Veralto (NYSE:VLTO) reported better-than-expected revenue in Q2 CY2025, with sales up 6.4% year on year to $1.37 billion. Its GAAP profit of $0.89 per share was 4.3% above analysts’ consensus estimates. The company’s operating margin was 22.8%, in line with the same quarter last year. Veralto provides water analytics and treatment solutions, spun off from Danaher in 2023. The company’s revenue growth over the last four years has been sluggish at 4% compounded annual growth rate. Analysts expect revenue to grow 3.7% over the next 12 months.

Veralto’s operating margin has averaged 22.8% over the last five years, indicating efficient cost structure and economies of scale. The company’s operating margin profit margin for this quarter was 22.8%, stable compared to the same quarter last year. Veralto’s earnings per share (EPS) has been flat over the last four years, below its 4% annualized revenue growth. In Q2, Veralto reported EPS at $0.89, up from $0.81 in the same quarter last year, beating analysts’ estimates by 4.3%.

Key takeaways from Veralto’s Q2 results include beating revenue and EPS expectations, with some key areas of upside. The stock price remained flat at $103.75 immediately after reporting. It is important to consider longer-term business quality and valuation before deciding to invest in the stock.

Read more at Barchart: Veralto (NYSE:VLTO) Surprises With Q2 Sales