VLTO

The market expects Veralto (VLTO) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on October 29. On the other hand, if they miss, the stock may move lower. While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise. This water and product quality services provider is expected to post quarterly earnings of $1.10 per share in its upcoming report, which represents a year-over-year change of +11.1%. Revenues are expected to be $1.5 billion, up 6.7% from the year-ago quarter. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period. Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts. Price, Consensus and EPS Surprise Estimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core. The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier. Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only. A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP. Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell). For Veralto, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.46%. On the other hand, the stock currently carries a Zacks Rank of #3. So, this combination indicates that Veralto will most likely beat the consensus EPS estimate. Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number. For the last reported quarter, it was expected that Veralto would post earnings of $1 per share when it actually produced earnings of $1.11, delivering a surprise of +11.00%. Over the last four quarters, the company has beaten consensus EPS estimates four times. An earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss. That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported. Veralto appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release. Clean Harbors (CLH), another stock in the Zacks Waste Removal Services industry, is expected to report earnings per share of $3.18 for the quarter ended September 2026. This estimate points to a year-over-year change of +43.9%. Revenues for the quarter are expected to be $1.72 billion, up 11.3% from the year-ago quarter. Over the last 30 days, the consensus EPS estimate for Clean Harbors has been revised 10.3% up to the current level. Nevertheless, the company now has an Earnings ESP of -0.66%, reflecting a lower Most Accurate Estimate. When combined with a Zacks Rank of #2 (Buy), this Earnings ESP makes it difficult to conclusively predict that Clean Harbors will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times. Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veralto Corporation (VLTO) : Free Stock Analysis Report Clean Harbors, Inc. (CLH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Healthcare Services Group, Inc. HCSG is scheduled to release third-quarter 2026 results on Oct. 21, before market open. The company exits the September-end quarter amid execution risks associated with the timing of new business starts, inflationary pressures and variability in insurance-related benefits. Although demand for its services remains healthy, these factors are likely to have limited profitability and the pace of revenue growth during the soon-to-be-reported quarter. The Zacks Consensus Estimate for third-quarter 2026 earnings is pegged at 22 cents per share, indicating a 3.64% year-over-year increase. The measure has been revised 10% upward over the past 60 days. The same for revenues is pegged at $479.93 million, indicating a 3.36% increase from the third-quarter 2025 actuals. For 2026, the Zacks Consensus Estimate for earnings is pegged at $1.14 per share, indicating a 3.64% year-over-year increase. The same for revenues is pegged at $1.91 billion, indicating a 3.71% increase from 2025 actuals. HCSG has an impressive earnings surprise history, surpassing the Zacks Consensus Estimate in each of the trailing four quarters. The average beat is 57.25%. Healthcare Services Group, Inc. price-eps-surprise | Healthcare Services Group, Inc. Quote Timing of New Business Starts: The timing of management capacity and client start dates are expected to have constrained HCSG's third-quarter growth. Management noted that these factors can shift opportunities between quarters, with some business potentially being pushed out or pulled forward. The company expected third-quarter revenues of $475-$485 million, implying a more measured growth pace before an anticipated acceleration later in the year. Inflationary Cost Pressure: Food and labor inflation remain factors to watch. Management noted an increase in food-at-home inflation and continued to monitor wage trends. Although HCSG's contractual framework generally permits the company to pass through food and wage inflation, timing differences or outsized increases are likely to have created near-term cost pressure. Lower Insurance-Related Benefits: Insurance reserve adjustments are likely to have provided less support to third-quarter profitability. Management indicated that benefits related to workers' compensation and general liability reserves are expected to gradually trend toward zero and can fluctuate significantly from quarter to quarter. A lower benefit may therefore have weighed on earnings comparisons. Credit and Collection Risks: Customer payment delays and restructuring activity remain additional risks. HCSG's 10-Q notes that delays in customer payments and customers undergoing restructurings could lead to additional bad-debt expenses, while inflation in labor, materials and supplies could hurt results if costs cannot be fully passed through. Our proven model does not conclusively predict an earnings beat for Healthcare Services Group this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here. HCSG has an Earnings ESP of 0.00% and a Zacks Rank #3 (Hold) at present. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter. Here are a few stocks from the broader Zacks Business Services sector that investors may consider, as our model shows that they have the right combination of elements to beat on earnings this reporting cycle. Booz Allen Hamilton BAH has an Earnings ESP of +5.31% and a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here. BAH is scheduled to report third-quarter 2026 earnings on Oct. 23. The Zacks Consensus Estimate for 2026 earnings has been revised upward by 0.16% over the past 60 days. BAH's earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and met once in the remaining quarter, with the average beat being 24.2%. Veralto Corporation VLTO has an Earnings ESP of +1.21% and a Zacks Rank #2 at present. VLTO is scheduled to report third-quarter 2026 earnings on Oct. 29. The Zacks Consensus Estimate for 2026 earnings has been revised upward by 1.38% to $4.41 per share over the past 60 days. VLTO's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters. The average beat is 6.56%. