Veralto Gears Up to Report Q4 Earnings: What's in the Offing?

Veralto VLTO is set to report its fourth-quarter 2025 results on Feb. 3, after the bell.

The company’s earnings surprise history has been impressive. It surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an earnings surprise of 6.5% on average.

Q4 Expectations for VLTO

The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.4 billion, indicating an increase of 4.3% year over year. The top line is likely to have increased, mainly due to growing demand for water quality and reliability, marking and coding, and packaging, driven by digital tools, AI and autonomous technologies, and increased government funding to address water infrastructure challenges to reduce carbon emissions.

The consensus estimate for Water Quality revenues and operating income is pegged at $836.30 million and $218.30 million, indicating a 3.1% and 9.4% year-over-year increase, respectively. The growth is likely to have been driven by the rising demand for VLTO’s innovative products and services through brands, including Hach, Trojan Technologies and ChemTreat. These digital solutions provide analytical measurement instruments for testing water quality, identifying water challenges and providing tailored chemical treatment plans and dosing protocols to optimize customer water usage and promote maximum reuse. Additionally, the offerings include UV and membrane filtration systems for water disinfection and contaminant removal to improve access to clean water. These combined services are likely to have increased fourth-quarter revenues and operating income in this segment.

The consensus estimate for Product Quality & Innovation revenues is pegged at $555.2 million, with operating income being $145.20 million, indicating a 4% and 17% year-over-year increase, respectively. Overall segment growth is anticipated to have been aided by VLTO’s marking and coding, and packaging and color services tools with brands such asVideojet, Linx, Esko, X-Rite and Pantone, serving the major consumer-packaged goods (CPG), life sciences and pharmaceutical companies. Esko, especially, is expected to have driven core sales growth by expanding software solutions in the mid-market CPG segment in the fourth quarter.

Additionally, the recent acquisition of TraceGains, with its supply chain traceability and compliance expertise, is anticipated to have boosted the company’s growth. The integration of TraceGains’ specialized cloud-based software solutions into the Veralto Enterprise System, specifically its Esko-branded digital workflow, is likely to have expanded VLTO’s market presence and improved its operating efficiency.

The consensus estimate for earnings is pegged at 98 cents per share, indicating year-over-year growth of 3.2%. We expect increasing collective operating income to have benefited the bottom line in the quarter.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for VLTO this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks before they're reported with our Earnings ESP Filter.

VLTO has an Earnings ESP of 0.00% and currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Stocks to Consider

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

Gartner IT has an Earnings ESP of +0.80% and a Zacks Rank of 3. The company is scheduled to report its fourth-quarter 2025 results on Feb. 3.

The Zacks Consensus Estimate for IT’s fourth-quarter 2025 revenues is pegged at $1.74 billion, indicating year-over-year growth of 1.7%. For earnings, the consensus mark is pegged at $3.50 per share, implying a 35.8% decline from the year-ago quarter’s actual. Gartner beat the consensus estimate in each of the trailing four quarters, with the average earnings surprise being 24.4%.

Coherent COHR has an Earnings ESP of +1.03% and a Zacks Rank of 3. The company is scheduled to declare its fourth-quarter 2025 results on Feb. 4.

The Zacks Consensus Estimate for COHR’s second-quarter fiscal 2026 revenues is pegged at $1.63 billion, indicating 13.9% year-over-year growth. The consensus estimate for earnings is pegged at $1.22 per share, implying a year-over-year increase of 28.4%. Coherent beat the consensus estimate in each of the trailing four quarters, delivering an average earnings surprise of 15.1%.

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This article originally published on Zacks Investment Research (zacks.com).

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