Core Viewpoint - Veralto Corporation will host a webcast for its fourth quarter 2025 earnings conference call on February 4, 2026, at 8:30 a.m. ET, highlighting its commitment to transparency and investor engagement [1]. Group 1: Earnings Call Details - The earnings conference call can be accessed by dialing 1-800-267-6316 within the U.S. or +1 203-518-9783 internationally, with a Conference ID of VLTO4Q25 [3]. - A replay of the conference call will be available until February 18, 2026, providing investors with continued access to the information shared [3]. - Veralto's earnings news release and related materials will be posted on its website after market close on February 3, 2026 [3]. Group 2: Company Overview - Veralto has annual sales of $5 billion and is recognized as a global leader in essential technology solutions [4]. - The company employs nearly 17,000 associates and is dedicated to addressing complex societal challenges, particularly in providing access to clean water, safe food, and trusted essential goods [4]. - Veralto's mission is encapsulated in its purpose statement: "Safeguarding the World's Most Vital Resources" [4].

Core Insights - Veralto Corporation (VLTO) is a global provider of water analytics, treatment, marking and coding, packaging, and color solutions, with a market capitalization of approximately $25.5 billion [1] Financial Performance - Analysts project diluted EPS of $0.98 for fiscal 2025 Q4, reflecting a 3.2% increase from $0.95 in the previous year, with Veralto having exceeded EPS estimates in the last four quarters [2] - For fiscal 2025, Wall Street forecasts diluted EPS of $3.84, indicating an 8.5% year-over-year growth, with expectations for EPS to reach $4.20 in fiscal 2026, a 9.4% increase from the prior year [3] Stock Performance - VLTO stock has shown marginal gains over the past 52 weeks, up nearly 3% year-to-date, while the S&P 500 Index has increased by 17.7% over the same period [4] - The First Trust Water ETF (FIW) has gained nearly 12% over the past 52 weeks, further highlighting the relative underperformance of Veralto [4] Strategic Developments - On November 25, 2025, Veralto's shares rose 5.9% intraday following the announcement of its acquisition of In-Situ for $435 million, expected to close in Q1 2026 [5] - The acquisition is anticipated to add scale and profitability, with In-Situ projected to generate about $80 million in revenue for 2025, alongside gross margins near 50% and mid-teens EBITDA margins [6] - Veralto expects approximately $11 million in pre-tax run-rate cost synergies by year three from the acquisition, along with significant commercial and operational benefits [6] Capital Return Strategy - Veralto has authorized a share repurchase program of up to $750 million, allowing for flexibility in executing buybacks over time [7]

Core Insights - Veralto Corporation (VLTO) is experiencing rapid growth primarily due to its Water Quality (WQ) and Product Quality & Innovation (PQI) segments [1] Group 1: Water Quality Segment - The WQ segment is benefiting from innovative products and services that enhance water quality and reliability, driven by the CHIPS Act of 2022, increased demand for digital tools, AI, and government funding for water infrastructure [2] Group 2: Product Quality & Innovation Segment - The PQI segment is growing quickly by catering to consumer-packaged goods (CPG), life sciences, and pharmaceutical companies, with the Marketing & Coding (M&C) sub-segment being vital for digitalization and customer engagement [3] Group 3: Recent Developments - The acquisition of TraceGains enhances VLTO's capabilities in supply chain traceability and compliance, further supporting its growth trajectory [4] Group 4: Financial Performance - VLTO holds a Zacks Rank 2 (Buy), indicating strong investment potential, with a history of positive earnings surprises averaging 6.5% over the last four quarters [5][6] - The consensus estimate for Q4 2025 revenues is $1.40 billion, reflecting a 4.4% increase year-over-year, while the full-year estimate for 2025 is $5.5 billion, indicating a 6.1% rise [6] - Earnings estimates for Q4 2025 are projected at 98 cents per share, showing a 3.2% growth year-over-year, with a full-year estimate of $3.8 per share, implying an 8.5% increase from the previous year [7] Group 5: Market Position - VLTO's growth is supported by rising demand for digital and AI solutions, with the TraceGains acquisition strengthening its market position [10]