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Healthcare Services Group, Inc. (HCSG) : Free Stock Analysis Report Booz Allen Hamilton Holding Corporation (BAH) : Free Stock Analysis Report Veralto Corporation (VLTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Waltham, Massachusetts-based Veralto Corporation (VLTO), with a market capitalization of approximately $23.5 billion, is a global technology company focused on essential solutions for water quality and product quality. Its businesses provide technologies that help customers safeguard vital resources, enhance product quality and drive innovation across industries. VLTO is set to report its Q3 earnings soon. Ahead of the release, analysts expect the company to report diluted EPS of $1.10, up 11.1% from 99 cents in the year-ago quarter. Moreover, VLTO has exceeded Wall Street's EPS estimates in each of the past four quarters, highlighting its consistent earnings performance. - Late Billionaire Charlie Munger Told Value Investors to 'Get Used To Making Less' Because They All Want 'A Diminished Bunch Of Opportunities' but Warren Buffett Disagrees - Why It's Time to Load Up on Qualcomm Stock - 100,000 Reasons to Buy Oracle Stock - Markets move fast. Keep up by reading our FREE midday Barchart Brief newsletter for exclusive charts, analysis, and headlines. For fiscal 2026, analysts expect VLTO to report EPS of $4.41, up 12.8% from $3.91 in fiscal 2025. EPS is projected to increase another 9.1% year over year to $4.81 in fiscal 2027. VLTO stock has declined 9.1% over the past 52 weeks, trailing both the S&P 500 Index ($SPX), which gained 16%, and the State Street Industrial Select Sector SPDR ETF (XLI), which climbed 10.6% over the same period. Veralto's growth story has yet to gain enough momentum to keep pace with the broader market. The company's sales grew at a 4.6% compound annual rate over the past five years, trailing the broader industrials sector. Meanwhile, analysts expect revenue to increase just 6.6% over the next 12 months, suggesting that newer products and services have yet to meaningfully accelerate top-line growth and weighing on investor sentiment. Analysts remain somewhat bullish on VLTO, with the stock carrying a consensus "Moderate Buy" rating. Of the 15 analysts covering the stock, nine recommend a "Strong Buy," while the remaining six rate it a "Hold." Meanwhile, the average price target of $112.07 implies potential upside of 16.2% from the current share price. On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com

Looking back on environmental and facilities services stocks’ Q2 earnings, we examine this quarter’s best and worst performers, including Veralto (NYSE:VLTO) and its peers. Many environmental and facility services are non-discretionary (sports stadiums need to be cleaned after events), recurring, and performed through longer-term contracts. This makes for more predictable and stickier revenue streams. Additionally, there has been an increasing focus on emissions and water conservation over the last decade, driving innovation in the sector and demand for new services. Despite these tailwinds, environmental and facility services companies are still at the whim of economic cycles. Interest rates, for example, can greatly impact commercial construction projects that drive incremental demand for these services. The 11 environmental and facilities services stocks we track reported a mixed Q2. As a group, revenues were in line with analysts’ consensus estimates. Amidst this news, share prices of the companies have had a rough stretch. On average, they are down 9% since the latest earnings results. Spun off from Danaher in 2023, Veralto (NYSE:VLTO) provides water analytics and treatment solutions. Veralto reported revenues of $1.47 billion, up 7.5% year on year. This print exceeded analysts’ expectations by 1.3%. Overall, it was a very strong quarter for the company with full-year EPS guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates. Investor expectations, however, were likely higher than Wall Street’s published projections, leaving some wishing for even better results (analysts’ consensus estimates are those published by big banks and advisory firms, not the investors who make buy and sell decisions). The stock is down 2.7% since reporting and currently trades at $95.82. Is now the time to buy Veralto? Access our full analysis of the earnings results here, it’s free. Established in 1980, Clean Harbors (NYSE:CLH) provides environmental and industrial services like hazardous and non-hazardous waste disposal and emergency spill cleanups. Clean Harbors reported revenues of $1.74 billion, up 11.9% year on year, outperforming analysts’ expectations by 6.1%. The business had a stunning quarter with EBITDA guidance for next quarter exceeding analysts’ expectations and a solid beat of analysts’ EBITDA estimates. Clean Harbors delivered the biggest analyst estimate beat in the group. The market seems content with the results as the stock is up 3% since reporting. It currently trades at $312.68. Is now the time to buy Clean Harbors? Access our full analysis of the earnings results here, it’s free. Operating under multiple brands like Orkin and HomeTeam Pest Defense, Rollins (NYSE:ROL) provides pest and wildlife control services to residential and commercial customers. Rollins reported revenues of $1.08 billion, up 7.9% year on year, falling short of analysts’ expectations by 1.3%. It was a disappointing quarter as it posted a significant miss of analysts’ EBITDA estimates and a significant miss of analysts’ EPS estimates. As expected, the stock is down 24.5% since the results and currently trades at $32.82. Read our full analysis