| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 39 | 23.7x | 17.8x | Bottom tier | |
Growth | 41 | 6.2% | 7.1% | Around median | |
Quality | 90 | 17.6% | 4.5% | Top tier | |
Safety | 73 | 1.1x | 2.6x | Top tier | |
Capital Return | 17 | 0.14% | 2.12% | Bottom tier | |
Momentum | 49 | -7.0% | 2.9% | Around median | |
Sentiment | 46 | 11 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Veralto Corporation operates in water quality and product quality and innovation technologies, selling water analysis and treatment equipment, related consumables and services, alongside marking and coding solutions and digital workflows for brands. Within the water business, about 50% of revenue comes from industrial applications, while recurring revenue accounts for about 60% of this business’s revenue, with the remainder coming from equipment upgrades and the deployment of new technologies. In the Product Quality & Innovation business, the company combines Esko, TraceGains, and GlobalVision to cover packaging design, compliance, ingredient traceability, and print accuracy inspection, alongside marking and coding equipment.
In Q2 of fiscal 2026, Veralto’s sales grew 7.6% year over year, adjusted earnings per share increased 19.4%, and free cash flow reached $328 million. Core net sales grew 4.2%, led by growth of 5.7% in Water Quality and 2% in Product Quality & Innovation, showing that water was the stronger growth driver of the two segments. The July 29, 2026 call does not include absolute revenue and net income figures for that quarter, while EDGAR data for Q1 of fiscal 2026 shows revenue of $1.4 billion, gross profit of $854 million, and net income of $254 million, equivalent to a gross margin of approximately 61% and a net income margin of approximately 18%.
On a trailing-twelve-month basis ending during fiscal 2026, the company recorded revenue of $5.6 billion, gross profit of $3.3 billion, net income of $969 million, and earnings per share of approximately $3.89. This compares with revenue of $5.5 billion, gross profit of $3.3 billion, net income of $940 million, and earnings per share of $3.76 in fiscal 2025, indicating improved net profit alongside limited growth in absolute revenue.
The average analyst price target is $110, with the highest target at $114 and the lowest target at $104, while the upper end of the 52-week range is $109.86; this means the average target is very close to the top of the historical range, and the highest target exceeds it by approximately 4%. The Neutral consensus and relatively narrow target range limit the strength of the bullish signal, and no usable price-to-earnings ratio is available in the provided data to assess the stock on an earnings basis.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
In Q2 of fiscal 2026, sales increased 7.6% and core sales grew 4.2%, led by Water Quality at 5.7% versus 2% in Product Quality & Innovation. Management expects core growth of between 5% and 6% in the second half of fiscal 2026, led by volumes, with pricing remaining strong although lower than in the first half due to year-over-year comparisons. Drivers include data centers, energy, mining, semiconductors, and water reuse, in addition to digital workflows, marking and coding, and improving packaging and color equipment.
In August 2026, Veralto signed a definitive agreement to acquire Cleanwater1 for $465 million in cash. Cleanwater1 generated sales of $135 million in the previous year and adds water disinfection technologies and odor filtration systems to Veralto’s portfolio. The transaction is expected to have a neutral to modestly positive impact on adjusted earnings per share by 2027, so its success depends on product integration, the realization of commercial synergies, and discipline in the return on the purchase price.
ChemTreat Solutions serves water needs in data centers and the surrounding ecosystem, and management described its growth on the July 29, 2026 call as strong double-digit growth, while its contribution remains small at the company level. Veralto also partnered with Dow to serve liquid-cooling applications in data centers. In Product Quality & Innovation, GlobalVision adds a deterministic inspection engine, while working with Esko and TraceGains on using artificial intelligence applications to reduce errors and accelerate time to market while maintaining compliance and traceability requirements.
Automated analysis for informational purposes only — not investment advice.
In Q2 of fiscal 2026, adjusted earnings per share increased 19.4%, and free cash flow reached $328 million. Trailing-twelve-month data during fiscal 2026 shows revenue of $5.6 billion, net income of $969 million, and earnings per share of approximately $3.89. However, the adjusted operating margin in Q2 benefited by about 110 basis points from tariff refunds valued at approximately $16 million, an effect not included in guidance for the second half of fiscal 2026.
In Q2 of fiscal 2026, growth in high-growth markets was approximately flat, with the water business contracting in China and Latin American sales declining year over year due to delays in some projects. Margin expansion in Q4 of fiscal 2026 depends heavily on a recovery in Product Quality & Innovation following fixed-cost absorption pressures and the transfer of duplicated production lines. ChemTreat also faces chemical input volatility, while memory and semiconductor prices have risen, although management described the electronics impact on July 29, 2026 as immaterial.
The analyst consensus on VLTO is Neutral, with an average price target of $110. Targets range from $104 to $114, and the average is very close to the top of the 52-week range of $109.86. The provided data does not offer a valid price-to-earnings ratio for comparison, so the available valuation assessment is based on the target range, the Neutral consensus, and the company’s ability to achieve adjusted earnings per share guidance of $4.35–$4.43 for fiscal 2026.