Company Overview - Veralto Corporation (VLTO) is an industrial-technology company based in Waltham, Massachusetts, operating globally in two main segments: Water Quality (WQ) and Product Quality & Innovation (PQI) [1] - The company has a market capitalization of approximately $24.4 billion, classifying it as a large-cap stock, which highlights its size and influence in the pollution and treatment controls industry [2] Stock Performance - The stock is currently trading 10.6% below its 52-week high of $110.11, which was reached on August 22, and has declined 7.1% over the past three months, underperforming the S&P 500 Index's 5% gains during the same period [3] - Over the past 52 weeks, VLTO has fallen 7.9% and 3.8% year-to-date (YTD), significantly underperforming the S&P 500's 13.3% rise over the past year and 16.3% gains this year [4] Market Sentiment and Challenges - The stock has faced pressure due to a mix of investor caution and structural concerns, including scrutiny over a recent acquisition plan for In-Situ and worries about demand weakness in regions like China, which may hinder growth prospects [5] - VLTO has underperformed compared to its rival, CECO Environmental Corp., which has surged 70.5% over the past 52 weeks and 89.8% YTD [5] Analyst Ratings - The stock has a consensus rating of "Moderate Buy" from 18 analysts, with a mean price target of $115.31, indicating a potential 17.2% premium to its current price levels [6]

Core Viewpoint - The article summarizes the latest analyst ratings from Wall Street, highlighting significant upgrades, downgrades, and new coverage that could impact market sentiment and investment decisions [1][6]. Upgrades - Oppenheimer upgraded General Electric Energy (GEV) from "Hold" to "Outperform," setting a target price of $855, citing improved pricing and sales, along with enhanced factory utilization and operational efficiency [5]. - JPMorgan raised PepsiCo (PEP) from "Neutral" to "Overweight," increasing the target price from $151 to $164, due to the company's accelerated innovation and marketing spending [5]. - HSBC upgraded AbbVie (ABBV) from "Hold" to "Buy," with a target price increase from $225 to $265, noting the company's growth momentum and strong execution capabilities [5]. - Morgan Stanley raised Terex (TEX) from "Equal Weight" to "Overweight," with a target price increase from $47 to $60, as the company's performance has rebounded and its business mix has improved [5]. - Oppenheimer upgraded Dyne Therapeutics (DYN) from "Hold" to "Outperform," significantly raising the target price from $11 to $40, highlighting the stock's undervaluation compared to its competitor Avidity [5]. Downgrades - HSBC downgraded Biogen (BIIB) from "Hold" to "Reduce," with a slight target price decrease from $144 to $143, citing the poor performance of its multiple sclerosis business [5]. - Jefferies lowered Emerson Electric (EMR) from "Buy" to "Hold," maintaining a target price of $145, indicating limited short-term upside due to the company's recent performance outlook [5]. - JPMorgan downgraded Noble Energy (NE) from "Overweight" to "Neutral," raising the target price from $31 to $33, while expressing caution about upstream capital expenditures [5]. - Jefferies downgraded Rexnord (RRX) from "Buy" to "Hold," reducing the target price from $170 to $160, noting that the company's transformation plan is taking longer than expected [5]. - Jefferies lowered Vail Resorts (VLTO) from "Buy" to "Hold," with a target price decrease from $125 to $105, stating that the current stock price reflects the company's stable demand and strong returns [5]. New Coverage - Guggenheim initiated coverage on Amazon (AMZN) with a "Buy" rating and a target price of $300, suggesting that the retail sector is showing signs of improvement despite previous concerns [9]. - B. Riley initiated coverage on Roblox (RBLX) with a "Buy" rating and a target price of $125, highlighting the company's strong long-term fundamentals [13]. - Cowen initiated coverage on Sensata Technologies (IOT) with an "Outperform" rating and a target price of $55, believing the company's platform aligns well with the $45 trillion "physical operations" industry [13]. - B. Riley initiated coverage on Take-Two (TTWO) with a "Buy" rating and a target price of $300, driven by the anticipated release of Grand Theft Auto 6 in November 2026 [13]. - Canadian Imperial Bank of Commerce initiated coverage on Shark Ninja (SN) with a "Buy" rating and a target price of $135, viewing the company as a "category disruptor" [13].