of Rollins’s results here. Headquartered in Houston, Waste Management (NYSE:WM) is a provider of comprehensive waste management services in North America. Waste Management reported revenues of $6.68 billion, up 4% year on year. This result was in line with analysts’ expectations. Zooming out, it was a mixed quarter as it also produced a decent beat of analysts’ EBITDA estimates but full-year revenue guidance slightly missing analysts’ expectations. The stock is down 13.3% since reporting and currently trades at $207.45. Read our full, actionable report on Waste Management here, it’s free. An official field consultant for Major League Baseball, BrightView (NYSE:BV) offers landscaping design, development, and maintenance. BrightView reported revenues of $717.6 million, up 1.3% year on year. This number came in 1.4% below analysts’ expectations. It was a disappointing quarter as it also logged full-year EBITDA guidance missing analysts’ expectations significantly and a significant miss of analysts’ EBITDA estimates. The stock is down 18.6% since reporting and currently trades at $10.69. Read our full, actionable report on BrightView here, it’s free. Over the past year, investors have been forced to repeatedly answer the same question: what is the market’s biggest risk? The answer has changed several times, and each shift has reshaped market leadership. Late in 2025 and early 2026, artificial intelligence became the market’s primary uncertainty. Investors questioned whether AI would erode software pricing power and weaken competitive moats as AI made it easier to replicate once-differentiated products. By the spring, technology took a back seat to geopolitics. The U.S. conflict with Iran briefly became the market’s dominant narrative, raising concerns about oil prices, inflation, and global growth. But as energy markets remained orderly and fears of a prolonged supply disruption faded, investors quickly turned their focus back to fundamentals. Want to invest in winners with rock-solid fundamentals? Check out our Top 6 Stocks and add them to your watchlist. These companies are poised for growth regardless of the political or macroeconomic climate.

A month has gone by since the last earnings report for Clean Harbors (CLH). Shares have lost about 1.7% in that time frame, underperforming the S&P 500. But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Clean Harbors due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Clean Harbors, Inc. before we dive into how investors and analysts have reacted as of late. Clean Harbors, Inc. reported better-than-expected second-quarter 2026 results, with both earnings and revenues surpassing the Zacks Consensus Estimate. CLH posted earnings of $3.22 per share, beating the consensus estimate of $2.74 by 17.5%. Revenues came in at $1.74 billion, exceeding the consensus mark of $1.63 billion by 6.8%. Earnings increased 36.4% year over year, while revenues rose 12%. The strong results reflected healthy disposal and recycling volumes, remediation and PFAS-related projects, strategic pricing initiatives and favorable market prices for re-refined products. Clean Harbors generated net income of $170.5 million, up 34.3% from $126.9 million in the year-ago quarter. Income from operations increased 27.9% year over year to $268.9 million. Gross profit rose 17.9% to $608.8 million, while the gross margin expanded to 35.1% from 33.3% a year earlier. Adjusted EBITDA climbed 21.6% to $409 million. The adjusted EBITDA margin expanded 190 basis points to 23.6%, supported by stronger results across both operating segments. The company also maintained solid safety performance, with a year-to-date Total Recordable Incident Rate of 0.46. Selling, general and administrative expenses increased to $214.6 million from $186.2 million. Higher incentive compensation, insurance expenses, acquisition-related costs and strategic investments contributed to the increase. Environmental Services generated revenues of $1.46 billion, up 7.7% from the year-ago quarter. Segment adjusted EBITDA increased 8% to $406.1 million, while the adjusted EBITDA margin improved 10 basis points to 27.9%. Technical Services revenues rose 18%, driven by healthy demand for disposal and recycling services, project activity and acquisitions. A large-scale event contributed approximately $30 million to Technical Services revenues during the quarter. Incinerator utilization, including the new Kimball facility, increased to 91% from 86% a year earlier. The improvement reflected strength in the base business and project volumes. Landfill volumes jumped 7% on continued project wins. Safety-Kleen Environmental Services revenues advanced 11%, aided by pricing and higher volumes in containerized waste collection and vacuum services. Field Services revenues rose 3% despite a difficult year-over-year comparison that included major emergency-response projects. The segment has now delivered year-over-year adjusted EBITDA margin expansion for 17 consecutive quarters. Safety-Kleen Sustainability Solutions revenues surged 40.8% year over year to $278.4 million. The increase primarily resulted from a sharp rise in market prices for base and blended products amid global supply disruptions, along with higher charge-for-oil revenues. Segment adjusted EBITDA jumped 142.8% to $93 million, while its margin expanded to 33.4% from 19.4% in the prior-year period. The supply-constrained environment widened the company’s re-refining spread and significantly strengthened profitability. Clean Harbors collected 61 million gallons of waste oil compared with 64 million gallons a year earlier. Although collection volume declined, the company maintained a charge-for-oil rate that was considerably higher year over year. Blended products represented 21% of total volumes sold, up from 19% a year ago and 16% in the first quarter. Direct blended sales increased to 11% of total volumes from 9% in the year-ago quarter, reflecting new customer wins and closed-loop arrangements. The result significantly exceeded management’s expectations from the first-quarter earnings call, when it anticipated SKSS’ second-quarter growth to exceed 10% because of improving base oil prices. Cash