VLTO · 10-Q · 2026Q2 · Full report
Comprehensive Income / FX Translation
Veralto Corp · 2026-04-29 · Importance 79 · Surprise 82
Comprehensive income declined by $64 million for the three months ended April 3, 2026 primarily due to foreign currency translation losses; the Company recorded translation losses of $47 million in the quarter versus translation gains of $81 million in the comparable 2025 quarter. The foreign currency translation losses were driven by a strengthening U.S. dollar against most major foreign currencies during the period, and were partially offset by an unrealized gain on net investment hedges of $12 million. The Company holds approximately $1,256 million of cash and cash equivalents outside the United States as of April 3, 2026, which contributes to translation and repatriation exposure. Management characterizes these FX movements as a material driver of comprehensive income volatility for the quarter.
Key facts
- Comprehensive income decreased $64 million for the three-month period ended April 3, 2026 compared to the comparable period in 2025.
- For the three-month period ended April 4, 2025, the Company recorded foreign currency translation gains of $81 million and an unrealized loss on net investment hedges of $22 million.
- The Company recorded foreign currency translation losses of $47 million for the three-month period ended April 3, 2026.
- The Company recorded an unrealized gain on net investment hedges of $12 million for the three-month period ended April 3, 2026.
- Currency exchange rates increased reported sales by 3.5% during the three-month period ended April 3, 2026 compared to the comparable period in 2025.
- The foreign currency translation losses for the three-month period ended April 3, 2026 were driven by the strengthening of the U.S. dollar against most major foreign currencies in the period.
- The foreign currency translation gains for the three-month period ended April 4, 2025 were primarily driven by the weakening of the U.S. dollar against most major foreign currencies in the period.