Core Insights - Veralto Corporation (VLTO) has consistently exceeded earnings expectations, achieving an average surprise of 6.01% over the last four quarters [1][8] - Revenue growth is projected at 6.64% for 2026 and 4.08% for 2027, with earnings expected to rise by 7.93% in 2026 and 8.03% in 2027 [1] Growth Drivers - The company is enhancing its Water Quality segment through innovative solutions from brands like Hach, ChemTreat, and Trojan Technologies, and plans to acquire In-Situ Inc. for approximately $435 million to bolster its environmental water monitoring capabilities [2] - Veralto has initiated a $750 million share repurchase program, reflecting its commitment to disciplined capital allocation and shareholder value enhancement [2][3] - The Product Quality & Innovation segment is experiencing growth through brands such as Esko and Videojet, which provide advanced packaging design and coding solutions [4] Strategic Focus - Veralto is targeting sales growth by focusing on data centers, leveraging AI-powered solutions to improve energy efficiency and reduce water consumption [5] - The acquisition of TraceGains aims to integrate cloud-based traceability and compliance software with the Esko digital workflow platform, enhancing market reach and operational efficiency [5] Shareholder Returns - In Q4 2025, Veralto launched a $750 million share repurchase program and increased its quarterly dividend by 18% to 13 cents per share, reaffirming its commitment to returning capital to shareholders [3] - The company distributed $89 million in dividends in 2024 and $109 million in 2025, showcasing a strong track record of capital returns [3]

Company Overview - Veralto Corporation, headquartered in Waltham, Massachusetts, specializes in water analytics, water treatment, marking and coding, and packaging and color services globally. The company was spun off from Danaher Corporation in 2023 and employs nearly 17,000 people, with significant operations in North America, Western Europe, and high-growth markets [11]. Zacks Rank and Style Scores - Veralto is currently rated 3 (Hold) on the Zacks Rank, with a VGM Score of B. The company has a Momentum Style Score of A, indicating strong momentum in its stock performance, with shares up 3.6% over the past four weeks [12]. - The Zacks Rank is a proprietary stock-rating model that utilizes earnings estimate revisions to assist investors in building successful portfolios. Stocks rated 1 (Strong Buy) have historically produced an average annual return of +23.86% since 1988, significantly outperforming the S&P 500 [7]. Earnings Estimates - In the last 60 days, three analysts have revised their earnings estimates upwards for Veralto for fiscal 2026, with the Zacks Consensus Estimate increasing by $0.02 to $4.22 per share. The company has an average earnings surprise of +6% [12]. Investment Consideration - With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, Veralto is recommended for investors looking for potential opportunities in the market [13].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-41770 Washington, D.C. 20549 ____________________________________ FORM 10-K VERALTO CORPORATION (Exact name of registrant as specified in its charter) | Delaware | | ...

Core Viewpoint - Zacks Premium provides various tools and resources to help investors make informed decisions and enhance their confidence in stock market investments [1][2]. Zacks Style Scores - The Zacks Style Scores are indicators designed to assist investors in selecting stocks with the highest potential to outperform the market within a 30-day timeframe, rated from A to F based on value, growth, and momentum [3]. Value Score - The Value Style Score identifies attractive and discounted stocks using financial ratios such as P/E, PEG, Price/Sales, and Price/Cash Flow [4]. Growth Score - The Growth Style Score focuses on a company's future prospects and financial health, analyzing projected and historical earnings, sales, and cash flow to identify stocks with sustainable growth [5]. Momentum Score - The Momentum Style Score helps investors capitalize on price trends, utilizing factors like one-week price changes and monthly earnings estimate changes to determine optimal entry points [6]. VGM Score - The VGM Score combines the three Style Scores, providing a comprehensive rating based on value, growth, and momentum, making it a valuable tool alongside the Zacks Rank [7]. Zacks Rank - The Zacks Rank is a proprietary stock-rating model that uses earnings estimate revisions to simplify portfolio building, with 1 (Strong Buy) stocks achieving an average annual return of +23.86% since 1988, significantly outperforming the S&P 500 [8][9]. Stock Selection Strategy - To maximize returns, investors should target stocks with a Zacks Rank of 1 or 2 and Style Scores of A or B, while also considering the direction of earnings estimate revisions [11][12]. Company Spotlight: Veralto Corporation - Veralto Corporation, based in Waltham, Massachusetts, specializes in water analytics, treatment, and related services, employing nearly 17,000 people globally [13]. - Currently rated 3 (Hold) by Zacks, Veralto has a VGM Score of B and a Growth Style Score of B, with a projected year-over-year earnings growth of 7.4% for the current fiscal year [14]. - The Zacks Consensus Estimate for Veralto's earnings has increased to $4.20 per share, with an average earnings surprise of +6%, making it a potential candidate for growth investors [14][15].