provided by operating activities was $239.2 million, up from $208 million in the prior-year quarter. Adjusted free cash flow increased to $135.7 million from $133.2 million. Capital expenditures, net of asset-sale proceeds, were $124 million compared with $87.3 million a year ago. Clean Harbors also repurchased $27.1 million of shares during the quarter, up from $12 million in the year-ago period. The company ended June with $408.4 million in cash and cash equivalents and $108.4 million in short-term marketable securities. Its current and long-term debt totaled approximately $2.77 billion. For the third quarter of 2026, Clean Harbors expects adjusted EBITDA to increase 24-28% year over year. Management anticipates continued strength across both operating segments, supported by emergency-response work, PFAS opportunities, reshoring activity and favorable demand for re-refined products. Following the strong first-half performance, the company raised the midpoint of its full-year adjusted EBITDA guidance by $110 million. Clean Harbors now expects adjusted EBITDA of $1.35-$1.41 billion, with a midpoint of $1.38 billion. The company also increased the midpoint of its adjusted free cash flow outlook by $30 million. Adjusted free cash flow is now projected between $520 million and $580 million, with a midpoint of $550 million. The outlook includes anticipated GAAP net income of $481-$531 million and net cash from operating activities of $890 million to $1.01 billion. Since the earnings release, investors have witnessed a upward trend in estimates review. The consensus estimate has shifted 20.15% due to these changes. Currently, Clean Harbors has a nice Growth Score of B, however its Momentum Score is doing a bit better with an A. However, the stock was allocated a score of C on the value side, putting it in the middle 20% for this investment strategy. Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Clean Harbors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Clean Harbors belongs to the Zacks Waste Removal Services industry. Another stock from the same industry, Veralto (VLTO), has gained 3.9% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026. Veralto reported revenues of $1.47 billion in the last reported quarter, representing a year-over-year change of +7.5%. EPS of $1.11 for the same period compares with $0.93 a year ago. Veralto is expected to post earnings of $1.09 per share for the current quarter, representing a year-over-year change of +10.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +1.8%. The overall direction and magnitude of estimate revisions translate into a Zacks Rank #2 (Buy) for Veralto. Also, the stock has a VGM Score of C. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Clean Harbors, Inc. (CLH) : Free Stock Analysis Report Veralto Corporation (VLTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

A month has gone by since the last earnings report for Veralto (VLTO). Shares have lost about 0.1% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Veralto due for a breakout? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Veralto Corporation before we dive into how investors and analysts have reacted as of late. Veralto reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. VLTO’s adjusted earnings of $1.11 per share topped the Zacks Consensus Estimate by 11% and increased 19.4% from the year-ago quarter, aided by core sales growth, operating execution and tariff refunds. Sales of $1.47 billion surpassed the consensus estimate by 2.5% and rose 7.6% year over year. Core sales grew 4.2%, led by Water Quality growth of 5.7%, while acquisitions and currency movements also supported the top line. Core sales growth reflected a 3% contribution from pricing and a 1.2% increase in volume. Acquisitions added 2.4% to reported growth, driven mainly by In-Situ in Water Quality and GlobalVision in Product Quality and Innovation. Foreign-currency movements provided a 1 percentage point benefit. Recurring revenues grew at a high-single-digit rate and represented 62% of total sales, while non-recurring revenues advanced at a mid-single-digit pace. Water Quality sales increased 10.1% year over year to $908 million. Core sales rose 5.7%, acquisitions contributed 3.2% and favorable currency translation added 1.2%. Price and volume contributed 2.9% and 2.8%, respectively. Chemical water treatment solutions delivered 10.7% core growth, supported by broad-based industrial demand. The segment recorded double-digit growth across data centers, chemical processing, oil and gas and food and beverage markets. Adjusted operating profit increased 12.6% to $241 million, while the margin expanded 60 basis points to 26.5%. Product Quality and Innovation sales rose 3.8% to $566 million. Core sales increased 2%, acquisitions added 1.2% and currency provided a 0.6 percentage point benefit. Pricing contributed 3%, partly offset by a 1% volume decline. Marking and coding core sales grew 3.5%, with gains across equipment, consumables and services. However, lower sales of color-testing and packaging-inspection equipment weighed on packaging and color operations. Adjusted operating profit advanced 8.6% to $152 million and the adjusted margin increased 130 basis points to 26.9%. Adjusted operating profit increased 11.7% to $363 million. The adjusted operating margin expanded 90 basis points to 24.6%, while the adjusted gross margin improved 160 basis points to 61.6%. Refunds tied to tariffs previously collected under the International Emergency Economic Powers Act contributed 5 cents per share to adjusted earnings. They accounted for 110 basis points of gross-margin expansion, while price and volume leverage added another 50 basis points. Excluding the refunds, the underlying business generated 14% adjusted earnings growth. Reported operating profit was $315 million, up from $313 million in the year-ago quarter. The reported operating margin contracted to 21.4% from 22.8%, reflecting restructuring charges and other adjustments. Second-quarter costs included $29 million related to Veralto's 2026 Cost Optimization Program, $17 million of acquisition-related intangible amortization and $2 million associated with strategic