Veralto CorporationBeats Q2 estimates and raises 2026 guidance, with margin expansion and strong cash flow.

Veralto reported second-quarter 2026 adjusted earnings of $1.11 per share, beating the Zacks Consensus Estimate by 11% and up 19.4% year over year, while sales of $1.47 billion surpassed estimates by 2.5% and rose 7.6%. Core sales grew 4.2%, led by Water Quality growth of 5.7%, with acquisitions and currency also contributing. The company raised its full-year 2026 core sales growth forecast to 4-4.5% and adjusted earnings guidance to $4.35-$4.43 per share, implying 12-14% growth. Adjusted operating margin expanded 90 basis points to 24.6%, aided by tariff refunds, and free cash flow conversion was 136% of net earnings. Shares have slipped 0.1% since the report, underperforming the S&P 500, but estimates have trended upward, and the stock holds a Zacks Rank #2 (Buy).
Veralto CorporationBeats Q2 estimates and raises 2026 guidance, with margin expansion and strong cash flow.