Veralto Shares Jump 3.6% After Q4 EPS Beat, Guides Modest Growth
Veralto’s Q4 adjusted EPS of $1.04 beat consensus by 6.1% and rose 9.5% year-over-year, while revenue grew 3.8% to $1.4B with operating margin at 24.6%. Shares have gained 3.6% since that report, and management forecasts low-to-mid-single-digit core sales growth with mid-to-high-single-digit EPS gains for FY26.
1. Q4 2025 Earnings and Margins
Veralto reported adjusted EPS of $1.04 in Q4 2025, a 6.1% beat over estimates and a 9.5% increase from a year earlier. Revenue rose 3.8% to $1.4 billion, and adjusted operating margin expanded to 24.6%, driven by resilient demand across Water Quality and Product Quality & Innovation segments.
2. Full-Year 2025 Performance
For full-year 2025, the company delivered $5.5 billion in revenue, up 6% year-over-year, with adjusted EPS of $3.90, a 10% increase. Operating cash flow climbed over 20% to $1.08 billion, while free cash flow reached $1.01 billion, highlighting strong cash generation and disciplined cost control.
3. Q1 2026 and Full-Year 2026 Guidance
Management forecasts Q1 2026 core sales growth in a flat to low-single-digit range and full-year core sales growth of low-to-mid-single digits. Adjusted EPS is expected to grow at a mid-to-high single-digit rate, with modest margin expansion planned for FY26.
4. Stock Performance and Market Reaction
Shares have risen 3.6% since the Q4 earnings release as investors reassess valuation relative to execution. Estimate revisions have trended downward over the past month, and the stock holds a VGM Score of B, reflecting strong momentum but average value and growth metrics.