Company Overview - Veralto Corporation (VLTO) has a market cap of approximately $23 billion and operates in water analytics, water treatment, and product quality solutions through its Water Quality and Product Quality & Innovation segments [1] - The company serves various industries, including municipal utilities, food and beverage, pharmaceuticals, and industrials, under well-known brands such as Hach, Trojan Technologies, Videojet, Esko, X-Rite, and Pantone [1] Stock Performance - Over the past 52 weeks, VLTO shares have decreased by 3.6%, while the S&P 500 Index has returned 11.5% [2] - Year-to-date, VLTO shares are down 5.3%, contrasting with a marginal decline in the S&P 500 [2] - VLTO has also underperformed the State Street Industrial Select Sector SPDR ETF, which has returned 26.9% over the same period [3] Financial Performance - In Q4 2025, Veralto reported an adjusted EPS of $1.04, which was better than expected; however, shares fell by 6.2% the following day due to disappointing 2026 guidance [6] - The Q1 adjusted EPS guidance is projected between $0.97 and $1.01, with a full-year EPS forecast of $4.10 to $4.20, indicating slower sequential growth [6] - Analysts expect a 6.9% year-over-year growth in adjusted EPS for the fiscal year ending December 2026, reaching $4.18 [7] Analyst Ratings and Price Targets - Among 18 analysts covering VLTO, the consensus rating is a "Moderate Buy," consisting of nine "Strong Buy" ratings and nine "Holds" [7] - Stifel analyst Nathan Jones has lowered the price target for Veralto to $118 while maintaining a "Buy" rating [8] - The mean price target of $109.19 suggests a 16.4% premium to current levels, while the highest price target of $120 indicates a potential upside of 27.9% [8]

Core Viewpoint - Veralto Corporation (NYSE: VLTO) is currently considered one of the best IPO stocks to buy, despite recent price target adjustments by analysts [1]. Analyst Ratings and Price Targets - UBS analyst Joshua Spector lowered the price target for Veralto to $102 from $109 while maintaining a Neutral rating [1][6]. - Stifel analyst Nathan Jones reduced the price target to $118 from $120, keeping a Buy rating, noting that modest misses in earnings compared to consensus estimates have led to significant share price declines [2]. - Barclays analyst William Grippin also adjusted the price target for Veralto to $117 from $121, maintaining an Overweight rating, attributing the stock's recent decline to broader market dynamics rather than company-specific issues [3]. Company Overview - Veralto Corporation provides services in water analytics, water treatment, marking and coding, and packaging and color solutions globally, operating through two segments: Water Quality and Product Quality & Innovation [4].

Core Insights - Veralto experienced broad-based growth in 2025, with total sales reaching an all-time high of $5.5 billion, marking a 6% increase year-over-year, and core sales growing by 4.7% [3][8] - The company reported strong fourth-quarter results, with sales rising 3.8% to nearly $1.4 billion and adjusted EPS increasing by 9% to $1.04 [14][15] - Management expects low- to mid-single-digit core sales growth for 2026, with adjusted EPS guidance of $4.10 to $4.20 [6][19] Financial Performance - Total sales for the year increased by 6% to $5.5 billion, with adjusted EPS rising 10% to $3.90, and free cash flow exceeding $1 billion [3][8] - Fourth-quarter gross profit increased by 3.4% to $828 million, with a gross margin of 59.3% and adjusted operating margin improving by 80 basis points to 24.6% [15] - The company generated $291 million in free cash flow in the fourth quarter, representing a 115% conversion of GAAP net income [15] Regional and Segment Performance - North America accounted for about 70% of revenue, with core sales growth of 5.3%, while Western Europe saw a 3.8% increase [1][9] - In the Water Quality segment, fourth-quarter sales grew 4.3% to $846 million, with core sales up 1.4% [16] - The PQI segment reported fourth-quarter sales growth of 3% to $550 million, with core sales up 1.8% [17] Strategic Actions - The company announced a $750 million share repurchase program and an 18% increase in dividends [2] - Veralto completed the acquisition of In-Situ for approximately $80 million in 2025 sales, aiming to expand into environmental water and hydrology analytics [7][12] - Management highlighted increased R&D investment leading to several product launches, including a new ammonia analyzer and AI-enabled packaging solutions [10][11] 2026 Guidance and Expectations - For 2026, management anticipates low- to mid-single-digit core sales growth and mid- to high-single-digit total sales growth, with a currency tailwind of 100-150 basis points [18][19] - The company expects approximately 25 basis points of adjusted operating margin expansion, including 50 basis points of improvement in the core business [19] - First-quarter 2026 guidance suggests core sales ranging from flat to low-single digits, with adjusted EPS expected between $0.97 and $1.01 [20][21]

Key Takeaways VLTO posted Q4 adjusted EPS of $1.04, beating estimates by 6.1% as margins expanded year over year.Veralto guided to flat-to-low single-digit Q1 2026 core sales and modest full-year growth.Veralto guided to flat-to-low single-digit Q1 2026 core sales and modest full-year growth.Veralto’s (VLTO) fourth-quarter and full-year 2025 results were objectively solid, marked by earnings growth, margin resilience and strong cash generation. Yet the market’s response has been noticeably restrained.Shares ...

