AI Takeaway
Veralto (VLTO) delivered solid Q2 2026 results with revenue up 6.8% YoY to $1.42B and net income surging 12.9% to $254M, though a sharp rise in current liabilities and heavy capital deployment via buybacks and acquisitions warrant attention.
Revenue
$1.42B
++6.76% YoY
EPS (Basic)
$1.03
++13.19% YoY
Gross Margin
60.1%
-0.38% YoY
Operating Income
$338M
++4.97% YoY
Filed · Source: SEC EDGAR 10-Q filing
Revenue grew 6.8% YoY from $1.33B to $1.42B in Q2 2026, reflecting continued demand across Veralto's water quality and product quality segments. The growth rate outpaced cost of revenue expansion on an absolute basis, supporting stable gross profit of $854M.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
Net income rose 12.9% YoY to $254M while diluted EPS improved 13.3% to $1.02, meaningfully outpacing the 6.8% revenue growth rate. This suggests improved operating leverage or favorable below-the-line items contributing to bottom-line expansion.
Source: Source: 10-Q Income Statement (XBRL Financial Data)
The company initiated $300M in share buybacks (vs. $0 in the prior year period) and investing cash outflows surged to -$439M from -$11M, a -3,890.9% change, suggesting meaningful acquisition or capital expenditure activity in the quarter.
Source: Source: 10-Q Cash Flow Statement (XBRL Financial Data)
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Upgrade to unlockCurrent liabilities increased 69.6% YoY to $1.98B, significantly outpacing current asset growth of 15.1%. This compressed the current ratio to 1.48x and could signal near-term debt maturities, deferred revenue obligations, or acquisition-related payables that may pressure liquidity if not carefully managed.
Source: Source: 10-Q Balance Sheet (XBRL Financial Data)
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Upgrade to unlockReported EPS of $1.07 versus the $1.03 analyst consensus — a +4.3% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $1.42B | $1.33B | +6.76% |
Cost of Revenue | $568M | $527M | +7.78% |
Gross Profit | $854M | $805M | +6.09% |
Operating Income | $338M | $322M | +4.97% |
Net Income | $254M | $225M | +12.89% |
EPS (Basic) | $1.03 | $0.91 | +13.19% |
EPS (Diluted) | $1.02 | $0.90 | +13.33% |
R&D Expense | $68M | $64M | +6.25% |
SG&A Expense | $448M | $419M | +6.92% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $7.65B | $6.64B | +15.17% |
Current Assets | $2.94B | $2.56B | +15.09% |
Current Liabilities | $1.98B | $1.17B | +69.57% |
Stockholders' Equity | $3B | $2.3B | +30.54% |
Cash & Equivalents | $1.43B | $1.24B | +15.50% |
Long-Term Debt | $2.66B | $2.63B | +1.22% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $182M | $157M | +15.92% |
Investing Cash Flow | $-439M | $-11M | -3890.91% |
Financing Cash Flow | $-332M | $-26M | -1176.92% |
Dividends Paid | $32M | $27M | +18.52% |
Share Buybacks | $300M | $0 | — |
D&A | $24M | $19M | +26.32% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 60.1% | 60.4% | -0.38% |
Operating Margin | 23.8% | 24.2% | -0.40% |
Net Margin | 17.9% | — | — |
ROE | 8.5% | — | — |
ROA | 3.3% | — | — |
Current Ratio | $1.484 | — | — |
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Veralto reported Q2 2026 revenue of $1.42B (+6.8% YoY) and net income of $254M (+12.9% YoY), with diluted EPS of $1.02 (+13.3%). The standout items were strong bottom-line outperformance relative to revenue growth and the initiation of $300M in share buybacks, though a 69.6% spike in current liabilities and -$439M in investing outflows signal significant capital deployment activity.
Based on the filing data, Veralto's diluted EPS came in at $1.02, up 13.3% from $0.90 in Q2 2025, and net income grew 12.9% to $254M. Whether this beat consensus analyst estimates cannot be confirmed from the filing alone, but the double-digit earnings growth represents a strong fundamental performance.
Veralto's revenue grew 6.8% YoY to $1.42B in Q2 2026, up from $1.33B in Q2 2025. This growth was achieved while maintaining a gross margin of approximately 60%, though cost of revenue grew slightly faster at 7.8%, creating a minor headwind to margins.
The most notable financial risk signals in the Q2 2026 filing include a 69.6% surge in current liabilities to $1.98B, which compressed the current ratio to 1.48x, and investing cash outflows of -$439M (vs. -$11M a year ago) suggesting a major acquisition. Combined with $300M in buybacks, total cash deployment far exceeded operating cash flow of $182M, increasing balance sheet risk.
Veralto's financial health is generally solid, with $1.43B in cash, a current ratio of 1.48x, and stockholders' equity of $3.01B (+30.5% YoY). However, the sharp rise in current liabilities and heavy investing outflows suggest the company made a significant acquisition this quarter, and investors should monitor integration progress and near-term debt obligations closely.