stockrowWhat it does
Veralto Corporation sells technologies and services that help customers monitor and treat water, identify products and manage packaging quality. It was incorporated in 2023 and is headquartered in Waltham, Massachusetts. Jennifer L. Honeycutt is its president and chief executive officer.
The company operates through two segments. Water Quality supplies instruments that measure water conditions, chemicals used in treatment, and systems that disinfect water or remove contaminants. Customers include public and private water utilities, industrial companies, laboratories and others that need to test or treat water. Its products also help customers manage wastewater discharge and water use.
Product Quality & Innovation serves consumer goods, food and beverage, pharmaceutical and industrial businesses. It sells equipment and supplies for printing codes on products and packaging, as well as software and instruments used to design packaging and manage color. Customers use these tools for tasks such as tracking products, meeting labeling requirements and maintaining consistent packaging.
Veralto’s operating companies include Hach, ChemTreat and Trojan Technologies in water, and Videojet, Linx, Esko, X-Rite and Pantone in product quality. Alongside equipment, they provide supplies, maintenance, software and other services used in customers’ operations.
How it makes money
Veralto’s 2025 sales were $5.5 billion; total sales in Q3 2026 grew 7.5% year-over-year.
Water Quality generated $3.3 billion of revenue in FY2025. It sells water-testing instruments and treatment equipment, then provides products and services used with that equipment. Hach sells testing instruments, digital products and consumables; ChemTreat develops chemical treatment plans for customers; and Trojan Technologies supplies ultraviolet disinfection and membrane filtration systems. Water Quality also provides chemical reagents, services and software used on a recurring basis.
Product Quality & Innovation generated $2.2 billion in FY2025 revenue. Videojet and Linx sell systems and consumables for marking and coding goods. Esko provides packaging-design software and imaging systems, while X-Rite supplies color measurement products and Pantone provides color standards. Software offerings include subscriptions and term-based licenses.
Recurring revenue was $3.4 billion, or 61.0% of total revenue, in FY2025. It includes consumables such as reagents, inks and process chemicals, as well as spare parts, maintenance, inspection and software. The company’s installed equipment base supports ongoing sales of supplies and software. Veralto also sells equipment for customer facility upgrades and operational improvements.
Pricing is part of the model alongside volumes and the mix of equipment, services and consumables. Price increases contributed 1.9% to sales growth in 2025 compared with 2024. Veralto says it considers how it prices instruments, services and consumables together, while seeking to cover chemical inflation in ChemTreat.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Recurring | $3.4 billion | 61.0% | 6.67% |
| Nonrecurring | $2.1 billion | 39.0% | 4.89% |
Customers and how it sells
Veralto serves municipal utilities, industrial businesses, food and beverage producers, consumer packaged goods companies and pharmaceutical customers. Its water products are used in applications ranging from community utilities to industrial facilities. Its product quality customers use coding, packaging and color tools to help identify goods and meet quality and regulatory requirements.
The company says Hach serves over 149,000 customers, including public and private water utilities and industrial customers. It also serves a majority of the top 25 global consumer packaged goods brands, and a majority of the top 20 pharmaceutical brands use its Product Quality & Innovation products. No individual customer accounted for more than 10% of Veralto’s sales in 2025.
North America accounted for 48.0% of FY2025 revenue, Western Europe for 22.6%, and high-growth markets for 27.3%. Veralto defines high-growth markets as developing regions including much of Asia, Latin America, the Middle East, Eastern Europe and Africa. Other developed markets include Japan, Australia and New Zealand.
Veralto sells through its own businesses and through representatives and distributors. Approximately 18% of its technology and equipment products are distributed by third parties. Outside the United States, most sales are made by its non-U.S. subsidiaries; in countries with low sales volumes, it generally uses representatives and distributors.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| North America | $2.6 billion | 48.0% | 5.86% |
| High-growth markets | $1.5 billion | 27.3% | 4.81% |
| Western Europe | $1.2 billion | 22.6% | 8.01% |
| Other developed markets | $118.0 million | 2.14% | 2.61% |
Suppliers and costs
Veralto buys metallic and electronic components, chemicals, plastics, petroleum-based products and equipment from other manufacturers. It purchases materials from independent sources around the world. No single supplier is significant to the company as a whole, but some components with particular specifications or regulatory qualifications have only one supplier or a limited number of available suppliers. Veralto uses safety stock, alternative materials and multiple qualified sources in some cases to manage supply disruption.