Core Insights - Veralto reported strong Q3 2025 results, with adjusted earnings of 99 cents per share, exceeding estimates by 4.2% and increasing 11.2% year-over-year. Total revenues reached $1.4 billion, surpassing estimates by 0.6% and rising 6.9% from the previous year [2][3]. Financial Performance - The Water Quality segment generated revenues of $856 million, reflecting a 6.9% year-over-year growth. The Product, Quality & Innovation segment saw revenues of $548 million, up 6.8% year-over-year. Adjusted EBITDA was $347 million, a 6.12% increase from the prior year, although the adjusted operating EBITDA margin decreased by 20 basis points to 24.7% [3]. - Veralto ended Q3 with cash and cash equivalents of $1.78 billion, up from $1.1 billion at the end of the previous year. Long-term debt was reported at $2.67 million, a slight increase from $2.60 billion at the end of Q4 2024. The company generated $270 million in cash from operating activities, with capital expenditures of $12 million [4]. Guidance and Estimates - For Q4 2025, Veralto anticipates low single-digit revenue growth year-over-year and projects adjusted diluted earnings per share between 95 cents and 98 cents. The full-year 2025 adjusted earnings per share guidance has been raised to a range of $3.82 to $3.85, up from $3.72 to $3.80. The company also expects cash flow conversion to be approximately 100% for the full year [5][6]. - Since the earnings release, there has been an upward trend in estimates revisions for Veralto, indicating positive investor sentiment [7][10]. Industry Context - Veralto operates within the Zacks Waste Removal Services industry. Competitor Waste Management reported revenues of $6.44 billion for the quarter ended September 2025, marking a year-over-year increase of 14.9%. Waste Management's EPS for the same period was $1.98, compared to $1.96 a year ago [11].

Core Viewpoint - Veralto (VLTO) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system tracks the Zacks Consensus Estimate, which reflects EPS estimates from sell-side analysts, and is crucial for understanding stock price movements [1][2]. - Changes in a company's future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements [4][6]. Veralto's Earnings Outlook - For the fiscal year ending December 2025, Veralto is expected to earn $3.84 per share, unchanged from the previous year, but analysts have raised their estimates by 1.6% over the past three months [8]. - The upgrade to Zacks Rank 2 suggests an improvement in Veralto's underlying business, which is likely to drive the stock price higher [5][10]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [7][9]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Core Viewpoint - Veralto Corporation (VLTO) is a technology company focused on water analytics, treatment, and related solutions, currently valued at a market cap of $24.4 billion [1] Financial Performance - In Q3, VLTO reported total revenue of $1.4 billion, a 6.8% year-over-year increase, meeting analyst estimates [4] - The adjusted EPS for Q3 was $0.99, an 11.2% increase from the previous year, surpassing consensus estimates of $0.95 [4] - For the current fiscal year, analysts expect VLTO's EPS to grow 8.5% year-over-year to $3.84 [5] Stock Performance - Over the past 52 weeks, VLTO shares have declined by 4.5%, while the S&P 500 Index has gained 13.7% [2] - Year-to-date, VLTO is down 3.7%, compared to a 13.4% increase in the S&P 500 [2] - VLTO has also underperformed compared to the Invesco Global Water ETF, which rose by 8.8% over the past 52 weeks [3] Analyst Ratings and Price Targets - The consensus rating for VLTO among 18 analysts is a "Moderate Buy," with 10 "Strong Buy" and 8 "Hold" ratings [5] - UBS Group AG maintained a "Neutral" rating on VLTO and raised its price target to $112, indicating a 14.2% potential upside [6] - The mean price target of $115.88 suggests an 18.2% premium from current levels, while the highest price target of $125 indicates a 27.5% potential upside [6] Guidance - VLTO raised its fiscal 2025 adjusted EPS guidance to a range of $3.82 to $3.85 [4]

