Veralto Corp (VLTO) Stock Forecast & Price Target

Veralto exhibited strong financial performance, with a reported revenue of approximately $5.2 billion in 2024, showcasing solid core growth across its segments. The company achieved an organic sales growth rate of 5.1% year-over-year, driven notably by a 6.9% increase in core sales within North America, particularly in the Product Quality and Innovation segment. Furthermore, management forecasts an expansion of operating margins by approximately 30 basis points year-over-year for the fourth quarter of 2025, underpinned by the positive momentum in both the Water Quality and Product Quality segments.

Veralto's adjusted operating margins have declined by 10 basis points year-over-year to 23.9%, indicating potential profitability challenges. Expected cash earnings per share for 2026 are projected to face downside risks, particularly due to anticipated economic pressures, with shares trading at a 4% discount relative to multi-industry peers. Additionally, ongoing inflationary pressures, integration challenges from acquisitions, regulatory hurdles, and intensified competition may adversely affect Veralto's operational performance and long-term growth prospects.