$VLTO · Veralto Corp
Veralto reported Q3 FY2026 results: sales of $1.509B (+7.5% YoY), GAAP diluted EPS of $1.03, and adjusted diluted EPS of $1.18. Adjusted operating margin expanded 170 bps to 25.6%. The company raised full-year 2026 adjusted EPS guidance to $4.49–$4.52 and guided Q4 core sales growth of 5.5%–6.5%.
- Q3 sales $1.509B, +7.5% YoY; non-GAAP core sales growth +5.1%
- GAAP diluted EPS $1.03 vs $0.95 YoY; adjusted diluted EPS $1.18 vs $0.99, +19.2%
- Adjusted operating margin expanded 170 bps to 25.6%
- FY2026 adjusted EPS guidance raised to $4.49–$4.52 from $4.35–$4.43
- Q4 core sales growth guided to +5.5%–6.5%, accelerating from Q3's +5.1%
Extended-hours trading: $108.02, +3.92% vs regular close of $103.95. The beat-and-raise quarter with 170 bps margin expansion and raised FY guidance is driving a strong after-hours bid.
A 19.2% adjusted EPS jump, 170 bps margin expansion, raised full-year guidance, and accelerating Q4 core sales outlook signal strong execution and pricing power in essential water and product quality markets.
Water Quality core sales grew 6.4%, led by double-digit water treatment solutions on industrial tailwinds including digital infrastructure and water reuse demand. PQI core sales growth accelerated sequentially to 3.2%.
SG&A jumped to $541M from $451M YoY (+20%), outpacing revenue growth and compressing GAAP operating margin to 19.7% from 23.2%. Cost optimization program ($10–$15M expected FY savings) is still early-stage.