Industry Overview - The U.S. Business Services Sector is supported by strong domestic economic fundamentals, encompassing companies that provide consulting, staffing, financial transactions, outsourcing, advertising, waste removal, building maintenance, technology services, and auction/valuation services [1] - The sector has evolved into a mature and resilient ecosystem, with revenues, income, and cash flows now above pre-pandemic levels [2] - The rapid advancement and adoption of artificial intelligence and automation technologies are reshaping the delivery of business services [2] Sector Performance - The Zacks-defined Business Services Sector ranks in the top 38% of the Zacks Sector Rank, indicating an expectation to outperform the market over the next three to six months [3] Recommended Stocks - Five business services stocks with favorable Zacks Rank are recommended: Xylem Inc. (XYL), Thomson Reuters Corp. (TRI), UL Solutions Inc. (ULS), Omnicom Group Inc. (OMC), and Veralto Corp. (VLTO), all carrying a Zacks Rank 2 (Buy) [4] Company Insights Xylem Inc. (XYL) - Xylem experiences steady demand due to the essential nature of its offerings, benefiting from robust demand for smart metering and applications in the U.S. [5] - The Water Infrastructure unit's performance is boosted by growth in transport and treatment application businesses, with an expected revenue growth rate of 3.7% and earnings growth rate of 9.6% for next year [6] Thomson Reuters Corp. (TRI) - Thomson Reuters is a leading provider of value-added information and technology across various sectors, including law, tax, accounting, and healthcare [7] - The company has an expected revenue growth rate of 7.8% and earnings growth rate of 14.2% for next year [8] UL Solutions Inc. (ULS) - UL Solutions provides safety science services across multiple segments, including Industrial, Consumer, and Software and Advisory [9] - The company has an expected revenue growth rate of 5.4% and earnings growth rate of 6.5% for next year [10] Omnicom Group Inc. (OMC) - Omnicom Group's diverse portfolio across traditional and digital marketing segments ensures revenue stability and adaptability [11] - The company has an expected revenue growth rate of 3.2% and earnings growth rate of 6.9% for next year [13] Veralto Corp. (VLTO) - Veralto is positioned for growth through U.S. infrastructure investments and rising semiconductor demand, with a strong focus on water quality and product quality segments [14][15] - The company has an expected revenue growth rate of 5.8% and earnings growth rate of 9.3% for next year [17]

Core Insights - Veralto announced the appointment of Kimberly Y. (Kim) Chainey as Senior Vice President and Chief Legal Officer, effective December 1, 2025, reporting to President and CEO Jennifer L. Honeycutt [1][2] Company Overview - Veralto is a global leader in essential technology solutions with annual sales exceeding $5 billion, focusing on clean water, safe food, and trusted essential goods [5] - The company is headquartered in Waltham, Massachusetts, and employs nearly 17,000 associates dedicated to making a positive impact on the world [5] Leadership Background - Chainey has over 20 years of experience advising C-suite executives and boards at Global 100 and Fortune 500 companies, leading legal, regulatory, compliance, and government relations functions [2] - Prior to joining Veralto, Chainey held legal leadership roles at Aptar Group, Panasonic Aviation Corporation, Avis Budget Group, the Hershey Company, and Morgan Lewis [2] Chainey's Vision and Contributions - Chainey expressed admiration for Veralto's impact on public safety and emphasized her commitment to guiding organizations through complex legal and strategic challenges [3] - She holds a bachelor's degree in environmental science and public policy from Harvard University, along with a Juris Doctor and MBA from the University of Pennsylvania [3] Recognition and Awards - Chainey has received multiple accolades, including being named a 2025 Legends in Law by the Burton Awards and recognized as one of the Most Influential Women in Corporate America by Savoy Magazine [4]