Abstract
Veralto Corporation will publish its quarterly results on February 03, 2026, Post Market; this preview outlines current consensus for revenue, margins, net profit, and adjusted EPS alongside segment highlights and institutional views supported by recent commercial performance and rating updates.Market Forecast
Consensus for the current quarter indicates total revenue of $1.40 billion, up 4.37% year over year, adjusted EPS of $0.98, up 9.67% year over year, and EBIT of $0.33 billion, up 3.63% year over year. Margin forecasts are not formally provided, but the company’s prior gross profit delivery sets a reference point as investors assess profitability into this quarter.Water Quality remains the larger contributor by revenue and is expected to benefit from steady customer demand and disciplined commercial execution; Product Quality & Innovation continues to demonstrate robust operating practices consistent with guidance for low-single-digit core sales growth. Water Quality, at $0.86 billion last quarter, anchors growth as company-level revenue advanced 6.85% year over year and guidance implies a further 4.37% year-over-year increase this quarter.
Last Quarter Review
Veralto Corporation reported revenue of $1.40 billion, a gross profit margin of 60.11%, GAAP net profit attributable to the parent company of $239.00 million, a net profit margin of 17.02%, and adjusted EPS of $0.99, up 11.24% year over year.Operationally, net profit improved 7.66% quarter over quarter, while adjusted EPS and sales surpassed consensus, and management raised full-year adjusted EPS guidance to $3.82–$3.85 on confident execution. Main business performance was led by Water Quality revenue of $0.86 billion (60.97% of total) and Product Quality & Innovation revenue of $0.55 billion (39.03% of total), with total revenue rising 6.85% year over year on strong commercial discipline and consistent demand across key end markets.
Current Quarter Outlook
Water Quality Segment Outlook
Water Quality is the dominant revenue engine and was $0.86 billion last quarter, accounting for 60.97% of total sales. Entering the current quarter, the company signaled low-single-digit core sales growth and maintained tight commercial execution, which provides a foundation for stable performance in this largest segment. While a formal gross margin forecast is not provided, the 60.11% gross margin last quarter sets an observable benchmark that investors will use to judge pricing discipline and cost efficiency, given the segment’s scale and mix. The revenue projection for the consolidated company at $1.40 billion, up 4.37% year over year, implies that Water Quality should continue to carry the bulk of growth, especially if backlog conversion trends remain steady. Segment exposure to diversified customers aids predictability, and the combination of product breadth and consumables-related demand typically supports sequential resiliency into year-end quarters. In this context, execution on orders, service delivery, and any incremental pricing realization will anchor near-term results and be essential to protecting the net profit margin after last quarter’s 17.02%.Product Quality & Innovation Momentum
Product Quality & Innovation contributed $0.55 billion last quarter, representing 39.03% of total revenue. The company’s commentary highlighted disciplined operating practices and strong commercial performance, which underpinned adjusted EPS outperformance and a full-year guidance raise in the previous quarter. For the current quarter, guidance for low-single-digit core sales growth supports expectations that this segment can extend its momentum, with revenue scale offering leverage to consolidated EBIT, guided at $0.33 billion, up 3.63% year over year. Near-term delivery will depend on maintaining order flow consistency and sustaining service and software attachment rates that help support margins without formally stated segment-level targets. Given the consolidated adjusted EPS forecast of $0.98, up 9.67% year over year, the segment’s priority is to convert commercial activity into profitable growth while avoiding dilution from project timing or cost inflation. Cohesive execution and timely fulfillment remain crucial for translating pipeline opportunities into realized sales, thereby contributing to the company’s consolidated revenue trajectory and earnings cadence this quarter.Key Stock Price Drivers This Quarter
