Reasons Why You Should Retain Veralto Stock in Your Portfolio Now

Veralto Corporation VLTO has an encouraging earnings surprise history, having surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise beat of 6.01%.

Veralto Corporation Price and EPS Surprise

Veralto Corporation price-eps-surprise | Veralto Corporation Quote

VLTO’s revenues are anticipated to increase 6.64% and 4.08% year over year in 2026 and 2027, respectively. Earnings are estimated to rise 7.93% in 2026 and 8.03% in 2027. The company has an estimated long-term (three to five years) earnings per share growth rate of 8.4%.

Factors That Augur Well for VLTO’s Success

Veralto is driving growth in its Water Quality segment through innovative solutions from brands such as Hach, ChemTreat and Trojan Technologies, which help customers monitor water quality, optimize water usage and improve access to clean water. In November 2025, the company agreed to acquire In-Situ Inc. for about $435 million to expand its presence in environmental water monitoring and strengthen the capabilities of OTT HydroMet within its water analytics platform. Additionally, Veralto authorized a $750 million share repurchase program, underscoring its disciplined capital allocation and focus on enhancing shareholder value.

VLTO continues to demonstrate a strong commitment to rewarding shareholders through consistent capital returns. In the fourth quarter of 2025, the company launched a $750 million share repurchase program and increased its quarterly dividend by 18% to 13 cents per share. In March 2026, Veralto reaffirmed this commitment by declaring another dividend of 13 cents per share, payable on April 30. The company maintains a solid track record of dividend payments, distributing $89 million in 2024 and $109 million in 2025, highlighting its shareholder-friendly capital allocation strategy.

The company is driving strong growth in its Product Quality & Innovation segment through brands such as Esko, Videojet, Linx Printing Technologies, Pantone and X-Rite. Esko enables companies to design and manage packaging using advanced software, while Videojet and Linx help manufacturers mark and code packaged goods faster. Pantone sets the global color standard used by more than 10 million designers, and X-Rite helps over 13,000 brands maintain color consistency across printed packaging. Together, these brands strengthen Veralto’s position in the global product-quality solutions market.

Veralto is driving sales growth through its strategic focus on serving data centers. The water- and power-intensive nature of data centers, required to maintain constant uptime, is increasing demand for Veralto’s AI-powered solutions that improve energy efficiency and reduce water consumption. The company is strengthening its capabilities through the acquisition of TraceGains, integrating its cloud-based traceability and compliance software with the Esko digital workflow platform to expand market reach and enhance operating efficiency.

VLTO: Key Risks to Watch

Veralto’s operating expenses have steadily increased from $1.65 billion in 2022 to $1.76 billion in 2023 and $1.90 billion in 2024. This upward trend continued throughout 2025, with expenses jumping 6.4% year over year to $2.2 billion, signaling mounting cost pressures that could weigh on margins and profitability if not managed effectively.

Veralto’s Zacks Rank & Stocks to Consider

VLTO currently carries a Zacks Rank #3 (Hold). 

Some better-ranked stocks for investors’ consideration are Dave Inc. DAVE and Maximus MMS.

Dave currently carries a Zacks Rank of 2 (Buy). The company has an expected earnings growth rate of 9.9% and 20.8% for 2026 and 2027, respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

DAVE has an encouraging earnings surprise history as it has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 54.2%.

Maximus carries a Zacks Rank of 2. MMS has an expected earnings growth rate of 15% and 5.04% for fiscal 2026 and 2027, respectively.

The company has an encouraging earnings surprise history as it has topped the Zacks Consensus Estimate in three of the trailing four quarters, missing in the remaining one, delivering an average earnings surprise of 25.5%.

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

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