It has been about a month since the last earnings report for Veralto (VLTO Quick QuoteVLTO - Free Report) . Shares have added about 1.8% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Veralto due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

VLTO Beats Q3 Earnings Estimates

Veralto reported impressive third-quarter 2025 results, with earnings and revenues beating the Zacks Consensus Estimate.

Quarterly adjusted earnings of 99 cents per share surpassed the consensus mark by 4.2% and increased 11.2% year over year. Total revenues of $1.4 billion beat the consensus estimate by a 0.6% margin and rose 6.9% from the year-ago quarter.

VLTO’s Quarterly Numbers in Detail

The Water Quality segment recorded revenues of $856 million, which grew 6.9% year over year. The Product, Quality & Innovation segment’s top line gained 6.8% year over year to $548 million.

Adjusted EBITDA was $347 million, a 6.12% rise from the year-ago quarter. The adjusted operating EBITDA margin declined 20 basis points to 24.7% from the year-ago quarter.

Cash Flow of VLTO

Veralto exited the third quarter with a cash and cash equivalent balance of $1.78 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 $270 million in cash from operating activities in the reported quarter, while capital expenditure was $12 million.

VLTO’s Q4 & 2025 Guidance

For the fourth quarter of 2025, Veralto expects revenues to grow in the low single digits year over year and projects adjusted diluted earnings per share between 95 cents and 98 cents.

For the full-year 2025, the company has raised its adjusted earnings per share guidance to $3.82- $3.85, up from its prior guidance range of $3.72-$3.80. VLTO also raised its full-year cash flow conversion guidance to approximately 100%.

This full-year guidance assumes mid-single-digit core sales growth, with adjusted operating profit margin expansion in the range of flat to +25 basis points year over year.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

VGM Scores

Currently, Veralto has a average Growth Score of C, a grade with the same score on the momentum front. Following the exact same course, the stock has a score of C on the value side, putting it in the middle 20% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been trending upward for the stock, and the magnitude of this revision looks promising. It comes with little surprise Veralto has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry Player

Veralto is part of the Zacks Waste Removal Services industry. Over the past month, Waste Management (WM Quick QuoteWM - Free Report) , a stock from the same industry, has gained 10%. The company reported its results for the quarter ended September 2025 more than a month ago.

Waste Management reported revenues of $6.44 billion in the last reported quarter, representing a year-over-year change of +14.9%. EPS of $1.98 for the same period compares with $1.96 a year ago.

Waste Management is expected to post earnings of $1.98 per share for the current quarter, representing a year-over-year change of +16.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.7%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Waste Management. Also, the stock has a VGM Score of B.