Oil and gas prices affect freight and utility costs and indirectly affect other purchased materials. Veralto also incurs labor, research and development, manufacturing and distribution costs. Its cost of sales increased $116 million in 2025 compared with 2024, primarily because of higher sales volumes and incremental materials and labor costs, partly offset by productivity improvements.
Veralto has identified inflation in materials tied to oil derivatives, transportation costs and memory prices. It says it largely mitigated the effect of tariffs on profitability in 2025, while tariff pressures continued to varying degrees afterward. Its cost optimization program includes business-process simplification, functional changes and investments in technology and process improvements.
- Revenue$5.5B
- Cost of revenue−$2.2B
- Research and development−$266.0M
- Selling, general and administrative−$1.8B
- Operating income$1.3B
Competitive position
Veralto competes across markets that vary by product and service. It encounters regional businesses, companies specializing in particular markets, and large companies with substantial sales, research and financial resources. Competitive factors include price, quality, performance, delivery speed, technical expertise, service, distribution, product breadth and brand recognition. Veralto says competition has increased as companies enter markets, develop competing technologies or consolidate.
No individual competitors are named in the available company information. Veralto says no competitor offers all of the same product and service lines or serves all of the same markets as the company or either segment.
Our reading: The installed base is a meaningful competitive asset because it supports repeat sales of supplies, software and services, although customers still have alternatives when buying equipment or choosing suppliers.
Our reading: Customer knowledge and brands offer another source of differentiation, particularly where products are used in regulated workflows, but the company must continue to compete on price, performance and support.
Our reading: Intellectual property supports the portfolio as a whole, but no single patent or other intellectual property item is identified as material to a segment or the company, so the evidence does not point to reliance on one protected product.
Growth opportunities
Veralto pursues growth through new products, sales and distribution investments, and acquisitions. In Water Quality, it expects demand from municipal and industrial customers, including recurring purchases associated with installed equipment. The company identifies water scarcity, water reuse and regulatory compliance among the challenges its products address. In Product Quality & Innovation, it expects demand from consumer packaged goods customers and uses new products and software to support packaging and product identification.
The company has introduced a Hach spectrophotometer and ammonia and phosphate analyzers for municipal customers. It also says demand and bookings for digital workflow solutions have been strong as TraceGains and GlobalVision are integrated into Esko’s software platform.
Acquisitions add products and market reach. Veralto acquired In-Situ in January 2026 for approximately $427 million, net of cash acquired, adding environmental water measurement and monitoring products. It subsequently acquired Cleanwater1, which expands its water treatment capabilities. Veralto says it has also acquired AQUAFIDES and Alfaa UV for water treatment applications.
For Q3 2026, Veralto reported 5.1% core sales growth, including 6.4% in Water Quality and 3.2% in Product Quality & Innovation. For the fourth quarter, it expects core sales growth of 5.5%-6.5% and approximately 5% growth from acquisitions. Core sales exclude currency translation and sales from acquired or divested businesses.
- $4.7BFY2021
- $4.9BFY2022
- $5.0BFY2023
- $5.2BFY2024
- $5.5BFY2025
Structural risks
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Economic and project demand: Global and regional economic conditions can affect Veralto’s markets, customer demand and costs. The company has seen project timing delays in parts of packaging and color hardware and, to a lesser extent, water. Municipal spending in China has remained weak.
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Competition and technology: Veralto faces increased competition, including from entrants in low-cost manufacturing locations and emerging companies developing competing technologies. Its growth depends in part on developing and commercializing products and convincing customers to adopt them.
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Supply and tariffs: Supply interruptions, delays and cost increases can disrupt production or delivery. Some specified or qualified components have limited sources, and Veralto cannot assure that tariff pressures will not adversely affect its business in the future.
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Acquisitions and debt: Acquired businesses have sometimes underperformed expectations, and integration, liabilities or unrealized synergies can affect results. Veralto has incurred a significant amount of debt, which may increase.
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Regulation and information systems: Veralto operates under extensive regulatory requirements. Breaches or disruptions of its information systems, violations of data privacy laws, or failure to comply with other regulations can adversely affect its business and financial statements.
Bottom line
Our reading
Our reading: Veralto combines water and product quality equipment with recurring sales of supplies, software and services tied to equipment already in use. Its customer base spans utilities and manufacturers across several regions.
Our reading: The installed base and customer workflows support the business, while competition, input costs and acquisition execution remain important exposures. Project delays can affect hardware sales even when customers continue to buy recurring products.