Stock performance this quarter is most sensitive to the company delivering within or above its adjusted EPS framework of $0.95–$0.98 and achieving the consolidated revenue increase of 4.37% year over year. The ability to sustain gross margin around the prior-quarter benchmark of 60.11% without explicit guidance will be watched closely, as margin stability often dictates investor confidence in pricing strategy and cost control. Consolidated EBIT expected at $0.33 billion, up 3.63% year over year, provides a lens on operating efficiency; print-through from revenue to EBIT, and from EBIT to adjusted EPS, will be central to the valuation debate. The prior quarter’s net profit margin of 17.02% and the quarter-on-quarter net profit improvement of 7.66% create an expectation baseline; any deviation—positive or negative—will likely trigger swift market reactions, given a next-twelve-month multiple around 26.00 times referenced by analysts. For immediate-term trading, confirmation of low-single-digit core sales growth, coupled with better-than-anticipated margin outcomes and tight expense management, would align with the bullish consensus and underpin targets clustered around $119.00–$121.00. Conversely, if revenue growth decelerates from the 4.37% year-over-year consensus or if EPS slips beneath the $0.95–$0.98 band, pressure could emerge despite neutral-to-positive rating dispersion, particularly if investors perceive a change in commercial cadence.Analyst Opinions
Analyst sentiment is predominantly bullish, with buy recommendations outnumbering sell or underperform calls; recent tallies show 11 buy or strong buy ratings, 9 hold recommendations, and no sell or strong sell ratings. A prominent institution reiterated a Buy on the shares with a $121.00 price target, reflecting confidence in the company’s ability to deliver low-single-digit core sales growth and adjusted EPS near the upper end of recent guidance. The median 12-month price target stands at $119.00, which implies approximately 12.50% upside to a referenced share price, and the stock trades around 26.00 times next-twelve-month earnings—a multiple that places emphasis on near-term execution.The bullish camp’s core arguments are grounded in the company’s demonstrated commercial discipline and consistent delivery against guidance, as seen in the previous quarter’s revenue of $1.40 billion and adjusted EPS of $0.99, up 11.24% year over year. Supporters point to the raised full-year adjusted EPS outlook of $3.82–$3.85 and the net profit improvement of 7.66% quarter over quarter as tangible evidence of momentum. For the upcoming print, bulls expect consolidated revenue to rise 4.37% year over year to $1.40 billion and adjusted EPS to reach $0.98, up 9.67% year over year, supported by EBIT of $0.33 billion, up 3.63% year over year. Observers also highlight the consistency of demand across key end markets noted last quarter and the structural benefits of disciplined operating practices, which together reduce the likelihood of abrupt variance against guidance. Price targets in the $119.00–$121.00 range are seen as reasonable benchmarks if the company maintains margin resilience around the prior quarter’s 60.11% gross profit level and protects the 17.02% net profit margin, even as mix and currency can introduce quarter-specific noise.
From a valuation perspective, bulls argue that the 26.00 times next-twelve-month earnings multiple is supported by the company’s ability to convert commercial activity into earnings growth, especially with adjusted EPS targeted near $0.98 in the current quarter and full-year guidance effectively marking a steady step-up. The position is that an execution-based upside case—revenue at $1.40 billion and adjusted EPS at $0.98 with demand across Water Quality and Product Quality & Innovation consistent with expectations—would justify maintaining or modestly expanding the multiple. Moreover, with Water Quality at $0.86 billion and Product Quality & Innovation at $0.55 billion last quarter, the portfolio revenue mix affords hedging against discrete end-demand shifts, which is central to bullish expectations of stable to improving profitability. The bullish view further emphasizes that recent outperformance against consensus and the formal guidance raise indicate management’s confidence and that delivery within the guided ranges should sustain positive recommendation momentum. Under this framework, analysts in the majority camp remain constructive, seeing Q4 as an opportunity to affirm the company’s revenue increase of 4.37% year over year and adjusted EPS near $0.98, thus supporting targets of $119.00–$121.00 and strengthening the basis for favorable rating persistence.
In summary, the majority of analysts maintain a constructive stance ahead of the upcoming report, highlighting the company’s predictable revenue trajectory, cost discipline, and improved profitability metrics. With consolidated revenue expected at $1.40 billion, adjusted EPS at $0.98, and EBIT at $0.33 billion, the market anticipates a continuation of the previous quarter’s execution. Bulls see confirmation of low-single-digit core sales growth and margin steadiness as adequate to sustain valuation and drive target adherence. The consensus path implies relatively modest, but tangible, year-over-year improvement in revenue and earnings, and the portfolio’s balanced contribution from Water Quality and Product Quality & Innovation aligns with the broader positive rating posture. If the quarter confirms these expectations—particularly on adjusted EPS delivery and revenue growth—the bullish majority anticipates the shares to reflect that performance in line with targets around $119.00–$121.00 under current assumptions and market conditions.
Comments