AI-extracted from the 10-Q filed 2026-07-29 — Q2 FY2026 (quarter ended July 3, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Veralto's Q2 FY2026 revenue rose 7.6% YoY to $1,474M, but operating margin fell to 21.4% from 22.8% as $29M of 2026 Cost Optimization Program restructuring charges hit Product Quality & Innovation profitability especially hard.
Biggest Revenue Drivers
Water Quality$908M+10.1% YoY
Core sales growth driven by the chemical treatment solutions business and, to a lesser extent, analytical instrumentation, with strength in North America and Western Europe
Product Quality & Innovation$566M+3.8% YoY
Growth driven by the marking and coding business, partially offset by a decline in packaging and color solutions due to global macroeconomic conditions
Biggest Revenue Drivers
Total revenue: $1,474M+7.6% YoY
Water Quality$908M+10.1% YoY
Core sales growth driven by the chemical treatment solutions business and, to a lesser extent, analytical instrumentation, with strength in North America and Western Europe
Product Quality & Innovation$566M+3.8% YoY
Growth driven by the marking and coding business, partially offset by a decline in packaging and color solutions due to global macroeconomic conditions
Largest Expense Items
Cost of sales$572M+4.2% YoY
Higher year-over-year sales volumes, increased labor costs, and price increases due to inflation
Selling, general and administrative expenses$514M+270bps as % of sales YoY
Restructuring costs related to the 2026 Cost Optimization Program, incremental labor costs, and sales and marketing growth initiatives
Research and development expenses$73M
Essentially flat as a percentage of sales (5.0% vs 4.9%) year-over-year
Margins: Gross margin rose 120bps YoY to 61.2% on pricing actions, labor productivity, and IEEPA tariff recoveries. Operating margin fell to 21.4% from 22.8% as 200bps of 2026 Cost Optimization Program restructuring charges outweighed core sales gains and tariff recoveries.
Watch Items from the Filing
2026 Cost Optimization Program restructuring charges were $29M in Q2 alone, cutting PQI operating margin by 380bps; total program costs expected at $85M-$105M through 2028.
Core sales in high-growth markets were roughly flat to down (WQ -1.5%, PQI +1.4%) in Q2, with mid-single-digit declines in Latin America and China cited across segments.
Recurring revenue represented approximately 62% of total sales for the six-month period, underpinning a resilient business model with limited capex needs.
$317M remains authorized under the $750M share repurchase program after $434M of buybacks year-to-date through July 3, 2026.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Wallis-Lage Cindy L.DirectorGrant or award · Jul 24, 2026
Schwieters John TDirectorGrant or award · Jul 15, 2026
Ralhan SameerSVP, Chief Financial OfficerShares withheld for tax or exercise price · Jul 15, 2026
Filler LindaDirectorGrant or award · Jul 15, 2026
Colpron FrancoiseDirectorGrant or award · Jul 15, 2026
Comas Daniel LDirectorGrant or award · Jul 15, 2026
Congress trading in VLTO
11 transactions in VLTO reported by 5 members of Congress under the STOCK Act, most recent trade Aug 21, 2026. Reported transactions, not recommendations.
About Veralto Corp (VLTO): stock profile, AI score and financials
Veralto Corp (VLTO) stock profile, AI quality score, and SEC EDGAR financial data, a Technology sector company. 13F Pro's AI-powered ranking engine scores VLTO at 66.1/100 on a composite quality score built from its SEC filings, placing it at rank #429 of 2,925 stocks — the top 25% of the AI-ranked universe. VLTO scores in the top quartile across balance sheet strength (89.8), revenue scale (79.6), institutional flow (77.6). Shareholder dilution risk is elevated at 47.8/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), Veralto Corp reports quarterly revenue of $1.5B, net income of $241.0M, an operating margin of 21.4%. Top institutional holders of VLTO by reported 13-F value include BlackRock, VANGUARD CAPITAL MANAGEMENT, T. Rowe Price Investment Management, based on the most recent SEC filings. VLTO trades on the NYSE exchange and files with the SEC under CIK 1967680. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate VLTO daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Veralto Corp directly from SEC EDGAR.