Veralto (VLTO)
NYSEIndustrialsIndustrial - Pollution & Treatment ControlsSnapshot 2026-09-04
$96.31-1.60%
Close 2026-09-04 · 1-day change
NYSEIndustrialsIndustrial - Pollution & Treatment ControlsSnapshot 2026-09-04
QuarterlyIQ Insights · VLTO
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-09-04.
The screen ranks VLTO against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated neutral grew net income 51% of the time over the next year (vs 60% for the rest of the cohort, n=9249).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Met or beat guidance 100% of the last 4 guided quarters · 7.5% avg surprise
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue to grow core sales with expected acceleration to 5-6% in second half 2026, driven by Water Quality and Product Quality & Innovation segments.
Stated as a priority in 5 of last 5 quarters. Core sales growth increased from 1.9% in 2026-Q1 to 4.2% in 2026-Q2, with full year 2026 guidance raised to 4.0% to 4.5%. Management expects acceleration to 5-6% in second half 2026, indicating delivery on growth momentum.
“We delivered 4.2% core sales growth year-over-year... expect core sales growth to accelerate to 5% to 6% in second half.”
“We delivered 1.9% core sales growth year-over-year in Q1 2026.”
“Full year 2026 core sales growth guidance raised to 4.0% to 4.5%.”
“Raised full year 2026 core sales growth guidance to 3.0% to 4.5%.”
“Core sales growth guidance for 2026 at 3.0% to 4.5%.”
Raise full-year adjusted diluted EPS guidance reflecting strong first half performance and tariff refund benefits.
Stated in 5 of last 5 quarters. Adjusted diluted EPS guidance increased from $4.20-$4.28 in 2026-Q1 to $4.35-$4.43 in 2026-Q2, reflecting management's raised expectations and tariff refund benefits. The trajectory shows delivering on EPS growth commitments.
“Raised full-year adjusted EPS guidance to $4.35 to $4.43.”
Sustain strong free cash flow conversion to support acquisitions, share repurchases, and disciplined capital allocation.
Stated in 5 of last 5 quarters. Free cash flow conversion guidance increased to >100% in 2026-Q2 from ~100% in 2026-Q1. Free cash flow rose from $170M in 2026-Q1 to $328M in 2026-Q2, supporting management's commitment to strong cash generation and disciplined capital allocation.
“Free cash flow conversion guidance increased to >100% of GAAP net earnings.”
Implement cost optimization initiatives expected to yield annual savings of $65-$75 million by 2028.
Stated in 2 of last 2 quarters. The cost optimization program was initiated in 2026-Q1 with expected annual savings of $65-$75 million by 2028. In 2026-Q2, $29 million pretax costs were incurred related to this program, indicating active execution though full savings realization is pending.
“Costs incurred related to the 2026 Cost Optimization Program of $29 million pretax.”
Advance long-term value creation through bolt-on acquisitions including In-Situ, GlobalVision, Alfaa UV, and TraceGains.
Stated in 4 of last 5 quarters. Management has consistently highlighted strategic acquisitions including In-Situ, GlobalVision, Alfaa UV, and TraceGains. Approximately $1 billion was invested in acquisitions and share repurchases year-to-date in 2026-Q1, demonstrating active pursuit of portfolio expansion.
Over the trailing year it converted 0.83x of net income into operating cash flow. Historically, Industrials names rated neutral grew net income 59% of the time over the next year (vs 53% for the rest of the cohort, n=6654).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, real (inflation-adjusted) rates, long-term interest rates, Fed net liquidity (low R² over the window).
5 material management or governance events in the past 24 months, led by capital-allocation actions. Historically, Industrials names rated stable grew net income 55% of the time over the next year (vs 58% for the rest of the cohort, n=2546).
Not investment advice. As of 2026-09-04.
“Raised full-year adjusted EPS guidance to $4.20 to $4.28.”
“Targeting adjusted EPS in range $4.10 to $4.20 for 2026.”
“Raised full year 2026 adjusted EPS guidance.”
“Raised full year 2026 adjusted EPS guidance.”
“Free cash flow conversion guidance approximately 100% of GAAP net earnings.”
“Full-year free cash flow conversion guidance approximately 100%.”
“Free cash flow conversion guidance in range 90% to 100%.”
“Free cash flow conversion guidance in range 90% to 100%.”
“Initiated cost optimization program to streamline business processes and enhance operating efficiency.”
“Strategic bolt-on acquisitions including In-Situ, GlobalVision, Alfaa UV.”
“Completed strategic acquisitions of In-Situ and GlobalVision for ~$620 million.”
“Acquired TraceGains, expanding packaging and color solutions.”
“Invested approximately $1 billion on strategic acquisitions and share repurchases.”