01—Abstract
Summary
Summary of the 10-Q filed April 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Veralto Corporation reported net earnings of $254 milliona for the three months ended April 3, 2026, up from $225 million a year earlier.
Sales rose to $1,422 millionb from $1,332 million, a total sales increase of 6.7% that included 1.9% core sales growth. Diluted EPS was $1.02 compared with $0.90. Operating profit was $338 million, and operating profit margin was 23.8% versus 24.2%, with the filing citing higher labor costs, In-Situ and GlobalVision transaction costs, and an inventory fair value adjustment from the In-Situ acquisition as headwinds.
Water Quality core sales grew 3.8%, while Product Quality & Innovation core sales declined 1.0%. Capital deployment was significant in the quarter. Veralto completed the In-Situ acquisition on January 22, 2026 for approximately $426 millionc net of cash acquired, and repurchased about 3 million shares for approximately $300 million, leaving $450 million remaining under its $750 million repurchase program.
Cash and cash equivalents fell to $1,431 milliond from $2,031 million at year-end 2025, and total debt was $2,662 million principal, including $700 million of 5.50% notes due September 2026 that the company says it is currently evaluating alternatives to address. On April 27, 2026, the Board approved a 2026 Restructuring Program with total expected charges of approximately $85 million to $105 million, of which approximately $65 million to $85 million are expected in 2026. The company also completed the GlobalVision acquisition on April 7, 2026 for approximately CAD $270 million net of cash acquired, after the quarter ended.
02—Key points
Key Highlights
- Sales increased to $1,422 million from $1,332 million, a total sales growth of 6.7% and core sales growth of 1.9%, with acquisitions and currency each adding to reported growth.
- Net earnings rose to $254 million from $225 million; diluted EPS was $1.02 versus $0.90.
- Operating profit margin was 23.8% versus 24.2%, pressured by higher labor costs and acquisition-related transaction costs.
- Cash flow from operations was $182 million versus $157 million, while cash fell to $1,431 million from $2,031 million after the In-Situ acquisition and share repurchases.
- Water Quality core sales grew 3.8%, led by chemical treatment solutions, while Product Quality & Innovation core sales declined 1.0%.
- Repurchased approximately 3 million shares for about $300 million; $450 million remains authorized under the $750 million program.
- Announced a 2026 Restructuring Program with expected total charges of approximately $85 million to $105 million, mostly in 2026 and 2027.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q2 FY2026, Veralto kept $0.18.
- Revenue$1.42B100.0%
- Cost of revenue−$568.0M39.9%
- Gross profit$854.0M60.1%
- Operating costs−$516.0M36.3%
- Operating income$338.0M23.8%
- Interest, other & tax−$84.0M5.9%
- Net income$254.0M17.9%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed April 29, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $1.42B$1.33B | +6.8% |
| Cost of Revenue | $568.00M$527.00M | +7.8% |
| Gross Profit | $854.00M$805.00M | +6.1% |
| R&D Expenses | $68.00M$64.00M | +6.3% |
| SG&A Expenses | $448.00M$419.00M | +6.9% |
| Operating Income | $338.00M$322.00M | +5.0% |
| Net Income | $254.00M$225.00M | +12.9% |
| EPS (Basic) | $1.03$0.91 | +13.2% |
| EPS (Diluted) | $1.02$0.90 | +13.3% |
| Shares Outstanding (Basic) | 247.60M247.90M | −0.1% |
| Shares Outstanding (Diluted) | 249.20M250.10M | −0.4% |
05—Questions
Frequently Asked Questions
How did Veralto's revenue and profitability change in the first quarter of 2026?
Sales increased to $1,422 million from $1,332 million, a total sales growth of 6.7% that included 1.9% core sales growth. Operating profit rose to $338 million from $322 million, but operating profit margin declined to 23.8% from 24.2%. Net earnings increased to $254 million from $225 million, and diluted EPS was $1.02 versus $0.90.
What acquisitions did Veralto complete?
Veralto completed the acquisition of In-Situ on January 22, 2026 for approximately $426 million in cash, net of cash acquired, recording about $223 million of goodwill; it is included in the Water Quality segment. On April 7, 2026, after the quarter ended, it completed the GlobalVision acquisition for approximately CAD $270 million, net of cash acquired, which will be part of the Product Quality & Innovation segment.
How much did Veralto return to shareholders, and how much buyback capacity remains?
During the quarter Veralto repurchased approximately 3 million shares for about $300 million under its repurchase program and paid $32 million in dividends. As of April 3, 2026, $450 million remained authorized under the $750 million program. The Board declared a regular quarterly dividend of $0.13 per share, payable April 30, 2026.
What debt obligations and liquidity considerations does Veralto face?
Total debt principal was $2,662 million as of April 3, 2026, including $700 million of 5.50% senior notes due September 18, 2026. The company states it has an upcoming 2026 maturity and is currently evaluating various alternatives, without a decision yet. Cash and cash equivalents were $1,431 million, and no amounts were outstanding under the credit facility or commercial paper program.
What is the 2026 Restructuring Program and what will it cost?
On April 27, 2026, the Board approved a restructuring program covering workforce reductions, site consolidations, and functional transformation, expected to be substantially completed by the end of 2028. The company expects total charges of approximately $85 million to $105 million, with approximately $65 million to $85 million expected in 2026 and the majority of the remainder in 2027.
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