Veralto VLTO is set to report its second-quarter 2026 results on July 28, after the closing bell.
The company’s earnings surprise history has been impressive. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering a surprise of 4.9%, on average.
Veralto Corporation Price, Consensus and EPS Surprise
Veralto Corporation price-consensus-eps-surprise-chart | Veralto Corporation Quote
Shares of VLTO have had a decent run over the past month. The stock has risen 4% compared with the industry’s 1.6% growth. The Zacks S&P 500 composite remained flat during the said time frame.
Q2 Expectations for VLTO
The Zacks Consensus Estimate for revenues in the to-be-reported quarter is pegged at $1.44 billion, indicating a year-over-year increase of 4.9%. The top line is likely to have increased due to sustained customer demand for the mission-critical products and services, and continued execution across its operations.
The consensus estimate for Water Quality ("WQ") revenues and operating income is pegged at $882.9 million and $223.8 million, indicating a 7% and 6.1% 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 its WQ brands such as Hach, Trojan Technologies and ChemTreat.
Recent acquisitions such as In-Situ, which expanded capabilities in water monitoring and environmental solutions, are likely to have boosted this segment in the to-be-reported quarter.
The consensus estimate for Product Quality & Innovation ("PQI") revenues and operating income is pegged at $567.2 million and $141.5 million, indicating a 3.9% and 5.6% year-over-year increase, respectively. Overall segment growth is anticipated to have been aided by VLTO’s marking, coding, and packaging and color services tools with brands such as Videojet, Linx, Esko, X-Rite and Pantone.
The recent acquisition of GlobalVision, which enhances the company's technology offerings and product inspection capabilities in the PQI segment, is likely to have boosted volumes.
The consensus estimate for earnings is pegged at $1.00 per share, indicating year-over-year growth of 7.5%. We expect increasing collective operating income across segments to have benefited the bottom line in the quarter.
What Our Model Says
Our proven model predicts an earnings beat for VLTO this time around. A positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
VLTO currently has an Earnings ESP of +0.77% and carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are a few other stocks from the broader Business Services sector, which, according to our model, also have the right combination of elements to beat on earnings this season.
Visa Inc. V has an Earnings ESP of +0.12% and a Zacks Rank of 2. The company is scheduled to report its third-quarter fiscal 2026 results on July 28.
The Zacks Consensus Estimate for Visa’s third-quarter fiscal 2026 revenues is pegged at $11.37 billion, indicating year-over-year growth of 11.8%. For earnings, the consensus mark is pegged at $3.23 per share, implying an 8.4% increase from the year-ago quarter’s actual. V's earnings beat the consensus estimate in each of the trailing four quarters, with the average surprise being 3.2%.
TransUnion TRU has an Earnings ESP of +0.73% and a Zacks Rank of 3. The company is scheduled to declare its second-quarter 2026 results on July 28.
The Zacks Consensus Estimate for TRU’s second-quarter 2026 revenues is pegged at $1.29 billion, indicating 12.9% year-over-year growth. The consensus estimate for earnings is pegged at $1.14 per share, implying a year-over-year increase of 5.6%. TRU's earnings also surpassed the consensus estimate in each of the trailing four quarters, delivering an average surprise of 6.3%.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Veralto Corporation (VLTO): Free Stock Analysis Report
Visa Inc. (V): Free Stock Analysis Report
TransUnion (TRU): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).