Do Wall Street Analysts Like Veralto Stock?

Waltham, Massachusetts-based Veralto Corporation (VLTO) is a global technology company focused on essential solutions for water quality and product quality. Its businesses provide technologies that help customers safeguard vital resources, improve product quality, and drive innovation across industries. The company has a market capitalization of approximately $24.4 billion.

Shares of this technology giant have considerably underperformed the broader market over the past year. VLTO has plunged 8.7% over this period, while the broader S&P 500 Index ($SPX) has rallied 19.5%. Likewise, VLTO has declined marginally so far this year, well behind the S&P 500’s 11.6% year-to-date gain.

Narrowing the comparison, VLTO has underperformed the State Street Industrial Select Sector SPDR ETF (XLI), which has climbed 18.9% over the past year and 15.9% year to date.

On July 28, Veralto reported its Q2 FY2026 earnings, with shares rising about 4.4% as results beat estimates for both revenue and earnings. Sales grew 7.5% to $1.47 billion, with core sales growth of 4.2%, led by 5.7% growth in Water Quality. Adjusted EPS rose 19.4% to $1.11.

Veralto raised its full-year 2026 adjusted diluted EPS guidance to $4.35 to $4.43, representing 12% to 14% growth. The company expects full-year core sales growth of approximately 4% to 4.5% and second-half core sales growth of approximately 5% to 6%. For the third quarter, Veralto guided adjusted EPS to $1.06 to $1.09.

For the current fiscal year ending in December 2026, analysts project VLTO’s diluted EPS to increase 12.5% to $4.40. The company’s earnings history is impressive, as VLTO has surpassed consensus EPS estimates in each of the past four quarters. 

Among the 17 analysts covering VLTO stock, the consensus rating is a “Moderate Buy,” based on nine “Strong Buy” ratings and eight “Hold” ratings.

VLTO’s configuration is more bearish than it was a month ago, when the stock had 10 “Strong Buy” recommendations.

On July 30, UBS analyst Joshua Spector maintained a “Neutral” rating on Veralto and raised the price target from $98 to $104.

The mean price target of $111.25 implies 11.9% upside from VLTO’s current share price, while the Street-high target of $123 suggests potential upside of 23.7%.