Core Insights - Nathan Jones from Stifel Nicolaus set a price target of $118 for Veralto Corp (NYSE: VLTO), indicating a potential increase of about 30.6% from the current stock price of $90.35 [1][6] Financial Performance - In 2025, Veralto reported a 6% increase in total sales, reaching $5.5 billion, with core sales growth at 4.7% [2][6] - The company achieved double-digit growth in adjusted earnings per share and generated over $1 billion in free cash flow, highlighting its solid financial standing [2] Strategic Initiatives - Veralto has implemented a $750 million share repurchase program and an 18% dividend increase to strengthen its financial position [3][6] - The acquisition of In-Situ has expanded Veralto's Water Analytics portfolio, allowing entry into the growing environmental water and hydrology markets [3] Future Outlook - Looking ahead to 2026, Veralto expects continued core sales growth and margin expansion driven by strong product demand [4] - The company faced challenges in the fourth quarter, with core sales growth at 1.6% due to price increases and slight volume declines, alongside impacts from tariffs and growth investments on incremental margins [4] Quarterly Earnings - Veralto reported impressive quarterly earnings of $1.04 per share, surpassing the Zacks Consensus Estimate of $0.98, marking a 6.01% earnings surprise [5] - Although revenues for the quarter were slightly below estimates, they improved from the previous year, demonstrating Veralto's resilience in a competitive market [5]

Financial Data and Key Metrics Changes - Total sales for 2025 grew 6% year-over-year to $5.5 billion, marking an all-time high [8] - Adjusted earnings per share (EPS) was $3.90, up 10% year-over-year, indicating the second consecutive year of double-digit EPS growth [8] - Free cash flow exceeded $1 billion, strengthening the company's financial position [9] - In Q4, total sales grew 3.8% year-over-year to nearly $1.4 billion, with core sales growing 1.6% [22] Business Line Data and Key Metrics Changes - Water Quality segment delivered $846 million in total sales, up 4.3% year-over-year, with core sales growth of 1.4% [24] - PQI segment total sales grew 3% year-over-year to $550 million, with core sales growth of 1.8% [25] - Both segments experienced steady underlying demand, with price increases contributing to sales growth [22][24] Market Data and Key Metrics Changes - Core sales in North America grew 5.3%, while Western Europe saw a 3.8% increase [9] - High-growth markets experienced a 5.1% increase in core sales year-over-year, led by Latin America, India, and the Middle East [12] - Core sales growth in China was modest, primarily driven by PQI [12] Company Strategy and Development Direction - The company aims for continued core sales growth and margin expansion, targeting mid- to high-single-digit adjusted EPS growth for 2026 [17][30] - Strategic acquisitions, such as In-Situ, are expected to enhance the company's water analytics portfolio and address freshwater challenges [18][20] - The focus remains on disciplined capital allocation and creating long-term shareholder value through M&A opportunities [29][80] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in steady demand for products and services due to the essential need for clean water and safe food [7][33] - The company anticipates another year of core sales growth in 2026, supported by a durable business model and strong secular growth drivers [33] - Management noted that underlying demand remains steady across both municipal and industrial markets, with government funding continuing to flow [41] Other Important Information - The company established a $750 million share repurchase program and announced an 18% increase in its dividend [7][29] - The acquisition of In-Situ was completed early in 2026, funded with cash on hand [28] Q&A Session Summary Question: Expectations on municipal CapEx and demand trends - Management sees steady demand across municipal and industrial markets, with strong growth in industrial sectors like data centers and government funding supporting municipal demand [40][41] Question: Impact of DRAM supply and pricing - The company's exposure to DRAM is minimal, and no material impact is expected [42] Question: Margin expansion guidance and cost considerations - Management expects 50 basis points of margin expansion, driven by pricing and the rolling off of tariff-related headwinds [50][52] Question: Data center growth potential - Data center sales are still a small part of the business but are growing double digits; however, they are not expected to be a meaningful contributor to core growth in 2026 [54] Question: PQI performance related to high protein boom - Demand in CPG markets remains stable, with opportunities arising from changes in packaged foods and dietary requirements [61] Question: Geographic performance in Western Europe - The year-over-year performance was impacted by three fewer shipping days, but overall execution was strong [62] Question: EPS growth guidance and market conditions - Management is being prudent with EPS growth guidance due to macro uncertainties, but underlying demand remains solid [70] Question: Integration plans for In-Situ acquisition - The company is excited about top-line synergies and plans to leverage complementary product portfolios to accelerate growth [82]