Water and product quality solutions provider's Q2 sales rose 7.6%, beating analyst expectations
Adjusted EPS for Q2 increased 19% and beat analyst expectations
Company raised full-year adjusted EPS guidance following strong Q2 performance
Drivers behind the results
Water quality demand - Co said strong demand for industrial water treatment, water reuse, and environmental water monitoring drove Water Quality segment growth
Digital solutions growth - Co said digital workflow solutions in packaging and color delivered strong underlying growth in PQI segment
Tariff refunds - Q2 results included a benefit from recoveries of tariffs previously collected under IEEPA, contributing about $0.05 per share to adjusted EPS
Raised outlook for 2026 and Q3
Veralto raised 2026 core sales growth guidance to 4.0%-4.5% from 3.0%-4.5%
Company now expects 2026 adjusted EPS of $4.35-$4.43, up from $4.20-$4.28
Veralto sees Q3 core sales growth of 4.0%-5.0% and adjusted EPS of $1.06-$1.09
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell". The average consensus recommendation for the environmental services & equipment peer group is "buy".
Wall Street's median 12-month price target for Veralto Corp is $105.79, about 12.2% above its July 27 closing price of $94.28. The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 21 three months ago.
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