01—Abstract
Summary
Summary of the 8-K filed July 28, 2026. Cited figures are marked; the original filing is the authoritative source.
Veralto Corporation (NYSE: VLTO) reported second quarter 2026 results for the quarter ended July 3, 2026, per Exhibit 99.1 press release furnished under Item 2.02.
Sales increased 7.6% year-over-year to $1,474 milliona, with non-GAAP core sales growth of 4.2%, led by Water Quality at 5.7% core growth and Product Quality and Innovation (PQI) at 2.0%. GAAP net earnings were $241 million, or $0.98 per diluted share, versus $222 million, or $0.89 per diluted share, a year earlier. Non-GAAP adjusted net earnings were $274 million, or $1.11 per diluted share, and results include benefits of approximately $0.05 per share from recoveries of tariffs previously collected under the International Emergency Economic Powers Act (IEEPA).
Operating cash flow was $340 millionb and non-GAAP free cash flow was $328 million, compared with $339 million and $323 million in the prior-year quarter. GAAP operating profit margin was 21.4%, and adjusted operating profit margin was 24.6%. Management cited bolt-on acquisitions, including In-Situ, GlobalVision and Alfaa UV, along with opportunistic share repurchases.
For guidance, Veralto raised full-year 2026 non-GAAP core sales growth to 4.0% to 4.5% (from 3.0% to 4.5%) and raised adjusted diluted EPS guidance to $4.35 to $4.43c (from $4.20 to $4.28). For the third quarter, it expects core sales growth of 4.0% to 5.0% and adjusted diluted EPS of $1.06 to $1.09. Management expects second-half total core sales growth to accelerate to approximately 5% to 6%.
02—Key points
Key Highlights
- Sales rose 7.6% year-over-year to $1,474 million; non-GAAP core sales growth was 4.2%, with Water Quality at 5.7% and PQI at 2.0%.
- GAAP diluted EPS was $0.98 versus $0.89 a year earlier; non-GAAP adjusted diluted EPS was $1.11 versus $0.93.
- Results include approximately $0.05 per share of benefit from recoveries of IEEPA-related tariffs previously collected.
- Operating cash flow was $340 million and non-GAAP free cash flow was $328 million, with capital expenditures of $12 million.
- Full-year 2026 adjusted diluted EPS guidance raised to $4.35 to $4.43 from $4.20 to $4.28, and core sales growth guidance raised to 4.0% to 4.5%.
- Third-quarter 2026 guidance calls for core sales growth of 4.0% to 5.0% and adjusted diluted EPS of $1.06 to $1.09.
- Restructuring costs of $29 million pretax related to the 2026 Cost Optimization Program were excluded from non-GAAP results.
03—Questions
Frequently Asked Questions
Why did GAAP earnings differ from adjusted earnings this quarter?
GAAP net earnings of $241 million ($0.98 per diluted share) excluded items such as $17 million of acquisition-related intangible amortization, $29 million of restructuring costs tied to the 2026 Cost Optimization Program, and $2 million of other items. After tax effects and a $4 million discrete tax benefit, adjusted net earnings were $274 million ($1.11 per diluted share).
What drove the sales growth in the quarter?
Total sales grew 7.6% year-over-year, but after acquisitions/divestitures (a 2.4% contribution) and currency exchange rates (a 1.0% contribution), core sales growth was 4.2%. Water Quality core sales grew 5.7%, while Product Quality and Innovation grew 2.0%.
What is the outlook for the rest of 2026?
Management expects total core sales growth to accelerate to approximately 5% to 6% in the second half. For the full year, it raised core sales growth guidance to 4.0% to 4.5% and adjusted diluted EPS guidance to $4.35 to $4.43, which includes the $0.05 per share IEEPA tariff refund benefit.
How is the company deploying capital?
The company cited bolt-on acquisitions, including In-Situ, GlobalVision and the most recent, Alfaa UV, as well as opportunistic share repurchases. Diluted weighted average shares were 245.8 million in the quarter, down from 249.9 million a year earlier.
04—Continue