Veralto (US:VLTO) ZACKS·2025-12-12 17:30Core 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]