Water solutions firm Veralto's Q4 adjusted EPS beats estimates

Overview

• Water solutions firm's Q4 sales rose 3.8% yr/yr, meeting analyst expectations

• Adjusted EPS for Q4 beat analyst estimates

• Company announced $750 mln share repurchase program and 18% dividend increase

Outlook

• Veralto expects Q1 2026 non-GAAP core sales growth flat to low-single digits

• Company targets Q1 2026 adjusted EPS between $0.97 and $1.01

• Veralto forecasts full-year 2026 adjusted EPS between $4.10 and $4.20

Result Drivers

• ACQUISITION EXPANSION - Acquisition of In-Situ expanded water analytics portfolio into high growth environmental water markets

• SHARE REPURCHASE PROGRAM - Established $750 mln share repurchase program and increased dividend by 18%

• OPERATIONAL EFFICIENCY - VES-driven execution improved operating efficiency in dynamic macro-economic environment

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 10 "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 $113.50, about 11.8% above its February 2 closing price of $101.48

• The stock recently traded at 24 times the next 12-month earnings vs. a P/E of 24 three months ago

Press Release: ID:nPn58MQ03a

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