initiatives. Reported net earnings increased to $241 million from $222 million, while diluted earnings rose to 98 cents from 89 cents. Operating cash flow totaled $340 million, compared with $339 million a year earlier. Capital expenditures were $12 million, resulting in free cash flow of $328 million and a conversion rate of 136% of net earnings. Veralto ended the quarter with $2.12 billion in cash, gross debt of $3.38 billion and net debt of $1.26 billion. During the quarter, it spent about $195 million to acquire GlobalVision, allocated $134 million to share repurchases and paid $32 million in dividends. For the third quarter of 2026, Veralto expects core sales growth of 4-5% and adjusted operating margin expansion of approximately 25 basis points. VLTO’s adjusted earnings are projected between $1.06 and $1.09 per share. For 2026, management raised its core sales growth forecast to 4-4.5% from 3-4.5%. Adjusted earnings guidance increased to $4.35-$4.43 from $4.20-$4.28, implying growth of 12% to 14%. The company expects adjusted operating margin expansion of 25-50 basis points and free cash flow conversion above 100% of GAAP net earnings. It turns out, estimates revision have trended upward during the past month. Currently, Veralto has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock has a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Veralto has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veralto Corporation (VLTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Veralto Corporation? Here are five stocks we like better. Veralto raised its full-year outlook after Q2 sales increased 7.6%, core sales grew 4.2%, adjusted EPS rose 19.4%, and free cash flow reached $328 million. The company now expects adjusted EPS of $4.35–$4.43, representing 12%–14% annual growth. Industrial water demand remains a key growth driver, supported by data centers, semiconductors, mining, reshoring, water scarcity, and reuse trends. Management expects second-half core sales growth to accelerate to approximately 5%–6%, led mainly by volume. PQI is expected to recover in the second half as digital workflow, marking and coding, packaging, and color-validation demand improves. Veralto also continues disciplined acquisitions and share repurchases, having bought back more than 5 million shares for about $480 million year to date. Veralto (NYSE:VLTO) said second-quarter sales rose 7.6% from a year earlier, supported by 4.2% core sales growth, a 19.4% increase in adjusted earnings per share, and $328 million of free cash flow. President and Chief Executive Officer Jennifer Honeycutt said Water Quality led the company’s core growth with a 5.7% increase, while Product Quality & Innovation, or PQI, grew 2%. Both segments accelerated sequentially from the first quarter, according to the company. → Microsoft Just Flipped the AI Spending Narrative Overnight Veralto expects core sales growth to accelerate further to approximately 5% to 6% year over year in the second half. On the basis of its second-quarter performance and portfolio momentum, the company raised its full-year adjusted EPS outlook to $4.35 to $4.43, representing projected annual growth of 12% to 14%. Honeycutt cited continued strength in industrial water markets, including demand tied to data centers and related power, mining and semiconductor activity. Water scarcity and reuse trends also continue to create opportunities for water-treatment solutions, she said. → 2 Unique Space ETFs That Could Upend the Industry Chief Financial Officer Sameer Ralhan said second-half core growth is expected to be driven principally by volume, while pricing is expected to moderate from first-half levels but remain at or slightly above the high end of the company’s range. About 50% of Veralto’s water revenue comes from industrial applications, Honeycutt said, with much of that exposure in North America. The company is also seeing support from reshoring and nearshoring activity. ChemTreat, Veralto’s industrial water-treatment business, is posting strong double-digit growth, though Honeycutt noted that it remains a smaller part of the overall company. → MarketBeat Week in Review – 07/27- 07/31 Municipal water markets have remained resilient, management said. Honeycutt noted that roughly 60% of the company’s revenue is recurring, tied to customers’ ongoing operating needs. She said the company believes it can continue growing its municipal business at mid-single-digit rates or better, even as utilities and municipalities manage tighter budgets. Ralhan added that municipal demand is supported by analytical products from Hach as well as wastewater bid activity in the Trojan business. Management expects broad-based improvement in PQI during the second half. Ralhan said the segment’s growth outlook is supported by demand for digital workflow solutions, continued strength in marking and coding, and improving funnels and sales velocity for color-validation and certification instrumentation. Honeycutt said the company is seeing solid bookings for its digital workflow portfolio, including Esko, TraceGains and GlobalVision. The businesses are intended to help consumer packaged goods companies manage packaging design, regulatory compliance, ingredient traceability and print accuracy. The company also expects a recovery in packaging and color equipment. Honeycutt said Veralto exited the second quarter with improved sales funnels and stronger service growth, while new product launches are contributing to momentum. On artificial intelligence, management said GlobalVision provides a deterministic inspection engine designed to deliver repeatable results in regulated workflows. Veralto is working to deploy AI across its digital workflow offerings to support faster time to market, traceability and regulatory compliance. Ralhan said Veralto expects approximately 25 basis points of sequential margin expansion in the third quarter and 25 to 50 basis points of expansion for the full year. Fourth-quarter margin expansion is expected to exceed 50 basis points, led primarily by PQI. PQI’s fourth-quarter improvement is expected to benefit from better fixed-cost absorption and from the absence of prior impacts associated