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Veralto Q2 Earnings & Revenues Beat Estimates, Increase Y/Y

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Key Takeaways

  • Q2 EPS rose 9.4% YoY to $0.93, topping estimates by 4.5%; revenues grew 6.4% to $1.37B.
  • Water Quality and Product Quality segments posted 6.2% and 6.9% growth, both beating expectations.
  • VLTO raised 2025 EPS guidance to $3.72-$3.80 and now sees mid-single-digit core sales growth.

Veralto Corporation (VLTO - Free Report) reported impressive second-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate.

Quarterly adjusted earnings of 93 cents per share surpassed the consensus mark by 4.5% and increased 9.4% year over year. Total revenues of $1.37 billion beat the consensus estimate by a 2.1% margin and rose 6.4% from the year-ago quarter.

Veralto Corporation Price, Consensus and EPS Surprise

Veralto Corporation Price, Consensus and EPS Surprise

Veralto Corporation price-consensus-eps-surprise-chart | Veralto Corporation Quote

The stock has gained 7.5% over the past 90 days, outperforming the 0.7% growth of the industry but underperforming the 15% rise of the Zacks S&P 500 composite.

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VLTO’s Quarterly Numbers in Detail

The Water Quality segment recorded revenues of $825 million, which grew 6.2% year over year. The Product, Quality & Innovation segment’s top line gained 6.9% year over year to $546 million.

Adjusted EBITDA was $285 million, a 5.6% rise from the year-ago quarter. The adjusted operating EBITDA margin improved 17 basis points to 20.79% from the year-ago quarter.

Cash Flow of VLTO

Veralto exited the second quarter with a cash and cash equivalent balance of $1.56 billion compared with the December-end quarter’s $1.1 billion. Long-term debt at the end of the quarter was $2.67 million compared with $2.60 billion at the end of the fourth quarter of 2024.

VLTO generated $496 million in cash from operating activities in the reported quarter, while capital expenditure was $16 million.

VLTO’s Q3 & 2025 Guidance

For the third quarter of 2025, Veralto expects revenues to grow in the mid-single-digits yearover year and projects adjusted diluted earnings per share to range from 91 cents to 95 cents. The Zacks Consensus Estimate for the same is pegged lower at 89 cents.    

For full-year 2025, the company has raised its adjusted earnings per share guidance of $3.72 to $3.80, up from its prior guidance range of $3.60-$3.70. The current year’s Zacks Consensus Estimate is pegged lower at $3.71. VLTO targets a free cash flow conversion rate of 90% to 100%. The company also increased its full-year core sales growth assumption to mid-single-digits, up from its prior assumption of low to mid-single-digits. Adjusted operating profit margins will expand by up to 50 basis points year over year or remain flat.

VLTO carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Earnings Snapshot

Fiserv, Inc. (FI - Free Report) reported mixed second-quarter 2025 results, wherein earnings beat the Zacks Consensus Estimate, but revenues missed the same.

FI’s adjusted earnings per share of $2.47 topped the consensus mark by 2.5% and rose 16% year over year. Adjusted revenues of $5.2 billion missed the consensus estimate by a slight margin but gained 1.7% on a year-over-year basis.

The Interpublic Group of Companies, Inc. (IPG - Free Report) reported impressive second-quarter 2025 results. Both earnings and revenues beat the Zacks Consensus Estimate.

IPG’s adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate by 36.4% and jumped 23% from the year-ago quarter. Revenues before billable expenses (net revenues) of $2.2 billion beat the consensus estimate by a slight margin but declined 19.8% year over year. Total revenues of $2.5 billion decreased 7.2% year over year but outpaced the Zacks Consensus Estimate of $2.2 billion.


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