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Veralto Gears Up to Report Q3 Earnings: What's in the Cards?

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Key Takeaways

  • Veralto's Q3 revenues are projected to rise 6.7% to $1.5B, while earnings may grow 11.1% to $1.10.
  • Strong industrial demand and ChemTreat's water treatment solutions are expected to drive WQ growth.
  • Digital workflows, AI-backed solutions, cost optimization and buyout synergies will likely support results.

Veralto (VLTO - Free Report) is set to report third-quarter 2026 results on Oct. 29, after the closing bell.

The company’s earnings surprise history has been impressive. Its earnings surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering a surprise of 6.6%, on average.

Veralto Corporation Price and EPS Surprise

Veralto Corporation Price and EPS Surprise

Veralto Corporation price-eps-surprise | Veralto Corporation Quote

Q3 Expectations for VLTO

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.5 billion, indicating a year-over-year increase of 6.7%. The consensus estimate for Water Quality ("WQ") revenues and operating income is pegged at $910.9 million, hinting at a 6.4% year-over-year increase. Solid industrial demand, mainly across data centers, power generation, semiconductor manufacturing and mining, is likely to have been the primary factor behind this segment’s growth.

Strong demand for ChemTreat’s industrial water treatment solutions, aided by reshoring and near-shoring activities, is expected to have further supported revenues. We also expect the Alfaa UV buyout and In-Situ and OTT integration to have strengthened the company’s market presence.

The consensus estimate for Product Quality & Innovation ("PQI") revenues and operating income is pinned at $581.5 million, indicating a 6.1% year-over-year increase. Robust bookings for digital workflow solutions stemmed from a growing focus on regulatory compliance among consumer-packaged goods companies. Ingredient traceability, packaging accuracy and rapid product launches are likely to have supported this segment.

Other factors likely to have contributed to this growth include the rising adoption of integrated solutions from Esko, TraceGains and GlobalVision. Additional momentum is expected to be provided by persistent demand for marking and coding solutions, along with enhanced product innovation and AI-backed workflow solutions.

The consensus estimate for earnings is pegged at $1.1 per share, indicating year-over-year growth of 11.1%. Higher sales volumes, enhanced operational prowess, productivity gains and prudent pricing are factors likely to have benefited the bottom line. Beside the aforementioned factors, cost-optimization initiatives, improving fixed-cost absorption, buyout-related synergies and share repurchases are expected to have provided additional support.

What Our Model Says

Our proven model predicts an earnings beat for VLTO this time around. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.

VLTO currently has an Earnings ESP of +0.46% and a Zacks Rank #3.

Other Stocks to Consider

Here are a few other stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.

WEX (WEX - Free Report) has an Earnings ESP of +3.42% and a Zacks Rank of 2. The company is scheduled to report its third-quarter 2026 results on Oct. 28. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Visa’s third-quarter 2026 revenues is pegged at $753 million, indicating year-over-year growth of 8.9%. For earnings, the consensus mark is pegged at $5.63 per share, implying a 22.7% rally from the year-ago quarter’s actual. WEX's earnings beat the consensus estimate in the trailing four quarters, the average surprise being 4.3%.

Mastercard (MA - Free Report) has an Earnings ESP of +0.11% and a Zacks Rank of 2. The company is scheduled to declare third-quarter 2026 results on Oct. 29.

The Zacks Consensus Estimate for MA’s third-quarter 2026 revenues is $9.6 billion, indicating 12% year-over-year growth. The consensus estimate for earnings is pegged at $5.14 per share, implying a year-over-year increase of 17.4%. MA's earnings also surpassed the consensus estimate in the trailing four quarters, delivering an average surprise of 6.3%.

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