Veralto Q4 EPS Beats by 6.1%, $1.4B Revenue; Guidance Signals Slower Growth
Veralto reported Q4 adjusted EPS of $1.04, beating estimates by 6.1%, with revenue rising 3.8% year-over-year to $1.4 billion and operating margin expanding to 24.6%. Management forecasts Q1 2026 core sales growth of flat to low-single digits and full-year core growth of low-to-mid-single digits with mid-to-high-single-digit adjusted EPS gains.
1. Q4 2025 Performance
Veralto’s adjusted EPS of $1.04 in Q4 exceeded consensus by 6.1% and rose 9.5% year-over-year. Revenues increased 3.8% to $1.4 billion as both Water Quality and Product Quality & Innovation segments saw mid-single-digit growth, while adjusted operating margin expanded to 24.6%.
2. Full-Year 2025 Results
For 2025, Veralto delivered $5.5 billion in revenue, up 6% from 2024, with core sales growth of 4.7%. Adjusted EPS reached $3.90, up 10%, supported by a 0.2 percentage-point margin expansion to 24.3%, and operating cash flow jumped over 20% to $1.08 billion, driving free cash flow to $1.01 billion.
3. 2026 Guidance and Market Reaction
Management projects Q1 2026 core sales flat to low-single digits and full-year core growth of low-to-mid-single digits, with adjusted EPS growth in the mid-to-high single-digit range. The guidance prompted a roughly 6% share pullback as investors recalibrated near-term growth expectations.