-year, with the Water Quality segment leading at 6.4%.
- 3
The company achieved a reported operating profit margin of 19.7% and a non-GAAP adjusted operating profit margin of 25.6% for the third quarter.
- 4
Net earnings for the third quarter were $253 million, or $1.03 per diluted common share.
- 5
Non-GAAP adjusted net earnings were $290 million, or $1.18 per diluted common share.
- 6
Operating cash flow was $323 million, and non-GAAP free cash flow was $304 million for the third quarter.
- 7
Veralto deployed $1.1 billion on four strategic acquisitions year-to-date, including In-Situ, GlobalVision, Alfaa UV, and Cleanwater1.
Management Comments
Jennifer L. Honeycutt
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. 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. 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.
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