01—Abstract
Summary
Summary of the 10-Q filed July 29, 2026. Cited figures are marked; the original filing is the authoritative source.
Veralto Corporation's second-quarter 2026 Form 10-Q (quarter ended July 3, 2026) shows sales of $1.47 billiona for the three-month period, up from $1.37 billion a year earlier, with the company reporting a 7.6% increase in total sales and 4.2% core sales growth.
Net earnings rose to $241 millionb from $222 million, though operating profit margin fell to 21.4% from 22.8%, driven mainly by restructuring charges tied to the 2026 Cost Optimization Program and higher SG&A. For the six-month period, sales were $2.90 billion and net earnings were $495 million, with diluted EPS of $2.00. The balance sheet expanded materially during the period.
Total assets reached $8.56 billionc, up from $7.69 billion at December 31, 2025, as the company completed the acquisitions of In-Situ, Inc. (about $426 million net of cash acquired) and GlobalVision (about $195 million net of cash acquired). Total debt rose to $3.38 billion from $2.67 billion after the company issued $725 million of 4.85% senior notes due 2032 in June 2026. Cash and cash equivalents stood at $2.12 billion.
Capital return activity was significant. The company repurchased about 5 million shares for roughly $434 milliond in the six-month period, leaving $317 million remaining under its $750 million repurchase program, and declared a regular quarterly dividend of $0.13 per share.
02—Key points
Key Highlights
- Second-quarter sales rose to $1,474 million from $1,371 million, a 7.6% increase, with core sales growth of 4.2% led by the Water Quality segment.
- Operating profit was $315 million versus $313 million a year earlier; operating margin declined to 21.4% from 22.8%, reflecting restructuring charges under the 2026 Cost Optimization Program.
- Net earnings were $241 million ($0.98 diluted EPS) in the quarter, compared with $222 million ($0.89) in the prior-year quarter, helped by a lower effective tax rate of 16.6%.
- Total assets increased to $8,558 million from $7,693 million, driven by goodwill and intangible assets added through the In-Situ and GlobalVision acquisitions.
- Total debt increased to $3,379 million from $2,673 million following the June 2026 issuance of $725 million of senior unsecured notes due 2032.
- The company repurchased $434 million of common stock in the six months ended July 3, 2026, with $317 million remaining under the $750 million Repurchase Program.
- Water Quality segment operating profit rose to $228 million from $211 million, while Product Quality & Innovation operating profit fell to $119 million from $134 million, mainly due to restructuring costs.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2026, Veralto kept $0.16.
- Revenue$1.47B100.0%
- Cost of revenue−$572.0M38.8%
- Gross profit$902.0M61.2%
- Operating costs−$587.0M39.8%
- Operating income$315.0M21.4%
- Interest, other & tax−$74.0M5.0%
- Net income$241.0M16.4%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed July 29, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $1.47B$1.37B | +7.5% |
| Cost of Revenue | $572.00M$549.00M | +4.2% |
| Gross Profit | $902.00M$822.00M | +9.7% |
| R&D Expenses | $73.00M$67.00M | +9.0% |
| SG&A Expenses | $514.00M$442.00M | +16.3% |
| Operating Income | $315.00M$313.00M | +0.6% |
| Net Income | $241.00M$222.00M | +8.6% |
| EPS (Basic) | $0.98$0.89 | +10.1% |
| EPS (Diluted) | $0.98$0.89 | +10.1% |
| Shares Outstanding (Basic) | 245.20M248.20M | −1.2% |
| Shares Outstanding (Diluted) | 245.80M249.90M | −1.6% |
05—Questions
Frequently Asked Questions
How did Veralto perform in the second quarter of 2026?
Sales increased 7.6% to $1,474 million, and net earnings rose to $241 million from $222 million. Operating margin declined to 21.4% from 22.8%, primarily due to $200 basis points of restructuring charges related to the 2026 Cost Optimization Program.
What acquisitions did Veralto complete in 2026?
On January 22, 2026, the company acquired In-Situ, Inc. for approximately $426 million net of cash acquired, adding it to the Water Quality segment. On April 7, 2026, it acquired GlobalVision for approximately CAD $270 million ($195 million), net of cash acquired, which will be integrated into the Product Quality & Innovation segment. Both were funded with cash on hand.
How did Veralto change its debt position in 2026?
In June 2026, the company issued $725 million of 4.85% senior unsecured notes maturing January 15, 2032, raising total debt to $3,379 million. Of that, $700 million of 5.50% notes are due September 18, 2026, and the company reported no amounts outstanding under its credit facility or commercial paper program as of July 3, 2026.
What is the status of Veralto's share repurchases?
During the six months ended July 3, 2026, the company repurchased about 5 million shares for approximately $434 million. As of July 3, 2026, $317 million remained authorized under the $750 million Repurchase Program, which has no expiration date.
What drove the change in Veralto's segment results?
Water Quality sales rose 10.1% to $908 million in the quarter, with core sales up 5.7%, driven by the chemical treatment solutions business. Product Quality & Innovation sales rose 3.8% to $566 million, but its operating profit fell to $119 million from $134 million due to restructuring charges of 380 basis points and GlobalVision transaction costs.
06—Continue