with duplicate production lines in marking and coding, Ralhan said. Water Quality margins are expected to remain comparatively steady. Veralto received about $16 million in tariff refunds during the quarter, including roughly $10 million in PQI and $6 million in Water Quality. Ralhan said the refunds contributed 110 basis points to adjusted operating-profit margin expansion. The company has not included additional tariff refunds in its second-half guidance, though it could receive a further benefit of about $0.02 per share based on filings already made; the timing remains uncertain. The company’s cost-optimization program remains on track. Management expects only a small benefit, measured in a few million dollars, in the fourth quarter, with the largest savings expected in 2027. Veralto completed the acquisition of Alfaa UV, an India-based supplier of ultraviolet water-treatment solutions, during the quarter. Honeycutt described the business as a small but double-digit grower that complements Trojan and Veralto’s previously acquired AQUAFIDES UV business in Europe. The acquisition expands Trojan’s geographic reach and adds solutions for a range of water-treatment applications. Management said recently acquired businesses have delivered near-term commercial benefits through combined product portfolios, joint sales efforts and sales acceleration. Ralhan said the company is ahead of the commercial synergy targets associated with its environmental workflow combination of In-Situ and OTT. The company repurchased more than 5 million shares year to date for approximately $480 million, representing just over 2% of outstanding shares. Ralhan said Veralto’s first capital-allocation preference remains acquisitions, but it will continue to repurchase shares opportunistically when it sees a disconnect between the company’s cash generation and public-market valuation. Veralto said its acquisition pipeline remains active across both operating segments, while emphasizing that it intends to remain patient and disciplined in pursuing deals. Veralto Corporation provides water analytics, water treatment, marking and coding, and packaging and color services worldwide. It operates through two segments, Water Quality (WQ) and Product Quality & Innovation (PQI). The WQ segment offers precision instrumentation and water treatment technologies to measure, analyze, and treat water in residential, commercial, municipal, industrial, research, and natural resource applications through the Hach, Trojan Technologies, and ChemTreat brands. This segment provides water solutions, including chemical reagents, services, and digital solutions. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Veralto Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Core sales growth accelerated sequentially to 4.2% in Q2, primarily driven by a 5.7% increase in Water Quality and a 2% rise in PQI. Industrial water demand is being propelled by the data center ecosystem, including power, mining, and semiconductor sectors, where ChemTreat is seeing double-digit growth. Water scarcity and climate change factors are driving increased adoption of water recycling and reuse solutions across industrial and municipal markets. PQI performance is increasingly tied to digital workflow solutions as CPG brands prioritize product compliance, ingredient traceability, and faster time-to-market. The company maintains a high-quality revenue mix with 60% recurring revenue, providing stability as municipal customers prioritize non-elective operating budgets. Strategic bolt-on acquisitions like Alfaa UV and GlobalVision are being integrated to expand geographic reach in India and enhance AI-driven inspection capabilities. Management expects core sales growth to accelerate further to approximately 5% to 6% in the second half of 2026. Second-half growth is projected to be volume-led, with pricing expected to moderate slightly while remaining at or above the high end of historical ranges. Full-year adjusted EPS guidance was raised to $4.35 to $4.43, reflecting confidence in momentum and a strong funnel of digital workflow bookings. Margin expansion of 25 to 50 basis points is targeted for the full year, with Q4 expected to exceed 50 basis points due to improved fixed cost absorption in PQI. A cost optimization program is underway with small savings expected in Q4 2026 and the primary financial benefits realized in 2027. Q2 results included $16 million in IEEPA tariff refunds, which contributed 110 basis points to adjusted operating profit margins. Management noted an additional $0.02 per share in potential tariff refunds may be available, but excluded this from guidance due to high timing uncertainty. The company repurchased over 5 million shares for approximately $480 million in the first half, signaling a commitment to opportunistic capital return. High-growth markets remained relatively flat, characterized by a recovery in China's PQI segment offset by continued softness in China's water business. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Growth will be supported by strong industrial demand for data centers and easier year-over-year comparisons in the marking and coding segment. Management cited high visibility into digital workflow recoveries based on current Annual Contract Value (ACV) bookings. The primary bias remains toward M&A to create long-term value, though management will use buybacks if they perceive a disconnect between cash flow and market valuation. M&A funnels are active on both sides of the business, but management emphasized they will remain patient and disciplined as deals are episodic. AI is being integrated into digital workflow solutions to provide 'agentic' layers for mistake-proofing and faster packaging design cycles. The GlobalVision acquisition specifically provides a deterministic inspection engine that uses AI to ensure repeatable, error-free results for regulated CPG brands. Management clarified that municipal operating budgets for water treatment are non-elective, insulating the business from broader federal funding fluctuations. Growth in this segment is being driven by the deployment of new technologies and software that improve plant efficiency.

