Veralto has maintained structural resilience with gross margins consistently near 60.1% and operating margins reaching 23.8% in 2026Q1, indicating effective overhead management.
| Sales/Revenue | 5.59B | 5.5B | 5.19B | 5.02B | 4.87B | 4.7B |
| Revenue Growth % | 5.95% | 5.97% | 3.43% | 3.1% | 3.62% | - |
| Cost of Goods Sold | 2.25B | 2.2B | 2.09B | 2.12B | 2.11B | 1.99B |
| COGS % of Revenue | - | 40.05% | 40.21% | 42.22% | 43.33% | 42.28% |
| Gross Profit | 3.35B | 3.3B | 3.1B | 2.9B | 2.77B | 2.71B |
| Gross Margin % | 59.86% | 59.95% | 59.79% | 57.78% | 56.86% | 57.72% |
| Gross Profit Growth % | - | 6.25% | 7.03% | 4.77% | 2.06% | - |
| Operating Expenses | 2.06B | 2.02B | 1.9B | 1.76B | 1.65B | 1.67B |
| OpEx % of Revenue | - | 36.74% | 36.53% | 35.07% | 33.84% | 35.57% |
| Selling, General & Admin | 1.78B | 1.76B | 1.64B | 1.54B | 1.47B | 1.43B |
| SG&A % of Revenue | - | 31.91% | 31.66% | 30.59% | 30.27% | 30.38% |
| Research & Development | 270M | 266M | 253M | 225M | 217M | 244M |
| R&D % of Revenue | - | 4.83% | 4.87% | 4.48% | 4.46% | 5.19% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | -43M | 0 |
| Operating Income | 1.29B | 1.28B | 1.21B | 1.14B | 1.11B | 1.04B |
| Operating Margin % | 23.12% | 23.21% | 23.26% | 22.7% | 22.83% | 22.15% |
| Operating Income Growth % | - | 5.71% | 5.96% | 2.52% | 6.82% | - |
| EBITDA | 1.36B | 1.35B | 1.29B | 1.23B | 1.2B | 1.15B |
| EBITDA Margin % | 24.37% | 24.62% | 24.76% | 24.44% | 24.68% | 24.4% |
| EBITDA Growth % | 3.81% | 5.37% | 4.81% | 2.08% | 4.8% | - |
| D&A (Non-Cash Add-back) | 70M | 78M | 78M | 87M | 90M | 106M |
| EBIT | 1.3B | 1.27B | 1.2B | 1.13B | 1.11B | 1.04B |
| Net Interest Income | -93M | -96M | -113M | -30M | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 93M | 96M | 113M | 30M | 0 | 0 |
| Other Income/Expense | -88M | -104M | -122M | -44M | 1M | 6M |
| Pretax Income | 1.21B | 1.17B | 1.09B | 1.1B | 1.11B | 1.05B |
| Pretax Margin % | 21.54% | 21.32% | 20.91% | 21.83% | 22.85% | 22.28% |
| Income Tax | 236M | 233M | 253M | 257M | 268M | 186M |
| Effective Tax Rate % | 19.59% | 19.86% | 23.3% | 23.45% | 24.08% | 17.77% |
| Net Income | 969M | 940M | 833M | 839M | 845M | 861M |
| Net Margin % | 17.33% | 17.08% | 16.04% | 16.71% | 17.35% | 18.32% |
| Net Income Growth % | 10.87% | 12.85% | -0.72% | -0.71% | -1.86% | - |
| Net Income (Continuing) | 969M | 940M | 833M | 839M | 845M | 861M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 1M | 0 | 7M | 6M | 5M | 4M |
| EPS (Diluted) | 3.89 | 3.76 | 3.34 | 3.41 | 3.43 | 3.50 |
| EPS Growth % | 10.57% | 12.57% | -2.05% | -0.58% | -2% | - |
| EPS (Basic) | - | 3.79 | 3.37 | 3.41 | 3.43 | 3.50 |
| Diluted Shares Outstanding | 249.2M | 250.3M | 249.6M | 246.4M | 246.1M | 246.1M |
| Basic Shares Outstanding | 247.6M | 248.3M | 247.3M | 246.4M | 246.1M | 246.1M |
| Dividend Payout Ratio | - | 11.6% | 10.68% | - | - | - |
M&A Integration Execution Risk
According to quarterly financial data, Veralto has maintained a steady revenue growth trajectory, peaking at 6.8% year-over-year in 2026Q1, which suggests that the company's core business model remains resilient even as it navigates the operational complexities of its recent separation from its former parent company.
The consistent mid-single-digit growth appears to be driven by the non-discretionary nature of its water quality and product coding segments. Investors should monitor whether this growth can accelerate as the company leverages its independent status to pursue more aggressive market penetration.
As reported in recent income statements, Veralto has consistently maintained gross margins near the 60% threshold, with the 2026Q1 figure reaching 60.1%, indicating significant pricing power derived from its proprietary consumable-heavy business model and high-consequence-of-failure regulatory requirements for its installed base of instrumentation.
This margin profile suggests that the company successfully passes through input cost volatility to its customer base. The stability of these margins implies that the competitive moat surrounding its reagents and inks remains largely intact despite broader industrial sector pressures.
Based on the provided financial figures, Veralto's operating income has scaled effectively alongside revenue, with operating margins reaching 23.8% in 2026Q1, suggesting that the implementation of the Veralto Enterprise System is successfully managing overhead costs as the firm matures into an independent operating entity.
The ability to expand operating margins while maintaining consistent R&D investment indicates disciplined expense management. This trend warrants further investigation to determine if these gains are sustainable or if they represent temporary cost-cutting measures following the corporate spin-off.
Data from recent filings shows that Veralto's net income has grown to $254 million in 2026Q1, with stock-based compensation trending toward zero in the most recent quarter, which suggests a high quality of earnings that is not being artificially inflated by equity-based dilution or non-operating items.
The absence of significant stock-based compensation in the latest period is a positive indicator for shareholders, as it suggests management is focused on cash-based performance metrics. Investors should continue to monitor tax rate fluctuations and potential non-recurring items that could impact future net income quality.
While current margins appear robust, a critical analysis of the income statement suggests that the 23.8% operating margin may face pressure if the company fails to offset the loss of Danaher's procurement scale, potentially leading to higher-than-anticipated stand-up costs in future reporting periods.
Short-term margin expansion may be masking underlying dis-synergies that could emerge as the company fully separates its corporate functions. Investors should be wary of the assumption that historical Danaher-era efficiency levels can be maintained without the parent company's massive operational infrastructure.
Quick answers to the most common questions about buying VLTO stock.
For fiscal year 2025, Veralto Corporation (VLTO) reported total revenue of $5.50B. This represents a 17.1% increase compared to $4.70B in 2021.
Veralto Corporation (VLTO) is profitable, generating $940.0M in net income for the fiscal year ending 2025 with a net profit margin of 17.1%.
Veralto Corporation (VLTO) reported an operating income of $1.28B, resulting in an operating profit margin of 23.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Veralto Corporation (VLTO) generated $3.30B in gross profit for the year, representing a gross profit margin of 59.9%. This demonstrates the company's core pricing power and production efficiency.