Honeycutt Jennifer sold $720K of VLTO

Veralto Corp (VLTO) shares rose 13.2% over three months after improved earnings expectations and stronger Q2 results, according to the company and consensus revisions. Adjusted EPS was $1.11, up 19.4% YoY. Water Quality sales rose to $908 million, and adjusted operating profit rose to $363 million with margin at 24.6%. 2026 guidance was raised to $4.35-$4.43 per share.

Veralto (NYSE:VLTO) said municipal water markets stayed resilient, with about 60% of revenue recurring. Management expects PQI improvement in 2H, bookings for digital workflow products, and packaging and color equipment recovery. It guided for margin expansion of ~25 bps sequential in Q3 and 25-50 bps for FY, plus tariff refunds of about $16M. Veralto also completed the Alfaa UV acquisition and repurchased over 5M shares for ~$480M.

Strategic Performance Drivers Core sales growth accelerated sequentially to 4.2% in Q2, primarily driven by a 5.7% increase in Water Quality and a 2% rise in PQI. Industrial water demand is being propelled by the data center ecosystem, including power, mining, and semiconductor sectors, where ChemTreat is seeing double-digit growth. Water scarcity and climate change factors are driving increased adoption of water recycling and reuse solutions across industrial and municipal markets.

Veralto Corp (VLTO) reported Q2 2026 total sales up 7.6% year over year and adjusted EPS up 19.4%. Free cash flow was $328 million. Core sales rose 4.2%, led by Water Quality (5.7%) and PQI (2%). Full-year adjusted EPS guidance was raised to $4.35 to $4.43 per share, and the company repurchased over 5 million shares for about $480 million.

Veralto (VLTO) reported Q2 2026 adjusted EPS of $1.11, up 19.4% year over year and 11% above the Zacks Consensus. Revenue rose 7.6% to $1.47 billion, 2.5% above estimates. Water Quality led growth; recurring revenue was 62% of sales. Q3 adjusted EPS guidance is $1.06-$1.09.

Veralto (VLTO) reported Q2 2026 adjusted EPS of $1.05 (+19.4%) and $328M free cash flow. The company raised its full-year adjusted EPS outlook to $4.35 to $4.43 (+12% to +14%) on 5.7% water quality core growth and expects 5% to 6% core sales growth in H2, driven by data-center demand and water scarcity.