Veralto VLTO reported impressive second-quarter 2026 results, with both earnings and revenues beating the Zacks Consensus Estimate. VLTO’s adjusted earnings of $1.11 per share topped the Zacks Consensus Estimate by 11% and increased 19.4% from the year-ago quarter, aided by core sales growth, operating execution and tariff refunds. Veralto Corporation price-consensus-eps-surprise-chart | Veralto Corporation Quote Sales of $1.47 billion surpassed the consensus estimate by 2.5% and rose 7.6% year over year. Core sales grew 4.2%, led by Water Quality growth of 5.7%, while acquisitions and currency movements also supported the top line. VLTO’s shares have dipped 6.9% over the past year compared with the industry’s 9.3% decline. The Zacks S&P 500 composite has risen 18.7% over the same time frame. Core sales growth reflected a 3% contribution from pricing and a 1.2% increase in volume. Acquisitions added 2.4% to reported growth, driven mainly by In-Situ in Water Quality and GlobalVision in Product Quality and Innovation. Foreign-currency movements provided a 1 percentage point benefit. Recurring revenues grew at a high-single-digit rate and represented 62% of total sales, while non-recurring revenues advanced at a mid-single-digit pace. Water Quality sales increased 10.1% year over year to $908 million. Core sales rose 5.7%, acquisitions contributed 3.2% and favorable currency translation added 1.2%. Price and volume contributed 2.9% and 2.8%, respectively. Chemical water treatment solutions delivered 10.7% core growth, supported by broad-based industrial demand. The segment recorded double-digit growth across data centers, chemical processing, oil and gas and food and beverage markets. Adjusted operating profit increased 12.6% to $241 million, while the margin expanded 60 basis points to 26.5%. Product Quality and Innovation sales rose 3.8% to $566 million. Core sales increased 2%, acquisitions added 1.2% and currency provided a 0.6 percentage point benefit. Pricing contributed 3%, partly offset by a 1% volume decline. Marking and coding core sales grew 3.5%, with gains across equipment, consumables and services. However, lower sales of color-testing and packaging-inspection equipment weighed on packaging and color operations. Adjusted operating profit advanced 8.6% to $152 million and the adjusted margin increased 130 basis points to 26.9%. Adjusted operating profit increased 11.7% to $363 million. The adjusted operating margin expanded 90 basis points to 24.6%, while the adjusted gross margin improved 160 basis points to 61.6%. Refunds tied to tariffs previously collected under the International Emergency Economic Powers Act contributed 5 cents per share to adjusted earnings. They accounted for 110 basis points of gross-margin expansion, while price and volume leverage added another 50 basis points. Excluding the refunds, the underlying business generated 14% adjusted earnings growth. Reported operating profit was $315 million, up from $313 million in the year-ago quarter. The reported operating margin contracted to 21.4% from 22.8%, reflecting restructuring charges and other adjustments. Second-quarter costs included $29 million related to Veralto's 2026 Cost Optimization Program, $17 million of acquisition-related intangible amortization and $2 million associated with strategic initiatives. Reported net earnings increased to $241 million from $222 million, while diluted earnings rose to 98 cents from 89 cents. Operating cash flow totaled $340 million, compared with $339 million a year earlier. Capital expenditures were $12 million, resulting in free cash flow of $328 million and a conversion rate of 136% of net earnings. Veralto ended the quarter with $2.12 billion in cash, gross debt of $3.38 billion and net debt of $1.26 billion. During the quarter, it spent about $195 million to acquire GlobalVision, allocated $134 million to share repurchases and paid $32 million in dividends. For the third quarter of 2026, Veralto expects core sales growth of 4-5% and adjusted operating margin expansion of approximately 25 basis points. Adjusted earnings are projected between $1.06 and $1.09 per share. The Zacks Consensus Estimate for the same is pegged at $1.00 per share. For 2026, management raised its core sales growth forecast to 4-4.5% from 3-4.5%. Adjusted earnings guidance increased to $4.35-$4.43 from $4.20-$4.28, implying growth of 12% to 14%. The Zacks Consensus Estimate for the same is pegged at $4.24 per share. The company expects adjusted operating margin expansion of 25-50 basis points and free cash flow conversion above 100% of GAAP net earnings. Veralto currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. WEX Inc. WEX reported better-than-expected second-quarter 2026 results. WEX’s adjusted earnings of $5.35 per share outpaced the Zacks Consensus Estimate by 5.3% and increased 35.4% from the year-ago quarter. WEX’s revenues of $753.5 million topped the consensus estimate by 1.8% and improved 14.2% year over year. Waste Connections, Inc. WCN posted impressive second-quarter 2026 results. WCN’s adjusted earnings of $1.50 per share outpaced the consensus mark by 11.1% and rose 16.3% from the year-ago quarter. WCN’s total revenues of $2.56 billion surpassed the consensus mark by 1.1% and increased 6.4% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Veralto Corporation (VLTO) : Free Stock Analysis Report Waste Connections, Inc. (WCN) : Free Stock Analysis Report WEX Inc. (WEX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. Total Sales Growth: 7.6% year over year. Adjusted EPS Increase: 19.4%. Free Cash Flow: $328 million. Core Sales Growth: 4.2% overall; Water Quality at 5.7%, PQI at 2%. Full Year Adjusted EPS Guidance: Raised to $4.35 to $4.43 per share, representing 12% to 14% growth year over year. Share Repurchase: Over 5 million shares repurchased for approximately $480 million. Warning! GuruFocus has detected 6 Warning Signs with ORCL. Is VLTO fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Veralto Corp (NYSE:VLTO) reported a 7.6% year-over-year increase in total sales for Q2 2026. Adjusted EPS grew by 19.4%, showcasing strong profitability. The company generated robust free cash flow of $328 million. Core sales growth was led by Water Quality at 5.7% and PQI at 2%, with expectations for continued acceleration. Veralto Corp (NYSE:VLTO) raised its full-year adjusted EPS guidance to $4.35 to $4.43 per share, indicating 12% to 14% growth year-over-year. The company faces risks and uncertainties related to forward-looking statements, which could impact future performance. There is a slight moderation expected in pricing, which may affect revenue growth. The impact of volatile raw material costs, particularly in ChemTreat, remains a concern. High-growth markets were relatively flat, with some shrinkage in the Water segment in China. The timing of potential tariff refunds remains uncertain, which could affect future financial results. Q: Can you unpack the drivers behind the 5% to 6% core revenue growth guidance for the second half of the year? A: Jennifer Honeycutt, CEO, explained that the growth is driven by strong industrial market demand in Water, particularly from data centers and associated ecosystems like power and semiconductors. Additionally, water scarcity issues are boosting recycling and reuse solutions. For PQI, there's strong demand for digital workflow solutions and steady demand for marketing and coating solutions, aided by easier comps in Q4. CFO Sameer Ralhan added that the growth will be volume-led, with pricing slightly moderating but still strong. Q: How are you approaching capital allocation, particularly regarding acquisitions and share buybacks? A: Sameer Ralhan, CFO, stated that the primary focus is on M&A to create long-term value, with opportunistic share buybacks if there's a disconnect between free cash flow generation and market valuation. The M&A pipeline is active, but they remain patient and disciplined. Q: Can you provide insights into the opportunity size in data centers, power generation, and semiconductor fabs? A: Sameer Ralhan noted that while the revenue from these sectors is still small at the Veralto level, it's becoming significant for ChemTreat. Jennifer Honeycutt added that ChemTreat is experiencing strong dual-digit growth, driven by these sectors and industrial reshoring activities. Q: What is the outlook for margin progression in the second half of the year? A: Sameer Ralhan indicated that margins are expected to improve sequentially, with a 25 basis point expansion in Q3 and 25 to 50 basis points for the full year. Q4 will see a significant uplift, especially in PQI, due to improved fixed cost absorption and production line efficiencies. Q: How are you leveraging recent acquisitions like Esko, TraceGains, and GlobalVision to drive sales? A: Jennifer Honeycutt highlighted that these acquisitions enhance the digital workflow for consumer goods, integrating packaging design, compliance, and traceability. This integration accelerates time-to-market and provides significant value to brand owners. The environmental monitoring workflows are also benefiting from synergies between In-Situ and OTT products. For the complete transcript of the earnings call, please refer to the full earnings call transcript.