Q3 FY26 · Ended Oct 2, 2026 · View SEC filing
Product margins held; overhead took the whole hit
With gross margin steady at 60.2%, the slide to a 19.7% operating margin came from overhead, chiefly restructuring and indemnity.
For investorsWhat has to go right for margins to recover?
For foundersBuilding a product regulated customers rarely switch away from
Pre-tax earnings fell 10.8%, yet net earnings rose 5.9% because the tax bill shrank sharply.
Capital spending took only 1.3% of sales, and free cash rose to $304M even as operating profit fell.
Recurring sales were 62.6% of the quarter and grew faster than one-off sales, so each placement keeps earning.
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Business Lens describes Veralto from its own filings with the SEC. It is not a view on its shares, a target, or advice to buy, sell or hold anything; figures are as filed and may be restated by the company later. The filing is linked above.
