$VLTO · Veralto Corp
Veralto filed its 10-Q for the quarter ended October 2, 2026. Q3 revenue rose 7.5% YoY to $1.509B, with core sales growth of 5.6%. GAAP diluted EPS was $1.03, up from $0.95 a year ago. Net earnings reached $253M. The balance sheet reflects $683M in acquisition spending (goodwill rose to $3.2B) and $523M in share repurchases, while long-term debt increased to $2.671B.
- Q3 revenue of $1.509B grew 7.5% YoY, with core sales up 5.6% driven by pricing and volume.
- Q3 GAAP diluted EPS of $1.03 vs $0.95 a year ago; net earnings rose to $253M from $239M.
- Gross margin reached 60.2% in Q3; operating margin declined to 19.7% from 23.2% on higher SG&A.
- Goodwill jumped to $3.2B from $2.838B at year-end 2025, reflecting $683M in acquisition spending.
- The company repurchased $523M of common stock (5.7M shares) in the first nine months of FY2026.
Extended-hours trading shows VLTO at $104.78, up 0.80% from the regular close of $103.95, suggesting a mildly positive initial reception to the Q3 beat on revenue and EPS.
Veralto is deploying capital aggressively on both M&A ($683M) and buybacks ($523M) while delivering solid organic growth, but the debt-funded strategy and SG&A inflation bear watching.
Veralto's 7.5% revenue growth and 60.2% gross margin reflect strong pricing power in water quality and product quality instrumentation, outpacing typical industrial peers. The aggressive M&A posture mirrors consolidation trends in the water-tech sector.
SG&A expenses surged to $541M in Q3 from $451M a year ago (+20%), compressing operating margins despite revenue growth. Long-term debt nearly doubled to $2.671B from $1.973B at year-end 2025, largely to fund the $683M in acquisitions.